Latest news with #blockchain
CTV News
24 minutes ago
- Business
- CTV News
What is tokenization and is it crypto's next big thing?
An advertisement for the cryptocurrency Bitcoin is displayed on a building in Hong Kong on Nov. 18, 2021. (AP Photo/Kin Cheung, File) NEW YORK — Tokenization has long been a buzzword for crypto enthusiasts, who have been arguing for years that blockchain-based assets will change the underlying infrastructure of financial markets. The technology is seen as rapidly increasing in coming years, especially in the U.S., helped by the passage of three new bills. President Donald Trump's administration has eased regulation of the broader crypto industry, paving the way for a boom in the valuation of companies in the sector and the rapid growth of crypto-related securities. However, the growth of the market for tokenized assets has been far slower than expected in recent years, with many projects still in their infancy or not yet live. How does tokenization work? The term 'tokenization' is used in a variety of ways. But it generally refers to the process of turning financial assets - such as bank deposits, stocks, bonds, funds and even real estate - into crypto assets. This means creating a record on digital ledger blockchain that represents the original asset. These blockchain-based assets, or 'tokens,' can be held in crypto wallets and traded on blockchain, just like cryptocurrencies. Where do stablecoins come in? Stablecoins can be seen as an example of tokenization. They are a type of cryptocurrency designed to maintain a constant value by being pegged to a real-world currency, typically the U.S. dollar. The issuer holds one U.S. dollar in reserve for every dollar-pegged crypto token it creates. Stablecoins are blockchain-based tokens acting as a proxy for an asset that already exists outside the blockchain. They allow people to move money across borders without interacting with the banking system. While critics say that this makes them useful for criminals who want to avoid banks' anti-money laundering checks, stablecoin issuers say that they are a lifeline for people in countries without a developed payments system. Are tokenized assets taking off? Yes and no. Stablecoins have grown in recent years, with the market estimated to be worth about US$256 billion, according to crypto data provider CoinMarketCap, and expected to touch US$2 trillion by 2028, according to Standard Chartered. But banks have talked for years about creating tokenized versions of other types of assets, which they say will make trading more efficient, faster and cheaper, and those 'tokens' have struggled to gain traction. While there have been individual issuances, there is not a liquid secondary market for these kinds of assets. One impediment to trading traditional assets via blockchain is that banks are working on their own private networks, making it difficult to trade across platforms. What are the pros of tokenization? Some proponents of the crypto industry have said tokenization can improve liquidity in the financial system. Illiquid assets like real estate could be traded more easily if they are broken up into small digital tokens. It is also expected to improve access to asset classes that are typically out of reach of smaller investors by creating a cheaper entry point. Which companies are interested in tokenization? Some major global banks, including Bank of America and Citi have said they could explore launching tokenized assets, including stablecoins. Asset manager BlackRock is also doubling down on the tokenization boom, and has highlighted its ambition of becoming the largest cryptocurrency manager in the world by 2030. Coinbase, the largest U.S. crypto exchange, is seeking permission from the SEC to offer 'tokenized equities' to its customers. How does new regulation help tokenization? Since stablecoins themselves are tokens and seen as one of the biggest drivers of the growth of tokenization, the new stablecoin law will end up boosting the proliferation of tokenization, experts say. The new market structure bill, known as the Clarity Act, is expected to establish a clear framework that could enable stablecoins and other crypto tokens to become more widely used. What are the risks? Some analysts say the hype around tokenization might be premature and caution that the rapidly growing crypto ecosystem could experience near-term turbulence due to the potential risks of a big decline in prices. European Central Bank President Christine Lagarde has warned stablecoins pose risks for monetary policy and financial stability. Some critics of the industry warn the frenzy around the new technology could introduce new systemic risks, especially in the absence of stringent regulation. They also say there is no reason why blockchain should be any more efficient than the electronic ledgers and trading systems already used in financial markets. Buyers of third-party tokens, which are issued by unaffiliated third parties - such as crypto exchange Kraken - that have custody of securities, could be exposed to counterparty risks, and regulators are sounding notes of caution. Earlier in July, Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission who has frequently spoken positively about cryptocurrency, said tokenized securities would not be able to circumvent existing securities laws. More than half of the world's U.S. dollar stablecoins are issued by a single company, Tether, which says it manages US$160 billion in reserves, but has not undergone a financial audit. --- Reporting by Anirban Sen in New York; Additional reporting by Chris Prentice and Elizabeth Howcroft; Editing by Megan Davies, Tommy Reggiori Wilkes, Nia Williams
Yahoo
an hour ago
- Business
- Yahoo
Alexander Hamilton's bank, Goldman Sachs embrace digital tokens to trade money markets 24/7
Goldman Sachs (GS) and the Bank of New York Mellon (BK) are teaming up to make it easier for institutional investors to trade money market funds 24/7 by using blockchain technology to "tokenize" the assets. The collaboration between the Wall Street investment giant and a 241-year-old bank founded by Alexander Hamilton is the latest example of how venerable financial firms are pushing further into the digital asset realm as the crypto industry gains more favorable regulatory treatment in Washington, D.C. Goldman Sachs and Bank of New York Mellon will use a proprietary tokenization platform developed by Goldman to maintain the record-keeping of select Bank of New York Mellon money market funds. Money managers BlackRock (BLK), Federated Hermes, and Fidelity Investments have also signed up for the launch. Proponents see the value of putting money markets on blockchains as coming down to raw efficiency, where time and, therefore, costs of transferring interest-bearing cash instruments could be reduced. In that way, they serve the same purpose as interest-bearing, dollar-pegged stablecoins. A big use for these assets within the crypto world is via cryptocurrency exchanges that accept shares of tokenized money market funds as collateral for loans. "As the financial system transitions toward a more digital, real-time architecture, BNY is committed to enabling scalable and secure solutions that shape the future of finance," Laide Majiyagbe, BNY's global head of liquidity, financing, and collateral, said in a statement with the press release. Read more: Can you buy crypto with a credit card? See the pros and cons. Majiyagbe called the effort with Goldman Sachs "a first step." The company will not solely rely on a blockchain for record-keeping. Instead, BNY will still maintain the official books, records, and settlement for the funds within the current guidelines for money market funds. The attention for Goldman's tokenization platform, known as GS DAP, comes roughly half a year after the Wall Street bank announced its intent to potentially spin it out as a "an industry-owned distributed technology solution." That ambition is "still in progress," according to a Goldman Sachs spokesperson. "We are excited about this strategic collaboration with BNY in our journey towards the longer-term vision," Goldman Sachs head of digital assets Mathew McDermott said of the tokenization platform in a statement with the press release. As of now, there are more than 40 tokenized money market funds, though most of them have less than $1 billion in assets, according to JPMorgan Asset Management's Teresa Ho Kim. BlackRock's $2.4 billion BUIDL fund represents roughly half of the nearly $5 billion market. Old Wall Street firms and newer players like Robinhood (HOOD), Coinbase (COIN), and Circle (CRCL) have all eyed the chance to tokenize a range of assets. One clear place where proponents have signaled they can reduce costs is in cash instruments. "It is shocking how much friction still exists with just cash. It's unbelievable. And the ability to just make that also be better, faster, cheaper, I think we all know there's a lot of opportunity there," BlackRock COO Rob Goldstein said last month while speaking about tokenization at a New York conference hosted by Coinbase. David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance. His email is Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio
Yahoo
an hour ago
- Business
- Yahoo
Alexander Hamilton's bank and Goldman embrace digital tokens to trade money markets 24/7
Goldman Sachs (GS) and the Bank of New York Mellon (BK) are teaming up to make it easier for institutional investors to trade money market funds 24/7 by using blockchain technology to "tokenize" the assets. The collaboration between the Wall Street investment giant and a 241-year-old bank founded by Alexander Hamilton is the latest example of how venerable financial firms are pushing further into the digital asset realm as the crypto industry gains more favorable regulatory treatment in Washington, D.C. Goldman and Bank of New York Mellon will use a proprietary tokenization platform developed by Goldman to maintain the record keeping of select Bank of New York Mellon money market funds. Money managers BlackRock (BLK), Federated Hermes, Fidelity Investments have also signed up for the launch. Proponents see the value of putting money markets on blockchains as coming down to raw efficiency where time and therefore costs of transferring interest bearing cash instruments could be reduced. In that way, they serve the same purpose as interest-bearing, dollar-pegged stablecoins. A big use for these assets within the crypto world is via cryptocurrency exchanges that accept shares of tokenized money market funds as collateral for loans. 'As the financial system transitions toward a more digital, real-time architecture, BNY is committed to enabling scalable and secure solutions that shape the future of finance,' Laide Majiyagbe, BNY's global head of liquidity, financing and collateral at BNY said in a statement with the press release. Majiyagbe called the effort with Goldman 'a first step." The company will not solely rely on a blockchain for record keeping. Instead, BNY will still maintain the official books, records and settlement for the funds within current guidelines for money market funds. The attention for Goldman's tokenization platform, known as GS DAP, comes roughly half a year after the Wall Street bank announced its intent to potentially spin it out as a "an industry-owned distributed technology solution." That ambition is "still in progress," according to a Goldman spokesperson. 'We are excited about this strategic collaboration with BNY in our journey towards the longer-term vision,' Goldman's head of digital assets Mathew McDermont said of the tokenization platform in a statement with the press release. As of now, there are more than 40 tokenized money market funds currently, though most of them have less than $1 billion in assets, according to JPMorgan Asset Management's Teresa Ho. BlackRock's $2.4 billion BUIDL fund represents roughly half of the nearly $5 billion market. Old Wall Street firms and newer players like Robinhood (HOOD), Coinbase (COIN) and Circle (CRCL) have all eyed the chance to tokenize a range of assets and one clear place where proponents have signaled they can reduce costs is in cash instruments. 'It is shocking how much friction still exists with just cash. It's unbelievable. And the ability to just make that also be better, faster, cheaper, I think we all know there's a lot of opportunity there,' BlackRock COO Rob Goldstein said last month while speaking about tokenization at a New York conference hosted by Coinbase. David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance. His email is Click here for in-depth analysis of the latest stock market news and events moving stock prices 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
Free Malaysia Today
2 hours ago
- Business
- Free Malaysia Today
Goldman, BNY launching tokens tied to money market funds
The crypto industry has rallied in recent months amid surging optimism. (EPA Images pic) NEW YORK : Goldman Sachs and BNY have joined hands to launch digital tokens that mirror shares of money market funds, deepening Wall Street's push to bring blockchain technology into traditional finance. Investors can now buy and sell money market fund shares on BNY's LiquidityDirect platform, with a digital record of those shares created on Goldman's blockchain system, the two financial giants said today. The move marks an early step toward modernising the infrastructure that underpins most of the financial ecosystem. If adopted broadly, it could make it easier and faster for institutional investors to use these assets as collateral and reduce trade settlement times. BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments and Goldman Sachs Asset Management are among the companies participating in the initial rollout. Though a subject of debate, tokenisation's potential to drastically reshape the investing landscape has drawn strong interest. In January, Apollo teamed up with Securitize to launch a feeder fund that would channel capital from crypto-native investors into its global credit fund. The moves coincide with and gained fresh momentum after the Genius Act passed earlier this month.
Globe and Mail
2 hours ago
- Business
- Globe and Mail
Tron Inc. to Ring The Nasdaq Opening Bell on July 24, 2025
Winter Park, Florida, July 23, 2025 (GLOBE NEWSWIRE) -- Tron Inc. (Nasdaq: TRON) (the 'Company'), an innovation leader at the intersection of blockchain, entertainment and digital assets, today announced it will ring the Nasdaq Stock Market Opening Bell on Thursday, July 24, 2025. The ceremony will be led by Justin Sun, Founder of the TRON Blockchain and Global Advisor to Tron Inc., live from the Nasdaq MarketSite in Times Square — heralding the Company's bold transformation into next-generation technology and digital innovation. 'Ringing the Nasdaq Opening Bell marks a powerful milestone in Tron Inc.'s journey,' said Rich Miller, CEO of Tron Inc. 'With the addition of Justin Sun as our Global Advisor and our continued expansion into blockchain-powered treasury holdings, this moment highlights our long-term vision to build shareholder value through innovation and strategic leadership.' Investors can tune into the live broadcast of the Opening Bell ceremony via About Tron Inc. (formerly SRM Entertainment, Inc.) Tron Inc. (formerly SRM Entertainment, Inc.) is a publicly traded company pioneering blockchain-integrated treasury strategies. As the public company with the largest TRON (TRX) tokens holdings, Tron Inc. is committed to transparency, and the adoption of decentralized finance for long-term value creation. In addition, through its wholly owned subsidiary, the Company designs, develops, and manufactures custom merchandise which includes toys and souvenirs for the world's largest theme parks and other entertainment venues. Many of the Company's products are based on award winning multi-billion-dollar entertainment franchises that are featured in popular movies and books. The products are distributed worldwide at Walt Disney Parks and Resorts, Universal Parks and Destinations, United Parks and Resorts – SeaWorld, Six Flags and other attractions. Caution Regarding Forward-Looking Statements Certain statements in this announcement are forward-looking statements. Investors can identify these forward-looking statements by words or phrases such as 'may,' 'will,' 'expect,' 'anticipate,' 'aim,' 'estimate,' 'intend,' 'plan,' 'believe,' 'is/are likely to,' 'potential,' 'continue' or other similar expressions. These statements include, but are not limited to, statements regarding the Company's continued expansion into blockchain-powered treasury holdings and long-term vision to build shareholder value through innovation and strategic leadership. These statements are subject to uncertainties and risks including, but not limited to, the risk factors discussed in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our Forms 10-K, 10-Q and other reports filed with the SEC and available at Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law.
