Blockchain In Finance

This is big news. Tokenization is fast becoming the next battleground for financial infrastructure. Goldman Sachs and BNY Mellon just made one of the boldest moves yet. Tokenization transforms real-world assets into digital tokens - unique, programmable representations of value that can be transferred, tracked, and embedded into automated financial workflows. Goldman Sachs and BNY Mellon are turning traditional money-market funds (MMF) into digital tokens. These funds - a $7.1 trillion global market managed by firms like BlackRock, Fidelity, and Federated Hermes - are commonly used by companies and asset managers to hold short-term cash in safe, interest-earning instruments like Treasury bills and commercial paper. But behind the scenes, they still run on decades-old infrastructure, full of manual steps, cut-off times, and delayed settlements. Tokenization changes that. 𝗛𝗼𝘄? By bringing the same speed, transparency, and automation we expect from modern payments and applying it to financial instruments that haven’t evolved in decades. ·      Instant settlement: Instead of waiting hours (or days) for trades to clear, tokenized assets can settle almost instantly - 24/7, without cut-off times. ·      Programmability: Rules and logic (e.g., eligibility checks, compliance constraints) can be embedded directly into the token - reducing manual oversight. ·      Fractional ownership: Investors can hold smaller, more flexible portions of a fund, which is hard to do in traditional structures. ·      Real-time tracking: Every transfer or ownership change is recorded transparently on a blockchain, improving auditability and risk management. ·      Easier collateralization: Tokenized fund shares can be pledged as collateral or moved between counterparties far more efficiently - a big advantage in treasury and liquidity management. 𝗛𝗼𝘄 𝘁𝗵𝗲 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝘄𝗶𝗹𝗹 𝘄𝗼𝗿𝗸: ·      BNY Mellon will distribute tokenized money-market funds to institutional clients via LiquidityDirect - its cash management platform that helps treasurers and asset managers invest short-term liquidity. ·      Goldman Sachs will record and track ownership of the fund tokens on its private blockchain, providing speed, traceability, and operational efficiency. ·      The offering will support tokenized versions of funds managed by major players like BlackRock, Fidelity, and Federated Hermes. 𝗪𝗵𝘆 𝗻𝗼𝘄? The new U.S. Genius Act gives legal clarity for stablecoins and tokenized assets -removing regulatory uncertainty and unlocking tokenization across mainstream finance. 𝗪𝗵𝗮𝘁’𝘀 𝗻𝗲𝘅𝘁? This could reshape expectations around liquidity, treasury operations, and how financial assets are managed and settled. Custodians and asset managers will need to adapt. Tokenized Treasuries, equities, and real estate are already being tested. Opinions: my own, Graphic source: CNBC 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

How Banks Are Investing in Blockchain - Ripple, CB Insights, UK Centre for Blockchain Technologies 1️⃣ Capital Is Flowing – Between 2020–2024, banks participated in 345 blockchain investments, including 33 mega-rounds. Global funding into blockchain companies surpassed $100B across 10,000+ deals. 2️⃣ Stablecoins & Tokenisation Lead – Stablecoin transaction volumes reached $650–700B per month in early 2025. Tokenized assets are projected to surpass $18T by 2033 (BCG). 3️⃣ G-SIBs Signal Confidence – Global Systemically Important Banks (Citi, J.P. Morgan, Goldman Sachs, MUFG, etc.) have made over 100 blockchain investments, legitimizing the technology. 4️⃣ Real-World Integration – Banks like HSBC, JP Morgan, and SBI are moving beyond pilots into production with tokenized gold, bond issuance platforms, and cross-border payment rails. 5️⃣ Regulation Enables Growth – Clarity from frameworks like MiCA (EU), VARA (Dubai), and the U.S. GENIUS Act is reducing uncertainty and accelerating institutional adoption. Why It Matters - Blockchain is no longer experimental—it’s becoming a pillar of financial infrastructure. - From faster settlement and programmable payments to broader investor access through tokenisation, banks see blockchain as essential to staying competitive. Real Life Example - In 2024, HSBC launched a retail gold token in Hong Kong, giving customers fractional access to physical gold via digital tokens on their mobile app. This marks a shift from theory to tangible consumer products. What Happens Next Expect more banks to: - Scale tokenised asset offerings (bonds, MMFs, commodities). - Partner with fintechs and blockchain firms rather than build in isolation. - Adopt quantum-secure cryptography to future-proof digital assets. - Push for global interoperability and regulatory harmonization.

🚨 BREAKING: World's largest custodian BNY Mellon is testing tokenized deposits to upgrade its $2.5 trillion daily payment infrastructure. The world's largest custodian bank—$55.8 trillion in custody—just announced it's testing blockchain-based payments for clients. This is banking infrastructure itself admitting the old rails need replacing. --- Consider what BNY actually does: - They're the plumbing behind the plumbing. - They "custody" assets - A bit like how a vault operator manages gold, but the owner could be anywhere - When institutional money moves globally, it flows through BNY's treasury services. - Pension funds. Asset managers. Corporate treasuries. All riding on infrastructure built for batch processing and cut-off times. --- Carl Slabicki (BNY's Treasury Services lead) said it plainly: tokenized deposits help "banks overcome legacy technology constraints." Translation: The current system can't do what clients need. → No 24/7 settlement → Days to clear cross-border → Trapped liquidity during settlement windows → Reconciliation nightmares across time zones Tokenized deposits on blockchain rails maybe fix a lot of that. Instant settlement. Always on. Programmable. --- Here's what's interesting—BNY isn't leading this charge alone. Look at who's already live: • JPMorgan: JPMD token, processing billions for clients like Ant International • HSBC: Tokenized deposits for cross-border FX, first customer was Ant • Nine European banks: Building a MiCA-compliant euro stablecoin together Pattern? Corporate clients—Siemens, BlackRock, Ant—are demanding this infrastructure. When corporates say jump, the banks say how high. --- Question: How long until tokenized deposits become table stakes for institutional banking?

🔴 Can the UK lead with securities tokenisation? 💬 “Securities tokenisation is likely to transform financial markets”, said Bob Wigley, Chair of UK Finance, last week, “through delivering lower costs, lower risks, and wider market access. But without continued bold action the UK risks falling behind other jurisdictions.” 💬 🇬🇧 How is tokenisation developing in the UK? 🇬🇧 Last week, UK Finance and Oliver Wyman released a report addressing 3 key questions on tokenisation, meaning the digital representation of financial assets using distributed ledger technology: 1️⃣ What is the UK’s position today?  ➡ The UK has built positive momentum around tokenisation from a legal and regulatory perspective, but issuance has been minimal. 2️⃣ Why does tokenisation matter?  ➡  The shift of assets to distributed ledgers will likely transform financial markets and if the UK doesn’t rapidly become a market leader, its position as a top global financial centre may change. 3️⃣ What are the next steps for the UK?  ➡ Government and industry need to align around a roadmap to ensure that the UK’s financial services industry remains globally competitive and that the tokenised securities market evolves at pace. 🌍 What are the global developments in tokenisation? 🌍 🌏 Singapore ➡ private digital bonds + tokenised investment funds 🌏 Hong Kong ➡ first government-backed tokenised green bond 🌏 Switzerland ➡ digital bonds on SDX exchange 🌏 France ➡ issuances on Ethereum + tokenised investment funds 🌏 Germany ➡ Siemens issued a digital bond using Polygon blockchain 🌏 Luxembourg ➡ EIB digital bond issuances on private blockchains 🇬🇧 So what next? 🇬🇧 The UK can establish itself as a leading jurisdiction if it takes concerted action now to encourage experimentation, set standards that make platforms interoperable, and provide the legal and regulatory reforms necessary to support market scaling. I'd love to hear your thoughts. Do you agree? 👉 I'll post a link to the report in the comments. #blockchain #technology #financialservices #tokenisation #tokenization #securities #ukfinance #dlt

Study morning around ReFi and how improve impact 🔥💥📚 Blockchain Uses for Microfinance Institutions in the Water and Sanitation Sector: Pilot Study Decades ago, the legendary #science fiction writer, William Gibson, noted, “The future is already here – it’s just not evenly distributed yet.” With any technology advancement, there will be experts who develop a deep understanding of the technology’s functionality and #capabilities. It takes partnership among these experts and the leaders in different industries to maximize the potential of applying new innovations to solve the toughest #challenges. This pilot study brings blockchain experts together with organizations both supporting and directly administering #microfinance loans for people seeking access to clean #water and improved sanitation. This study will test the hypothesis that blockchain technology has the potential to improve the efficiency of the existing microfinance model and promote financial inclusion of #unbanked individuals. Therefore, one goal of this study is to contribute to an increased understanding of blockchain technology to Microfinance Institutions (MFIs) and key stakeholders in the microfinance sector. Another is to explore the feasibility of implementing blockchain technology into water and sanitation microfinance programs. A third goal is to illustrate how #transparency, data democracy, and digitizing data capture and processes can strengthen and improve the existing microfinance model. This third goal occurs by protecting the rights and privacy of individuals, creating value for borrowers beyond the duration of a loan, showing the potential to decrease operational costs for MFIs, and securing impact data for donor organizations that support microfinance programs. Beyond resulting in the writing of this paper, deploying a pilot provided real-world data and stakeholder feedback. Instead of #conversations being limited to theoretical strategies, on-the- ground loan assessors and loan officers from the selected MFIs provided unique insights about solution design and configuration to meet their needs and challenges. Once the blockchain platform was deployed, those stakeholders registered prospective borrowers on the platform with necessary inputs and executed loan approvals or denials within the solution, and actual borrowers received loan communications secured with blockchain technology. Alfredo Muñoz García Javier Molina Jordà Joaquim Matinero Tor José Luis Casal Lars Seier Christensen Joan de Ramón Brunet Fujitsu

𝗨𝗽𝗱𝗮𝘁𝗲𝗱 𝗕𝗠𝗙 𝗚𝘂𝗶𝗱𝗲𝗹𝗶𝗻𝗲𝘀 𝗼𝗻 𝗖𝗿𝘆𝗽𝘁𝗼 𝗧𝗮𝘅𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗚𝗲𝗿𝗺𝗮𝗻𝘆 Germany's Ministry of Finance has updated its crypto taxation framework, replacing the 2022 guidelines, aligning more with MiCAR and other regulations and introducing the term "Kryptowerte" (crypto assets). Some key points: 🔷 Stronger reporting & record-keeping requirements (starting from section 87). 🔷 Clarifications on tax reports (section 29b) and claiming of crypto assets (sections 13, 48a). 🔷 New approach for second-by-second & daily exchange rates (sections 43, 58, 91). ❌ NFTs & Liquidity Mining are still not covered but will be addressed in future updates. Let us hope that the future German government will not only continue to refine crypto taxation, but also allow for more innovation and enable the industry to grow. Note: The translation is not binding and only the original German version should be used for legal guidance. It can be found here 👇 https://lnkd.in/d6AChtub

AI is a rocket ship, and blockchain is an anchor, and that makes them perfect for each other. It seems like a weird duo to call a superhero, but they make significant impacts in compliance and auditing when coupled together. Particularly for SMEs, these obligations can pose big challenges given the limited resources at their disposal. So what exactly are we talking about here? - Smart Contracts for Real-Time Compliance: Blockchain's smart contracts can automate compliance processes by encoding regulatory requirements directly into the contract logic. - AI-Powered Regulatory Intelligence: AI can sift through vast repositories of regulatory texts, interpret evolving compliance mandates, and provide actionable insights. - Blockchain’s Audit Trails: SMEs can maintain tamper-proof audit trails of all transactions. - Real-Time Auditing and Reporting: Blockchain provides a transparent and unalterable record of transactions, while AI can automate data verification and analysis, expediting the auditing processes and ensuring accuracy. - Predictive Compliance Analytics: Employing AI's predictive analytics, SMEs can forecast potential compliance risks and implement preemptive measures. - Cross-Border Regulatory Compliance: Create a shared, region agnostic, platform for managing cross-border regulatory compliance, enabling a seamless and secure multi-jurisdictional compliance process.

In the fight against corruption, blockchain is no silver bullet. But in the right setting, it's proving useful. This report looks at how blockchain is used to make records tamper-proof, cut fraud, and bring more transparency to the public and private sectors. Here are my key takeaways: 🔶 Blockchain is helping protect land titles, supply chains, and ID records by making them harder to fake or tamper with. 🔶 Tech doesn’t stop corruption by itself. It still needs good data, strong institutions, and clear rules. 🔶 Countries like Georgia and Sweden are seeing results in land registries. Others failed because they tried to add tech before fixing basic problems like messy records or weak laws. 🔶 Blockchain shines when people already trust the system and want more transparency, not when they expect technology to fix broken institutions. 🔶 Some supply chains, like diamonds and seafood, now use blockchain to prove the origin of goods and stop fraud. 🔶 Financial tools like crypto and smart contracts are cutting costs and speeding up transactions. But they also raise new risks around privacy and illegal activity. 🔶 And without strong digital skills and infrastructure, even the best blockchain systems won't deliver results. Blockchain works best when it supports governance, not replaces it. #Blockchain #AntiCorruption #PublicRecords #DigitalTrust #couchonomics #payments #fintech #embeddedfinance #digitalassets #futureofmoney #futureoffinance NORBr Onalytica Favikon ⁠Global Finance & Technology Network Thinkers360 - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - - 👍 Hit like ♻️ Share it with your network 📢 Drop a comment 🎙️ Check out my podcast Couchonomics with Arjun on YouTube 📖 Get my weekly newsletter on LinkedIn: Couchonomics Crunch 🕺💃 In the MENA region? Join our Fintech Tuesdays community. 🤝 Let's connect! - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - -

What's the problem with Merchant Loyalty programs? Interoperability - you can't swap your grocery points for your coffee points - but Web3 can provide a solution which is slicker than what's currently available. Here are some reasons why Web3 Loyalty IS solving a number of customer painpoints: 1️⃣ Owned and tradable rewards (NFTs/tokens): Web3 leverages blockchain technology that can represent rewards as NFTs or tokens. This grants users actual ownership and control over their rewards, unlike points locked within a specific program. They can trade, sell, or use them across different platforms and ecosystems, creating a more dynamic and valuable experience. 2️⃣ Transparent and immutable records: Transactions and reward history are stored securely on the blockchain, ensuring transparency and traceability. This builds trust by eliminating concerns about program manipulation or hidden terms. 3️⃣ Scalable and Flexible Partnerships: Blockchain's inherent interoperability allows loyalty programs to partner with other brands and platforms more easily. This opens up possibilities for broader reward offerings and cross-program redemption, attracting a wider audience. 4️⃣ User-controlled data: Web3 emphasizes user control over personal data. Users can choose to share specific data in exchange for rewards, providing brands with valuable insights while maintaining privacy preferences. 5️⃣ Greater Engagement and Community: With an interoperable, multi-brand platform, there is the ability to enable more interactive and personalized rewards based on user engagement and contributions within communities. I'm going to be keeping my eyes on Visa's new Loyalty Engagement Platform -because I'm convinced (no insider knowledge here) that it is a test-bed for a wider blockchain / Web3 payments solution. #RealWorldWeb3UseCases #web3 #loyalty https://lnkd.in/ezkYrFUV

𝐓𝐡𝐞𝐫𝐞 𝐢𝐬 𝐚 𝐬𝐭𝐞𝐚𝐝𝐲 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐡𝐚𝐩𝐩𝐞𝐧𝐢𝐧𝐠 𝐢𝐧 𝐌𝐄𝐍𝐀’𝐬 𝐛𝐚𝐧𝐤𝐢𝐧𝐠 𝐬𝐲𝐬𝐭𝐞𝐦. 𝐀𝐧𝐝 𝐢𝐭’𝐬 𝐛𝐞𝐢𝐧𝐠 𝐩𝐨𝐰𝐞𝐫𝐞𝐝 𝐛𝐲 𝐛𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧. We hear a lot about regulation, hype cycles and price charts. But less about the real infrastructure being built in trade, compliance and financial access across the region. Here are a few examples of how it’s already taking shape: 🔗 𝟏. 𝐂𝐫𝐨𝐬𝐬-𝐛𝐨𝐫𝐝𝐞𝐫 𝐭𝐫𝐚𝐝𝐞 𝐢𝐬 𝐠𝐨𝐢𝐧𝐠 𝐨𝐧-𝐜𝐡𝐚𝐢𝐧. The UAE is building blockchain-powered bridges between countries. Landmark Group and HSBC processed a full blockchain transaction between the UAE and Hong Kong, signaling how banks are starting to bypass legacy systems for faster cross-border transactions. 🕌 𝟐. 𝐈𝐬𝐥𝐚𝐦𝐢𝐜 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 𝐢𝐬 𝐠𝐞𝐭𝐭𝐢𝐧𝐠 𝐬𝐦𝐚𝐫𝐭𝐞𝐫. Blockchain is being tested to power Shariaa-compliant structures. Dubai Islamic Bank signed an MoU with Crypto.com last year to explore introducing tokenized Islamic sukuks and the tokenization of real-world assets. 💱 𝟑. 𝐂𝐞𝐧𝐭𝐫𝐚𝐥 𝐛𝐚𝐧𝐤𝐬 𝐚𝐫𝐞 𝐩𝐢𝐥𝐨𝐭𝐢𝐧𝐠 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐢𝐞𝐬. Across MENA, central banks are exploring central bank digital currencies (CBDCs) to lower cross-border payment costs and boost the traceability and transparency of transactions. The Central Bank of the UAE announced it will launch its Digital Dirham CBDC in the fourth quarter of this year. 📲 𝟒. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐢𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 𝐢𝐬 𝐛𝐞𝐜𝐨𝐦𝐢𝐧𝐠 𝐩𝐫𝐨𝐠𝐫𝐚𝐦𝐦𝐚𝐛𝐥𝐞. Millions across the region are still underserved by the traditional banking system. From stablecoin wallets to blockchain-powered remittances (like Egypt’s National Bank using Ripple for expat remittances), this techology is addressing real socio-economic challenges. 📜 𝟓. 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐢𝐬 𝐛𝐞𝐢𝐧𝐠 𝐰𝐫𝐢𝐭𝐭𝐞𝐧 𝐢𝐧𝐭𝐨 𝐜𝐨𝐝𝐞. The Central Bank of Bahrain developed blockchain-based shared KYC ledgers to streamline compliance and enable secure, consent-driven data sharing among financial institutions. While regulators in the West are still debating frameworks, banks in MENA are piloting and deploying blockchain solutions, from compliance and cross-border trade to CBDCs and financial access. In a region used to leapfrogging legacy systems, could starting later actually mean moving faster?  Curious to know what you think! #Blockchain #Cryptocurrency #UAE #MENA #web3