Latest news with #BUIDL
Arabian Post
2 days ago
- Business
- Arabian Post
Industry Giants Forge Ahead with Blockchain Adoption
Sixty per cent of Fortune 500 companies are now engaged in blockchain initiatives, according to the second-quarter 'State of Crypto' report from Coinbase. The survey, conducted among executives of America's largest firms, reveals that blockchain is no longer peripheral but central to corporate strategy across sectors. The survey also highlights a dynamic surge in stablecoin use, with supply growing 54 per cent year-on-year. Small and medium-sized US businesses are following suit: about one-third currently use crypto, a share that has doubled since 2024. Among SMBs not yet involved, 46 per cent plan to adopt crypto within the next three years, and 82 per cent view it as a remedy for key financial challenges. Institutional interest remains robust, with over 80 per cent of large investors planning to expand crypto exposure this year. Furthermore, a fifth of Fortune 500 executives perceives on‑chain blockchain efforts as integral to long-term strategy. ADVERTISEMENT The report underscores a notable shift in corporate attitudes: 83 per cent of Fortune 500 executives familiar with crypto or blockchain confirm their companies have launched or are planning initiatives. Of these, the lion's share—approximately 60 per cent—have progressed from pre-launch to live status since 2022. Tech, finance and retail dominate these efforts. Data collection and management rank as leading use cases, followed by infrastructure concerns. Experts describe blockchain as 'foundational' for enhancing transparency and automating operations. Larry Fink, chair and chief executive of BlackRock, noted that blockchain could 'change the whole ecosystem' of securities trading by enabling 'instantaneous settlement' and complete transparency of ownership. Stablecoins, deemed a 'killer application' by Jose Fernandez da Ponte, SVP of Blockchain, Crypto and Digital Currencies at PayPal, have gained traction for facilitating global payments and preserving the dollar's reserve status. BlackRock's tokenised Treasury fund, BUIDL, has outpaced Franklin Templeton, now standing at approximately US $382 million, and is routinely used by hedge funds as collateral. Yet regulation remains a critical concern. According to Coinbase's findings, 90‑plus per cent of surveyed executives insist on the need for new rules specifically tailored to crypto and blockchain technologies rather than adapting obsolete frameworks. Eighty-seven per cent assert that clearer regulation is essential for preserving US leadership in the global financial system. This regulatory environment has significant implications. Coinbase warns the US risks losing up to one million web3 developer jobs and three million related non‑technical positions by 2030 if regulatory ambiguities persist. Its share of global crypto development has already dropped from 40 to 29 per cent over the past six years. ADVERTISEMENT Executives also cite talent shortages: nearly one in three identify insufficient skilled personnel as a major barrier, surpassing concerns about regulation. Among small businesses, half intend to seek finance, legal or tech professionals with crypto expertise in their next hiring round. Despite headwinds, many companies push ahead. JPMorgan Chase executed its first DeFi transaction on a public blockchain, while ExxonMobil piloted crypto‑mining operations powered by excess gas. Retailer Lowe's implemented blockchain and NFTs to combat theft by tracking stolen tools, and Nike integrated apparel NFTs into video games through a collaboration with EA Sports. On the SMB front, crypto usage has grown dramatically. One in three US small and medium enterprises is already harnessing crypto for payments, payroll or treasury functions, up from one in six last year. Among those not yet using crypto, almost half aim to adopt it within three years. Four in five believe crypto could alleviate financial pain points such as transactional delays and steep fees. The report indicates a tipping point. On‑chain U.S. Treasury holdings have topped $1.29 billion, representing a tenfold increase since early 2023. Total assets under management in spot Bitcoin ETFs now exceed $63 billion, and the U.S. stablecoin market cleared $10 trillion in annual transaction volume last year. With blockchain moving from pilot to scale, traditional institutions like PayPal and Stripe are making stablecoin integration simple for merchants and users. Stripe now enables USDC payments across Ethereum, Solana and Polygon, with fiat conversions handled automatically. PayPal supports cross‑border stablecoin transfers in around 160 countries, eliminating transaction charges typically levied by remittance services. These developments coincide with a broader surge in Web3 infrastructure investment. Total value locked in tokenised real‑world assets—ranging from fixed income to environmental credits—is approaching $2.4 billion, with US tokenised Treasuries alone surpassing US $1.2 billion in Q1 2024. Global institutional adoption continues apace, and tokenised assets are projected to reach US $16 trillion by 2030—equivalent to the EU's GDP.
Yahoo
19-05-2025
- Business
- Yahoo
BounceBit Pilots Bitcoin Trading Strategy Using BlackRock's BUIDL as Collateral
BounceBit, a crypto infrastructure provider using features from both centralized (CeFi) and decentralized finance (DeFi), has executed a bitcoin (BTC) derivatives trading strategy using BlackRock's yield-generating tokenized money market fund, BUIDL, to enhance returns. The strategy, to be rolled out to institutions and retail users, consisted of two main components: a bitcoin basis trade, involving a long position in the spot market while shorting futures, and a short position in BTC put options, both collateralized by BUIDL tokens. The basis trade, also known as cash and carry arbitrage, alone generated an annualized yield of 4.7%, with put option writing contributing an additional 15%. Combined with the 4.25% return from BUIDL used as collateral, the total yield exceeded 24%. Integrating BUIDL as collateral helped generate a higher return than strategies collateralized by stablecoins, which do not generate any return. "This strategy allows investors to capture both Treasury Bill yields and funding rate arbitrage returns," Jack Lu, founder and CEO of BounceBit said in a press release exclusively shared with CoinDesk. "BounceBit bridges the gap between Western real-world asset issuers and Asian crypto trading infrastructure, providing new options for yield generation," Lu said. BounceBit is the native BTC restaking chain secured by staking both bitcoin and BounceBit tokens. The network allows BTC holders to earn yields through native validator staking, DeFi ecosystem and a CeFi-like mechanism powered by Ceffu and Mainnet Digital. As of writing, cryptocurrencies worth over $500 million were locked on BounceBit. BounceBit plans to roll out the BUIDL-collateralised strategy to institutional and retail users soon. "The successful pilot is a proof of concept to our new product line BB Prime, which will be available to both retail and institutional users," BounceBit's spokesperson told CoinDesk. "This strategy underpins BB Prime as a new class of CeDeFi applications built on top of RWAs which are traditionally troubled by a lack of utilities beyond just holding for t-bill yield, hindering mass adoption," the spokesperson added. BUIDL, launched in March 2024 by Securitize and BlackRock, is a tokenized investment fund operating on multiple blockchains, including Ethereum, Aptos and Polygon. The token, currently boasting a market cap of $2.88 billion, is backed by short-term U.S. government bonds, boasting a stable value pegged at one dollar per token. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Novogratz's Galaxy Is Talking With SEC About Tokenizing Shares
(Bloomberg) -- Billionaire Michael Novogratz said Galaxy Digital Holdings Ltd. is talking with the US Securities and Exchange Commission about tokenizing its own stock as well as other equities using its digital-asset platform. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NYC Commuters Brace for Chaos as NJ Transit Strike Looms Power-Hungry Data Centers Are Warming Homes in the Nordics The company met with the SEC's crypto task force in March to discuss registering Galaxy's own stock on a blockchain. The company, which managed about $7 billion in assets as of the end of March, begins trading on Nasdaq Friday, after being previously listed only in Canada. The idea is to turn Galaxy's shares into tokens that could be used in decentralized-finance applications, such as lending and trading. The company is hoping to eventually use the process and the technology to tokenize everything from other stocks to fixed income to exchange-traded funds to make them available to US buyers of traditional equities. Last year, Galaxy tokenized a 316-year Stradivarius violin once owned by Russian Empress Catherine the Great to back a loan. Tokenization 'hasn't started in earnest yet, and I am not sure when it will, I have a feeling it's really close,' Novogratz said in an interview. 'We are working with the SEC to tokenize stocks. They believe in crypto, they believe in the power of tokenized networks and this technology. I think you've got to change your horizon for what's possible.' When assets are tokenized, they can potentially be authenticated easier, can settle quickly, and be traded 24 hours seven days a week. They can also be more easily used in lending and borrowing. The SEC's crypto task force recently hosted a tokenization roundtable, where Chairman Paul Atkins likened the transition to tokenized securities to the move 'from analog vinyl records to cassette tapes to digital software decades ago.' Money-market funds like BlackRock's BUIDL are already being tokenized. But the total amount of real-world assets on public blockchains is still tiny compared to assets listed elsewhere — only about $22.5 billion, according to tracker Crypto exchange Coinbase Global Inc. and rival Kraken have talked about wanting to tokenize equities. But regulators have to sign off on a process to make such tokenized securities compliant with existing rules. Galaxy is listing on Nasdaq as competition among public crypto companies intensifies, with many more outfits lining up to go public. eToro Group Ltd., which has crypto-related business, began trading on the Nasdaq this week, with its shares up in the double digits in its debut. Stablecoin issuer Circle, and crypto exchanges Kraken and Gemini are looking to go public as well. The crypto market is rallying once again, after softening earlier in the year. 'I think we had a market high around the inauguration, and now we are about to take off again,' Novogratz, the founder and CEO of Galaxy, said. 'It feels bullish in lots of different ways. There's adoption in the US and all over the world. We are going to ring the bell on Friday, it's the beginning and not the finish.' Cartoon Network's Last Gasp Microsoft's CEO on How AI Will Remake Every Company, Including His DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Why Obesity Drugs Are Getting Cheaper — and Also More Expensive ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Crypto for Advisors: Trends in Tokenizing Real-World Assets
Thank you to our sponsor of this week's newsletter, Grayscale. For financial advisors near Chicago, Grayscale is hosting an exclusive event, Crypto Connect, on Thursday, May 22. Learn more. In today's Crypto for Advisors, Tedd Strazimiri from Evolve ETFs writes about the evolution of tokenization and the value it brings to investors. Then, Peter Gaffney from Inveniam answers questions about what tokenization can do for wealth managers and their clients in Ask an Expert. - Sarah Morton Unknown block type "divider", specify a component for it in the ` option Unknown block type "divider", specify a component for it in the ` option The tokenization of real-world assets (RWAs) has moved beyond buzzword status to become a multi-billion-dollar reality, led by Ethereum. Of the more than $250 billion in tokenized assets, Ethereum commands approximately 55% of the market. From stablecoins and U.S. Treasuries to real estate, private credit, commodities and equities, Ethereum has emerged as the preferred blockchain infrastructure for institutions aiming to bridge traditional finance with the digital asset world. Why tokenization matters At its core, tokenization is the process of converting ownership rights in RWAs into digital tokens that live on a blockchain. This transformation introduces unprecedented efficiencies in settlement speed, liquidity and accessibility. Tokenized assets can be traded 24/7, settled instantly and fractionalized to reach a broader range of investors. For institutions, tokenization reduces costs tied to custody, middlemen and manual processes, while offering transparency and programmability. But while tokenization is a trend that can take root across multiple blockchains, Ethereum's dominance is no accident. Its established infrastructure, widespread developer ecosystem and proven security have made it the go-to platform for major players entering the space. Ranked: Blockchain Networks Supporting RWA Tokenization BlackRock's BUIDL and the rise of institutional tokenization One of the best examples of institutional adoption of tokenization is BlackRock's BUIDL, a tokenized U.S. Treasury fund built on Ethereum. Launched in early 2024, BUIDL allows investors to access U.S. Treasuries via blockchain, offering real-time settlement and transparency into holdings. The fund has rapidly scaled to over $2.5 billion in assets under management, securing a 41% market share in the tokenized U.S. Treasury space. Ethereum remains the dominant chain for tokenized Treasuries, accounting for 74% of the $6.2 billion tokenized US treasuries market. BUIDL isn't just a product; it's a signal that TradFi sees Ethereum as the backbone of the next financial era. Stablecoins: the foundation layer No discussion of tokenization is complete without stablecoins. U.S. dollar-pegged assets like USDC and USDT represent the vast majority (95%) of all tokenized assets. Stablecoins alone account for more than $128 billion of Ethereum's tokenized economy1 and serve as the primary medium of exchange across DeFi, cross-border settlements and remittance platforms. In many developing economies, like Nigeria or Venezuela, stablecoins provide access to the U.S. dollar without needing a bank. Whether shielding savings from inflation or enabling seamless international trade, stablecoins show the real-world value of tokenized dollars, backstopped by the Ethereum network. Tokenized Stocks and beyond Tokenized stocks on Ethereum represent a growing but still nascent segment of the tokenized asset space. These digital assets mirror the price of real-world equities and ETFs, offering 24/7 trading, fractional ownership, global accessibility and instant settlement. Key benefits include increased liquidity, lower transaction costs and democratized access to markets traditionally limited by geography or account type. Popular tokenized stocks include Nvidia, Coinbase and MicroStrategy, as well as ETFs like SPY. As regulatory clarity improves, tokenized equities on Ethereum could reshape how investors access and trade stocks, especially in underserved or emerging markets. Additionally, real estate, private credit, commodities and even art are finding their way onto Ethereum in tokenized formats, proving the chain's adaptability for diverse asset classes. Tokenized RWAs (excluding Stablecoins) Source: as of April 22, 2025. Conclusion Ethereum's dominance in tokenized assets isn't just about being first — it's about being built for permanence. As the infrastructure underpinning real-world asset tokenization matures, Ethereum's role as the financial layer of the internet becomes more pronounced. While newer chains like Solana will carve out niches in the space, Ethereum continues to be the platform where regulation meets innovation, and where finance finds its next form. - , product research associate, Evolve ETFs Unknown block type "divider", specify a component for it in the ` option Q. What are the value drivers of tokenization for a wealth manager? A. The tokenization of assets should come with newfound utility. Financial advisors, wealth managers and other fiduciaries already have access to a wide universe of investment products. Where tokenization adds value is through the infrastructure emerging around tokenized real-world assets, particularly applications enabling the collateralization and margining of asset-backed tokens. Blockchain-based data management systems, like Inveniam, are designed to enable real-time, asset-level reporting to facilitate private asset-backed stablecoin loans, with the same integrity and traceability that exists elsewhere in the crypto space. This allows legacy private asset classes — like real estate and credit — to function similarly to how $30 billion in crypto loans are currently collateralized on platforms like Aave. This new utility is a significant value-add and a differentiating service factor that advisors can offer clients beyond traditional crypto allocations. Q. How does tokenization help advisors achieve their portfolio management goals? A. Alongside benefits like collateralization, advisors also gain greater control over client portfolio allocations through second-order tokenization benefits. Many investment funds across private equity, hedge funds, private credit and commercial real estate have high minimum investment requirements and illiquid secondary trading activity. This 'set it and forget it' mentality leads to inefficient portfolio management, in which advisors either overallocate or underallocate due to the 'lumpiness' of the underlying asset. By contrast, tokenized funds can be fractionalized far more efficiently than existing offerings, meaning advisors can buy in at much lower minimums, such as $10,000 increments, versus millions of dollars at a time. Then as client preferences, positions and portfolios shift, advisors can reallocate accordingly, making use of secondary liquidity venues and ongoing low-minimum subscriptions. This improves an advisor's ability to meet client demands and achieve return targets without being inhibited by outdated practices. - Peter Gaffney, director of DeFi & digital trading, Inveniam Unknown block type "divider", specify a component for it in the ` option SEC Commissioner Hester Peirce stated that 'tokenization is a technology that could significantly impact financial markets. New Hampshire makes history and becomes the first U.S. state to bring into law state investment in bitcoin and digital assets. Morgan Stanley is developing plans to offer direct crypto trading on its E*Trade platform by 2026. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New Indian Express
29-04-2025
- Business
- New Indian Express
Tokenisation can revolutionise India's access to global capital: FalconX CEO Raghu Yarlagadda
BENGALURU: Digital asset prime broker FalconX is betting on tokenisation and artificial intelligence (AI) to drive the next wave of financial innovation - particularly in cross-border payments and real-world asset access. "Most of the world's value will be tokenised," said Raghu Yarlagadda, founder and CEO of FalconX. We believe tokenisation and AI will fundamentally reshape how assets are created, moved, and accessed globally. Tokenisation refers to the process of converting real-world assets, such as real estate, stocks, or digital goods, into blockchain-based tokens, enabling faster, more transparent transactions across a tamper-proof, distributed ledger. From money market funds to real estate, blockchain enables faster, cheaper, and more inclusive access to financial assets, he explained. India stands at a pivotal crossroad in digital finance, Yarlagadda noted, adding that crypto adoption and the India stack (a collection of indigenous digital infrastructure and apps aimed at financial inclusion) provide a foundation for the country to pioneer the next wave of global innovation. In light of evolving regulatory approaches in the US and EU, companies such as Silicon Valley-based FalconX demonstrate the tremendous economic potential that balanced regulation could unlock for India's remittance and capital markets transformation. FalconX, which has processed over USD 1.5 trillion in institutional digital asset volume, provides trading, credit, and custody infrastructure for institutional crypto participants. The company has established a dominant position in the global crypto derivatives market, handling 12-15 per cent of global crypto options trading. But the company's ambitions go beyond trading. The company recently integrated BlackRock's tokenised money market fund (BUIDL) onto its platform, allowing clients to post tokenised collateral while continuing to earn yield. It's a real-world example of traditional finance and crypto coming together, Yarlagadda said. And it's already working at scale. For India, where remittance inflows exceeded USD 125 billion in 2023, such blockchain-based innovations could be transformative. Today, the average global cost of sending remittances is about 6 per cent transaction, according to the World Bank. Settlement times can range from one to five days due to intermediaries like correspondent banks, adding to the complexities. "Blockchain removes the need for multiple middlemen. With crypto rails, peer-to-peer settlements can happen in minutes, not days - and with fees slashed by 50 to 90 percent," Yarlagadda said. FalconX's rise has coincided with global policy shift. "In 2022, FalconX Bravo, Inc., a company affiliate, became the first US Commodity Futures Trading Commission (CFTC) registered swap dealer focussed on cryptocurrency -- a status that allows it to offer derivatives under a clear, regulated framework -- something few global platforms can claim," he said. "Being regulated gives institutions the trust they need," said Yarlagadda. It's not just about compliance, but about creating market stability, deep liquidity, and reducing systemic risk, he added. That strategy is paying off. FalconX's institutional client base has grown rapidly, with the company reportedly moving tens of billions in trading volume back onshore to the US, in contrast to the industry's historical reliance on opaque offshore venues. Now, Yarlagadda is applying the same principles to tokenised finance. The company's AI-powered platform, Focal, is designed to serve as an institutional-grade decision engine, parsing market data and risk signals in real time. The firm also uses machine learning to optimise liquidity aggregation, enabling trades across 70 plus venues covering 94 per cent of global digital asset liquidity. "With the power of blockchain and efficiency of our automated middle-office systems, we've achieved what would take hundreds of people to do manually. We manage a trillion-dollar transaction pipeline with a lean, highly automated middle office," Yarlagadda said. In his view, the impact of such systems will only grow as digital assets go mainstream. In particular, tokenisation could unlock access to traditionally illiquid or fractional assets such as infrastructure bonds, private equity, or real estate sectors where India has deep capital needs and fragmented access. "Imagine tokenising an Indian municipal bond and enabling global investors to buy in, 24/7, from anywhere in the world," Yarlagadda said. "That's not just a technical shift - it's a capital markets revolution," he pointed out. "While some global firms faltered during the crypto winter or regulatory crackdowns, FalconX has doubled down on transparency, risk controls, and US compliance," he noted. India's own leadership in payments (via UPI) and digital public infrastructure gives it a strong base to build on. Yarlagadda believes the next step is unlocking cross-border efficiencies and investment flows through tokenised rails - and doing so with the same emphasis on security and governance that India has shown in other fintech domains. "India has the talent, the tech DNA, and the market size. What's needed now is a regulatory framework that enables innovation while protecting consumers," he said. As FalconX continues its global expansion -- with offices in Singapore, Hong Kong, London and Bengaluru -- it remains closely attuned to developments in India. On March 7, Yarlagadda was among 20 key industry leaders invited to US President Donald Trump's first White House Crypto Summit. "Being invited to the White House was a huge honour, not just for me personally but for the entire crypto industry. It was a pivotal moment where the US government showed that it's open for business when it comes to crypto innovation," said Yarlagadda. Yarlagadda recalls that many invitees that day represented companies that have been working hard to build a regulated and sustainable ecosystem, and the event highlighted how the US is becoming more receptive to the potential of blockchain and digital assets. If the right guardrails are in place, India can become a global leader in digital asset infrastructure. "We're excited to support that journey - technologically, strategically, and hopefully, in time, on the ground as well," Yarlagadda said.
