🌐 Franklin Templeton Says On-Chain is the Future!

Earlier this year, BlackRock’s Larry Fink said crypto ETFs were “stepping stones to tokenization.” 💥

Now, financial giant Franklin Templeton’s CEO is on the record, claiming ETFs and mutual funds are all coming on-chain eventually. 😮

🎯🔥 Rapid Fire Takeaways:

🗣️ Franklin Templeton CEO: ETFs, Mutual Funds Will All Be On Blockchain

🤝 Deutsche Bank joins Project Guardian to explore asset tokenization applications

⛏️ Tokenized funds could chip away at stablecoin market, Polygon exec says

☯️ Hana backed Busan Digital Asset Exchange incorporates. Focuses on RWA tokenization

📅 Basel crypto rules for banks delayed to 2026

🈺 JP Morgan to open up Onyx Digital Assets to third party applications

🔒 Crypto Custody Tech Firm Fireblocks Seeks New York-Regulated Trust Company

This is big talk from even bigger players in traditional finance. 🔊

The world is coming on chain at an accelerating rate, one asset at a time. 💽

👋Come Say Hi! 

Every Thursday at 2 pm EDT, RWA World hosts a roundtable discussion on the Wolf Web3 X account with the brightest minds at the forefront of asset tokenization. 👑

This week saw premier diamond tokenization entity Tiamonds, tokenization and asset marketplace Unlockd, Blox Media Group lead Seth, and more take the stage! Mark your calendars – you won’t want to miss the next one! 📆

TradFi 💕 Tokenization

When we heard Jenny Johnson, President and CEO of the world’s second-largest U.S. Treasury tokenization entity, Franklin Templeton, says she’s “astonished about how less costly it was to run it on blockchain,” our ears perked up. 👂

That’s high praise for the technology and partially helps explain the moves we’ve seen this week. Singapore is the biggest jurisdictional winner, with EDX Markets launching its settlement platform, backed by Citadel and Schwab, and Deutsche Bank joining the ongoing Project Guardian initiative. 🏙️

Italy is also dipping its toes in the tokenization waters. BlockInvest, which previously worked with the Bank of Italy on bond tokenization, has secured an investment from Crédit Agricole Italia. Italian banks are particularly interested in tokenizing their proportionally high non-performing loans to get them off their balance sheets. 🍝

📐 Tokenized Fund Fulcrum

Fund tokenization is happening so ubiquitously that Polygon Labs’ head of institutional capital, Colin Butler, sees them chipping away at the stablecoin market due to their yield-bearing nature. 👀

Plenty of examples back up his thesis. Re, a reinsurance fund, launched on Avalanche this week with a target of $200 million in premiums by EOY, while Tokenize.it kicked off a crowd-investing platform using its German-optimized GmbH-Token standard. 

The big news: Ondo Finance has partnered with Zebec to add a payment feature to its USDY token, poising to take a big bite out of the non-yield-bearing stablecoin market. 📋

🥊 Stablecoins Not Done Yet 

But don’t let this news fool you into thinking stablecoins are on their way out. The Philippines Central Bank granted Coins.ph a license to integrate stablecoins into its remittance platform. 🏝️

And while the South China Morning Post claimed workers paid in the digital Yuan aren’t using it all that much, they’re doing it due to the e-CNY’s lack of interest payments. If interest payments are integrated, expect a surge in usage. 📈

🧭 Compliance Compass

Last week’s newsletter touched on the EU’s DLT Pilot Regime, an effort to allow more experimentation in the Union. Now, German companies Finexity and Cashlink have teamed up to apply. However, their fellow Deutsches company, 21X, already has an application pending – if it’s approved, it’ll be the first to make the cut. ✂️

Perfect timing, too. Wholesale DLT settlement trials just kicked off in the EU, just as the Basel Committee decided to delay crypto banking rules until 2026. There's plenty of time left for wiggle room as the EU seeks to establish itself as a tokenization hub, with Germany seemingly leading the charge. 🏰

🌊 Institutional Inflows and Interbank Immersion

Institutions are increasingly interested in expanding their involvement with digital assets. Fireblocks has applied for a custody license in New York, with its Global Custodian Partner Program going live later this quarter in an attempt to up its stake in the U.S. market. 🦅

J.P. Morgan is having a fantastic week, revealing its Onyx network has processed over $1 trillion in transactions and is now open to third party applications. JPM Coin will also be used as a base settlement asset for Broadridge’s distributed ledger repo (DLR) platform. Congratulations on the great week, J.P. Morgan team! 🎉

But wait, there’s even more! Partior, which J.P. Morgan backs, has finally selected a new CEO, naming Humphrey Valenbreder head of the organization. Just in time for Standard Charter to start processing Euro transactions on Partior. 💥

🏠 Take Us Home

Another exciting week for tokenized assets in the rearview mirror! 🚗

And things aren’t slowing down any time soon. We have some seriously exciting things in the works behind the scenes at RWA World. 🤫

Make sure to join us on Thursdays at 2 pm EDT at Wolf Web3 to rub shoulders with the industry's top builders, analysts, and regulators. 🥇