Tokenized assets gain new settlement rails
Central bank money is now available for tokenized settlement in the euro area, US regulators set out conditions for tokenized funds and bank-issued stablecoins, and UK banks completed their first live tokenized-deposit payments.
Market data
Current market capitalisation of tokenized real-world assets by category, with the largest tokens in each segment, is in the Coretos RWA Tracker.
The Eurosystem starts settling tokenized assets in central bank money
On 21 September the Eurosystem — the European Central Bank (ECB) and the euro area’s national central banks — launched Pontes, a service that lets wholesale transactions in tokenized assets settle in central bank money by linking distributed ledger technology (DLT) platforms to the Eurosystem’s payment infrastructure. The first group includes four DLT operators — Axiology, Cashlink, Clearstream and SWIAT — and institutions such as Deutsche Bank, Santander, Société Générale and the European Investment Bank; more features and longer operating hours are to be added step by step, with full implementation expected by 2028.
The same day, the ECB said it will invest a small part of its own funds in euro-denominated tokenized securities issued by euro area governments, agencies and European supranational institutions, settled through Pontes. The size and timing of those purchases have not yet been set.
Why it matters: Settlement in central bank money gives delivery-versus-payment transactions on DLT the same kind of cash leg that conventional euro securities settlement uses, and a central bank as a prospective buyer adds a reason for public-sector issuers to test tokenized issuance. Platforms that can connect to Pontes, directly or through a connected operator, will be better placed for bank and public-sector work.
Source: European Central Bank
US futures regulator’s staff set conditions for tokenized Treasuries and money market funds
On 24 September staff of the US Commodity Futures Trading Commission (CFTC) updated their frequently asked questions (FAQs) on crypto assets and blockchain. Futures commission merchants (FCMs) — the brokers that hold clients’ margin — may invest customer funds in tokenized forms of investments they are already allowed to hold, such as US Treasuries and government money market funds (MMFs). The token must give “the same or functionally equivalent” legal and economic rights, the existing investment limits must be met and the tokens must be held at an acceptable depository; for tokenized government MMFs, a written acknowledgment letter from the custodian is expected.
The FAQs also state that the CFTC’s record-keeping rules are technology neutral, so registrants may keep required records on a blockchain if they meet the existing requirements.
Why it matters: Staff guidance is not a rule change, but it gives issuers of tokenized Treasury and MMF products a defined checklist — equivalent legal rights, eligible custody and custodian acknowledgments — for use in futures-market cash management. Products designed to meet those conditions from the start will be easier for brokers to accept.
Source: Commodity Futures Trading Commission
Federal Reserve proposes reserve and capital rules for the stablecoin issuers it supervises
On 24 September the Federal Reserve Board asked for comment on two proposals under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The first would require the payment stablecoin issuers it supervises to hold full backing in permitted reserve assets, such as short-term Treasury bills, and would set capital, risk-management and safekeeping standards. The second sets out how Board-supervised banks apply to issue payment stablecoins; comments are due 60 days after publication in the Federal Register.
Why it matters: Stablecoins are widely used as the cash leg of on-chain transactions. The reserve, capital and approval requirements that US bank regulators settle on will determine which banks issue their own coins and what settlement assets tokenization platforms can offer institutional clients.
Source: Federal Reserve Board
Seven UK banks complete first live customer transactions with tokenized deposits
UK Finance, the banking industry association, said on 24 September that Barclays, HSBC UK, Lloyds Banking Group, Monzo, Nationwide, NatWest and Santander have completed the first live customer transactions on the Great British Tokenised Deposit (GBTD) platform, built by Quant. They included two remortgage completions, in which funds were locked and then released automatically at completion, and a purchase from a private seller in which payment was released only once the exchange took place.
Further pilots over the coming months are planned to link tokenized customer money with digital assets, including digital debt instruments whose coupons are paid in tokenized deposits.
Why it matters: Tokenized deposits are ordinary commercial bank money in programmable form. A working multi-bank network in sterling would give UK issuers a regulated cash leg for on-chain settlement that does not depend on stablecoins.
Source: UK Finance
Coalition forms to set standards for issuer-sponsored tokenized shares
On 24 September the exchange operator Bullish and the share registrar Equiniti announced the Issuer Sponsored Token Coalition, with Alpaca, Apex Fintech Solutions and DriveWealth among the first participants. The group plans technical standards and operating frameworks so that tokenized shares are connected to the issuer’s official shareholder register and keep voting, dividend and corporate-action rights. Participation is open to further firms and non-binding.
The announcement came a week after the US Securities and Exchange Commission (SEC) issued an “innovation exemption” on 17 September, giving qualifying venues temporary, conditional relief to trade tokenized versions of US-listed National Market System (NMS) stocks.
Why it matters: With on-chain trading of listed shares now possible in the US, the open question for issuers is who issues the token and keeps the register. Shared standards for issuer-sponsored tokens would let shares move between brokers, venues and blockchains without holders losing their rights.
Source: Bullish and Equiniti (GlobeNewswire)
Hana Bank issues a same-day-settled digital bond on Euroclear and lists it in Singapore
South Korea’s Hana Bank has issued USD 100 million of five-year floating-rate digital bonds on Euroclear’s blockchain-based Digital Financial Market Infrastructure (D-FMI), the first Korean bank to do so, Standard Chartered announced on 23 September. The notes settle on the same day as the trade (T+0), were issued under the bank’s existing Global Medium Term Note (GMTN) programme and, according to the release, are the first digital bond listed on Singapore Exchange (SGX) Group. Standard Chartered acted as sole structuring bank, lead manager and dealer.
Why it matters: The bond used an existing funding programme, and investors trade it through their usual Euroclear accounts. That shows banks a way to adopt digital issuance inside current documentation and investor workflows, rather than on a separate platform with its own onboarding.
Source: Standard Chartered
ARK Invest tokenizes its venture fund with Securitize
ARK Invest and Securitize announced on 24 September the tokenization of the ARK Venture Fund (ARKVX), an interval fund — a closed-end fund that offers to buy back shares at set intervals rather than daily — with holdings in private and public companies. Tokenized ARKVX will be available on Ethereum to eligible investors, with Securitize providing the issuance and investor-access infrastructure.
Why it matters: Funds holding private companies are a natural candidate for tokenized distribution, but a tradable token does not change the fund’s liquidity terms. Investor eligibility checks, transfer-agent records and redemption windows have to be built into the platform.
Source: ARK Invest and Securitize (PR Newswire)
This brief is for information only and is not investment advice.