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token

Tokens are digital assets issued on blockchain networks that represent a certain value or rights. Tokens can be transferred, traded, and stored on the blockchain, and are commonly used to represent asset ownership, access to certain services, or participation in network governance. Tokens are divided into various types, including payment tokens, utility tokens, and security tokens. Payment tokens are used for transactions and payments, utility tokens are used to access specific services or products, and security tokens represent investment rights. The issuance of tokens is usually achieved through smart contracts and is widely applied in decentralized finance (DeFi), non-fungible tokens (NFTs), and other fields.
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ESMA: Soliciting opinions to assess the liquidity of tokenized collateral during the crisis

The European Securities and Markets Authority (ESMA) has released a consultation document to gather feedback from the industry on the risks associated with tokenized collateral in terms of legality, liquidity, and operations. This is to assess whether clearinghouses can acquire and liquidate relevant assets under market pressure and to determine if new EU regulatory measures are needed. ESMA Chair Verena Ross stated that legal certainty, infrastructure interoperability, and appropriate regulation are necessary to create conditions for the safe cross-border operation and scalable development of the tokenized market.Tokenized collateral is entering the European clearing business, allowing banks and investors to more quickly obtain securities to meet margin requirements. This assessment will also review whether current EU rules can support clearinghouses in acquiring and clearing tokenized collateral in the event of member defaults. In July 2025, Eurex Clearing will launch a collateral service based on distributed ledger technology, and JPMorgan has completed its first real-time transaction for Dutch pension investor PGGM.ESMA will also evaluate the tokenized forms of assets held by traditional financial infrastructure, assets originally issued on distributed ledgers, and their relationship with stablecoins, central bank currencies, and tokenized deposits. The European Central Bank system will launch Pontes in September 2025 for settling tokenized asset transactions in central bank currency, which can connect blockchain infrastructure with existing settlement systems.

Nasdaq CEO: Tokenization can unlock tens of billions of dollars of trapped capital in the global financial system, and AI is crucial for 24/7 trading

Adena Friedman, CEO of Nasdaq, stated at the TOKEN 2049 conference in Singapore that tokenizing government bonds, stocks, money market funds, and funds can enhance collateral liquidity and unlock billions of dollars of trapped capital in the global financial system. Over the past year, institutional interest in tokenization has significantly increased, partly due to the U.S. GENIUS Act establishing a regulatory framework for stablecoins.She mentioned that institutional interest is converging with retail demand for around-the-clock trading. The retail ecosystem is about 10 years ahead, but moving towards a fully 7×24 hour market is a massive undertaking for the financial industry, requiring continuous real-time risk and collateral management. She also pointed out that AI is crucial for 7×24 hour trading, and Nasdaq has launched digital agents on its risk management platform, initially providing recommendations, with banks able to take more direct actions in the future. Arjun Sethi, co-CEO of Kraken, stated that companies outside the U.S. are also very interested in tokenization and entering the U.S. capital markets, including a company with approximately $25 million in revenue and larger international firms. Friedman cautioned that not all assets have sufficient liquidity to support a 7×24 hour trading environment.

first_img Tokenized asset platform Securitize launches on-chain trading for U.S. stocks

The tokenized asset platform Securitize announced the launch of Securitize Stocks, providing on-chain trading access to a portion of U.S. stocks for qualified investors in the U.S., EU, and other approved jurisdictions. The first batch of underlying assets includes securities corresponding to AAPL, MSFT, NVDA, GOOG, TSLA, META, AMZN, NFLX, CRCL, SPCX, MSTR, and PLTR, initially traded on Solana through its registered broker-dealer and settled in USDC.Securitize stated that each token is backed 1:1 by the underlying shares and represents a security interest under Section 8 of the U.S. Uniform Commercial Code, retaining dividends and voting rights where applicable, and the shares supporting the tokens will not be lent out. The product adopts a convertible equity token structure, allowing investors to convert their security interests into shares registered on the issuer's transfer agent's roster after the issuer-led tokenization is advanced. Secondary market trading is provided in a regulated manner through its broker-dealer, without relying on exemptions, and is consistent with the U.S. Securities and Exchange Commission's guidelines on tokenized securities.The product is also expected to trade in the 24/7 digital trading venue being developed by the New York Stock Exchange, as well as in the tokenized securities trading venue OKXICE, in collaboration with Intercontinental Exchange, depending on the venue's launch and related regulatory and operational requirements. Upon launch, Jump Trading will act as the market maker through Securitize's existing Solana PropAMM; the initial trading period will cover extended hours, with plans to gradually expand to all-day trading. Ripple Prime plans to support the product launch.

first_img Consensys and ClearToken plan to collaborate to promote around-the-clock settlement of tokenized securities

On October 8, blockchain software company Consensys and post-trade infrastructure company ClearToken announced a collaboration aimed at enabling banks to transfer tokenized assets and cash through 24/7 infrastructure. The two parties plan to connect Consensys's blockchain system with ClearToken's regulated post-trade entities for the settlement of eligible securities using fiat currency, tokenized bank deposits, or stablecoins.The announcement did not put a new public blockchain or settlement venue into production but outlined how the two parties plan to connect tokenization, wallets, distribution, cash flow, and the legal finality of securities settlement. Consensys will provide cryptographic finality, which is the technical certainty that on-chain transactions are immutable; ClearToken is responsible for settlement finality, which is the legal certainty that the transfer of funds or securities is final and irrevocable. ClearToken's securities custody has passed Gate 2 of the Bank of England's Digital Securities Sandbox, and its independent clearing entity still requires authorization from the Bank of England.ClearToken CSD Limited plans to convert eligible securities held by different banks into interchangeable tokenized instruments, using the same ISIN as the corresponding traditional securities. At launch, the custody plan will support FTSE 350 stocks, GBP government bonds, GBP corporate bonds, and non-GBP corporate bonds. The sandbox custody limits are set at £600 million for government bonds, £900 million for GBP corporate bonds, and £1.8 billion for non-GBP corporate bonds. The announcement did not name participating banks, networks, wallet products, or the date of the first transaction.
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