The Frictionless BTC Yielding Money Market Fund
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We announced the Frictionless BTC Yielding Money Market Fund, will be going live on October 23rd, enabling Investors to leverage the risk-free-rate to generate Bitcoin (BTC) daily yields in BTC instead of traditional fiat currencies.
- The Frictionless BTC Yielding Money Market Fund is a unique strategy that combines the stability of traditional money market funds (MMFs) with the growth potential of Bitcoin (BTC).
Chainlink Cross-Chain & Proof of Reserve
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Frictionless Markets is leveraging two advanced blockchain technologies—Chainlink CCIP and Proof of Reserve (PoR)—to ensure secure, transparent, and decentralized financial services, particularly in the management of underlying money market funds and multi-currency institutional deposit tokens.
- These technologies are central to Frictionless Markets' goal of enabling the digital transformation of capital, providing secure, compliant, and cutting-edge solutions for institutional investment.
👀 Watch out for our announcement later in the week.
Ripple Launches Comprehensive Crypto Custody Service for Banks and Fintechs
- Ripple, the blockchain company known for its XRP cryptocurrency and RippleNet payment platform, has significantly expanded its presence in the crypto custody sector. The company announced a suite of new features under its Ripple Custody brand, aimed at helping banks and fintech firms securely store and manage digital assets. These features include customized operational settings, policy controls, integration with the XRP Ledger blockchain, enhanced compliance monitoring, and a user-friendly interface.
- This move positions Ripple to compete with established crypto custody providers like Coinbase, Gemini, and Fireblocks.The expansion into custody services represents a strategic diversification for Ripple beyond its core payment settlement business. Ripple Custody has experienced rapid growth, with a 250% year-on-year increase in customers and operations in over 20 countries. The service now allows clients to tokenize real-world assets (RWAs) such as fiat currencies, commodities, and real estate on the XRP Ledger. Additionally, Ripple has integrated compliance tools and improved security measures, including AWS CloudHSM options. This comprehensive offering aims to capitalize on the growing demand for secure crypto asset management, with the crypto custody market projected to reach $16 trillion by 2030
WisdomTree Launches "Earn-Until-You-Spend" Feature, Bridging Investments and Daily Spending
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WisdomTree, Inc., a global financial innovator with approximately $112.3 billion in assets under management, has introduced a groundbreaking "Earn-Until-You-Spend" functionality for its WisdomTree Prime platform. This new feature allows users to select the WisdomTree Government Money Market Digital Fund (WTGXX) as a spending source for their WisdomTree Prime Visa® Debit Card. Unlike traditional low-yield checking accounts, users can now tap into their yield-bearing money market fund balances to fund debit card spending, potentially earning a 4.60% yield until the moment of purchase.
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This approach connects liquid on-chain investments to spending capabilities, unlocking new utility for real-world asset (RWA) tokenization. By integrating saving, spending, and investing within the WisdomTree Prime app, users gain greater control and choice in their financial lives. The feature strengthens the connection between spending and yield-bearing investments, allowing consumers to potentially benefit from their cash holdings while maintaining the flexibility to make daily purchases. This development aligns with WisdomTree's mission to empower investors and consumers, leveraging blockchain technology to create products that provide enhanced access, transparency, and user experience in the financial sector
Ethena Allocates $46.6 Million RWA Reserve Fund Across Four Key Assets
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Ethena, the decentralized finance protocol behind the USDe synthetic dollar, has unveiled its Real World Assets (RWA) reserve fund allocation, totaling over $46.6 million. The fund's assets, selected by Ethena's risk committee from 25 nominations, include BlackRock USD Institutional Digital Liquidity Fund (BUIDL) with a 40% share, USDS stablecoin from Sky (Maker) at 29%, USDM stablecoin from Mountain Protocol at 16.5%, and Superstate's Short Duration US Government Securities Fund (USTB) at 14.5%.
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These selections were based on criteria such as product maturity, liquidity, redemption time, and other key metrics.This strategic allocation represents a significant move in the growing trend of DeFi platforms investing in real-world asset-backed tokens. The decision aligns with Ethena's goal of diversifying its reserve holdings while maintaining a connection to the blockchain ecosystem. By incorporating these assets, Ethena aims to enhance the stability and yield potential of its reserve fund, which serves as a backup for its USDe token. This allocation also reflects the increasing integration of traditional finance products within the DeFi space, as evidenced by the inclusion of BlackRock's tokenized fund and other innovative financial instruments.
ECB's Vision for a European Shared Ledger: A Step Towards Digital Financial Integration
- European Central Bank (ECB) Director Piero Cipollone has unveiled an ambitious plan for a Europe-wide shared ledger, marking a significant step towards modernizing the continent's financial infrastructure. This proposed "European ledger" would be a DLT-based platform integrating tokenized versions of central bank money, commercial bank money, and other digital assets. The initiative aims to evolve the current T2S system into a unified, DLT-based financial market infrastructure, addressing technological inefficiencies and fragmentation in European capital markets.
- While no specific timeline has been set for this shared ledger, it aligns with the ECB's ongoing digital euro project. The digital euro preparation phase, which began in November 2023, is set to conclude on October 31, 2025. By the end of 2025, the ECB's Governing Council will decide on moving to the next phase of preparations. Vendor selection for digital euro components is planned for Q1 2025, with some documents suggesting a potential rollout date in November 2025. The implementation of the European ledger is likely to follow or coincide with these developments, as the ECB takes a measured approach to shaping Europe's digital financial future.
CFTC Explores Tokenized Assets as Collateral, Signaling Potential Shift in Financial Markets
- The Commodity Futures Trading Commission (CFTC) is taking steps towards potentially allowing tokenized assets as collateral, as reported by recent news. A subcommittee of the CFTC's Global Markets Advisory Committee (GMAC) has passed recommendations to examine the use of Distributed Ledger Technology (DLT) for managing non-cash collateral. This move could pave the way for registered firms to utilize tokenized shares of major money-market funds as collateral in trading activities, representing a significant development in the integration of blockchain technology with traditional finance.
- If approved by the full committee, this initiative could substantially boost the adoption of tokenized collateral in financial markets. Major players like BlackRock and Franklin Templeton, already involved in the tokenized U.S. treasuries space, stand to benefit from these developments. The potential shift towards blockchain-based solutions in traditional finance could enhance capital efficiency for fund managers and offer greater portfolio diversification options for investors, marking a notable evolution in the financial sector's approach to collateral management.