Yasuda on Tokenization

On February 17, 2025, Maple Finance, in partnership with Core blockchain and custodians BitGo, Copper, and Hex Trust, launched lstBTC, a yield-bearing Bitcoin token designed for institutional investors. The fund utilizes Core’s innovative dual-staking mechanism, allowing institutions to stake both Bitcoin and CORE tokens simultaneously to unlock higher yield tiers. By staking CORE tokens above specific thresholds alongside Bitcoin, participants can boost their Bitcoin staking rewards significantly. Institutions can expect annualized returns of 6-8% on their Bitcoin holdings through this mechanism, depending on the amount of CORE tokens staked. This product addresses the need for secure and scalable yield solutions while enabling institutions to retain custody of their Bitcoin with trusted providers like BitGo and Copper.

The dual-staking mechanism creates a dynamic reward structure by linking Bitcoin staking yields to the amount of CORE staked. For example, higher CORE-to-Bitcoin staking ratios unlock progressively greater yield tiers, with rewards paid in CORE tokens. This approach incentivizes deeper participation in the Core ecosystem while offering enhanced returns to institutional investors. The combination of competitive yields, secure custody solutions, and innovative DeFi mechanisms positions lstBTC as a transformative product for institutional adoption of decentralized finance. By integrating Bitcoin into Core’s consensus framework, lstBTC also enhances network security and scalability while providing institutions with a productive use case for their Bitcoin holdings.

On February 20, 2025, the European Union published several Delegated Regulations under the Markets in Crypto-Assets (MiCA) framework in the Official Journal. These updates provide detailed regulatory technical standards (RTS) to guide crypto-asset service providers (CASPs) and issuers of asset-referenced tokens (ARTs). Key provisions include templates for handling complaints, procedures for approving crypto-asset white papers, and methodologies for assessing transaction volumes of ARTs and e-money tokens (EMTs). The regulations aim to harmonize crypto-asset market practices across EU Member States, addressing gaps in complaint handling, compliance, and transparency. Additionally, transitional measures allow CASPs operating under national laws before December 30, 2024, to continue until July 1, 2026, or until MiCA authorization is granted.

The updates also highlight ongoing challenges, such as overlaps between MiCA and the EU’s Payment Services Directive (PSD2), which could require dual authorizations for certain activities. The European Commission has proposed administrative relief to address this burden while PSD2 reforms are underway. Furthermore, ESMA has issued consultations on staff competence requirements for CASPs and emphasized enforcement against non-compliant stablecoins by the end of Q1 2025. These developments mark a critical phase in MiCA’s rollout, aiming to foster regulatory clarity and consistency while addressing transitional complexities across Member States.

Japan’s Financial Services Agency (FSA) is advancing its plans to classify cryptocurrencies as financial assets under the Financial Instruments and Exchange Act (FIEA), with a policy direction expected by June 2025. While specific details remain under discussion, the FSA has not imposed restrictions on foreign-domiciled digital assets, signaling openness to cross-border investments. This aligns with Japan’s broader goal of enhancing legitimacy and investor protection in its crypto markets. By treating cryptocurrencies like traditional securities, the FSA aims to attract institutional investors and potentially introduce spot crypto ETFs, further integrating digital assets into mainstream finance.

However, the regulatory framework is likely to prioritize compliance with Japan’s stringent standards for transparency, disclosure, and anti-money laundering (AML). Foreign funds seeking to operate in Japan would need to comply with these rules, including registration with the FSA and adherence to local reporting standards. This approach seeks to balance fostering innovation with safeguarding investors, ensuring that both domestic and foreign digital asset offerings meet the same high regulatory standards. If enacted, these measures could position Japan as a global leader in crypto regulation while maintaining robust protections for market participants.