Traditional Financial Institutions Embrace Tokenization on Public Blockchains
Crypto News

Traditional Financial Institutions Embrace Tokenization on Public Blockchains

1m
Created 1mo ago, last updated 1mo ago

Traditional financial institutions are increasingly interested in tokenizing assets on public blockchains, according to Celisa Morin.

Traditional Financial Institutions Embrace Tokenization on Public Blockchains
Traditional financial institutions are increasingly interested in tokenizing assets on public blockchains, according to Celisa Morin, former Vice President of Platform Distribution at Grayscale. Morin, now heading the crypto department at law firm Reed Smith, believes that a new narrative led by BlackRock in the traditional finance (TradFi) sector could drive more firms to tokenize assets on public chains rather than private ones.

Morin points to BlackRock's recent launch of its $100 million tokenized 'BUIDL' fund on the Ethereum network as a significant development. The fund, which now holds $288 million in assets, has been established on a public blockchain despite potential legal challenges and controversies surrounding public wallets.

Morin also highlights Franklin Templeton's forward-thinking move to launch its tokenized money market fund on the Ethereum layer-2 network Polygon in October 2023. The Franklin OnChain U.S. Government Money Fund (FOBXX) has already tokenized $360.2 million in U.S. Treasuries, contributing to a total of $1.08 billion in tokenized U.S. Treasuries across 17 products.

In contrast, Morin expresses skepticism about the approval of spot Ether exchange-traded funds (ETFs) in May. Citing the lack of communication between the United States Securities and Exchange Commission (SEC) and prospective fund issuers, Morin agrees that the chances of approval by VanEck's deadline on May 23rd diminish with each day the SEC refrains from engaging in public comment.

This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
2 people liked this article