Core Viewpoint - The SEC's potential plan to allow crypto companies to sell "tokenised" stocks may pose risks to investors, according to a letter from a group of stock exchanges [1][3]. Group 1: SEC's Regulatory Approach - Several crypto companies intend to offer crypto tokens linked to listed equities, allowing retail investors to gain stock exposure without direct ownership [2]. - The SEC is considering an "innovation exemption" from securities laws to enable crypto firms to explore new business models [3]. - The WFE expressed concerns that such exemptions could jeopardize market integrity and investor protections [3][4]. Group 2: Industry Reactions - The WFE, which includes major exchanges like Nasdaq and Deutsche Boerse, has previously voiced alarm over platforms offering tokenised stocks [5]. - The letter from the WFE indicates a pushback from traditional finance against certain crypto initiatives, particularly as they begin to compete with established financial services [6]. - The WFE advocates for a level playing field, suggesting that both crypto platforms and traditional finance should adhere to the same regulatory standards [6][7].

Core Insights - Kraken is launching a new Mastercard debit card for UK and European users, offering up to 1% cash back rewards in cash or Bitcoin, with no forex or monthly fees [1] - The launch of the Krak card coincides with the expansion of Kraken's Vaults feature, allowing users to earn up to 10% yield on their holdings [1][6] Company Developments - Kraken's new debit card is part of a broader trend among crypto companies moving beyond traditional buying and selling of digital assets, aiming to integrate various financial services [2][4] - The company is also introducing a direct deposit feature for users in the EU and the UK, enhancing its service offerings [7] Industry Trends - Other crypto exchanges like Coinbase and Crypto.com are also expanding their services to include debit cards and stock trading, indicating a competitive neobank landscape [2][3] - Fintech firms such as Revolut, Robinhood, PayPal, and Stripe are exploring blockchain technologies, including stablecoins and tokenization, to attract more crypto users [3][4] - The decentralized finance (DeFi) market is being tapped by Kraken to offer higher yields compared to traditional banks, although these come with associated risks [6]

Hong Kong-based Tykhe Capital Group and Malaysia's Skyvast Digital have launched a US$150 million tokenised fund that offers investors exposure to artificial intelligence infrastructure, using an innovative arrangement designed to share project revenues and boost liquidity. SKYD Token was "the world's first global-grade AI infrastructure tokenised fund", Tykhe's subsidiary, Pioneer Asset Management, and AI infrastructure developer Skyvast said in a press release on Monday. The fund will provide investors ...

Core Viewpoint - Hong Kong's initiative to create a tokenised financial system is expected to attract more companies to establish treasury centres in the city, enhancing investment options and lowering transaction costs [1] Group 1: Benefits of Tokenisation - Both corporations and individuals are anticipated to benefit from the increased tokenisation of money and assets, leading to faster, more efficient, and accessible financial services [2] - Tokenised financial products are projected to enhance corporate cash and treasury management by decreasing the time and cost associated with cross-border transactions [4] Group 2: Commercial Applications and Initiatives - Government-led tokenisation and digital asset initiatives, such as Project Ensemble, are gaining traction, with expectations for more commercial applications to emerge [3] - The Hong Kong Chinese Enterprises Association has established a Corporate Treasury Centre Committee, consisting of 43 member companies managing assets exceeding US$240 billion, with financing around US$100 billion and annual settlements close to US$3 trillion [5] Group 3: Role of Corporate Treasury Centres - Corporate treasury centres provide clients with global finance management services, including foreign exchange trades, financial products, and risk management [6]

Hong Kong's de facto central bank has begun facilitating real-value transactions using tokenised deposits and digital assets under a controlled pilot programme from Thursday, reinforcing the city's status as a fintech hub. The new phase of the Project Ensemble sandbox would enable seven commercial banks and 13 industry participants to settle tokenised transactions "faster, more transparently and efficiently", the Hong Kong Monetary Authority (HKMA) said in a press release on Thursday. The programme would ...

SINGAPORE (Reuters) -Singapore's central bank will hold trials to issue tokenised MAS bills next year and bring in laws to regulate stablecoins ​as it presses forward with plans to build a scalable and secure tokenised financial ‌ecosystem, the bank's top official said on Thursday. "Tokenisation has lifted off the ground. But ‌have asset-backed tokens achieved escape velocity? Not yet," said Chia Der Jiun, Managing Director of the Monetary Authority of Singapore (MAS), a keynote address at the Singapore F ...

Core Insights - The tokenisation of real-world assets (RWAs) has seen over $34 billion in assets move on-chain, indicating a shift towards a programmable and borderless financial future [1] - However, the reality of the RWA market reveals significant challenges, including low trading volumes and limited investor participation, which hinder the effectiveness of tokenised assets [2][4] Group 1: Liquidity Issues - Most tokenised assets, including US Treasuries and private credit, exhibit low trading volumes and long holding periods, leading to a market that appears liquid but functions as a closed loop [3][4] - The lack of liquidity results in wider spreads and discourages market-makers from participating, further complicating the exit strategies for investors [4] Group 2: Regulatory Challenges - The regulatory landscape for tokenisation is inconsistent across jurisdictions, with different definitions and requirements for digital securities, which complicates compliance and legal frameworks [5] - Each tokenisation project requires tailored legal work due to varying regulations, highlighting the geographical impact on the feasibility of tokenisation [5] Group 3: Infrastructure Limitations - The current infrastructure for custody, settlement, and valuation of tokenised assets is fragmented, with many pilots operating outside traditional banking systems [6] - The absence of trusted oracles and interoperable standards prevents tokenisation from achieving its potential for instant settlement and collateral efficiency, limiting institutional adoption [6]

Digital trading in Hong Kong has taken a step forward with the launch of the city's first Luxembourg-registered tokenised money market fund by US asset manager Franklin Templeton, marking a major development under the Fintech 2030 plan unveiled this week to establish the city as a leading fintech hub. The Franklin OnChain US Government Money Fund, which invests in US government securities and was registered in Luxembourg last year, would be available to institutional and professional investors in Hong Kon ...

Hong Kong continues to ratchet up its cryptocurrency development efforts, as the city's securities regulator fine-tunes rules to boost the liquidity of local digital-asset trading platforms. The Securities and Futures Commission (SFC) said it would allow locally licensed digital-asset exchanges to integrate their order books with those of their affiliated platforms globally. "What we noticed is that through the creation of this close-loop environment, we are creating a pocket of liquidity only for Hong K ...

Core Viewpoint - Hong Kong has launched a five-year fintech strategy, Fintech 2030, aimed at enhancing its position as a leading fintech hub through responsible advancements in artificial intelligence and tokenisation initiatives [1][4]. Group 1: Fintech Strategy Overview - The Hong Kong Monetary Authority (HKMA) plans to implement over 40 initiatives to integrate AI in finance, develop a financial tokenisation ecosystem, and improve data and payment infrastructure [1]. - Fintech 2030 represents the third phase of Hong Kong's fintech strategy, following the introduction of digital banks in 2017 and a focus on practical applications in 2021 [3][4]. Group 2: Key Initiatives and Goals - The primary goal of Fintech 2030 is to prepare Hong Kong for future developments in the fintech sector, emphasizing resilience and in-depth development [4]. - The first project under this strategy is expected to be the settlement of tokenised money market funds, likely to be launched by the end of the year [4][5]. Group 3: Tokenisation and Cross-Border Trade - The HKMA aims to establish a comprehensive settlement system for tokenised money market funds, allowing banks to use tokenised deposits and central bank digital currency for settlements [5]. - Discussions are ongoing with the central banks of Brazil and Thailand to utilize blockchain and tokenisation for more efficient and cost-effective cross-border trade transactions, particularly benefiting small and medium-sized enterprises [6].