Yasuda on Tokenization

Frictionless Markets Partners with Quai Network

• Frictionless Markets announces a strategic partnership with Quai Network to launch institutional-grade, tokenized cash products natively on-chain — including a Quai-yielding Money Market Fund (MMF), enabling:
  • Deployment of multi-currency Institutional Deposit Tokens
  • On-chain U.S. Treasury-backed assets
  • Native integration into Quai’s scalable Proof-of-Work infrastructure
  • New energy-backed financial products like the QUAI yielding money market funds & Qi Dollar trading pairs
• By bridging traditional finance with next-gen PoW chains, we’re bringing real-world yield, dollar stability, and risk-free rate composability to the heart of the Quai ecosystem — all while preserving decentralization and compliance. This is a foundational step in building the future of institutional DeFi — powered by the might of the US Dollar and the untapped potential of QUAI.
• 📖 Read the full announcement: https://bit.ly/4kDUhO5

   

Tokenization of U.S. Money Market Funds by Major Fund Managers

• The tokenization of U.S. dollar-denominated money market funds (MMFs) has rapidly gained traction among leading American fund managers, signaling a transformative shift in how short-term, low-risk investment products are issued and traded. These tokenized MMFs, managed by firms like BlackRock, Franklin Templeton, and WisdomTree, are now accessible as digital assets on blockchain networks. BlackRock’s Institutional Liquidity Fund, for example, has been tokenized by platforms including Securitize and Frictionless Markets, enabling investors to hold and transfer fund shares on Ethereum. Franklin Templeton’s OnChain U.S. Government Money Fund operates across Stellar and Ethereum, while WisdomTree offers a tokenized MMF through its proprietary app on Ethereum. Notably, these tokenized funds are almost exclusively denominated in U.S. dollars, with little to no-issuance yet in other major currencies like the euro (EUR) or British pound (GBP).

• A majority of these tokenized MMFs exist on public blockchains, allowing broader accessibility, enhanced transparency, and integration with decentralized finance (DeFi) ecosystems. This public architecture makes it easier for investors to engage with tokenized funds using self-custody wallets or smart contract-based platforms, potentially reducing friction in settlement and clearing. However, not all efforts are public. Key exceptions include tokenized MMFs managed through J.P. Morgan’s Onyx Digital Assets platform, a private, permissioned blockchain. J.P. Morgan Asset Management and Fidelity International have both used this infrastructure to tokenize their MMFs, with Fidelity’s recent pilot allowing tokenized fund shares to be used as collateral in institutional settlements.

• Fidelity is also expected to launch its own tokenized U.S. money market fund, expanding its presence in the blockchain-based investment space. This forthcoming product will be issued on the Onyx platform, reinforcing the appeal of permissioned networks for institutions prioritizing control, compliance, and counterparty management. The fact that nearly all tokenized MMFs remain U.S. dollar-based reflects both the currency’s global dominance in liquidity markets and the maturity of U.S.-based financial infrastructure. While tokenization opens the door for cross-border innovation, the current wave remains firmly centered around USD, highlighting its role as the cornerstone of this new digital liquidity layer.

Source RWA.xyz

Gold-Backed Tokens: Revolutionizing Precious Metal Investments

• Gold-backed tokens are transforming traditional gold investments by leveraging blockchain technology to provide fractional ownership, enhanced liquidity, and transparency. Managed by trusted institutions like Paxos Trust Company (PAXG), Tether (XAUT), and HSBC, physical gold reserves are securely stored in audited vaults to back these tokens. Each token typically represents a specific amount of gold, such as one gram or one troy ounce, and can often be redeemed for physical gold. Tokenization platforms like Paxos, Tether, and HSBC’s Orion platform mint the tokens, linking them directly to the market value of gold. This approach allows investors to access the inflation-proof stability of gold while benefiting from the accessibility and liquidity of cryptocurrencies.
• The choice between public and private blockchains impacts how these tokens are traded and accessed. Many prominent gold-backed tokens, such as PAXG and XAUT, operate on public blockchains like Ethereum, providing decentralized trading and transparent ownership records. However, some players have opted for private or hybrid blockchains to cater to institutional needs. HSBC’s Gold Token, for instance, is minted on its Orion digital assets platform using a private distributed ledger. The token represents fractional ownership of physical gold stored in HSBC’s vaults and is available to retail investors in Hong Kong via HSBC’s online banking platforms. Similarly, Perth Mint Gold Token (PMGT) operates on a private blockchain managed by the Perth Mint, focusing on privacy and regulatory compliance. Comtech Gold (CGO) uses the hybrid XDC Network, combining public accessibility with enhanced privacy features for institutional users.
• The adoption of gold-backed tokens has democratized access to gold investments by lowering entry barriers and enabling 24/7 trading globally. Investors can trade these tokens on cryptocurrency exchanges or decentralized finance (DeFi) platforms with real-time pricing and instant settlements. Fractional ownership further enhances accessibility, allowing investors to own smaller portions of gold that would be impractical with physical holdings. By integrating traditional gold reserves with blockchain technology, these tokens offer a modern solution for diversifying portfolios while maintaining the stability of a time-tested asset.

Nomura’s Tokenized Bond Marks a Leap Forward in Institutional Digital Asset Adoption

• Nomura’s recent issuance of a tokenized bond via its subsidiary Nomura Securities underscores Japan's advancing position in the digital finance space. The ¥3 billion (~$20 million USD) bond, issued on a proprietary blockchain platform developed by BOOSTRY (a joint venture between Nomura and SBI Holdings), was distributed to individual investors with full digital custody and settlement. What distinguishes this issuance is its emphasis on regulatory compliance and integration with traditional financial market infrastructure, including features like programmable securities and automated coupon payments—a clear attempt to bridge conventional capital markets with blockchain technology. Notably, Nomura has been active in this space since 2020, steadily building expertise through a series of digital bond issuances and infrastructure development.

• Compared to earlier digital bond initiatives, such as those by the European Investment Bank (EIB) or Siemens, Nomura's issuance has a more retail-oriented focus and shows a maturing infrastructure in Asia. The EIB, for example, has issued multiple tokenized bonds on Ethereum and private blockchains, targeting institutional investors and showcasing interoperability between central bank digital currencies (CBDCs) and capital markets. Siemens' 2023 €60 million digital bond issuance, also on a public blockchain, was noteworthy for being processed without traditional intermediaries, but lacked secondary market support. In contrast, Nomura’s deal appears more aligned with Japan’s evolving legal and financial framework, reinforcing investor protection and secondary market liquidity through regulatory clarity and design.

• This issuance also positions Nomura competitively against Western peers like JPMorgan and Goldman Sachs, both of whom have launched tokenized products but largely within permissioned networks or institutional-only pilots. Nomura’s move suggests growing confidence in expanding blockchain finance beyond institutional walls. By leveraging a Japanese-built blockchain infrastructure and targeting a broader investor base, the firm is signaling a strong commitment to digital asset innovation with a local but scalable model. If replicated across larger bond offerings, this could accelerate mainstream acceptance of tokenized securities in both domestic and international markets.