Latest news with #ProjectCrypto
Business Times
a day ago
- Business
- Business Times
Tokenisation boom? Wall Street still isn't biting, JPMorgan says
[NEW YORK] Despite billions poured into blockchain initiatives promising to reshape finance, the idea of putting traditional assets such as bonds, funds and private credit on blockchain rails has yet to win over major institutional investors. The market for tokenised real-world assets, long touted as crypto's bridge to mainstream finance, remains small, with a total value of just US$25 billion, according to JPMorgan Chase. And most of that, the bank says, is driven by crypto-native firms rather than Wall Street incumbents. For all the hype, the total tokenised asset base remains 'rather insignificant', JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a recent note. Key obstacles include fragmented cross-border regulation, legal uncertainty, and limited trust in the enforceability of smart contracts, or blockchain-based computer programs. 'This rather disappointing picture on tokenisation also reflects traditional investors not seeing a need for it thus far,' the team wrote. 'There is also little evidence so far of banks or customers moving from traditional bank deposits to tokenised bank deposits on blockchains.' Tokenisation, the process of creating blockchain-based representations of real-world assets such as stocks or Treasury bills, has been touted as a way to make financial markets faster, cheaper and more transparent. In theory, tokenised funds could offer near-instant settlement and disintermediate legacy infrastructure. But that vision remains largely theoretical. Some firms are experimenting. Fidelity Investments filed for an 'on-chain' share class of its Treasury money market fund this year. Exchange-traded fund (ETF) and mutual-fund manager VanEck launched its tokenised VBILL fund with similar exposure to government debt. BlackRock's digital liquidity fund, BUIDL, peaked at US$2.9 billion in assets in May before slipping to US$2.3 billion as at Aug 6, according to tracker BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Washington is also paying attention. The US Securities and Exchange Commission recently launched 'Project Crypto', a new initiative under chair Paul Atkins to explore how US markets might adopt blockchain-based settlement. But so far, real-world adoption remains narrow and shallow. Secondary market activity in tokenised bonds and private assets is minimal. Even the US$15 billion in tokenised private credit cited by JPMorgan is heavily concentrated among a handful of players. Still, proponents argue that tokenisation is following a slow but inevitable adoption curve, mirroring the early days of the Internet or ETFs. If regulatory clarity improves and infrastructure matures, some say the technology could eventually reshape the plumbing of financial markets. For now, traditional investors still see limited utility. The existing financial system continues to get faster and more efficient, undermining the need for radical change, while concerns about legal clarity, operational risk, and ecosystem fragmentation persist. 'It remains to be seen how effective regulations would be in addressing institutional investors' hurdles and concerns,' JPMorgan wrote, adding that institutional interest in crypto remains largely confined to Bitcoin exposure. BLOOMBERG
Mint
a day ago
- Business
- Mint
Tokenization Boom? Wall Street Still Isn't Biting, JPMorgan Says
(Bloomberg) -- Despite billions poured into blockchain initiatives promising to reshape finance, the idea of putting traditional assets like bonds, funds and private credit on blockchain rails has yet to win over major institutional investors. The market for tokenized real-world assets — long touted as crypto's bridge to mainstream finance — remains small, with a total value of just $25 billion, according to JPMorgan Chase & Co. And most of that, the bank says, is driven by crypto-native firms rather than Wall Street incumbents. For all the hype, the total tokenized asset base remains 'rather insignificant,' JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a recent note. Key obstacles include fragmented cross-border regulation, legal uncertainty, and limited trust in the enforceability of smart contracts, or blockchain-based computer programs. 'This rather disappointing picture on tokenization also reflects traditional investors not seeing a need for it thus far,' the team wrote. 'There is also little evidence so far of banks or customers moving from traditional bank deposits to tokenized bank deposits on blockchains.' Tokenization — the process of creating blockchain-based representations of real-world assets such as stocks or Treasury bills — has been touted as a way to make financial markets faster, cheaper and more transparent. In theory, tokenized funds could offer near-instant settlement and disintermediate legacy infrastructure. But that vision remains largely theoretical. Some firms are experimenting. Fidelity Investments filed for an 'on-chain' share class of its Treasury money market fund this year. ETF and mutual-fund manager VanEck launched its tokenized VBILL fund with similar exposure to government debt. BlackRock Inc.'s digital liquidity fund, BUIDL, peaked at $2.9 billion in assets in May before slipping to $2.3 billion as of Aug. 6, according to tracker Washington is also paying attention. The US Securities and Exchange Commission recently launched 'Project Crypto,' a new initiative under Chair Paul Atkins to explore how US markets might adopt blockchain-based settlement. But so far, real-world adoption remains narrow and shallow. Secondary market activity in tokenized bonds and private assets is minimal. Even the $15 billion in tokenized private credit cited by JPMorgan is heavily concentrated among a handful of players. Still, proponents argue tokenization is following a slow but inevitable adoption curve, mirroring the early days of the internet or ETFs. If regulatory clarity improves and infrastructure matures, some say the technology could eventually reshape the plumbing of financial markets. For now, traditional investors still see limited utility. The existing financial system continues to get faster and more efficient — undermining the need for radical change — while concerns about legal clarity, operational risk, and ecosystem fragmentation persist. 'It remains to be seen how effective regulations would be in addressing institutional investors' hurdles and concerns,' JPMorgan wrote, adding that institutional interest in crypto remains largely confined to Bitcoin exposure. --With assistance from Olga Kharif and Denitsa Tsekova.
Yahoo
2 days ago
- Business
- Yahoo
How Policy, Innovation, and Market Dynamics Are Driving Institutional Crypto M&A
The financial services industry is at a crossroads, with an indisputable trend of financial services moving into crypto. Digital assets built on the blockchain are transforming the financial ecosystem and shaping its future. Digital assets are no longer living on the fringe of the global financial system — they are becoming central to its future and to the movement of value through the capital markets and payments rails. The relatively small size of the crypto market pales to traditional financial markets, belying the enormous opportunity for digital assets and their growth trajectory. The total cryptocurrency market cap is approaching $3.8 trillion, approximating one segment of the MSCI World Index and dwarfed by the global market cap for equities, projected to reach $128.07 trillion this year. Yet, the capital markets environment is thriving, evidenced by Circle and eToro IPOs and these notable M&A trends: Partnerships: To deepen digital asset strategies – Kraken / NinjaTrader ($1.5B); Coinbase / Derebit ($2.9B); Ripple / Hidden Road ($1.25B); and JPMorgan Chase linking customers to Coinbase wallets, enabling crypto wallet funding via credit card rewards and direct account funding. Private Equity: To enter new market sectors through a portfolio-based acquisition strategy – Carlyle / SurePay (undisclosed); Bain Capital / Acrisure ($2.1B). Cross-Border Deals: To fortify digital transformation and gain a competitive advantage through broader market reach – Robinhood / Bitstamp ($200M); Swyftx / Caleb & Brown ($100M-200M est.). This activity is being driven by a highly-anticipated shift in policy: Regulatory action by the Securities and Exchange Commission (SEC) in 2024 allowed the inclusion of bitcoin and ether in spot commodity-based ETFs. This action, accompanied by the Commodities Futures Trading Commission (CFTC) clarifying the regulatory framework for options on these ETFs, paved the way for institutional investors to enter the market. In Chairman Atkins' first major policy shift, the SEC inaugurated 'Project Crypto' and approved in-kind redemptions for spot BTC and ETH ETFs, allowing authorized participants to create and redeem ETF shares directly in BTC or ETH. In coordination with 'Project Crypto,' the CFTC Acting Chair Pham has initiated 'Crypto Sprint,' seeking to enable 'immediate trading of digital assets' on CFTC-registered exchanges. Also, the SEC's Division of Corporation Finance stated that liquid staking activities covered in its statement issued yesterday do not involve the offer and sales of securities. Legislative action is taking shape with passage of the GENIUS Act and the CLARITY Act working its way through the Senate. It creates a regulatory framework underpinning 'digital commodities' linked to the blockchain, excluding traditional products (bank deposits, commodities, securities, and investment vehicles) and divides primary regulatory oversight between the CFTC and SEC. Once enacted, regulators will be expected to quickly implement regulations and an interim registration framework. Also, the Senate Banking Committee released a discussion draft of the Responsible Financial Innovation Act to establish a larger role for the SEC than in the Clarity Act in classifying digital assets. The Trump administration heralded a new era for the growth of digital assets, reinforced in a comprehensive policy report released last week by the White House Working Group on Digital Asset Markets, with guidelines and recommendations covering stablecoins, digital asset market structure (including custody, token issuance and trading infrastructure), expanded CFTC regulatory authority and safe harbors for developers. Policy and capital markets activities are aligning. Crypto is no longer on the sidelines, it's becoming core infrastructure for the future of finance. The changes we've witnessed so far this year will undoubtedly lead to a robust finish for 2025.
Cision Canada
3 days ago
- Business
- Cision Canada
Bybit Crypto Insights Report: Everything You Need to Know About Project Crypto
DUBAI, UAE, Aug. 6, 2025 /CNW/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, released a comprehensive crypto insights report covering key aspects and lasting impact of the "ambitious regulatory framework" by the U.S. SEC, under the leadership of the new chairman Paul Atkins: Project Crypto. The report summarizes Project Crypto's global ambition and the potential paradigm shifts across sectors under the Project. While uncertainty and decentralized challenges of crypto have long been identified, it is the first time the SEC has taken on the challenging task of consolidating regulatory regimes and integrating critical digital asset infrastructure into the broader economy and technology layer. Key Insights Regulations—making it make sense: Project Crypto attempts to resolve the prolonged issue of legal definitions, and thereby, applicable rules and regulators for the digital asset class. If successful, a single licensing regime, clarity on DeFi, and compliant acceleration of tokenization will allow distributed ledger technology to truly disrupt the current financial order for the better. Deep market impact: The report highlights three areas of interest for analysts, including the institutionalization and standardization of real-world asset tokenization, influence on the global crypto regulatory landscape as the American model cascades to other jurisdictions, and the predictable inflow of VC capital into blockchain and crypto innovation. Risk factors beyond the tech: The pressure is on for the SEC and the current administration, and Project Crypto could be the make-or-break moment for crypto's metamorphosis into the future of finance. The sweeping program does face a wide range of political, technological, and market risks in the medium term. As a leading global authority in technology and finance, the U.S. continues to set the standard across multiple sectors, with cryptocurrency representing a particularly competitive arena. The impact of this landmark project will be both global and enduring. #Bybit / #TheCryptoArk / #BybitReport About Bybit Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 70 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at
Yahoo
3 days ago
- Business
- Yahoo
U.S. CFTC Considers Allowing Spot Crypto Trading on Registered Futures Exchanges
The U.S. Commodity Futures Trading Commission (CFTC) said it is looking to allow the trading of spot crypto contracts on registered exchanges and is seeking input from stakeholders as it looks to implement President Donald Trump's crypto ambitions. The agency wants stakeholders to work with it to provide regulatory clarity on listing spot crypto asset contracts on a CFTC registered futures exchange — also known as a designated contract market (DCM), one of the types of licenses the CFTC administers, Acting Chairman Caroline Pham said in a Monday statement. "Starting today, we invite all stakeholders to work with us on providing regulatory clarity on how to list spot crypto asset contracts on a DCM using our existing authority, as I have previously proposed since 2022," Pham said. "Together, we will make America the crypto capital of the world.' The "listed spot crypto trading initiative" is the first step the CFTC has taken in response to Trump's working group on digital asset markets report that was published last week. The report set out expectations for U.S. regulators, such as that the CFTC will enable the trading of digital assets by providing clarity to the market on areas such as registration and custody. The initiative is also a part of the Securities and Exchange Commission's "Project Crypto" which is a commission-wide initiative that aims to modernize securities rules so financial markets can move onto the blockchain, the technology that underpins crypto, SEC Chairman Paul Atkins said in a release last week. 'Under President Trump's strong leadership and vision, the CFTC is full speed ahead on enabling immediate trading of digital assets at the Federal level in coordination with the SEC's Project Crypto,' said Pham. Stakeholders are encouraged to submit their suggestions on listing spot crypto asset contracts by Aug. 18. Congress is also working on specifying what roles the CFTC and SEC should have in overseeing crypto, with market structure legislation — such as the House of Representatives' Clarity Act — aiming to make the commodities regulator the primary spot market overseer for crypto.
