Blockchain In Finance

This is big news. Tokenization is fast becoming the next battleground for financial infrastructure. Goldman Sachs and BNY Mellon just made one of the boldest moves yet. Tokenization transforms real-world assets into digital tokens - unique, programmable representations of value that can be transferred, tracked, and embedded into automated financial workflows. Goldman Sachs and BNY Mellon are turning traditional money-market funds (MMF) into digital tokens. These funds - a $7.1 trillion global market managed by firms like BlackRock, Fidelity, and Federated Hermes - are commonly used by companies and asset managers to hold short-term cash in safe, interest-earning instruments like Treasury bills and commercial paper. But behind the scenes, they still run on decades-old infrastructure, full of manual steps, cut-off times, and delayed settlements. Tokenization changes that. 𝗛𝗼𝘄? By bringing the same speed, transparency, and automation we expect from modern payments and applying it to financial instruments that haven’t evolved in decades. ·      Instant settlement: Instead of waiting hours (or days) for trades to clear, tokenized assets can settle almost instantly - 24/7, without cut-off times. ·      Programmability: Rules and logic (e.g., eligibility checks, compliance constraints) can be embedded directly into the token - reducing manual oversight. ·      Fractional ownership: Investors can hold smaller, more flexible portions of a fund, which is hard to do in traditional structures. ·      Real-time tracking: Every transfer or ownership change is recorded transparently on a blockchain, improving auditability and risk management. ·      Easier collateralization: Tokenized fund shares can be pledged as collateral or moved between counterparties far more efficiently - a big advantage in treasury and liquidity management. 𝗛𝗼𝘄 𝘁𝗵𝗲 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝘄𝗶𝗹𝗹 𝘄𝗼𝗿𝗸: ·      BNY Mellon will distribute tokenized money-market funds to institutional clients via LiquidityDirect - its cash management platform that helps treasurers and asset managers invest short-term liquidity. ·      Goldman Sachs will record and track ownership of the fund tokens on its private blockchain, providing speed, traceability, and operational efficiency. ·      The offering will support tokenized versions of funds managed by major players like BlackRock, Fidelity, and Federated Hermes. 𝗪𝗵𝘆 𝗻𝗼𝘄? The new U.S. Genius Act gives legal clarity for stablecoins and tokenized assets -removing regulatory uncertainty and unlocking tokenization across mainstream finance. 𝗪𝗵𝗮𝘁’𝘀 𝗻𝗲𝘅𝘁? This could reshape expectations around liquidity, treasury operations, and how financial assets are managed and settled. Custodians and asset managers will need to adapt. Tokenized Treasuries, equities, and real estate are already being tested. Opinions: my own, Graphic source: CNBC 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

NYSE just announced a securities tokenization platform. $40+ Trillion in equities are coming onchain. This is not a pilot or a proof of concept. And not a “crypto experiment.” The New York Stock Exchange (NYSE) is building infrastructure for tokenized securities as a core market primitive. Today’s equity markets still run on legacy rails. • T+2 settlement • Multiple clearing layers • Fragmented global access • Capital locked in intermediaries Tokenization turns things upside down. Under the new regime, onchain securities enable: • 24/7 markets • Near-instant settlement • Atomic delivery vs payment • Global distribution by default But key detail is how NYSE is executing this shift. The existing exchange will keep operating as it does today, while a new tokenized securities platform runs in parallel. Same institution, but two market regimes. This approach allows capital markets to migrate without forcing an abrupt transition or breaking existing workflows. This parallel setup also gives the rest of the industry time to realign: → 𝗥𝗼𝗯𝗶𝗻𝗵𝗼𝗼𝗱 is preparing for equities to trade as programmable, onchain assets. → 𝗖𝗼𝗶𝗻𝗯𝗮𝘀𝗲 is positioning as the gateway for tokenized equity distribution and custody. → 𝗗𝗧𝗖𝗖 is tokenizing clearing, settlement, and collateral to modernize market plumbing. As these players converge, the shift becomes structural rather than theoretical. Settlement cycles collapse. Capital efficiency improves. Market access becomes global by default. When NYSE commits to running both systems side by side, it’s a clear signal. Capital markets are not experimenting with blockchain. They are adopting it. P.S. If this is not proof that web3 is going mainstream, then what is? ________________________________________________________ 👋 I’m Aram, helping web3 leaders & B2B businesses grow on 𝗖𝗿𝘆𝗽𝘁𝗼 𝗟𝗶𝗻𝗸𝗲𝗱𝗜𝗻. ♻️ Repost this to help others in your network. 📌 Follow Aram Mughalyan for daily crypto insights & LinkedIn growth tactics.

Financial Conduct Authority - Progressing Fund Tokenisation 1️⃣ The UK’s Next Big Move in Finance - The FCA has launched CP25/28 – Progressing Fund Tokenisation, outlining how authorised funds can move on-chain using distributed ledger technology (DLT). The UK aims to become a global hub for tokenised asset management. 2️⃣ Efficiency Through Direct Fund Dealing - A new “Direct to Fund” (D2F) model will allow investors to deal directly with funds rather than intermediaries — improving efficiency, cutting costs, and aligning the UK with Ireland’s fund models. 3️⃣ Tokenised Money Market Funds (tMMFs) - The FCA supports using tokenised MMFs as collateral for derivatives — citing pilot projects like Aberdeen Investments, Archax, and Lloyds Bank — enabling faster, transparent, and programmable collateral management. 4️⃣ Pathway to Stablecoin Settlement - The paper explores using qualifying stablecoins (as defined in the upcoming UK regime) to settle fund transactions, laying groundwork for fully on-chain fund operations supported by the Digital Securities Sandbox. 5️⃣ Global Coordination & Project Guardian - The FCA is collaborating internationally with the Monetary Authority of Singapore (MAS) and IOSCO through Project Guardian to harmonise tokenisation standards and cross-border fund interoperability. Real-Life Example - Aberdeen Investments, Archax, and Lloyds Banking Group recently completed the UK’s first live pilot using tokenised MMF units and UK gilts as collateral for FX trades — a clear signal of how regulated institutions can adopt blockchain for operational efficiency. Why It Matters - This marks the institutionalisation of tokenisation. By embedding DLT in the UK’s £14.3 trillion asset management industry, the FCA is unlocking $135 billion in potential savings through faster settlement, lower reconciliation costs, and greater transparency. - It also signals the regulator’s confidence that blockchain can coexist with robust investor protection and regulatory oversight. What Happens Next Expect: - The UK’s first fully tokenised authorised funds in 2026. - Expansion of the Digital Securities Sandbox for on-chain settlement. - Integration of qualifying stablecoins for fund unit transactions. - Wider industry pilots connecting tokenised MMFs, stablecoins, and DLT-based fund registers.

𝐓𝐡𝐞𝐫𝐞 𝐢𝐬 𝐚 𝐬𝐭𝐞𝐚𝐝𝐲 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐡𝐚𝐩𝐩𝐞𝐧𝐢𝐧𝐠 𝐢𝐧 𝐌𝐄𝐍𝐀’𝐬 𝐛𝐚𝐧𝐤𝐢𝐧𝐠 𝐬𝐲𝐬𝐭𝐞𝐦. 𝐀𝐧𝐝 𝐢𝐭’𝐬 𝐛𝐞𝐢𝐧𝐠 𝐩𝐨𝐰𝐞𝐫𝐞𝐝 𝐛𝐲 𝐛𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧. We hear a lot about regulation, hype cycles and price charts. But less about the real infrastructure being built in trade, compliance and financial access across the region. Here are a few examples of how it’s already taking shape: 🔗 𝟏. 𝐂𝐫𝐨𝐬𝐬-𝐛𝐨𝐫𝐝𝐞𝐫 𝐭𝐫𝐚𝐝𝐞 𝐢𝐬 𝐠𝐨𝐢𝐧𝐠 𝐨𝐧-𝐜𝐡𝐚𝐢𝐧. The UAE is building blockchain-powered bridges between countries. Landmark Group and HSBC processed a full blockchain transaction between the UAE and Hong Kong, signaling how banks are starting to bypass legacy systems for faster cross-border transactions. 🕌 𝟐. 𝐈𝐬𝐥𝐚𝐦𝐢𝐜 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 𝐢𝐬 𝐠𝐞𝐭𝐭𝐢𝐧𝐠 𝐬𝐦𝐚𝐫𝐭𝐞𝐫. Blockchain is being tested to power Shariaa-compliant structures. Dubai Islamic Bank signed an MoU with Crypto.com last year to explore introducing tokenized Islamic sukuks and the tokenization of real-world assets. 💱 𝟑. 𝐂𝐞𝐧𝐭𝐫𝐚𝐥 𝐛𝐚𝐧𝐤𝐬 𝐚𝐫𝐞 𝐩𝐢𝐥𝐨𝐭𝐢𝐧𝐠 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐢𝐞𝐬. Across MENA, central banks are exploring central bank digital currencies (CBDCs) to lower cross-border payment costs and boost the traceability and transparency of transactions. The Central Bank of the UAE announced it will launch its Digital Dirham CBDC in the fourth quarter of this year. 📲 𝟒. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐢𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 𝐢𝐬 𝐛𝐞𝐜𝐨𝐦𝐢𝐧𝐠 𝐩𝐫𝐨𝐠𝐫𝐚𝐦𝐦𝐚𝐛𝐥𝐞. Millions across the region are still underserved by the traditional banking system. From stablecoin wallets to blockchain-powered remittances (like Egypt’s National Bank using Ripple for expat remittances), this techology is addressing real socio-economic challenges. 📜 𝟓. 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐢𝐬 𝐛𝐞𝐢𝐧𝐠 𝐰𝐫𝐢𝐭𝐭𝐞𝐧 𝐢𝐧𝐭𝐨 𝐜𝐨𝐝𝐞. The Central Bank of Bahrain developed blockchain-based shared KYC ledgers to streamline compliance and enable secure, consent-driven data sharing among financial institutions. While regulators in the West are still debating frameworks, banks in MENA are piloting and deploying blockchain solutions, from compliance and cross-border trade to CBDCs and financial access. In a region used to leapfrogging legacy systems, could starting later actually mean moving faster?  Curious to know what you think! #Blockchain #Cryptocurrency #UAE #MENA #web3

🔵 The Real World Asset Tokenization Boom: $35.8B and Accelerating 🚀 While Stablecoin surging c. 50% YoY to ~$300B continues to dominate 2025 headlines, Real World Assets (which include tokenized money market funds) more than doubled to $35.8B (↑125% YoY). Together, they represent over $335B in tokenized `assets`—and the how and where reveals the real story about institutional blockchain adoption. 📍𝐂𝐚𝐭𝐞𝐠𝐨𝐫𝐲 𝐆𝐫𝐨𝐰𝐭𝐡 𝐓𝐞𝐥𝐥𝐬 𝐚 𝐌𝐚𝐭𝐮𝐫𝐚𝐭𝐢𝐨𝐧 𝐒𝐭𝐨𝐫𝐲: • Private Credit: +91% to $18.8B (still 52.5% of market)  • US Treasury Debt: +126% to $9.2B (MMFs proving product-market fit)  • Commodities: +194% to $3.1B (tokenization beyond financial instruments)  • Institutional Alternative Funds: +672% to $2.7B (sophisticated capital entering the tokenization space) What's changed in 2025? The top 3 categories dropped from 93.9% to 86.7% of total RWA market share. This is diversification into a maturing asset class infrastructure. 📍 𝐓𝐡𝐞 𝐓𝐚𝐥𝐞 𝐨𝐟 𝐓𝐰𝐨 𝐀𝐫𝐜𝐡𝐢𝐭𝐞𝐜𝐭𝐮𝐫𝐞𝐬: The network data from RWA.xyz reveals a critical distinction in how institutions are approaching tokenization: 𝐑𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐞𝐝 𝐑𝐖𝐀𝐬 (𝐮𝐬𝐢𝐧𝐠 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧𝐬 𝐨𝐧𝐥𝐲 𝐟𝐨𝐫 𝐑𝐞𝐜𝐨𝐫𝐝-𝐊𝐞𝐞𝐩𝐢𝐧𝐠):  • Canton Network: $372.7B across 8,460 assets (95.2% market share)  • Provenance: $13.9B (the Figure Technologies Blockchain – 3.56% market share) • Purpose: Immutable records, legacy custody systems 𝐃𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐞𝐝 𝐑𝐖𝐀𝐬 (𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧𝐬 𝐟𝐨𝐫 𝐅𝐮𝐥𝐥 𝐎𝐧-𝐂𝐡𝐚𝐢𝐧 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭):  • Ethereum: $11.8B across 303 assets (64.2% market share)  • BNB Chain: $1.6B (↑99.56% in 30 days! – 8.53% market share)  • Solana: $757M across 88 assets (4.14% market share) Purpose: Transfer, custody, programmability, composability 📌 𝐖𝐡𝐲 𝐓𝐡𝐢𝐬 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: Stablecoins proved crypto-native payment rails work at scale. Now RWAs are proving the same for yield-bearing assets, lending, and complex financial instruments. Canton's dominance shows institutions are comfortable with blockchain as a "source of truth" layer. But Ethereum's leadership in distributed RWAs—where assets are actually transferable and composable on-chain—signals where the real transformation is happening. We're watching two parallel infrastructures emerge: one for institutional record-keeping at scale, another for genuinely programmable, liquid, interoperable assets. The 672% growth in Institutional Alternative Funds and BNB Chain's near-doubling in 30 days suggests the distributed model is reaching an inflection point. If stablecoins were 2025's proof of concept, RWAs are 2026's infrastructure play. Together, they're rewriting the rails of global finance especially at the institutional level. What's your take? Is blockchain adoption settling into incremental record-keeping upgrades, or are we witnessing the early stages of a deep capital markets transformation that will take off in 2026? #RWA #Tokenization #Blockchain 

What does it take for a fringe technology to crash the gates of mainstream finance?  After my recent post on Bitcoin, a few folks asked for a deeper dive. So I wrote a piece for Financial Express (India) unpacking how Bitcoin crossed the credibility threshold, and what risks still linger.  Here’s the arc:  INSTITUTIONAL ADOPTION IS ACCELERATING Spot ETFs, treasury allocations, and structured products are reshaping accessibility  REGULATORY FRAMEWORKS ARE EMERGING From initial ambiguity to the GENIUS Act in the U.S., with India watching closely.  INVESTOR BEHAVIOR IS SHIFTING Bitcoin's seen less as a speculative bet and more as a long-duration asset.  OPEN QUESTIONS REMAIN Volatility, systemic risk, and the limits of the “digital gold” analogy still challenge the narrative. Bitcoin hasn’t replaced money, but it’s staking its claim in the financial future.  This arc has many lessons for start-up entrepreneurs. Would be interested to hear your take.   #crypto #startups #leadership

Tokenization of public and private market funds is an exciting trend, and JPMorgan just launched a tokenized money market fund. But when we read stories about crypto-currencies, it's important for investors to distinguish between 1) crypto-currencies, 2) stable-coins and 3) blockchain technology. 1) CRYPTO-CURRENCY Our Market Insights team regularly looks at the role of crypto-currencies in financial portfolios. Putting aside the fact that they are not broadly used as a means of exchange, are they helpful as a store of value? Their extreme volatility makes that challenging. They are also not helpful as a diversifier, as they tend to perform well when stocks do well, and poorly when stocks do poorly. Except, oddly, this year, when despite good stock market performance, crypto has been both volatile and overall a poor performer. Bitcoin, the most "blue chip" of the coins, is down 4% YTD this year, compared to the S&P 500 which is up 16%. 2) STABLE-COINS Stable-coins can be a store of value and a means of exchange. But so is the US dollar. And that's not surprising, because many stable coins are backed by USD treasuries or other real currency instruments. What's potentially interesting is their ability to reduce the cost of transactions. The difference between stable coins and other crypto currencies is of course that stable coins are... stable. So they are not attractive as investments, speculative or otherwise. 3) BLOCKCHAIN Both stable-coins and crypto-currencies are based on blockchain technology. But blockchain is a very adaptable and capable technology that can do much more. Any kind of financial transaction or record-keeping can be performed on blockchain, in a way that is highly structured and standardized. This can help reduce the costs of transactions and allow better coordination between parties in complex transactions. For a great overview of stable-coins, check out this article by our resident crypto watcher on the team, Jack Manley: https://lnkd.in/eWiGkXZV

Did you know Visa is using blockchain to redefine how money moves around the world? From instant payments between a small business in Brazil and a supplier in Singapore, to faster cross-border trade between 90+ markets, Visa is leading a new era of financial infrastructure, and it’s happening now. Here’s how: • Visa Tokenised Asset Platform (VTAP) enables banks to issue digital tokens, like stablecoins and tokenised deposits, on public blockchains. This opens up opportunities for 24/7 programmable payments, using smart contracts to automate what used to take days. • B2B Connect, live since 2019, connects financial institutions through a private blockchain to streamline high-value business payments. By bypassing legacy systems, we’re reducing cost, delays, and risk, all while enhancing transparency. • Visa has already processed over $225 million using stablecoins like USDC on Ethereum and Solana, making it easier for freelancers and small businesses, particularly in underserved markets, to get paid faster and more securely. These technologies are not abstract concepts. They're active pilots, real partnerships, and practical solutions that are transforming the payments landscape, including here in Singapore. As someone passionate about innovation that drives inclusion, I’m excited about what this means for businesses in our region. Visa’s approach is blockchain-agnostic, globally connected, and grounded in what matters most: trust, speed, and access. The future of finance isn’t just faster. It’s smarter, fairer, and already here. #VisaSG #Blockchain #Stablecoins

#Crypto :  International Monetary Fund - Financial Stability Board (FSB) Synthesis Paper : Policies for Crypto-Assets. The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have advanced policy and regulatory recommendations to identify and respond to macroeconomic and financial stability risks associated with crypto-assets. The IMF has outlined key elements of an appropriate policy response including macroeconomic, legal and financial integrity considerations and implications for monetary and fiscal policies. In parallel, the FSB and standard-setting bodies (SSBs) have published regulatory and supervisory recommendations and standards to address financial stability, financial integrity, market integrity, investor protection, prudential and other risks derived from crypto-assets. At the request of the Indian G20 Presidency, the IMF and the FSB have developed this paper to synthesise the IMF’s and the FSB’s (alongside SSBs’) policy recommendations and standards. The collective recommendations provide comprehensive guidance to help authorities address the macroeconomic and financial stability risks posed by crypto-asset activities and markets, including those associated with stablecoins and those conducted through so-called decentralised finance (DeFi). This paper describes how the policy and regulatory frameworks developed by the IMF and the FSB (alongside SSBs) fit together and interact with each other, but it does not establish new policies, recommendations or expectations for relevant member authorities. Crypto-assets have implications for macroeconomic and financial stability that are mutually interactive and reinforcing. Widespread adoption of crypto-assets could undermine the effectiveness of monetary policy, circumvent capital flow management measures, exacerbate fiscal risks, divert resources available for financing the real economy, and threaten global financial stability. These risks could reinforce each other, as financial instability can make maintaining price stability more difficult and vice versa; cause destabilising financial flows; and strain fiscal resources. The FSB (along with SSBs) has developed a global framework of recommendations and standards. This framework helps guide authorities’ policy actions to address risks to #financialstability, financial integrity, market integrity, #investorprotection, prudential and other risks associated with crypto-assets. These recommendations and standards apply the principle of “same activity, same risk, same regulation”, establish a minimum baseline that jurisdictions should meet, and aim to address the set of issues common across the majority of jurisdictions

🔴 BNY’s tokenized cash launch reinforces the idea that U.S. capital markets will soon operate with a fully tokenized collateral stack👇 [CONTEXT] On Friday, the world’s largest custodian, BNY Mellon, announced the launch of a service enabling the onchain representation of traditional cash. 👉 BNY Mellon will begin with "collateral and margin workflow use cases,” meaning using tokenization and tokenized deposits to enhance critical institutional workflows, including collateral management, margin calls, and intraday liquidity, before pursuing any broader ambitions in payments. A step-by-step, custodian-led approach. 🎯What will BNY’s clients be able to do? → Use tokenized cash as collateral, notably for margin purposes. → Perform intraday settlement and reconciliation, a significant step forward for position management and treasury operations. All while benefiting from the same legal protections as traditional bank deposits, including deposit-style safeguards and yield treatment, and being available 24/7. This represents a fundamental difference from what is currently developing in crypto-native DeFi. 🌐 For now, the underlying blockchain networks have not been disclosed. However, likely, the service will initially leverage the Canton Network, developed by Digital Asset, which has seen a wave of funding rounds and large-scale experiments with major financial institutions over the past two years. This week, JPMorgan also announced the deployment of its tokenized cash on the Canton Network, following an earlier rollout on Base, Coinbase’s Layer 2 → Other banks are expected to follow with their own tokenized cash offerings, usable under similar conditions, including UBS, Citi, Bank of America, and HSBC. And this is where things are going to get interesting👇 🎯 One more building block toward large-scale tokenization In December, the Canton Network announced a partnership with DTCC, which sits at the center of U.S. capital markets, safeguarding more than $100 trillion in assets and processing over $3.7 quadrillion in securities transactions each year. → Initially, the partnership will focus solely on experiments involving tokenized U.S. Treasuries, before being extended to the largest U.S. equities. → In this race, Nasdaq and Coinbase are already competing fiercely, something that will only accelerate the pace of adoption. If developments continue at this pace, U.S. capital markets could soon operate with a fully tokenized collateral stack, likely unfolding first on semi-public networks such as the Canton Network. …before truly scaling on fully public blockchains like Ethereum (my take). At Blockstories, we’ll be following this closely in our Institutional Briefing, a weekly newsletter on institutional developments in digital assets. To subscribe, you’ll find the link in the first comment👇