On-chain assets can often act private as thin markets, wide spreads, and off-chain exits mean many tokens aren’t truly tradable.Despite the sudden surge of enterprise interest in stablecoins, it was the tokenization of real world assets (RWA) that represented the crypto sector’s first major play for the institutional financial space.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our ...

Well, welcome back. Good Friday morning everybody. Thanks so much for joining us this morning and I hope you're having a good morning.I'm Maria Barter Romo and it is Friday, February 6. It is 8 a. m.on the button on the East Coast. Coming up this hour in just moments from now, we will talk with the chairman of the Securities and Exchange Commission Paul Atkins will join me right here coming up. And then at 8:30, don't miss Kansas Senator Roger Marshall on deck.all ahead. Treasury Secretary Scott Bessent, me ...

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved net revenues of $5.2 billion, an increase of 12% year-over-year [6][24] - Solutions revenue grew 11% to $4 billion, representing 76% of total net revenue [23] - Annual operating income was $2.9 billion, up 16%, with diluted EPS growth of 24% [6][24] - Fourth quarter net revenue was $1.4 billion, up 13% year-over-year, with solutions revenue of $1.1 billion, up 12% [7][24] - Operating expenses for the fourth quarter were $609 million, up 8% year-over-year, leading to an operating margin of 56% [7][36] Business Line Data and Key Metrics Changes - Capital access platforms delivered quarterly revenue of $572 million, up 12%, with annual revenue of $2.1 billion, up 10% [25] - Index revenue increased by 23% in the fourth quarter, with net inflows of $99 billion over the last 12 months [26] - Financial technology revenue in the quarter was $498 million, up 12%, with annual revenue of $1.85 billion, up 11% [29] - Market services achieved record annual net revenue of $1.2 billion, up 17% year-over-year [19][32] Market Data and Key Metrics Changes - The company secured three of the five top IPOs of 2025, including the largest IPO of the year, Medline [11] - The Nordic markets welcomed the largest IPO in Europe, Verisure, contributing to strong performance in the region [11] - The index franchise achieved record average AUM, with ETP AUM reaching $882 billion, an all-time high [14] Company Strategy and Development Direction - The company focuses on three strategic pillars: integrate, innovate, and accelerate, which have driven strong results [8] - Plans to launch 23x5 trading in the Nasdaq Stock Market in the second half of 2026, subject to regulatory approval [9] - The company aims to leverage AI across its business and has begun rolling out new AI-enabled products [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on its strong foundation and deliver durable growth in 2026 [21] - The company sees signs of accelerating capital markets activity, supported by recent Fed cuts and a healthy pipeline of late-stage private companies [12] - Management highlighted the importance of managing risk and advancing market structure as key industry priorities [20] Other Important Information - The company generated free cash flow of approximately $2.2 billion in 2025, with a conversion ratio of 109% [37] - The company paid dividends totaling $601 million in 2025 and repurchased 7.2 million shares for $616 million [38] Q&A Session Summary Question: Expectations for expanded options expirations and market volumes - Management noted that expanded options expirations provide clients with more choices for managing risk and are expected to drive market volumes [39][40] Question: Growth in equity options volumes and structural shifts - Management indicated that growth in equity options volumes is driven by a broadening investor base and increased engagement from both retail and institutional investors [42][44] Question: Pipeline and pace expectations for the data and listing segment - Management highlighted momentum in new issuances and active dialogue with late-stage private companies looking to go public, with expectations for increased activity in 2026 [45][46] Question: Outlook for financial crime management growth - Management discussed the variability in revenue due to implementation timing for enterprise deals but expressed optimism about the pipeline of opportunities in 2026 [47][49] Question: Nasdaq's ambitions in the proxy market - Management emphasized the focus on policy reform and modernization of proxy infrastructure to streamline processes for public companies [58] Question: Tokenization of equity securities - Management explained that the goal is to integrate tokenization with existing infrastructure while ensuring investor protection and issuer choice [60][62]

Five Wall Street firms met with the Securities and Exchange Commission’s Crypto Task Force Tuesday to discuss regulatory approaches to digital assets and decentralized finance (DeFi) and how tokenized securities should be treated under existing federal laws. According to the SEC memo, published Tuesday, representatives from the Securities Industry and Financial Markets Association (SIFMA), Cahill Gordon & Reindel LLP, Citadel LLC and JPMorgan Chase & Co. requested the meeting to follow up on recent letter ...

As crypto’s coveted market structure bill stalls in the Senate, top Wall Street players met with the SEC Tuesday to discuss numerous concerns with the regulator’s permissive approach to digital assets. Representatives of JPMorgan, Citadel, and SIFMA, the powerful securities industry trade group, met with the SEC’s crypto task force yesterday to talk through the agency’s bold new approach to digital assets, according to agency records. Topics raised at the meeting included worries that the SEC’s imminent pl ...

Core Viewpoint - The debate over whether stablecoins should be allowed to pay yield is a significant issue that reflects broader changes in the U.S. financial system, focusing on consumer deposits and who benefits from them [1][2][6]. Group 1: Stablecoins and Consumer Deposits - The discussion surrounding yield-bearing stablecoins is fundamentally about deposits and the distribution of economic benefits derived from them [2][6]. - Historically, consumer deposits in the U.S. have earned little to no interest, with banks utilizing these deposits for lending and investment, thus capturing the majority of the economic upside [3][4]. - The traditional banking model has remained stable due to a lack of realistic alternatives for consumers, but advancements in technology are beginning to change this dynamic [4][5]. Group 2: Shifts in Consumer Expectations - There is a notable shift in consumer expectations regarding money, with a growing belief that balances should earn returns by default rather than as an exclusive feature for sophisticated investors [5][6]. - As this expectation becomes more widespread, it is likely to extend beyond stablecoins to all forms of digital value representation, challenging the notion that consumer balances should inherently yield low returns [6]. Group 3: Banking System Concerns - Banks argue that allowing consumers to earn yield directly on their balances could lead to a reduction in deposits within the banking system, potentially harming credit availability and financial stability [7]. - This concern is rooted in the historical role of banks as the primary conduit for transforming household savings into credit for the economy [7].

Core Viewpoint - The chief investment officer at Arca, Jeff Dorman, expresses skepticism about the future value of Bitcoin and other digital assets, suggesting that the recent surge in asset tokenization may not benefit these cryptocurrencies significantly [1][3]. Group 1: Market Trends - Dorman highlights that the current trend in blockchain applications, such as the NYSE's plan for a tokenized securities platform, may only benefit a select few entities rather than the broader crypto ecosystem [2]. - He argues that the "fat protocol thesis" is no longer valid, indicating that Bitcoin lacks connection to the growth of stablecoins, decentralized finance (DeFi), or real-world asset (RWA) tokenization [3]. Group 2: Value Accrual - According to Dorman, the value from the increasing use cases of blockchain is primarily accruing to intermediaries like BlackRock, Securitize, and Tether, rather than to Bitcoin or other cryptocurrencies [5]. - He identifies a limited number of clear winners in the DeFi space, suggesting that only a handful of DeFi tokens, token launchpad companies, and Galaxy Digital stock are likely to benefit from the ongoing trends [4]. Group 3: Market Performance - As of the latest update, Bitcoin is trading at $88,992, reflecting a 1.9% decrease in the last 24 hours [5].

Core Insights - The New York Stock Exchange (NYSE) and the Depository Trust & Clearing Corp (DTCC) are developing platforms for 24/7 trading on a blockchain, reflecting the growing integration of stablecoins into the traditional financial system and increasing support for blockchain technology in Washington [1][8] Group 1: Tokenization and Trading Infrastructure - There has been a historical lack of viable on-chain payment assets that can serve as counterparts to tokenized assets, which has hindered the full potential of tokenization [2] - Current tokenized securities platforms are basic and often do not match the features of traditional off-chain offerings, lacking functionalities such as dividend transfers, proper tax tracking, and voting rights [4] - The NYSE's new platform will enable 24/7 trading of U.S. listed equities and ETFs, incorporating blockchain for immediate on-chain settlement and allowing orders to be priced in both dollars and stablecoins [5][6] Group 2: Regulatory Developments and Future Outlook - The DTCC has received a no-action letter from the SEC, allowing it to tokenize real-world assets on pre-approved blockchains for three years, with plans to roll this out in the second half of the year [9][10] - The potential benefits of tokenizing the U.S. securities market include collateral mobility, new trading modalities, and programmable assets, contingent on robust market infrastructure [11] - Industry experts predict that by 2026, significant advancements will be made in on-chain trading, with major players in the ecosystem working to address existing challenges [14]

Core Viewpoint - The New York Stock Exchange (NYSE) is developing a platform for trading tokenized securities, which are digital representations of assets like stocks and bonds, although the launch date remains uncertain [1][4]. Group 1: Tokenized Securities - Tokenized securities are digital versions of stocks and bonds traded on the blockchain, allowing users to fund trades using stablecoins pegged to assets like the U.S. dollar [3]. - The introduction of this platform would enable 24/7 trading, similar to the current trading environment for Bitcoin investors [3]. Group 2: NYSE's Strategic Position - The NYSE aims to modernize its operations and maintain its leadership in the stock market amid increasing competition from platforms like Robinhood and fintech companies such as Coinbase and Kraken [6]. - Major financial institutions, including Goldman Sachs and Bank of New York Mellon, are also exploring digitization of financial products, indicating a broader industry trend towards tokenization [6]. Group 3: Regulatory Considerations - The NYSE's new platform requires regulatory approval from the Securities and Exchange Commission (SEC), with the current political climate potentially favoring crypto-friendly policies [5].

Group 1: Legislative Developments - The Senate Banking Committee canceled a meeting intended to draft a bill for cryptocurrency and digital asset regulations, marking a setback for long-awaited legislation [1][2] - Senator Cynthia Lummis expressed disappointment over the cancellation, indicating it was a significant blow to cryptocurrency advocacy [2] - Coinbase CEO Brian Armstrong criticized the current draft of the legislation, stating it would be detrimental to the 52 million Americans who use cryptocurrency [4][5] Group 2: Industry Concerns - There is a conflict between cryptocurrency advocates and traditional banking institutions, particularly regarding stablecoins, which banks fear could undermine their business [6] - The GENIUS Act, signed into law last year, established regulations for stablecoins, allowing holders to earn rewards, which some in the banking industry want to repeal [6][8] - Senator Bernie Moreno highlighted the need for consensus between traditional banking and the innovation community to avoid stagnation [9] Group 3: Political Implications - The crypto lobby played a significant role in the election of Senator Moreno, who defeated a long-standing opponent, indicating the growing influence of cryptocurrency in politics [10] - The delay in legislation could result in the U.S. falling behind in the global cryptocurrency market, which could have negative implications for the economy and national security [15] - Representative William Timmons emphasized that establishing a solid regulatory framework for cryptocurrency could bring tens of billions of dollars back to the U.S. [17] Group 4: Future Outlook - The cancellation of the committee meeting resets the timeline for cryptocurrency legislation, with Senator Lummis noting she has additional time to improve the bill [12] - Concerns were raised that without timely action, the U.S. could lose its position as a leader in the cryptocurrency market [15][23] - The New York Stock Exchange announced plans to launch a platform for trading tokenized securities, indicating a shift towards integrating cryptocurrency into traditional finance [22]