tokenization

Goldman Sachs has connected its approximately $100 billion government bond fund FTIXX to the digital asset settlement network Lynq, providing a new subscription channel for institutional-level crypto companies. The fund will be listed on Lynq, with trading handled by tZERO Securities, a broker-dealer registered with the U.S. Securities and Exchange Commission. This is the first external fund introduced to the Lynq network, which previously only had a single investment product.Unlike most blockchain-based fund products on Wall Street, FTIXX has not been tokenized. BlackRock's BUIDL is a tokenized fund, and Franklin Templeton offers tokenized shares of money market funds through BENJI, while Goldman Sachs retains the traditional fund format of FTIXX, with Lynq opening new access channels for digital asset companies. Lynq CEO Jerald David stated that there is a convergence occurring between traditional market participants and digital asset market participants.For institutions using Lynq, FTIXX provides a place to store cash and earn returns during trading gaps, redeemable when needed. David mentioned that clients have been looking for government bond assets on the platform that offer yields different from existing tools. Lynq's partners include B2C2, Wintermute, Galaxy, FalconX, Crypto.com, and Fireblocks. The network operates on a private permissioned Avalanche Layer 1 blockchain and has connected over 30 institutional digital asset companies, with assets exceeding $89 million.

According to CoinDesk, Franklin Templeton has expanded its "Over-the-Counter Collateral Program" to Bybit, allowing users of the exchange to use their tokenized money market fund shares for cryptocurrency trading. Users can use the shares as collateral to borrow stablecoins USDT or USDC, while the underlying assets continue to generate returns. The relevant shares represent approximately $686 million in net assets.The underlying assets will not be transferred to Bybit but will be held off-chain by the regulated custody platform ByCustody, with their value mirrored in the Bybit trading environment, thereby generating returns while releasing trading liquidity. The shares are issued through the Benji technology platform, which is Franklin Templeton's proprietary blockchain-integrated record-keeping and transfer agency infrastructure, currently paying an annualized return of 3.7% based on the latest 7-day interest rate.This is not Franklin Templeton's first foray into over-the-counter collateral partnerships, as it has previously offered tokenized money market funds to Binance and OKX clients. Sandy Kaul, Head of Digital Assets and Innovation at Franklin Templeton, stated that investors can now use collateral more efficiently across major exchanges and earn returns from it, which is crucial for ecosystem growth. This expansion also reflects industry trends, with platforms like Crypto.com and Deribit allowing qualified users to use BlackRock's BUIDL fund as trading collateral.

Tom Lee, Chairman of Bitmine, stated that artificial intelligence and the cryptocurrency industry are gradually merging, with tokenization and AI agents likely becoming the two main driving forces of the next cryptocurrency market cycle.Tom Lee mentioned that BlackRock expects more assets to be tokenized, and financial settlement infrastructure is increasingly being built on cryptocurrency networks. Some fintech companies, such as Revolut, have already begun to build related businesses based on Ethereum. He also stated that AI is driving the formation of the digital economy, while cryptocurrencies provide the digital currency and blockchain infrastructure needed to support this economic system.

According to CoinDesk, French Hill, the chairman of the U.S. House Financial Services Committee, stated that tokenization has shifted from being viewed as a "futuristic" concept during the discussions of FIT21 and the CLARITY Act to a reality that is happening in real-time.He said, "We may really be tokenizing an asset like a real security— in fact, we are doing that right now."

According to three informed sources, the real-world asset tokenization platform Ondo Finance was recommended to potential buyers after founder and CEO Nathan Allman passed away this year. Two sources stated that the relevant contacts occurred after Allman died on May 25. However, it remains unclear who is driving the sale of Ondo Finance.In early August, Allman's estate management filed a lawsuit against Ondo's acting CEO Ian De Bode, accusing him of illegally seizing control and funds of the company, leading to a fierce battle for corporate control. Allman, who died at the age of 32 without a will, left uncertainty regarding the ownership of his controlling shares and a large number of ONDO tokens. After the probate process, his estate was awarded to his parents, Kathleen Allman (77) and Lawrence Allman (82). According to the current court order, De Bode continues to serve as CEO and is responsible for daily operations, but he is not allowed to make significant changes to the company until the control dispute is resolved. One informed source stated that the escalating control litigation is likely to put any sale plans on hold.An Ondo spokesperson denied that the company was seeking buyers, stating that the claims regarding a potential sale are completely false, and that no one in the company has pushed for a sale, participated in sale negotiations, or requested others to do so on their behalf. Ondo was founded in 2021 by former Goldman Sachs executives, is headquartered in New York, and offers tokenized U.S. Treasury bonds and stocks, with product scale exceeding $3.8 billion.

Grayscale's research director Zach Pandl pointed out that the recent "Innovation Exemption" directive issued by the U.S. Securities and Exchange Commission (SEC) is expected to fundamentally change the previous landscape where tokenized U.S. stocks primarily relied on offshore "packaged derivatives" trading, promoting the inclusion of real tokenized stocks with complete shareholder voting rights and dividend rights into the regulated financial system of the United States.This exemption order is valid for 5 years and specifically relaxes two core registration requirements: qualified tokenized trading venues do not need to register as traditional stock exchanges; qualified liquidity providers do not need to register as broker-dealers.Grayscale believes that this marks a significant step as on-chain trading infrastructure is proving to be fully compatible with regulatory compliance and investor protection, and it is expected to drive Congress to advance a broader bipartisan legislative process in the future.

Ondo Finance has launched a new category of on-chain products, Ondo Intelligent Portfolios, which presents curated investment portfolios through a single transferable on-chain token. The first three portfolio tokens are constructed based on BlackRock's customized portfolio strategies for Ondo, allowing qualified investors in eligible jurisdictions outside the United States to gain relevant economic exposure through a single token.Traditionally, diversified, professionally constructed investment strategies typically required access through brokerage accounts and traditional fund structures. Now, these portfolios can be accessed through peer-to-peer transferable tokens issued by Ondo, available in users' existing wallets, exchanges, and DeFi applications, and support automatic rebalancing via smart contracts, programmable integration with the broader on-chain economy, and the combination of multiple asset classes within a single token.The three strategies are BLKHIon (High Yield), BLKDIGon (Diversified Growth), and BLKGRWon (High Growth). Holding the tokens provides economic exposure to the underlying asset baskets; each product is issued by Ondo Global Markets and tokenized by Ondo Finance. Investors only need to mint or redeem a single token to hold tokenized assets with weighted allocations, with positions, weights, and rebalancing visible on-chain in real-time.Lisa O'Connor, Head of Global Model Portfolio Solutions at BlackRock Multi-Asset Strategies, and Co-Chief Investment Officer of Global Solutions, stated that tokenization provides a new digital delivery pathway for portfolio strategies; Ian De Bode, Acting CEO and President of Ondo Finance, mentioned that such portfolios have never appeared on-chain before. Ondo plans to continue expanding this product line in the future.

According to CoinDesk, asset management company ARK Invest announced a partnership with tokenization platform Securitize to tokenize its ARK Venture Fund (ARKVX), initially issuing it on Ethereum, with potential expansion to other blockchains in the future. The fund invests in private and public companies, with holdings including OpenAI, Anthropic, Stripe, and Databricks. ARK founder and CEO Cathie Wood stated that bringing the ARK Venture Fund on-chain is a natural extension of its mission to democratize investment in disruptive innovation.Securitize CEO Carlos Domingo stated that this move provides investors with diversified exposure to popular private tech companies, allowing them to hold both OpenAI and Anthropic simultaneously if they are uncertain about which will win the AI race. He also noted that tokenization does not put these companies or their shares on-chain; instead, investors receive an on-chain representation of the fund's equity, while the underlying assets remain private, but user investments are liquid. Securitize also plans to provide daily net asset values and support on-chain market trading of fund equity.This collaboration builds on the existing relationship between the two parties, as ARK made a strategic investment in Securitize last year. Currently, Wall Street asset management companies are accelerating the introduction of traditional financial products to the blockchain, with early attempts like BlackRock's BUIDL and Franklin Templeton's BENJI fund primarily focused on U.S. Treasury and money market products, now expanding into stocks and private markets.

According to CoinDesk, digital asset investment firm RockawayX announced an investment of $150 million to launch the Catapult program, aimed at bringing more private credit and other yield-generating real-world assets on-chain, betting that lending linked to the real economy will become one of the largest markets in the crypto space.The investment firm, which manages approximately $2 billion, stated that Catapult will provide venture capital, product structuring, liquidity, market making, and distribution support for tokenized credit products. RockawayX currently operates early-stage venture funds, market-neutral funds providing liquidity to DeFi protocols, and a vault business deploying about $300 million, and acquired the crypto hedge fund Relayer in August.According to RWA.xyz data, the scale of tokenized real-world assets such as bonds, stocks, and funds has rapidly grown to approximately $38 billion, but more than half of this is tokenized money market funds. RockawayX expects this market to reach $10 trillion to $20 trillion by 2030, a target higher than the $5.5 trillion benchmark forecast provided by Citigroup analysts. Catapult will focus on areas such as trade and supply chain finance, asset-backed securities, CLOs, and real estate-related credit.RockawayX CEO Viktor Fischer stated that following transactions, yields will become the largest application scenario on-chain, requiring new yield sources of over 12% that are uncorrelated with the crypto market. He pointed out that the appeal of bringing low-liquidity assets on-chain lies in the fact that even if the underlying investments have long redemption periods, market makers can create exit channels.

Tom Lee, the chairman of the Ethereum treasury company BitMine, stated that cryptocurrency concept stocks have led the way in the third quarter, viewing this as a signal for the start of a bull market. This cycle is different from the past ones driven by ICOs, NFTs, meme coins, and stablecoins, as it now includes tokenization, AI, and a more favorable regulatory environment, with broader participation in funding.After years of consolidation, the market may welcome a clearer breakthrough, with upward potential possibly exceeding previous cycles. Tom Lee also expressed optimism for Ethereum, believing it will strengthen due to Wall Street's tokenization implementation, and thinks ETH has a chance to challenge its previous high within the year.

According to a post by Watcher Guru, the Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Mike Selig, stated that the agency is preparing for onchain systems, mass tokenization, 24/7 trading, and agentic finance.The preparation directions mentioned by Selig include onchain systems, mass tokenization, 24/7 trading, and agentic finance.

According to Bitcoin Magazine, BitGo's CEO Mike Belshe stated in an interview on Bitcoin Magazine's BMTV that the core of tokenization is not trading, but rather expanding access.He pointed out that the current financial system can be traced back to the paper stock certificate crisis of the 1960s, when the New York Stock Exchange had to halt trading every week to complete physical stock deliveries, and the framework built to solve this problem still primarily serves large institutions.Belshe believes that the inability of retail investors to borrow against assets and the necessity to sell assets is a key reason driving the K-shaped economic divergence. He discussed how "phantom stocks" and tokenized stocks could change this situation and mentioned that long-term confidence of holders can be demonstrated through proof of reserves and setting time locks for shares.The interview also covered the new centralized risks that may arise from custodial concentration, how multi-signature and MPC can eliminate single points of failure, the aspects that still need to be supplemented in the U.S. regulatory framework beyond clarity, and the role of AI agents in asset management. Belshe also explained the true meaning behind his previous comments about the dollar going to zero.

According to Cointelegraph, the European Securities and Markets Authority (ESMA) will establish a new EU strategic regulatory priority themed around digital innovation starting in 2027, initially focusing on AI and tokenization.Regulatory authorities in EU member states will identify emerging areas of tokenization, documenting how businesses use or plan to use AI and tokenization technologies in products and processes that directly affect investors, and conducting preliminary checks on some of the most affected companies.ESMA stated that the risks that need to be prioritized include biased or misleading AI outputs, products that are difficult for investors to understand, and reliance on a few third-party service providers. This priority will be advanced in parallel with the regulatory priority for cyber and operational resilience that will be launched in 2025.

According to PR Newswire, Blockchain.com and the New York Stock Exchange Group (NYSE Group) announced the signing of a memorandum of understanding (MOU), planning to provide Blockchain.com’s global users with trading access to tokenized U.S. listed stocks and ETFs through the digital ATS platform previously announced by NYSE, with the implementation still pending regulatory approval.The cooperation includes two-way market data distribution: ICE Data Services, a subsidiary of NYSE, plans to distribute Blockchain.com’s cryptocurrency market data and analysis to its subscription clients; Blockchain.com will integrate data sources from ICE and NYSE to provide real-time stock quotes for over 44 million registered accounts.Citi Institute predicts that the market size of tokenized assets will reach $5.5 trillion in the baseline scenario by 2030. Tokenized stocks offer advantages such as fragmented ownership, round-the-clock trading, access for global investors, and faster on-chain settlement.

According to Fortune, MoonPay announced the acquisition of North Capital Investment Technology, a brokerage service company based in Utah, USA, which provides custody, secondary market trading, and asset tokenization services for debt, equity, and other assets.MoonPay did not disclose the transaction amount, but sources familiar with the matter revealed that the deal is an all-stock transaction valued at over $60 million. North Capital holds several licenses related to the U.S. Securities and Exchange Commission (SEC), including broker-dealer, alternative trading system (ATS), transfer agent, and investment advisor licenses. MoonPay plans to leverage this to expand its tokenization business for stocks and more.

SharpLink CEO Joseph Chalom stated that as AI agents integrate with stablecoins, tokenization of real-world assets, and DeFi, the global financial services industry will face a revenue redistribution of over $1 trillion annually by 2030, potentially reaching $4 trillion by 2035.Chalom indicated that AI agents will become the automation layer of the new financial system, capable of continuously managing investors' financial activities, including finding lower banking, trading, and borrowing costs, optimizing savings returns, constructing portfolios, dynamic rebalancing, and managing loans and credit card debt. He anticipates that by 2030, AI agents could save investors about $350 billion annually by reducing fees, with this figure increasing to $1.4 trillion by 2035, equivalent to eliminating nearly a quarter of the costs in the global financial industry.Stablecoins, tokenized real-world assets, and DeFi will provide AI agents with 24/7 programmable financial infrastructure, enabling agents to view asset ownership, prices, collateral requirements, and lending opportunities within the same blockchain environment, and autonomously complete asset transfers, collateralization, lending, and settlement. He also mentioned that financial institutions including Visa, Mastercard, Stripe, PayPal, Circle, Tether, Robinhood, Coinbase, Binance, as well as JPMorgan, Citigroup, and BlackRock are competing for the infrastructure and user entry points of the AI agent financial ecosystem. Whoever controls the infrastructure and agents may capture the value generated when agents trade on behalf of clients.Additionally, Chalom pointed out that the infrastructure such as the x402 machine-to-machine stablecoin payment standard launched by Coinbase and Ethereum's ERC-8004 agent identity protocol is forming a new open agent economy. More than 10,000 AI agents have completed registration within 10 weeks of the ERC-8004 going live.

Jamie Selway, the Director of the Division of Trading and Markets at the U.S. Securities and Exchange Commission, stated on Bloomberg TV: Tokenization and cryptocurrency have recently been politicized, but this is not their inherent nature. The success of the nation in developing these markets should receive strong bipartisan support.