Tokenized | Crypto

The nascent real-world tokenized assets track prices but do not provide investors the same legal rights as holding the underlying instruments. Tokenized stocks and private equity may face several legal challenges, as the emerging real-world asset (RWA) sits in a gray zone that does not grant holders the same legal rights as traditional asset owners, according to industry executives and attorneys. In an email to Cointelegraph, John Murillo, chief business officer of fintech company B2BROKER, said investors should understand the fundamental attributes of any prospective tokenized equity instruments, including any dividend streams, profit-sharing arrangements, or whether the tokenized RWAs simply provide capital appreciation to the holder. The executive said: “There is no direct claim on company assets, no voting rights, and no access to internal financial information,” Murillo continued. Read more

Tokenized US government debt used as collateral in leveraged trading exposes crypto markets to further geopolitical and liquidity risks. The growing use of yield-bearing tokenized US Treasury products as collateral for leveraged crypto trading creates new pathways for risk transmission across markets, increasing the likelihood of cascading effects on decentralized finance (DeFi) protocols. Tokenization is the process of converting real-world assets into digital tokens on a blockchain. In the case of US Treasurys, these tokens represent onchain claims to government debt, offering an alternative comparable to money market fund shares. The current market capitalization of tokenized US Treasurys stands at nearly $7.4 billion. According to a June report from rating service Moody’s, although short-term liquidity funds are low-risk assets, they are not riskless: Read more

Moody’s finds growing institutional demand for tokenized money market funds, citing benefits in liquidity, compliance and operational efficiency. Tokenized short-term funds, a new class of digital financial products bridging traditional and decentralized finance, have grown to reach $5.7 billion in assets since 2021, according to a new Moody’s report.  The credit rating service sees growing interest from traditional asset managers, insurers, and brokerages looking to offer clients access between fiat and digital markets. “Tokenized short-term liquidity funds are a small but rapidly growing product,” notes a June 3 report shared with Cointelegraph. These funds, typically backed by US Treasurys or other low-risk assets, operate similarly to traditional money market funds but use blockchain to issue and manage fractional shares, enabling real-time settlement. Data from the Federal Reserve shows that US money market funds held approximately $7 trillion in total assets as of December 2024.  Read more

Kraken has moved beyond crypto by introducing more than 50 tokenized U.S. stocks and ETFs for non-U.S. traders. Issued on Solana and redeemable for cash linked to real shares, the ‘xStocks’ have shown how 24/7 settlement could reshape market hours and push regulators to clarify oversight. The post Kraken Debuts 50+ Tokenized U.S. Stocks for 24/7 Trading – Americans Excluded appeared first on Cryptonews.