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

How Banks Are Investing in Blockchain - Ripple, CB Insights, UK Centre for Blockchain Technologies 1️⃣ Capital Is Flowing – Between 2020–2024, banks participated in 345 blockchain investments, including 33 mega-rounds. Global funding into blockchain companies surpassed $100B across 10,000+ deals. 2️⃣ Stablecoins & Tokenisation Lead – Stablecoin transaction volumes reached $650–700B per month in early 2025. Tokenized assets are projected to surpass $18T by 2033 (BCG). 3️⃣ G-SIBs Signal Confidence – Global Systemically Important Banks (Citi, J.P. Morgan, Goldman Sachs, MUFG, etc.) have made over 100 blockchain investments, legitimizing the technology. 4️⃣ Real-World Integration – Banks like HSBC, JP Morgan, and SBI are moving beyond pilots into production with tokenized gold, bond issuance platforms, and cross-border payment rails. 5️⃣ Regulation Enables Growth – Clarity from frameworks like MiCA (EU), VARA (Dubai), and the U.S. GENIUS Act is reducing uncertainty and accelerating institutional adoption. Why It Matters - Blockchain is no longer experimental—it’s becoming a pillar of financial infrastructure. - From faster settlement and programmable payments to broader investor access through tokenisation, banks see blockchain as essential to staying competitive. Real Life Example - In 2024, HSBC launched a retail gold token in Hong Kong, giving customers fractional access to physical gold via digital tokens on their mobile app. This marks a shift from theory to tangible consumer products. What Happens Next Expect more banks to: - Scale tokenised asset offerings (bonds, MMFs, commodities). - Partner with fintechs and blockchain firms rather than build in isolation. - Adopt quantum-secure cryptography to future-proof digital assets. - Push for global interoperability and regulatory harmonization.

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.

🔵 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 

Blockchain: The Infrastructure that Banks and Investors Should Not Ignore Recent fraud allegations that MFS (U.K.) and Tri-Color double pledged collateral across multiple lenders is nothing short of alarming. This is not a new risk. It is a structural flaw tied to fragmented systems, delayed verification, paper and e-mail trail with a reliance on representations rather than real time fact-based truth. Every loan could carry a single, immutable record of origination, ownership, lien status, and payment history. Title, servicing activity, and collateral pledges would be visible to authorized participants in real time. A loan cannot be pledged twice if the system of record enforces uniqueness at the asset level. Blockchain eliminates this vulnerability entirely. This is not theoretical; the technology exists today. Every origination event, title transfer, lien, warehouse pledge, repo, securitization and payment is recorded as an immutable, timestamped hash on a public or permissioned ledger. The record cannot be altered. Every counterparty sees it in real time. Double pledging becomes structurally impossible when a single authoritative registry marks each asset as encumbered at the moment of pledge. Warehouse lines reflect the precise collateral position at all times. Principal, interest and tax payments are logged instantaneously on the ledger. If the loan moves to repo or securitization, that event is captured sequentially, in chronological order, with zero latency and no paperwork. Investor can examine the chain of ownership and evaluate the complete payment history. The same process extends beyond loans as it is as easily applied to the securities and futures markets. Every securities transaction, repo, sale and purchase agreement benefit from instantaneous, immutable settlement as does home loans, auto loans, CRE loans, corporate loans. Jamie Dimon wrote in his April 2026 shareholders letter that JPMorgan needs to roll out its own blockchain, as Tricolor and MFS blew up from the exact fraud blockchain would have prevented. Given recent events, the cost of inaction is becoming clearer; Jamie knows this and so do the regulators. In 2026, the age of technological change, the question is not whether blockchain belongs in the credit infrastructure; the question is why it has not been widely adopted. As often is the case, Jamie is spot on in his belief.

Asset tokenization is getting framed too often as a crypto story. This World Economic Forum report makes a different point. It argues that the real shift is market structure. Tokenization can give financial markets a shared system of record, flexible custody, programmability, fractional ownership, and composability. That means better visibility of ownership, faster settlement, lower admin friction, and easier collateral movement across products and venues. The part I found most useful is the report’s focus on where tokenization fits first. It points to issuance, securities financing, and asset management as the clearest use cases. Bonds stand out early. The report notes that 65% of financial institutions surveyed by OMFIF saw bonds as the most likely asset class to be tokenized, and it says DLT can automate up to 2,000 tasks in bond issuance, cut 800 to 1,000 person hours, and reduce book-closing periods by more than 50%. That matters for a simple reason. The first winners in tokenization may not be retail investing apps. They may be treasury desks, issuers, custodians, and collateral managers. Markets with high manual workload, slow reconciliation, and trapped liquidity have the strongest reason to change first. If a process already works well, the case for rebuilding it is weaker. If a process is costly and fragmented, the case becomes stronger. The report also highlights collateral as a major opportunity. It estimates programmable ledger-powered collateral management could unlock more than $100 billion annually in capital that can be redeployed. That shifts the conversation from tokenized assets as investment products to tokenized assets as balance sheet tools. For large institutions, that may be the bigger prize. Another strong point is regional adoption. Advanced markets may use tokenization to improve efficiency at the margin. Emerging markets may use it to leapfrog older infrastructure and widen access. That means adoption paths will not look the same everywhere. In some regions, tokenization is an upgrade. In others, it can be a shortcut. The report is just as clear on the hard part. Tokenization will not scale on tech alone. Legacy integration, weak global standards, limited interoperability, thin secondary markets, and privacy and compliance issues still stand in the way. It even makes a point that tokenization will change intermediary roles, not erase them. That is an important distinction. The next phase is less about replacing institutions and more about rebuilding coordination across them on better rails.  My main read: tokenization is not just about putting assets on-chain. It is about turning financial infrastructure from message passing into shared state. The upside is not only new products. It is cleaner issuance, better collateral mobility, stronger transparency, and a market structure that can work with more speed, clarity, and reach. Report by World Economic Forum

#FinTech | #Payments : "Deposit Tokens: The Banking Response to Stablecoins"  paper argues that the true #innovation of #stablecoins is the public #blockchain platform itself and asserts that commercial banks can directly compete by issuing their own deposit tokens on these networks, combining the efficiency of digital assets with the inherent trust, regulatory compliance, and yield-bearing nature of traditional bank deposits.  Public blockchain as the true innovation: The paper posits that stablecoins have primarily proven the value of the underlying public blockchain, which offers a new, efficient platform for #financialservices that #banks can and should leverage.  Deposit tokens as a direct banking response: Banks can issue deposit tokens—digital representations of commercial bank deposits—on public blockchains to match the speed, 24/7 availability, and programmability offered by stablecoins.  Banks' native competitive advantages: Unlike most stablecoins, deposit tokens can leverage banks' existing trust and regulatory frameworks, and crucially, they can natively pay interest to the holder without requiring complex intermediary structures to distribute yield.  A converging regulatory landscape: The principle of "same activity, same rules," particularly concerning Anti-Financial Crime (AFC) and the FATF Travel Rule, is creating a level playing field where both banks and stablecoin issuers must meet similar high standards for compliance.  Key hurdles for bank adoption: To succeed, banks must overcome significant challenges, including adapting compliance frameworks for DLT, clarifying the capital treatment of tokenized deposits, and integrating new technology with legacy systems. 

This last week, Avalanche has some amazing announcements with major financial players. First, The Onyx by the JP Morgan team has chosen to use Avalanche infrastructure and is connecting their platform to an Evergreen Subnet. Asset and wealth management (AWM) is a 5.5 trillion dollar industry that serves millions of investors and fund managers. The infrastructure and workflows connecting these millions of investors, fund managers, and institutions are incredibly complex. This project between Avalanche, JP Morgan, and Apollo can potentially reduce 3000+ operational steps to 1 automated process for wealth managers, reducing portfolio fees by up to 20% and enabling $400Bn in annual revenue for the AWM industry. Next, Citi announced they are using Avalanche Subnets to test an innovative application that leverages blockchain infrastructure to price and execute simulated bilateral spot FX trades. This on-chain solution enabled real-time streaming of price quotes during trade execution. Greater transparency of price quotes and trade confirmations on-chain, Increased auditability with greater access to immutable data, and RFS applications can be designed to be composable with other smart contracts are a few benefits that blockchain can offer FX trading. Why are institutions choosing Avalanche? Simply put - Avalanche infrastructure is built for the speed, security, and scale that a global industry like asset and wealth management requires. Managing trillions of dollars of assets on-chain securely with unmatched speed and reliability is what Subnets have been designed to do. Evergreen Subnets allow institutions to create a customized blockchain environment to address internal and industry-wide considerations while reaping the benefits of public blockchain infrastructure, innovation, and integrations. This initiative is another step the Avalanche ecosystem takes into real, functioning applications of institutional use cases on chain. There is so much more that Avalanche can do to improve existing financial rails.

The $4 Trillion Digital Money Shift: Stablecoins, Bank Tokens & The Future of Finance We’re witnessing what Citi calls blockchain’s “ChatGPT moment” for institutional finance. The catalysts? Stablecoins and bank tokens - two forms of digital money quietly laying the rails for a system that could move trillions at unprecedented speed and efficiency. This isn’t hype. It’s data + regulation. Here’s what matters most: 🚀 Growth at Record Pace Stablecoin issuance hit $280B by Sept 2025, up 40% this year alone. Citi now forecasts: $1.9T (base case) by 2030 $4T (bull case) 🔄 Stablecoins vs Bank Tokens It’s not either/or - both will coexist. Stablecoins = privately issued, often backed by T-bills. Used for DeFi, trading, remittances, retail. Think high-speed trains of finance. Bank Tokens = issued by regulated banks, linked to deposits. Safer, easier for corporates to integrate. Think modernised tracks alongside old rails. By 2030, bank tokens alone could power $100–140T in annual transactions — more than stablecoins. 🌍 Global Ripple Effects USD Dominance: With 90% of supply pegged to USD, stablecoins are becoming “Eurodollar 2.0.” Citi estimates $1T+ in new demand for U.S. Treasuries by 2030. Emerging Markets: Digital dollars risk undermining local currencies. That’s why hubs like Hong Kong, UAE & UK push for their own-pegged tokens. ⚡ Why Corporates Care For CFOs and treasurers, the benefits are clear: - 24/7 settlement - Liquidity optimisation - Programmable finance The CFTC even called collateral management the “killer app” for stablecoins and bank tokens. ⚠️ Roadblocks Ahead The hurdles are real: Fragmentation: too many blockchains, weak interoperability Privacy: corporates won’t broadcast payments - ZKPs could fix this Accounting: until treated as “cash equivalents,” treasurers face admin headaches 🔮 The Bigger Question If trillions flow into stablecoins backed by ultra-safe reserves, we edge toward narrow banking — banks losing deposits, credit creation squeezed. The trade-off: ✔️ Instant, global, 24/7 liquidity ❌ Potential limits on traditional lending ✅ The Takeaway This isn’t about crypto speculation. It’s about the plumbing of global finance. Stablecoins + bank tokens won’t kill banks. But they will redefine how money moves. Ignoring this $4 trillion shift is no longer an option. Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Views are based on public sources and not tailored to any individual’s situation.

How Tokenized Deposits Could Transform Bank Liquidity Economics Every dollar trapped in pre-funding is a dollar that could be lending, investing or earning yield. Across the global banking system, trillions sit idle in nostro and vostro accounts just to keep payments flowing. Keyrock estimates up to $27 trillion is immobilized this way—what Finextra calls “a vast pool of dead capital.” At current rates, that’s roughly $1.3 trillion in annual lost return. Tokenized deposits don’t reinvent money they make it move efficiently. They are digital representations of existing commercial-bank deposits recorded on a shared ledger, backed by the same legal rights, balance-sheet protections and oversight as today’s deposits. The difference is that settlement becomes instant, atomic and continuous. Instead of holding liquidity in multiple currencies “just in case,” banks can tokenize only what’s needed, when it’s needed. That shift from static to on-demand liquidity releases capital for lending and client activity. Citi, JPMorgan, and DBS are already piloting such models, showing how real-time settlement can free balance-sheet capacity and reduce working-capital drag. Tokenized deposits stay within existing regulatory frameworks. They don’t alter capital or liquidity rules they enhance efficiency and visibility. Each movement is traceable and auditable, giving regulators and participants a shared, verifiable view of liquidity events. The Swift Ledger provides the orchestration layer connecting these deposits safely across networks. It doesn’t replace settlement systems. It coordinates them. By anchoring transactions, synchronizing proofs and enabling atomic PvP (and later DvP) across currencies, it turns fragmented innovation into a connected, compliant system. Asset-agnostic and network-neutral, the Swift Ledger can link tokenized deposits, stablecoins and future CBDCs under shared governance and oversight. Executive takeaway: tokenized deposits unlock trapped liquidity while reinforcing prudential control. The Swift Ledger will turn that efficiency into coordination making institutional money programmable, compliant and always in motion.