The crypto market in Europe is greatly buzzing about MiCAR (Markets in Crypto-Assets Regulation), which is set to bring much-needed regulatory clarity to digital assets in the EU. However, while MiCAR is important for cryptocurrencies and the crypto asset service providers (CASP), the regulation that truly shapes financial markets and investment products is MiFID II (Markets in Financial Instruments Directive). MiFID governs everything from trade transparency to investor protection, best execution, and market abuse prevention. For real-world assets (RWAs) such as equities, bonds, structured credit, and investment funds, MiFID II remains the key regulatory hurdle.

The main goal of MiFID II can be summarized as enhanced market transparency. While the traditional market infrastructure is a highly complex system grown over decades, connecting all the different counterparties with many siloed and opaque data systems, DLT is a transparent transactional data system that records all transactional data in an immutable chain of data. In fact, DLT is the magic solution to comply with MiFID II by enhancing transparency, automating compliance, and reduce costs. It basically is the technological breakthrough that will transform how capital markets comply with regulatory requirements for transparency such as MiFID II.

In this article we dive into the main MiFID II rules and how DLT and tokenized assets provide the solution as the perfect fit for integrated regulatory compliance.

Transparency & Reporting

MiFID II Rules

• Requires pre-trade and post-trade transparency for equity and non-equity instruments.
• Firms must report trades to regulators (Transaction Reporting, Art. 26).
• Systematic Internalizers (SIs) and trading venues must publish real-time bid/ask spreads and execution prices (RTS 1–2).

Blockchain & Tokenization Benefits

✔ Immutable Audit Trail — Every transaction recorded on-chain provides real-time visibility into trades. Regulators can access tamper-proof records, reducing reporting burdens.
✔ Automated Reporting — Smart contracts can instantly generate and submit required reports to regulators.
✔ On-Chain Order Books — Transparent pricing and execution data are publicly verifiable, reducing market manipulation risks.

2. Best Execution & Fair Pricing

MiFID II Rules

• Investment firms must execute orders on terms most favorable to clients (Art. 27).
• Execution factors include price, costs, speed, and likelihood of execution.
• Firms must maintain order execution policies and review them annually.

Blockchain & Tokenization Benefits

✔ Smart Order Routing (SOR) — Smart contracts can auto-route orders to the best available liquidity pools.
✔ Real-Time Market Data — Decentralized exchanges (DEXs) and blockchain-based order books provide full transparency on price formation.
✔ Automated Policy Enforcement — Blockchain can store and enforce best execution policies via smart contracts.

3. Investor Protection & Suitability

MiFID II Rules

• Firms must assess whether products are suitable for clients based on risk profiles (Art. 25).
• Firms must conduct appropriateness tests before selling complex products.
• Enhanced disclosure requirements for costs, fees, and risks.

Blockchain & Tokenization Benefits

✔ On-Chain Investor Identity & Risk Profiles — Digital identities (DIDs) with KYC/KYB verification can store suitability data, enabling instant compliance checks.
✔ Automated Suitability Testing — Smart contracts can prevent ineligible investors from accessing risky tokenized assets.
✔ Transparent Fee Structures — Tokenized assets can have embedded, real-time tracking of all fees and charges.

4. Market Integrity & Surveillance

MiFID II Rules

• Market abuse prevention (MAR) rules prohibit insider trading and market manipulation.
• Firms must implement trade surveillance and suspicious transaction reporting (STOR).
• Algorithmic and high-frequency trading (HFT) firms must ensure order throttling & risk controls (Art. 17).

Blockchain & Tokenization Benefits

✔ On-Chain Trade Surveillance — Regulators can monitor suspicious transactions in real-time using blockchain analytics tools.
✔ Immutable Trade History — Insider trading and front-running are harder to conceal when transactions are on a public ledger.
✔ Code-Enforced Risk Controls — Smart contracts can enforce execution limits, prevent wash trading, and apply pre-set trading rules.

5. Product Governance & Distribution

MiFID II Rules

• Firms must ensure financial products are designed for the right target market (Art. 16).
• Distributors must collect and report client suitability data.
• Investors must receive comprehensive Key Information Documents (KIDs) for packaged products (PRIIPs regulation).

Blockchain & Tokenization Benefits

✔ Programmable Product Restrictions — Tokenized assets can embed eligibility conditions, restricting unauthorized investors.
✔ Real-Time Client Monitoring — On-chain investor wallets can track and verify ongoing suitability dynamically.
✔ Tokenized Compliance Data — Key Information Documents (KIDs) can be tokenized and linked to each investment, ensuring easy verification.

6. Trading Venues & Market Structure

MiFID II Rules

• Defines Multilateral Trading Facilities (MTFs) and Organized Trading Facilities (OTFs) for non-equity instruments.
• Stricter requirements for Systematic Internalizers (SIs) and Over-the-Counter (OTC) trades to prevent opacity.

Blockchain & Tokenization Benefits

✔ Decentralized Trading Platforms — DEXs and tokenized asset marketplaces enable peer-to-peer trading with real-time transparency.
✔ On-Chain Liquidity Pools — Tokenization allows automated liquidity provision for structured products, reducing reliance on intermediaries.
✔ Lower Operational Costs — Smart contracts reduce clearing and settlement costs, making it easier to comply with transparency rules.

7. Clearing, Settlement & Post-Trade Processes

MiFID II Rules

• Stricter post-trade transparency and transaction reporting requirements.
• T+2 settlement cycle requirement for most asset classes.
• Central Clearing Counterparties (CCPs) required for standardized derivatives.

Blockchain & Tokenization Benefits

✔ Instant & Atomic Settlement — Tokenized securities enable real-time, on-chain settlement without intermediaries.
✔ Reduced Counterparty Risk — Smart contracts execute trade clearing automatically, reducing reliance on CCPs.
✔ Transparent Post-Trade Processing — All trade lifecycle events (corporate actions, dividends, interest payments) are recorded on-chain for easy reconciliation.

RIVA Markets Transparency and Efficiency

We built RIVA Markets based on 4 pillars: Accessibility, Transparency, Efficiency and Liquidity.

We specifically address these with our end-to-end solution, and in particular the entire asset lifecycle transparency. Our advanced token model is based on the ERC-3643 standard for integrated identity and compliance. Therewith compliance rules such as suitability and appropriateness checks are directly integrated and can be further extended.

Our ATOM (Asset Traceability On-Chain Model), goes way beyond the abilities of a normal token model as contains an asset balance which records all transactions of an asset such as payouts, interest payments and repayments to instantly update the asset balance. But it also records the asset servicing, term changes, delayed payments or underpayments, as well as integrates periodic and on-demand risk analytics and rating for a full 360 degree transparency of the assets.

This is a crucial improvement to much better and easier comply with such regulatory rules as in MiFID II, but for us even more important for investors to make better investment decisions and improve their quality and efficiency.

If you want to learn more about RIVA Markets you can reach us under info@riva.markets or visit our website: https://www.riva.markets.

Why Tokenization of Assets is the Magic Solution for MiFID compliance was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.

At RIVA Markets we’ve built a full market infrastructure to structure, issue, manage and trade digital assets. This end-to-end solution is built in modules that are integrated into each other and can be used as separate modules through our front-end, As-A-Service model or as API based systems.

This includes RIVA Prime as Loan Origination System (LOS) to record all the data of a loan, the borrower, the financials, and the loan structuring as senior, mezzanine and junior tranches with its separate terms on a decentralized ledger.

With our RIVA Capital module we bring funds natively on-chain through our on-chain fund model and our integrated service provider module to set-up fund structures or integrate existing ones.

Assets, such as loan tranches can be structured and issued as digital and tokenized securities and the fund shares tokenized through RIVA Securities. These tokenized assets can then be listed and traded on RIVA Markets or third-party marketplaces, bringing liquidity to traditionally illiquid markets.

A Hybrid Solution for Efficient Securitization and Tokenization

The RIVA Securities Module takes in a central role to securitize assets as digital on-chain securities and as tradeable tokens.

Although the market for tokenized assets is gaining increasing attention with a steady growing number of institutions and start-ups issuing such assets, several studies have shown that it will still take several years until the buy-side is fully ready to trade and manage tokenized assets and the full potential will unfold. This is especially true for small to medium size asset managers, which are often less innovation-driven.

With RIVA Securities we’re addressing this transition and developed a hybrid system to structure and issue different types of securities in a highly efficient way in different securitization forms and jurisdictions fully digital and on-chain. Structuring and issuing securitized and tokenized assets with RIVA Securities slashes up to 90% of the efforts and costs of traditional securization. This can be single assets like single loan tranches or bonds for one or multiple investors, or structured assets like ABS, MBS, CDO, Funds or REITs as cost-efficient Luxembourg SPV compartments or single SPVs, or fund structures.

Those assets can then be traded and settled through its ISIN, CUSIP or other identifiers and traditional methods like depository accounts and issued and settled as tokens at any given time. This provides asset managers and investors a flexible and seamless way for digital asset management and a hybrid method for settlement and trading without friction.

Structuring and issuing securitized and tokenized assets with RIVA Securities slashes up to 90% of the efforts and costs of traditional securitization.

Flexible Structuring and Issuance of Different Asset Types

Our innovative ATOM (Asset-Traceability-On-Chain-Model), introduced in our last article, is a set of smart contracts with a flexible data model for digital assets. ATOM has a basic, but already comprehensive data model for each asset type and tranches and can be easily extended on-demand with additional data fields, ensuring advanced flexibility for asset issuers.

RIVA Securities already include several asset types to be efficiently securitized and tokenized for assets originated through RIVA Prime, on-chain funds through our RIVA Capital module as well as for 3rd party issuers to bring their existing assets on-chain as digital securities and as tokenized securities. This can also be single assets like whole loans or bonds, structured loan tranches or loan pools, or full funds that add assets over time. The underlying assets of a fund can also be securitized and tokenized to trade on secondary markets like RIVA Markets or other 3rd party marketplaces for increased portfolio liquidity.

Full On-Chain Traceability

Through ATOM we’re not only recording all data on-chain, we also track the asset along its entire lifecycle with a real-time monitoring, balance and valuation. Each transaction, servicing and changes related to the asset can be tracked and records kept up to date in real-time through on-chain functions and OpenBanking API integration.

Through our API integration with Moody’s Analytics, this lifecycle data can always be traced to create a real-time advanced risk analytics and rating for the asset.

Tokenized funds track the underlying assets on-chain and consolidate the portfolio holdings on the fund level with full drill-down in the underlying assets.

A real-time asset transparency that does not exist for any asset currently on the market.

Interoperability for Seamless Trading Across Chains

With the awaited on-chain settlement roll-out by Swift and its blockchain interoperability through Chainlink’s CCIP (Cross-Chain-Interoperability Protocol) the settlement of digital assets will be institutionalized. This will truly merge DeFi (Decentralized Finance) with TradFi (Traditional Finance) and enable instant on-chain settlement through institutional DvP (Delivery-versus-Payment).

As we built ATOM chain-agnostic, assets can be issued on one chain and transferred to another chain with its full data history. This is possible through our data-rich token concept of ATOM, which records that data continuously on the on-chain ledger where it currently sits and transfers this traceability fully to another chain where the token will be possibly transferred. By using the ERC-3643 standard, the tokens are compliant with financial regulations and through CCIP’s privacy protections, the privacy of the asset is always cryptographically secured, even on public permissionless chains.

The Way Ahead

As we’ve developed our full end-to-end infrastructure and on-chain ATOM data model with the first asset use cases, we’re starting to on-board our first clients to structure an on-chain fund vehicle and originate the underlying equity and debt assets for commercial real estate projects. In parallel we’re deploying data models for additional asset uses cases with focus on different private debt assets such as corporate loans and bonds and will actively work with our next clients in this space.

If you want to learn more about RIVA Securities and our full solution suite we’re delighted to hear from you!

RIVA Securities — The Hybrid Solution for fully Digital On-Chain Securities and Tokenized Assets was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.

At RIVA Markets, we believe that the future of real-world asset (RWA) tokenization isn’t just about transferring assets onto the blockchain - it’s about issuing assets natively on-chain and bringing the asset’s entire lifecycle, data, and real-time insights on-chain.

And today, we’re thrilled to reveal RIVA Markets’ ATOM — Asset Traceability On-Chain Model. ATOM is a comprehensive on-chain data model designed to bring the entire asset and lifecycle data for assets natively onto the blockchain, going far beyond the typical abstract models used for RWA tokenization. By doing so, RIVA enables unparalleled transparency and traceability for issuers, investors, asset managers, service providers and stakeholders, supporting a comprehensive approach for the future of asset management and secondary market trading.

In this article we want to dive into ATOM’s unique features, the benefits of leveraging the ERC-3643 standard for ATOM, RIVA’s interoperability strategy across EVM-compatible chains, and how ATOM integrates seamlessly with RIVA’s suite of services to reshape the tokenization landscape.

A Shift from Abstraction to Complete Asset Lifecycle Transparency

In most RWA tokenization solutions on the market, data is abstracted, providing only high-level information on underlying assets. This approach works for simple asset models but falls short on leveraging the true potentials and benefits of the blockchain and tokenized assets. With ATOM, RIVA Markets has taken a different route by bringing complete, detailed data for each asset natively onto the blockchain.

Instead of tokenizing an existing asset type with an abstract token model without the whole asset and lifecycle data stream, ATOM’s data model concept is based on a process-oriented lifecycle approach.

Asset Origination

By originating an asset like a loan directly on-chain, ATOM creates an on-chain ledger with an asset-specific data model. The asset-specific data model contains the full data structure of the asset, the entity model and the the financial model. Payment streams are defined such as payouts, repayment and interest payments for loans or coupon payments for bonds to create an asset balance that will be tracked and kept up-to-date in real-time.

Primary Issuance and Distribution

When an asset is initially originated it will be distributed through various ways like a prior agreed settlement and distribution to one or more investors, by listing on RIVA Markets and investment by matching investors or through investors subscriptions like for funds. ATOM contains on-chain subscription with regulatory and compliance rules as well multiple settlement methods like wire transfers, depository accounts or on-chain settlement that are recorded on-chain.

Asset Servicing

During a lifecycle, assets need to be serviced. This is especially the case for loans as it requires payouts, collection of interests and principal repayments, payment deferrals and dunning, terms changes, early repayments or distribution of payments to investors. ATOM’s smart contracts executes those servicing processes, updates the ledger and the balances and records all transactions and updates. Required service providers can directly integrate on the ledger layer for complete real-time accuracy.

Investor Servicing

Like assets, investors need to be serviced in terms of on-boarding, settlement and post-trade processes, reporting, payouts, redemptions or asset sales. Investor and asset ledgers needs to be synced, which is the main role of ATOM during the asset lifecycle.

Secondary Market Trading

A main benefit of securities, and even more for tokenized assets, is their tradability on secondary markets. ATOM is particularly valuable in secondary markets, where buyers and sellers benefit from immediate access to data-driven insights, real-time valuations, and the entire asset lifecycle. ATOM provides this transparency, executes the trades updates the records and balances.

As we’re directly integrating with Moody’s Analytics, this allows for real-time risk assessments and rating updates, empowering investors with essential insights at every stage of the investment lifecycle.

Built with Flexibility to Support Diverse Asset Classes

We started with commercial real estate finance such as residential, commercial, hotels and special projects, as we see the biggest potential and benefits in this highly antiquated but massive $13 trillion global market with a constant growth. Real estate debt is also probably the most complex loan type in terms of its data model and payment streams.

ATOM was developed with a flexible architecture, initially focusing on commercial real estate loans and a full on-chain fund model. The fund model was developed as the basis for RIVA Capital to structure and set-up funds natively on-chain. We therewith also want to demonstrate that funds can be set-up and managed fully on-chain and how such on-chain funds form a seamless and fully integrated ecosystem when investing in native on-chain and tokenized assets.

But ATOM’s flexibility doesn’t stop there. Designed to support a wide range of asset classes, ATOM can accommodate on-chain data structures for other asset types, like bonds, all kinds of private debt, equity to funds and REIT’s. This flexibility positions RIVA Markets as a powerful enabler for any institution looking to issue diverse asset types on the blockchain and benefit from full lifecycle traceability.

Powering the RIVA Suite: Modular Solutions for a Comprehensive Tokenization Ecosystem

ATOM is a central component of the RIVA ecosystem, which consists of four interconnected modules:

RIVA Prime: RIVA Prime is a comprehensive loan origination system to structure and issue loans natively on-chain. Prime is the starting point for ATOM, opening the on-chain ledger and determines the lifecycle management and servicing.

RIVA Securities: RIVA Securities transforms the assets to an actual investment product, either as on-chain security or as native tokenized asset for originated assets from Prime of 3rd party assets. It also allows to structure investment products such as ABS, MBS or CDO’s in a flexible composable way, as well as acts as the tokenization module for tokenized fund shares for the RIVA Capital fund module.

RIVA Markets: RIVA Markets takes the central role for investor access as primary issuance and for secondary market trading. ATOM’s lifecycle transparency ensures that every asset traded on RIVA Markets provides investors with deep insights and traceability, enhancing price discovery and liquidity.

RIVA Capital: RIVA Capital fully digitizes fund operation, allowing investors to set-up funds natively on-chain and construct diversified portfolios of tokenized assets. Using ATOM’s detailed data, investors can make well-informed decisions across various asset classes.

Together, these modules establish a fully integrated ecosystem, enabling both primary and secondary market activities with a focus on transparency, compliance, and interoperability.

Leveraging ERC-3643 (T-REX) for Compliant, Secure Tokenization

To support compliant and secure transactions, ATOM is built on the ERC-3643 (T-REX) standard. Developed by Tokeny, the T-REX protocol offers robust identity verification and compliance mechanisms, designed specifically for security tokens. Unlike typical ERC-20 tokens, ERC-3643 tokens include advanced compliance features and identity management, making them ideal for regulated environments.

The advantages of using ERC-3643 for RWA tokenization include:

• Identity Verification and Compliance: T-REX employs standards like ERC-734 and ERC-735 to manage on-chain identities and verifications. Trusted issuers validate identities and manage claim topics to control token transfers, ensuring that only verified participants can hold and trade tokens.
• Trusted Issuers Registry: A registry of trusted entities provides the basis for compliance, with checks occurring at the smart contract level to guarantee that only eligible participants engage with the tokens.
• Interoperability with ERC-20: While T-REX adds significant compliance features, it remains compatible with ERC-20 tokens, allowing for broader use within DeFi ecosystems.

These features ensure that assets tokenized using ATOM are secure, traceable, and fully compliant with industry standards — a critical feature for institutions and regulatory entities looking to engage in blockchain asset tokenization confidently.

A Hybrid Model for On-Chain and Non-Tokenized Assets

Recognizing that many investors are still not ready to transition to fully tokenized asset management, RIVA Markets offers a hybrid model that allows for both on-chain bilateral agreements and non-tokenized assets. This model provides a flexible entry point for investors who may not yet be ready to adopt tokenization while still benefiting from the transparency and efficiency of the on-chain ecosystem.

With RIVA’s hybrid approach, assets can be managed and utilized on-chain without immediate tokenization. However, investors retain the option to securitize and tokenize these assets at any time, further enhancing their potential for capital efficiency and market access. This flexibility supports a gradual transition to tokenized asset management, making it easier for traditional investors to enter the blockchain space.

By offering a full solution with a transition path to tokenization, RIVA Markets empowers investors to take control of their asset management strategies while benefiting from RIVA’s comprehensive suite of services.

Multi-Chain Interoperability: Connecting RWA Tokenization Across EVM Chains

The ATOM model is explicitly built for multi-chain interoperability, supporting issuance on different Layer 1 and Layer 2 chains. This flexibility allows assets to be issued on different chains, leveraging the strengths of each chain for various use cases.

To enable cross-chain functionality, ATOM integrates with Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which provides secure and reliable asset transfers across blockchain networks. Chainlink CCIP ensures that tokenized assets retain their data integrity and security during cross-chain transactions, allowing for seamless trading across decentralized marketplaces.

This interoperability ensures that tokenized assets in the RIVA ecosystem are not limited by blockchain silos but can move freely across networks, enhancing liquidity, accessibility, and asset exposure.

The Future of Real-World Asset Tokenization with ATOM

ATOM, supported by RIVA’s comprehensive ecosystem and powered by the ERC-3643 standard, represents a major advancement in real-world asset tokenization. By bringing complete lifecycle data on-chain, ATOM provides investors with deep asset insights, supports secure and compliant transactions, and enables a liquid secondary market.

As RIVA continues to innovate, ATOM stands poised to become a foundational model for institutions looking to enter the blockchain space with a secure, transparent, and flexible solution. Through ATOM, RIVA Markets is not only enhancing the way assets are issued and managed on-chain, but redefining transparency, interoperability, and compliance for future blockchain-based asset markets.

Why ATOM Will Lead the Future of On-Chain Assets

At RIVA Markets, we’re committed to advancing on-chain assets by making them accessible, transparent, and liquid. With ATOM, we’re not just adding assets to the blockchain; we’re issuing them natively on-chain and provide true traceability and visibility that transforms how assets are managed, valued and traded. By creating an ecosystem where every stage of an asset’s lifecycle is available on-chain, we are equipping investors with tools that go beyond speculative trading to form robust, data-driven portfolios.

Key Benefits of the ATOM Model

Enhanced Trust and Investor Confidence: By capturing an asset’s full lifecycle and financial events, ATOM offers unprecedented transparency, helping investors understand what lies behind each token.

Data-Rich, Risk-Aware Investing: Integrated with Moody’s Analytics, ATOM provides ongoing risk insights, enabling smarter decision-making and agile portfolio adjustments.

On-Chain Credibility and Compliance: ATOM supports regulatory requirements and best practices, as every step in the asset lifecycle is visible on-chain, fostering a compliant ecosystem with reduced opacity.

Optimized for Secondary Markets: With ATOM, on-chain assets gain a new level of liquidity by making each asset’s history and risk profile accessible to prospective buyers in the secondary market.

ATOM and the Future of On-Chain Assets

The launch of the ATOM model is a major leap forward advancing tokenized real-world assets to native on-chain assets — making them transparent, accessible, and trusted investment vehicles. At RIVA Markets, we’re excited to lead this shift and invite our partners, investors, and the blockchain community to join us in redefining what tokenized assets can be.

The ATOM model doesn’t just symbolize a new model of tokenization — it’s a fundamental shift in how we think about real-world assets on the blockchain.

Welcome to the future of transparent, lifecycle-integrated on-chain asset management.

Introducing RIVA ATOM - Asset Traceability On-Chain Model was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.

In recent years, the world’s largest banks have moved beyond the initial skepticism around blockchain and digital assets, positioning themselves at the forefront of financial innovation. Our research into the blockchain adoption by the top 30 global banks highlights how these institutions are not just experimenting with blockchain but are integrating it into core financial services. From Bitcoin and Ethereum ETFs to more complex digital asset structures, these banks are embracing a diverse array of use cases aimed at transforming traditional finance.

One of the most significant areas of adoption is the rise of ETPs (Exchange-Traded Products), particularly Bitcoin and Ethereum ETFs, which have gained momentum as secure and regulated vehicles for institutional and retail investors to access digital assets. But the innovation doesn’t stop there. Banks are exploring many tokenization use cases such as tokenized equity, debt, and funds, allowing for more efficient capital markets by digitizing traditional financial instruments. They are also pioneering tokenized money market funds and commodities, offering new avenues for liquidity and diversification. And some of them even offer tokenization services by themselves

Beyond financial products, tokenization is revolutionizing other asset classes, with banks tapping into tokenized art and real-world assets. Additionally, derivatives and structured products are being enhanced with blockchain, creating new opportunities for risk management and investment strategies. As regulatory landscapes evolve and technological advancements continue, these banks are leading the charge in shaping a new era of finance.

Our research delves deep into these trends, uncovering how these global institutions are leveraging blockchain to redefine value in the modern financial system and actively build the future of tokenized asset management.

Stablecoins

Although not an investment class, stablecoins are a crucial component in the crypto world and for the adoption of tokenized asset management. Due to the high volatility of cryptocurrencies, they are not ideal for facilitating asset trades and settlements, as their value can fluctuate significantly with each new block, potentially leading to immediate value loss. Tether (USDT), launched in 2014 and pegged 1:1 to the US Dollar, was the first notable stablecoin and continues to dominate the market. Since then, numerous stablecoins have been issued, pegged to the US Dollar, Euro, and other fiat currencies. Additionally, other forms of stablecoins, such as commodities-backed, crypto collateralized stablecoins like DAI initially, or algorithmic stablecoins have been developed, though the infamous Terra Luna case highlighted their vulnerabilities.

Official forms of stablecoins, such as Central Bank Digital Currencies (CBDCs), are emerging, with several pilot projects conducted by global central banks and participation from many of the top 30 banks. Another type of stablecoin, driven by banks in the form of tokenized deposits, is gaining traction. This type of stablecoin offers significant benefits for payment and settlement within the banking system. Many banks worldwide have developed such solutions, including JP Morgan’s JPM Coin System and the MUFG consortium’s Progmat Coin Platform, enhancing the efficiency and security of financial transactions.

ETFs and ETPs

Bitcoin ETFs are the hot bed for banks with the permission of spot Bitcoin ETFs in the US. Since its approval beginning of this year by the SEC, StockAnalysis lists a total of 43 Bitcoin ETF, issued by major global asset managers such a Blackrock, Fidelity, VanEck or Invesco. But also crypto-native asset manager have gained top positions in AuM such as Greyscale, Bitwise, is ARK in partnership with 21Shares. However, we could find only clear evidence of 7 banks in our list, offering those assets to their clients, but that’s might only the officially announced numbers so far.

ETPs (Exchange-Traded Products) are exceptional investment vehicles that encapsulate crypto exposure into tradable investment products, available in a variety of compositions. These can range from single-asset ETPs to index-based ETPs. Swiss-based 21Shares was a pioneer in this space and has amassed an impressive $3 billion in Assets under Management (AuM). Following their lead, several other entities have entered the market, particularly in Switzerland. These include Crypto Bank Amina, structured product specialist Leonteq, and Ficas. Additionally, UK-based Coinshares and Germany’s Deutsche Digital Assets have also made significant contributions to the development of crypto ETPs, expanding the options available to investors looking to engage with digital assets through traditional investment frameworks.

Tokenized Equity

Tokenizing equity involves both public equity in the stock market and private equity. Tokenization, supported by blockchain technology, offers several benefits such as increased transparency, and more efficient trading and settlement processes. Particularly for private equity, tokenization can significantly enhance accessibility and liquidity. This can be transformative, potentially changing the game for private equity owners looking to access capital outside the traditional corporate bond market, and for private equity funds aiming to overcome the challenges associated with illiquid markets and closed-end terms.

Banks have the opportunity to leverage their existing relationships with companies and private equity owners in multiple ways beyond their M&A and IPO advisory roles. Through their asset and wealth management divisions, banks can facilitate capital formation and establish a liquid market, offering direct private equity exposure to their clients and a secondary market for private equity and private equity funds.

Citi, in collaboration with Wellington Management, WisdomTree, and ABN Amro, has explored the potential of tokenized private equity. In a pilot built on Avalanche’s Spruce institutional test Subnet, the underlying fund distribution rules were encoded into a smart contract and embedded in the token transferred to hypothetical WisdomTree clients, with ABN AMRO simulating the role of a traditional investor. This proof of concept showcased the potential of smart contracts to greatly enhance automation and potentially create a more robust compliance and control environment for issuers, distributors, and investors.

Tokenized Bonds

The global bond market is massive with about $140 Trillion in government bonds and $33 Trillion corporate bonds. Tokenized bonds seem to be a major future digital asset use cases for banks for obvious reasons. The advent of tokenized bonds represents a new era for both issuers and investors. Issuers, particularly banks, can distribute bonds more efficiently and to a broader audience, while improving the overall process efficiency managing, trading and settling bonds. Investors benefit from better accessibility to bonds, ease of settlement and increased transparency.

Several top financial institutions have already made strides in this space. For example, UBS issued a CHF 375 million bond, the first fully digital bond listed on a regulated exchange. Similarly, Crédit Agricole and SEB developed the so|bond platform, which not only enables bond issuance but also incentivizes sustainability through a Proof-of-Climate-Awareness protocol​. HSBC has worked on blockchain bond trials and used the Singapore Marketnode platform to issue a S$400 million bond. HSBC’s Orion platform facilitated a HKD6 billion digital green bond for the Hong Kong government. The European Investment Bank (EIB), with Goldman Sachs, issued a €100 million digital bond as part of Project Venus. JP Morgan facilitated the issuance of a $10 million blockchain-based municipal bond for the City of Quincy in 2024. The bond aimed to reduce costs, enhance liquidity, and expedite settlement times. Also, Nomura demonstrated administrative cost reduction and transparency improvement in bond trading when they issued Japan’s first blockchain-based digital bonds through the BOOSTRY platform. BNP Paribas hosted the issuance of Slovenia’s digital bond through its Neobonds platform with settlement through the Banque de France’s wholesale central bank digital currency (CBDC) as part of the Eurosystem’s wholesale DLT settlement trials settled in CBDC.

Tokenized Private Debt

Private Debt represents another massive market with the real estate debt market at $13 trillion, and the private debt market at $2 trillion. However, debt markets remain extremely opaque and are perhaps the most antiquated financial sector, having seen little major innovation even as technological advances have transformed so many other aspects of society.

Debt is an ideal use case for DLT and tokenization, as it can be natively originated and managed on-chain throughout its entire lifecycle. Banks, burdened by stringent regulatory requirements and increasing risk provisions, can issue loans without adding them to their balance sheets by instead issuing them on-chain and distributing them directly to investors as structured tranches, including the sale of first-loss capital. This approach allows for the creation of new forms of structured and securitized fixed-income products, such as Asset-Backed Securities (ABS), Mortgage-Backed Securities (MBS), Collateralized Debt Obligations (CDOs), and Collateralized Loan Obligations (CLOs). These products can be issued as single loan tranches, whole loans, or pooled assets, and even in more complex, diversified forms with built-in smart contract derivatives for risk hedging and automated interest swaps.

The banks in our list have already built, tested and issued many tokenized debt products, especially tokenized bonds of which 16 banks like JP Morgan, BNP Paribas, Crédit Agricole, Citi , BNY Mellon, UBS, Society General, Standard Charter and many more have been already active as mentioned a few before. Tokenized private and real estate debt is still very underrepresented as it clearly shows that the banks are first building the public debt market. The future is truly bright for tokenized debt capital markets, and at RIVA Markets, we provide the infrastructure and tools necessary to support this transformation.

Tokenized Funds

The blockchain technology and tokenization provides tremendous benefits to the fund management industry. Tokenized funds utilize blockchain technology for several benefits such as digitize ownership of fund shares, enhanced liquidity through a more efficient and accessible market, transparency of the fund and its underlying assets, and operational efficiency. This innovation allows investors to trade fund shares more seamlessly and securely. But not only that, alternative funds investing into more illiquid assets can even tokenize those assets to seek liquidity on tokenized marketplaces to exit full or partly. By brining those assets like private debt, private company shares, real estate or commodities on-chain, the underlying performance can be recorded on-chain for increased lifetime transparency for secondary market trades. We at RIVA Markets made it to our goal to provide the fund management platform of the future, with an in-built market for digital and tokenized securities.

Leading financial institutions are actively exploring and implementing tokenized fund projects such. as JPMorgan’s Project Ubin, in collaboration with the Monetary Authority of Singapore (MAS), explores tokenized securities and payments to streamline and secure transactions. Goldman Sachs is working on asset tokenization projects, including funds, to improve market access and liquidity. State Street’s digital asset division develops solutions for tokenized funds, offering more efficient and transparent investment opportunities. HSBC’s Digital Vault platform digitizes records of private placements, enhancing access and efficiency in managing fund investments. These initiatives illustrate how banks are adopting blockchain to innovate fund management, which is expected to transform the funds management market over the next decade.

Tokenized Money Market Funds

Money market funds (MMFs) are a type of mutual fund that invests in short-term, high-quality, and low-risk debt instruments. These instruments typically include treasury bills, commercial paper, certificates of deposit, and repurchase agreements. MMFs aim to provide investors with a safe place to invest easily accessible cash-equivalent assets, offering liquidity, stability, and a modest yield. They are commonly used by investors seeking to preserve capital while earning a return higher than that of traditional savings accounts. MMF have been early identified as a strong use case for tokenization and have gained high interest with Blackrock’s recently launched BUIDL fund, which has grown already to over $500 Mio within just few months. Blackrock has partnered with Barclays already earlier on for a MMF built on JP Morgan’s Tokenized Collateral Network (TCN) as well as Fidelity followed suite.

Tokenized Real Estate

Tokenization of real estate enables fractional ownership, allowing multiple investors to hold a stake in a property and generate yields from its rental income and potential later sales. The benefits of tokenized real estate include lowering the entry barriers and democratizes access to real estate markets, enhanced transparency, as all transactions are recorded on a secure and immutable blockchain ledger, reducing the potential for fraud and disputes. Additionally, smart contracts automate various aspects of property management and investment, from lease administration to dividend distributions, streamlining operations and reducing costs.

For the tokenization, the property needs to be legally structured to comply with local regulations. This often involves setting up a specific entity, like a Special Purpose Vehicle (SPV), to hold the property. This entity becomes the issuer of the tokens. In some jurisdictions, real estate can be tokenized using a trust structure, where the trust manages the real estate assets on behalf of the token holders, who are effectively beneficiaries of the trust. Limited partnerships can be used where investors are limited partners and the tokens represent their partnership interests. The general partner manages the property on behalf of the limited partners. In less common scenarios, tokens can directly represent ownership stakes in the property without intermediary structures. This setup requires robust legal frameworks to ensure that token holders’ rights are protected.

The tokenization or real estate can be transformative in many ways that are often overseen, especially for banks. Collateralization can be pledged through tokens and built into smart contacts for enforcement. But enforcement could also mean that banks could sell them on the market and owners can pay interests and repay to other investors while keeping their house. Banks or non-banks can create new forms of MBS or REITs as equity and debt resolving mortgage restrictions and shortage in many markets and creating new business models. The market of secondary mortgage and so-called HELOC’s (Home Equity Line of Credit) can be improved and expanded as the success of Figure in the US demonstrates. Tokenization of real estate can also transform the market for real estate developers, as they can directly sell tokens as equity/ junior tranche tokens to investor for new projects instead of loans, increase the equity for better LTV, pay out yields in form of interests, income proceeds and profit participation, which we at RIVA Markets already developing together with real estate developers.

Tokenized Commodities

The tokenization of commodities is another transformative opportunity since the commodities market is digitized only for a small proportion of the commodities market and the broader market is still stuck somewhere in the 90’s. But the commodities market offers so many more opportunities as formerly untradable commodities can be traded highly efficient in a synthetic tokenized form as ownership right without even bothering of physical movements. The rights of the unexplored but proofed and valuated commodities can be traded as well as the funding of its supply can be tokenized. Investors can also protect their wealth by investing in tokenized commodities with historical low volatility and low correlation to other asset classes for improved portfolio diversification.

As already elucidated in trade finance, banks have token early steps in projects with a strong focus on commodities. Banco Santander in Argentina has partnered with Agrotoken, the creators of crypto-soya (SOYA), crypto-corn (CORA) and crypto-wheat (WHEA), the first grain-backed cryptoassets and ING, ABN Amro and Society Generale joined forces with energy companies to create a blockchain-based digital platform for the energy commodities sector already in 2017. Also Austrian RBI collaborated with Bitbond and Metaco on a commodity tokenization project using the Polygon blockchain.

Tokenized Art

Art is not a traditional field of investment for banks, and we haven’t found any activities of those banks engaging in art investments in relation to tokenization, settlement or lending. However, we also take tokenized art into the list of investment products, as this can become an asset type relevant for banks, especially in the private banking space in which several banks manage huge clients assets and generate a significant portion of their revenues and profits, After the forced take-over of Credit Suisse by UBS, both giants in the wealth management space by their own, the Swiss bank manages a staggering AuM of $5 Trillion. More than double the volume major US banks like Goldman Sachs ($2.5 Trillion), Citi ($2.42 Trillion), JP Morgan ($2.4 Trillion) and still $2 Trillion more than 2nd ranked HSBC ($3 Trillion). As elaborated in collateral-based lending, art is an asset that can and is being used as collateral for lending, since lending to wealthy clients is a very active business to leverage those assets to generate additional yields on their assets.

Derivatives and Structured Products

Derivatives cover a broad spectrum of financial instruments with different underlying’s functions and possibilities. The most prominent derivative product in relation to crypto might be early Bitcoin ETFs based on Bitcoin futures, before spot Bitcoin ETFs have been approved by the SEC early this year. Other derivative products include enforcing transactions when certain conditions are met. By leveraging the blockchain as immutable record of data and using smart contracts to trigger dynamic conditions typical of derivative contracts, the technology offers tremendous potentials for the derivative space. But so far, the adoption of the global banks is still in its infancy. However, JP Morgan’s Onyx platform and its Tokenized Collateral Network, as well as Goldman Sachs’ Marquise platform are first examples for blockchain-related derivative solutions.

What’s ahead of us

As tokenization and institutional blockchain infrastructure continue to mature, it’s clear that we are still in the early stages of a transformative shift in asset management and banking. This development promises to unlock the full potential of blockchain, moving beyond isolated solutions to deliver fully integrated transparency and automation. At RIVA Markets, we’ve pioneered on-chain fund structuring that enables seamless, end-to-end asset and investor management. This allows for more efficient investor onboarding, while offering the flexibility to trade fund shares on a secondary market — eliminating the lengthy redemption periods typically associated with private funds.

With tokenized assets, both fund performance and risk can be tracked in real-time, allowing for proactive risk management through leading indicators rather than reactive, lagging ones. Tokenized assets can also be traded on liquid markets, replacing the cumbersome over-the-counter (OTC) trades that dominate secondary markets today. Additionally, idle liquidity can be put to work in short-term investments such as tokenized money market funds (MMFs), yield-bearing stablecoins, or institutional yield pools. Innovative hedging strategies, tailored to specific fund strategies, and highly efficient structured products can be created from a wide variety of assets.

The convergence of traditional finance (TradFi) and decentralized finance (DeFi) will unlock even greater opportunities for banks and their clients, reshaping how financial services are delivered and how value is created and exchanged across global markets.

Undoubtedly, we’re witnessing a wave of innovation, as not only the largest global banks are shaping the future of tokenized asset management, but small and mid-sized banks around the world are also launching and expanding their digital asset offerings. This year’s surge of interest in real-world asset (RWA) tokenization has sparked significant developments across the banking sector, blockchain networks, and startups alike. These players are increasingly collaborating, recognizing the mutual benefits of advancing this technology. As the ecosystem matures, this collective effort will continue driving the next phase of financial transformation.

One transformative event we’re waiting for is the launch of Swift’s blockchain settlement integration as this is a true game-changer for the banking world to settle on-chain transaction with its core banking settlement infrastructure.

To dive more into the detailed use cases of the Top 30 Global Banks Blockchain Adoption read our full research article:

Institutional Blockchain Adoption — The Top 30 List of Global Banks on the Forefront

The Top 30 Global Banks Digital Assets Use Cases was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.

Blockchain technology, or Distributed Ledger Technology (DLT), is fundamentally a technology for the financial market. Originating as the underlying technology of Bitcoin, its principle of recording transactions conditionally is ideally suited for financial transactions of all kinds. While blockchain has numerous applications in other industries and broader segments of society, it is intrinsically a technology tailored for financial services.

The concept of smart contracts was first introduced in the 1990s by computer scientist and cryptographer Nick Szabo. Szabo, who also holds a Juris Doctor and has conducted research on digital currencies, named and defined the main function of smart contracts. These are designed to automate contractual agreements for peer-to-peer transactions between strangers, serving as a trust protocol. The integration of blockchain enhances this setup by creating an immutable and distributed record of all transactions, thereby ensuring unbeatable redundancy.

Institutional Blockchain Adoption — The Top 30 Global Banks on the Forefront Report

In our research report about the “Institutional Blockchain Adoption —The Top 30 Global Banks on the Forefront” we dived deep into the blockchain use case adoption and the developments of those leading global banks, and it is quite impressive what those banks have already developed, tested and implemented. In this article we provide an excerpt of the specific blockchain use cases for banks and provide an overview of how those top banks are utilizing blockchain technology.

Digital Identity

A blockchain-based identity system provides a secure, decentralized solution to manage customer and counterparties identities in the financial industry. This system ensures tamper-proof identity verification, enhanced security, and streamlined compliance with KYC and AML regulations, while customers can control their digital identities through cryptographic keys, reducing the risk of identity theft and data breaches. Financial institutions benefit from improved onboarding, lower operational costs, and improved regulatory compliance through transparent, immutable audit trails. HSBC and JP Morgan have been exploring blockchain-based identity systems in a joint effort. HSBC’s “Digital Vault” initiative leverages blockchain to securely manage and verify customer identities, while JP Morgan’s Quorum blockchain platform facilitates secure identity verification processes. We have also discovered several other banks in our research, who’ve already actively developed and integrated blockchain-based identity systems such as Standard Chartered, Banco Santander, BBVA and Deutsche Bank.

Crypto Trading & Custody

An obvious use case and new business line for banks in their investment and private banking division, but also as retail offering and integration in their online banking systems, such as Austrian Raiffeisen Bank through its partnership with Austrian crypto exchange Bitpanda. Custody is another strong business case for banks, as many especially regulated financial service companies and funds prefer custody with their established banking partners. We’ve found evidence of 12 banks offering crypto custody, and 11 offering crypto trading in one or more jurisdictions. US banks lacking such services in their home market due to the well-known stance of the SEC and unfavorable ruling on risk provisioning for crypto custody.

Payment

Payment is probably the most obvious use case for banks as it allows improved settlement, especially in cross-border transactions. Mostly, those projects are combined with stablecoin transactions, but also through bank-own coins such as the JPM Coin, Citi’s or Japanese MUFG, as well as tokenized deposit solutions that are technically different than stablecoin transactions. Also active CBDC projects are aimed to improve payment, driven by either the regulators with the banks or as own initiatives such as Australian and New Zealand Banks projects of NAB and ANZ shows. We found a total of 17 banks who have already worked on payment projects or even already leveraging it for several uses in different jurisdictions. MUFG’s core activities seem to be centered around their Progmat Coin platform and its consortium with impressive 228 member companies. BBVA has launched already 2019 a mobile payment system using a tokenized payment system. Fnality institutional stablecoin project is another notable example with many of the global leading banks directly invested or involved.

Trade Settlement

Trade settlement is clearly a major use case for banks due to its complexity in basically all securities transactions and a major driver of bond and fund tokenization projects. A traditional settlement processes often require several days to complete (T+2 or T+3), introducing counterparty risks and delaying the availability of funds. Blockchain enables real-time or near-instant settlement by recording transactions on a distributed ledger immediately upon execution, reducing counterparty risk and accelerates the availability of funds and securities​. Each transaction is recorded in a decentralized and time-stamped manner, enhancing trust among participants and simplifies audit processes, reducing the need for intermediaries and manual reconciliation. The automation minimizes human errors, lowers transaction costs, and reduces the complexity of the settlement infrastructure​​. The cryptographic nature of blockchains secure transaction data, making it highly resistant to tampering and fraud. The decentralized computation also means there is no single point of failure, enhancing security of the settlement process​. The distributed nature of blockchain ensures operational resilience. Even if one or more nodes in the network fail, the system continues to function without interruption. Blockchain can enhance regulatory compliance by providing a transparent and tamper-proof record of all transactions. This feature simplifies the reporting requirements for financial institutions and ensures adherence to regulatory standards​.

Project Guardian, led by the Monetary Authority of Singapore (MAS), explores the use of blockchain and decentralized finance (DeFi) for asset tokenization and trade settlement. The initiative successfully completed pilots involving DBS Bank, JP Morgan, and SBI, demonstrating the real-time settlement of foreign exchange and government bonds using tokenized assets. These pilots showcased how tokenized assets can be traded and settled instantly, reducing costs and improving efficiency by eliminating intermediaries in over-the-counter (OTC) markets. Project Guardian aims to advance interoperability in the global financial infrastructure and expand tokenization use cases across various asset classes

The SIFMA’s Project, managed by the Securities Industry and Financial Markets Association (SIFMA), which involved major financial institutions like Citi, JP Morgan, and Wells Fargo exploring the tokenization of various financial instruments, including U.S. Treasuries. The aim was to facilitate settlements on a single shared ledger, under existing legal frameworks, to enhance the efficiency and resilience of capital markets​.

Trade Finance

In 2023, trade finance was a $31 trillion industry according to UNCTAD, with nearly all listed banks holding a stake. This sector was one of the earliest to adopt blockchain through collaborative projects. According to a recent report by Standard Chartered and Synpulse titled “Real-World Asset Tokenization: A Game Changer for Global Trade,” the potential for tokenized trade finance could reach as much as $4.8 trillion by 2034.

A total of 20 banks have been actively involved in projects like Contour, with major players including HSBC, Standard Chartered, DBS, and Citi using blockchain to enhance real-time, secure collaboration among trade partners, especially in issuing Letters of Credit. Komgo, supported by banks such as Citi, ING, and Societe Generale — and involving 15 major banks like MUFG, Crédit Agricole, Lloyds, and ABN Amro focuses on commodity trade finance.

The we.trade consortium, including HSBC, Deutsche Bank, Santander, and Erste Bank, facilitates secure trade among SMEs across Europe. Citi’s Citi Token Services piloted a blockchain solution that tokenizes deposits for instant payments and improved liquidity management, aiming to replace traditional bank guarantees and Letters of Credit. Additionally, Standard Chartered’s collaboration with Linklogis and Barclays’ partnership with WaveBL has been key in digitizing trade documents.

Siemens has worked with TradeIX on the Marco Polo platform to secure efficient trade finance transactions. The Partior Platform, a collaboration among DBS Bank, JP Morgan, and Temasek, focuses on streamlining cross-border payments in trade finance.

The Marco Polo Network, which included global banks like BNP Paribas, ING, Bank of America, Standard Chartered, Citi, BNY Mellon, and Raiffeisen Bank International, has surprisingly become insolvent, highlighting the complexities and challenges within this promising sector.

Collateral-based Lending

There are already several use cases of collateral-based lending, and the tokenization of assets is poised to further accelerate this trend and its applications. Tokenization makes collaterals significantly easier to enforce and collect for lenders in the event of a default. Additionally, the valuation and pricing of these assets can be improved, and margin calls can be immediately triggered. What has already become standard in the DeFi world, with hundreds of lending markets offering over-collateralized lending as a core mechanism, can be expected to be increasingly implemented in the traditional financial industry. Companies can tokenize various assets on their balance sheets and even their own shares to provide as collateral to lenders. Similarly, private individuals can tokenize assets such as art, real estate, or even intangible assets to post as collateral for better terms.

A notable and growing use case in the financial industry is securities-based lending, with several instances we’ve identified through our research. Many of the listed banks, such as HSBC, Deutsche Bank, BNY Mellon, UBS, BNP Paribas, Goldman Sachs, and ING, have either directly invested in HQLAᵡ or are working with the Swiss startup that has developed a solution for securities lending.

Repo Market

The repo market covers daily volumes in the trillions and is heavily depending on the legacy financial market infrastructure, especially the bond market in terms of settlements. The delayed settlement of repo transactions can cause collateral to be trapped, creating counterparty credit risk and making them prone to failures and errors. The current platforms require multiple processes and parties to be involved, creating a fragmented system.

JP Morgan reported last year that its Onyx platform had helped facilitate more than $300 billion in intraday repo transactions. That came on the heels of piloting efforts in conjunction with several global financial institutions such as Goldman Sachs and Singapore’s DBS Bank. In addition, Broadridge’s global Distributed Ledger Repo platform across both sell-side and buy- side firms capture $1 trillion in monthly volumes from the global repo market.

Asset Management

By fully embracing blockchain technology across various use cases and investment products, asset management in all its diverse disciplines and ranges can be completely revolutionized. The tokenization of assets opens entirely new opportunities in terms of accessibility, transparency, efficiency, and liquidity. Assets can be accessed, traded, and settled almost instantly on a consistent, tamper-proof data system with integrated reconciliation and record-keeping for a fully automated front-to-back office process.

It is still a long way to go until the full potential of blockchain can be realized, as it takes time to replace the complex legacy systems in the financial industry with all its participants. However, we believe that with the increasing development in the space by internal innovation teams of banks, service and software providers, as well as innovative startups, we will see an accelerating pace in this transformation.

Middle and Back Office Processes

Middle and back-office processes, primarily concerned with clearing, settlement, reconciliation, and accounting, involve coordinating multiple counterparties and service providers along with their respective applications and data infrastructures. The blockchain, serving as a single immutable record of data with self-enforcing rule-based functions, offers significant potential for simplifying complexity and reducing efforts and costs in these processes. Our research highlights a clear trend of banks leveraging distributed ledger technologies in collaboration with service providers and regulators, exemplified by Project Guardian with the Monetary Authority of Singapore (MAS). Banks worldwide are increasingly participating in such projects, forming consortia to develop and test these systems, which include technology providers. The success of these projects has motivated participants to expand their initial pilot scopes and directly plan production-ready solutions in anticipation of growing demand from the banking, asset, and fund management industries. Additionally, traditional exchanges globally are making significant strides in developing and implementing order management and enhancing their middle and back-office infrastructure.

Compliance

Compliance ensures that banks adhere to all applicable laws, regulations, guidelines, and industry standards, encompassing both internal policies and external legal requirements. The primary goal of compliance is to prevent and detect violations, which can lead to legal penalties, financial losses, and reputational damage.

Blockchain technology supports compliance by providing an immutable ledger that records all transactions transparently. This facilitates easier audits and real-time monitoring, ensuring traceability and accountability of all actions. Smart contracts on the blockchain can automate compliance checks and enforcement, significantly reducing human intervention and the potential for errors. For example, these contracts can automatically verify transactions against regulatory requirements like Know Your Customer (KYC) and Anti-Money Laundering (AML) standards.

Blockchain also streamlines reporting processes by giving regulators direct access to a tamper-proof data source, leading to more efficient regulatory reporting and faster responses to compliance inquiries. Its decentralized nature ensures that data across multiple parties remains consistent and unaltered, greatly reducing the risk of fraud and data manipulation. Additionally, the interoperability offered by blockchain allows for a unified view of customer data across banks, crucial for effective compliance in managing cross-border transactions and multi-jurisdictional regulations.

Carbon Credits

The carbon credit market operates as a regulatory or voluntary scheme designed to reduce global carbon emissions by assigning a cost to carbon pollution. Companies, governments, or other entities can buy carbon credits to offset their own greenhouse gas emissions, with one credit typically representing the right to emit carbon dioxide or another greenhouse gas. The credit proceeds are then used to invest it into carbon offset initiatives. The carbon credit market has been under several critics regarding its complexity and lack of transparency, its effectiveness and its misuse. Several blockchain-based projects have been developed or are in development to create a more transparent, effective and measurable infrastructure, where DLT can add notable value.

Banks like NatWest, in partnership with CIBC, NAB, and Itaú Unibanco, launched Project Carbon, a voluntary carbon marketplace using the blockchain. Probably the most active bank in carbon credits so far was ANZ. The bank partnered with Grollo Carbon Ventures (GCV) to tokenize Australian Carbon Credit Units (ACCUs) using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), together with Swift, leveraging their AUD stablecoin for settlement. But ANZ also partnered with Victor Smorgon Group (VSG) and ZeroCap and using the carbon trading platform BetaCarbon with the involvement of Fireblocks.

Insurance

The nature of insurance is a perfect use case for blockchain and smart contracts, which can contribute to transparent and fairer processing of claims and significant operational improvements for insurance companies. Smart contracts trigger self-enforcements when certain conditions are met and can initiate the entire processing sequence simultaneously, even for settlement and accounting. This method can also increase efficiency by reducing manual interventions in the underwriting process and help to prevent fraud and dispute resolution. Although there are currently only smaller use cases in the market, it is expected that insurance companies will gradually embrace smart contracts in their processes. The sheer volume of such processing and the extensive operational effort can significantly improve operational efficiency and costs, reduce failures, and decrease fraud and litigation expenses.

Accounting

Blockchain technology can revolutionize the accounting process in banks, especially concerning their trading activities, by embedding greater efficiency, transparency, and security into every transaction. Traditionally, accounting in banks involves multiple steps of verification, reconciliation, and audit to ensure accuracy and compliance. With blockchain, these processes are transformed since every transaction is recorded on a decentralized ledger, visible to all parties but immutable and tamper-proof. This feature reduces the time and cost associated with reconciliations, which are often complex and error-prone in conventional systems. Blockchain-based accounting systems enable the real-time recording of transactions when trades are executed, entries are instantaneously logged into the ledger, providing up-to-date financial information. This capability is crucial for dynamic trading environments where timely data is essential for decision-making. Since the ledger is updated in real time and is consistent across all nodes, the need for manual reconciliation across different records is eliminated, reducing the administrative burden and potential for discrepancies. Auditors can quickly verify the authenticity and integrity of financial records without sifting through piles of paperwork or multiple digital records, making audits more efficient and less susceptible to fraud.

To dive more into the detailed use cases of the Top 30 Global Banks Blockchain Adoption read our full research article:

Institutional Blockchain Adoption — The Top 30 Global Banks on the Forefront Report

The Top 30 Global Banks Blockchain Adoption Use Cases was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.

The global real estate market is expected to reach a value of USD 637 trillion in 2024 according to data presented by Stocklytics. By 2028, this figure will grow by a further 20% and hit almost USD 730 trillion.

Despite significant challenges due to increased financing and construction costs, we’re building more than ever in history on a global scale. According to Precendence Research, the global real estate market size (construction and finance) was USD 3.9 trillion in 2023 and will reach USD 4.12 trillion in 2024. By 2034 it is expected to reach around USD 7.03 trillion , growing at a CAGR of 5.5% from 2024 to 2034. Many regions and cities facing housing shortage and commercial, infrastructure and tourism constructions are constantly expanding and renewing.

The vast majority of real estate construction and acquisition is debt financed. Since banks are increasingly compromized by regulatory requirements, private capital, as well as securitization take a growing proportion of the financing market shares. With the current interest rates, which are expected to remain at a higher level for some time, private and real estate debt has become and will remain an attractive asset class. Banks are already very opaque and siloed with their loan data transparency, but they’ve systems in place internally to track and evaluate their outstanding loans, which private market investors mostly don’t posses. This is a major issue when such loans are structured as securities, as they have to rely on opaque and insecure data as the global financial crisis 07/08 has dramatically shown. And since the GFC, not much has changed in this aspect. Loans are still often just based on paper-based contracts, or at best, in monolithic Loan Origination Systems (LOS).

The Benefits of the Blockchain

The blockchain technology demonstrates its benefits especially for debt capital for several reasons. First of all, loans can be originated natively on-chain. In fact, the only financial asset next to funds that can be natively originated and live on-chain with all its benefits.

The blockchain technology can be seen as the perfect fit for real estate debt as it is truly revolutionizing the way how loans are originated, tracked, managed and traded seamlessly, based on 4 core pillars.

Creating entire Lifetime Transparency

By originating loans on-chain, data is stored immutable and cryptographically secured. This includes the initial loan application with all relevant documents hashed on-chain and on a specific storage system, risk analytics data, and most importantly, the lifecycle data that is tracked for future use in secondary trades. Therewith full transparency is created along the loan lifecycle. At RIVA Markets we also integrate Moody’s Analytics, which allows instant in-depth risks analytics and recording of the results and its entire history on the blockchain.

Providing Utmost Efficiency

Real estate finance in particular is an extremely cumbersome and inefficient process. From initial loan structuring and the preparation of the documentation, sharing of the data, due diligence to negotiation and closing. Also further in the loan lifecycle and service management process, the opaqueness of loan data and disconnect with traditional payment systems creates high efforts to manage and track loans for non-bank lenders and private market investors. By bringing the loan on-chain, use of self-enforcing smart contracts and connect with OpenBanking API, processes can be automated and all tracked on the blockchain for utmost efficiency from issuance to lifecycle management.

Through tokenization and peer-to-peer tokenized asset trading instead of traditional securities trading and settlement, the need for costly intermediaries is eliminated as transactions on the blockchain are directly cleared, settled and even asset registrars updated. Blockchains act as all-in-one systems with complete audit trail capabilities.

Creating Market Accessibility

Another major issue private markets, and especially real estate debt is facing, is its accessibility. This starts already in the deal sourcing for investors and the funding sourcing for real estate developers and investors, and continues in secondary market trades for secondary investors and those who seek to sell a loan or whole loan books.

The evolving market of tokenization and tokenized asset trading will inevitable revolutionize private markets and make them accessible for all types of parties. For those seeking funding and for those seeking investments, exits and secondary market opportunities. But not only through a tokenized asset form. As we at RIVA Markets working on a hybrid way, which we call the transition to tokenized asset management, we create on-chain assets as bilateral loan agreements, digital securities as Single-Asset-Single-Borrower (SASB) MBS (Mortgage-Backed Securities), and fully tokenized. Digital securities can be traded through ISIN and CUSIP, and settled through depository accounts, or tokenized assets directly through stablecoin settlements, and in the future even other crypto token pairs.

Increasing Liquidity

Increasing liquidity is often the major promise for tokenized assets, but this is still an open promise for many of such tokenized assets. Especially real estate debt is a highly attractive asset class for secondary investors, as those seeking real estate debt generating secured interests from rental income. By providing the above lifetime transparency and tracking, investor can gain the certainty of secured payments and provable debt coverage ratio (DCR). Additionally to the large secondary market for real estate debt potential and the benefits for secondary market investing into on-chain and tokenized real estate debt, we’re developing additional market liquidity through multiple ways, such as a network of marketplaces and liquidity sources, cooperation with market makers, as well as building RWA yield pools with an Automated Market Maker (AMM) model, which are successfully used in Decentralized Exchanges (DEX) in the crypto market. We’ve described our approach building multiple secondary liquidity in our early article Addressing the Liquidity Challenge in RWA Tokenization.

Conclusion

While the real estate finance market is still dealing with the many challenges it faces and the tokenization market is seeking it’s product-market fit to benefit buy and sell side for a faster adoption, real estate finance on the blockchain clearly provides the highest benefits. At RIVA Markets we’ve built this as our first and major use case, and have developed the market infrastructure for a seamless use and transition, with interoperability as core concept to secure assets can be efficiently traded.

If you want to learn more about RIVA Markets and our Solutions visit our website or directly reach out to us.

Why Real Estate Finance is the Perfect Use Case for Blockchain and Tokenization was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.

RWA (Real-World Assets) tokenization has taken the center stage in crypto in 2024 and the industry has already made big leaps tokenizing all kinds of RWA like equity, bonds, private debt, treasury bills, funds, real estate, commodities, art, etc. Tokenization of RWAs is transforming the financial market by enhancing transparency, efficiency, accessibility and liquidity for all kinds of assets that wasn’t possible before. As the landscape evolves, several blockchain platforms have emerged as frontrunners in this space and existing ones have built out their chains capabilities for RWA tokenization to be compliant to institutional requirements.

With the development of all those blockchains another challenge arose, the interoperability between them. This is already a well-known problem and those blockchains have taken different solution approaches. Either directly integrated in their main concept, or though partnerships with other specific interoperability solutions such as Chainlink’s CCIP (Cross-Chain Interoperability Protocol), Axelar or LayerZero, as demonstrated in Project Guardian of the Monetary Authority of Singapore (MAS) together with major institutions and blockchain solution providers.

As we’ve shown in our research about “Institutional Blockchain Adoption — The Top 30 Global Banks on the Forefront”, the financial industry is getting ready for the transformation to tokenized asset management. Start-up’s like we at RIVA Markets building infrastructure for on-chain RWA serving the institutional world and connecting the TradFi (Traditional Finance) with the new world of DeFi (Decentralized Finance). For RWA tokenization, especially in the institutional context, it’s crucial to understand the different types of blockchains, how they apply to institutional RWA tokenization to tackle the specific requirements for issuance and management of digital on-chain and tokenized investment products.

The blockchain technology as such is already a very complex topic, and with the development of the technology it’s even more complex to understand the nuances and how new developments address the challenges and the specific requirements for institutional RWA.

Since we at RIVA Markets are building a sustainable and interoperable capital markets infrastructure for the future of tokenized asset management, we’re constantly spending significant time researching and working on interoperability solutions with multiple blockchain deployments. Here we want to shed a light on the different blockchain technologies, the solutions on the forefront and their specifics.

Types of Blockchains

First we want to go into the types of blockchains that exist and how they’re applying to RWA. There are several pro’s and con’s for each concept, especially for RWA tokenization and their use in regulated institutional context. It is a controversial discussion as the benefits of blockchains can only really be embraced through open standards, but privacy and control is a crucial element in the institutional financial world. In this article we provide some insights in those blockchains we believe provide the best technologies and solutions for RWA tokenization so far, and we also leverage for our capital markets infrastructure.

Public Blockchains

Public blockchains, or public-permissionless as they’re also being called, like Bitcoin, Ethereum, Solana, Cardona and many more of the well-known blockchains, offer high transparency and decentralization, allowing anyone to participate in the network. This open nature ensures broad participation and trust. However, these blockchains often face scalability issues, higher transaction costs, and slower speeds due to their open and decentralized nature. For institutional requirements, public permissionless blockchains are seen critical due to its open accessible transparency and lack of control thereof. The Bank for Institutional has taken even an official stance agains public-permissionless blockchains for the institutional use case (BIS).

Permissioned Blockchains

Permissioned blockchains, such as Hyperledger Fabric, R3 Corda or Polymesh provide enhanced security and controlled access, making them suitable for industries requiring strict data privacy and compliance such as the regulated financial industry. These networks are tailored to specific regulated needs, offering more higher control and privacy. However, the trade-off is reduced decentralization, which can lead to lower trust from participants outside the organisation. Permissioned blockchains create several obstacles for an open accessible market where assets can flow frictionless.

Private Blockchains

Private blockchains, exemplified by platforms like JP Morgan’s Quorum and Ripple, offer high control over the network, improved privacy, and efficient performance. These blockchains are often used within organizations to streamline operations and secure sensitive data. The downside is their centralization, which can pose risks of single points of failure and reduced trust from external stakeholders.

Hybrid Blockchain

Hybrid blockchains blend elements of both private and public blockchains. They allow to set up a private, permissioned system that can also interact with public blockchains. This structure enables them to control who sees what data while still communicating across blockchain networks, offering flexibility in how they handle transactions and data privacy. They use a private layer for sensitive data and a public layer for transaction verification and are built mainly on layer-0 and layer-2 chains as further elaborated.

The Blockchain Layer Types

At the beginning there where only those types of public-permissionless, public-permissioned and private blockchains. Over time, new technologies evolved pretty quickly to resolve early identified issues and new forms of blockchains developed and formed the blockchain layers. With those new layers, first generation blockchains are categorized as layer-1 chains.

Layer-0 Blockchains

Layer-0 (L0) blockchains provide the underlying infrastructure for multiple Layer-1 blockchains, enabling them to interoperate, scale, and enhance security more efficiently. This base layer includes the hardware, protocols, and consensus mechanisms that facilitate the operations of other blockchains built atop it. The primary goal of Layer-0 is to create a seamless environment where different blockchain networks can communicate and interact effectively.

Layer-0 blockchains play a critical role in advancing the blockchain ecosystem by providing a scalable, interoperable, and flexible foundation for building diverse and efficient blockchain solutions. Platforms like Cosmos, Avalanche, Polkadot, Venom and Horizen are at the forefront of layer-0 blockchains, enabling new possibilities for blockchain integration and collaboration across various industries.

Key Features and Functions

Scalability: Layer-0 solutions address the scalability trilemma by allowing high transaction throughput without compromising security or decentralization. Techniques like sharding and parallel execution are commonly used to enhance scalability.

Interoperability: These blockchains provide cross-chain communication protocols that enable different Layer-1 blockchains to exchange data and assets seamlessly. This fosters a more integrated blockchain ecosystem, breaking down silos between disparate networks.

Flexibility: Developers can create custom blockchains (Layer-1s) tailored to specific use cases while leveraging the security and infrastructure of the Layer-0. This modular approach allows for optimized performance based on the needs of the application.

Shared Security: Layer-0 networks often provide a shared security model, where multiple chains can benefit from a robust and extensive validator network, enhancing the overall security of the ecosystem.

Examples of Layer-0 Blockchains

Cosmos (ATOM): Often referred to as the “Internet of Blockchains,” Cosmos utilizes the Inter-Blockchain Communication (IBC) protocol to enable interoperability among independent blockchains called zones. Cosmos uses the Tendermint consensus algorithm to ensure secure and efficient transaction processing.

Avalanche (AVAX): Avalanche is a highly scalable Layer-0 platform that supports both permissioned and permissionless subnets. Its consensus mechanism allows for high transaction throughput and low latency, making it suitable for a wide range of applications from DeFi to institutional finance.

Polkadot (DOT): Developed by Ethereum co-founder Gavin Wood, Polkadot is a prominent Layer-0 blockchain known for its relay chain and parachain architecture. This setup allows for high scalability and interoperability among various blockchains. Polkadot uses a Nominated Proof-of-Stake (NPoS) consensus mechanism and facilitates cross-chain transfers through its Cross-Consensus Messaging Format (XCM).

Venom: Venom is noted for its high scalability and hybrid consensus mechanism that combines Proof-of-Stake (PoS) and Byzantine Fault Tolerance (BFT). It supports smart contracts and aims to process up to a million transactions per second.

Horizen: Known for its Cross-Chain Transfer Protocol (CCTP), Horizen allows sidechains to communicate with the main chain and each other, providing robust scalability and interoperability.

Institutional Use Cases

Layer-0 blockchains are particularly well-suited for institutional applications due to their scalability, security, and interoperability features. Financial institutions can benefit from:

• Enhanced Cross-Chain Transactions: Facilitating seamless and secure transactions across different blockchain networks.
• Custom Blockchain Development: Creating tailored blockchain solutions that can operate within a shared security and governance framework.
• Improved Efficiency: Leveraging high transaction throughput and low latency for financial operations, such as trading and settlements.

Layer-0 blockchains play a critical role in advancing the blockchain ecosystem by providing a scalable, interoperable, and flexible foundation for building diverse and efficient blockchain solutions. Platforms like Polkadot, Cosmos, Avalanche, Venom, and Horizen are at the forefront of this innovation, enabling new possibilities for blockchain integration and collaboration across various industries.

Layer-2 Solutions

Layer-2 (L2) blockchain solutions are designed to enhance the scalability, speed, and cost-efficiency of Layer-1 (L1) blockchains like Bitcoin and Ethereum. These solutions process transactions off the main blockchain while still leveraging the security and decentralization of the underlying L1 network.

Key Features and Functions

1. Scalability: L2 solutions significantly increase transaction throughput by processing transactions off-chain, thereby reducing congestion on the main blockchain.
2. Cost Efficiency: By bundling multiple transactions into a single batch for on-chain settlement, L2 solutions dramatically lower transaction fees.
3. Speed: L2 solutions offer faster transaction processing times, which is crucial for applications requiring quick interactions.
4. Interoperability: These solutions facilitate seamless interactions between different blockchain ecosystems, enhancing the overall utility and liquidity of digital assets.

Types of Layer-2 Solutions

State Channels: Allow transactions to be conducted off-chain between parties, with only the final state recorded on the blockchain. Examples include the Lightning Network for Bitcoin and the Raiden Network for Ethereum.

Rollups: Bundle multiple transactions into a single batch that is processed on the L1 blockchain.

• Optimistic Rollups: Assume transactions are valid by default and only run computations if there is a dispute. Examples include Arbitrum and Optimism.
• zk-Rollups: Use zero-knowledge proofs to validate transactions, offering enhanced privacy and immediate finality. Examples include zkSync and Loopring.

Plasma: Creates child chains anchored to the main blockchain to process transactions more efficiently, mainly used for specific applications like payments.

Sidechains: Independent blockchains running parallel to the main chain, linked via a bridge. Examples include the Liquid Network for Bitcoin and xDai for Ethereum.

Notable Layer-2 Projects

Polygon (MATIC): A multichain ecosystem providing various L2 solutions, including zkRollups and Proof-of-Stake (PoS). It supports fast transactions and low fees, ideal for DeFi and NFT applications.

Arbitrum: Uses optimistic rollup technology to enhance Ethereum’s scalability, significantly reducing gas fees and increasing transaction speed.

Optimism (OP Mainnet): Another optimistic rollup solution for Ethereum, known for its low-cost and fast transaction processing.

Immutable X: A specialized Layer-2 network for gaming and NFTs, offering high throughput and minimal transaction fees through zkRollup technology.

Starknet: Utilizes STARK proofs for off-chain validation, providing unmatched speed and security for transactions.

Base: Developed by Coinbase, Base is built on Optimism’s OP Stack and provides a scalable, low-cost solution for Ethereum transactions. It aims to onboard millions of Coinbase users to DeFi, offering full EVM compatibility and low gas fees​​.

Institutional Use Cases

Layer-2 solutions are particularly well-suited for institutional applications due to their scalability, security, and interoperability features. Financial institutions can benefit from:

• Enhanced Cross-Chain Transactions: Facilitating seamless and secure transactions across different blockchain networks.
• Custom Blockchain Development: Creating tailored blockchain solutions that operate within a shared security and governance framework.
• Improved Efficiency: Leveraging high transaction throughput and low latency for financial operations such as trading and settlements.

Promising Blockchain Platforms for RWA

Provenance Blockchain

Provenance Blockchain is a purpose-built blockchain for the financial services industry, emphasising regulatory compliance and transparency. Built on Cosmos SDK, it enables the issuance, tracking, and trading of RWAs such as asset-backed securities and various financial products. This focus on a regulated environment makes Provenance particularly attractive to institutions looking to tokenize financial instruments and projects aiming to partner with institutions.

Key Features and Benefits

Provenance Blockchain’s core capabilities include:

Confidentiality: Provenance ensures the confidentiality of sensitive financial data through advanced encryption and access controls. This protection is critical for maintaining the trust of participants and complying with regulatory requirements.

Identity: The platform employs robust identity management solutions to verify and authenticate participants. This identity management reduces the risk of fraud and ensures that only authorised users can access sensitive information.

Interoperability: Provenance Blockchain is designed to be interoperable with existing financial systems and other blockchain networks. This interoperability facilitates seamless data exchange and integration, enhancing the efficiency of financial operations.

Markers: Markers are unique digital representations of assets on the Provenance Blockchain. They enable the tracking and transfer of ownership rights, providing a transparent and efficient way to manage assets.

Settlement: The platform supports real-time, atomic settlement of transactions, reducing settlement risk and enhancing the efficiency of financial markets. This capability is particularly beneficial in reducing the time and cost associated with traditional settlement processes.

Provenance Blockchain for Financial Services

Provenance Blockchain offers a sophisticated solution with pre-built modules for the issuance and management of alternative assets and funds. Provenance is the blockchain behind Figure and Figure Markets, and has developed specific modules to serve lending, tokenized marketplaces, funds, insurance and other financial markets on an abstracted flexible way. Especially the lending solution of Figure demonstrates the capabilities of Provenance for lending and asset-backed securities (ABS).

Key Benefits:

• Enhanced liquidity through tokenization
• Improved transparency and auditability
• Automated compliance and reporting

Capital Markets

In capital markets, Provenance Blockchain streamlines the issuance, trading, and settlement of securities. By utilising smart contracts and a decentralized ledger, the platform reduces the need for intermediaries, cutting costs and accelerating transaction times. Provenance supports various financial instruments, including equities, bonds, and derivatives, providing a more efficient and secure infrastructure for capital markets.

Key Benefits:

• Reduced costs and increased efficiency
• Faster settlement times
• Enhanced security and transparency

Lending

Provenance Blockchain transforms the lending process by offering a transparent and efficient platform for loan origination, servicing, and securitization. The blockchain ensures the integrity of loan data, reduces the risk of fraud, and enables real-time tracking of loan performance. This innovation helps lenders to manage risk more effectively and provides borrowers with greater access to credit.

Key Benefits:

• Improved data integrity and security
• Reduced risk of fraud
• Real-time loan performance tracking

Trade Finance

In trade finance, Provenance Blockchain addresses the complexities and inefficiencies of traditional trade finance processes. The platform digitizes trade documents, automates workflows, and provides real-time visibility into transactions. This digitization reduces the risk of fraud, accelerates transaction times, and enhances the overall efficiency of trade finance operations.

Key Benefits:

• Digitized trade documents
• Automated workflows
• Real-time transaction visibility

Investment Funds

For investment funds, Provenance Blockchain offers a robust solution for fund administration, investor onboarding, and regulatory compliance. The platform’s immutable ledger ensures the accuracy of investor records, automates compliance checks, and provides real-time reporting capabilities. These features enhance operational efficiency and ensure that investment funds meet regulatory requirements.

Key Benefits:

• Accurate and immutable investor records
• Automated compliance checks
• Real-time reporting

Insurance

Provenance Blockchain offers solutions for the insurance industry, focusing on improving transparency, reducing fraud, and streamlining claims processing. By leveraging smart contracts, the platform automates policy management, claims verification, and payouts. This automation not only increases efficiency but also enhances customer trust by ensuring that claims are processed fairly and transparently.

Key Benefits:

• Automated policy management and claims processing
• Reduced fraud
• Enhanced customer trust

Decentralised Finance (DeFi)

Provenance Blockchain supports the growth of DeFi by providing a secure and scalable infrastructure for alternative asset platforms and marketplaces. The platform enables the creation and trading of digital assets, supports decentralised lending and borrowing, and facilitates the development of innovative financial products. This support for DeFi fosters financial inclusion and democratizes access to financial services.

Key Benefits:

• Secure and scalable infrastructure
• Support for digital asset creation and trading
• Enhanced financial inclusion

Canton Network

The Canton Network stands out for its strong privacy features and interoperability, designed with institutional applications in mind. It is particularly suited for financial institutions that require secure and private transaction capabilities with interoperability in mind. The open network approach aims to resolve the fragmentation and inefficiencies inherent in traditional financial systems by enabling secure, synchronised data exchanges across institutions, thereby fostering a more integrated and efficient financial ecosystem.

Key Features and Benefits

Decentralisation with Control: Canton Network employs a decentralized approach, allowing financial institutions to maintain control over their data while benefiting from the transparency and security of blockchain technology. Unlike traditional centralized systems, Canton facilitates direct interactions between participants, reducing the need for intermediaries and thus lowering transaction costs and time delays.

Privacy and Security: A cornerstone of the Canton Network is its robust privacy framework. By leveraging advanced cryptographic techniques, Canton ensures that sensitive financial data remains confidential and accessible only to authorized parties. This privacy-centric design is crucial for regulated financial institutions that handle vast amounts of sensitive information.

Interoperability: One of the major challenges in the financial industry is the lack of interoperability between different systems. Canton addresses this by enabling seamless connectivity and data sharing across diverse financial applications. This interoperability not only enhances efficiency but also enables institutions to offer more integrated and comprehensive services to their clients.

Real-Time Synchronisation: Canton’s blockchain technology supports real-time synchronisation of financial data and transactions. This feature is particularly beneficial for activities such as clearing and settlement, which traditionally involve significant delays. By enabling instant synchronisation, Canton reduces counterparty risk and improves the overall efficiency of financial markets.

Advanced Smart Contracts with DAML

Central to the functionality of the Canton Network is the use of DAML (Digital Asset Modeling Language). DAML is a powerful smart contract language that allows for the precise modelling of complex financial workflows. This specificity ensures that financial contracts are executed exactly as intended, reducing the risk of errors and discrepancies.

Precision and Flexibility: DAML’s precision allows financial institutions to automate complex processes and enforce strict compliance with regulatory requirements. Its flexibility means it can be adapted to various financial instruments and use cases, from simple transactions to intricate multi-party agreements.

Enhanced Compliance: Given the stringent regulatory environment in which financial institutions operate, DAML’s ability to provide clear, auditable records of all transactions is invaluable. This feature helps institutions demonstrate compliance and manage regulatory reporting more efficiently.

Collaborative Ecosystem

The Canton Network is supported by a broad coalition of industry leaders. With participation from nine of the top ten global investment banks, the network has a strong foundation in the financial sector. These institutions manage a significant portion of the world’s syndicated loans and process billions in transactions monthly, highlighting the network’s scalability and reliability.

Global Synchroniser Foundation: To ensure transparent governance and organizational neutrality, the Canton Network has established the Global Synchroniser Foundation. This entity oversees the development and adoption of the Global Synchroniser, which is the decentralised backbone of the network, ensuring all participants can collaborate effectively.

Use Cases and Impact

Capital Markets: In capital markets, Canton facilitates faster and more secure trading, clearing, and settlement processes. By reducing the reliance on central intermediaries, it enhances market transparency and liquidity.

Banking: For the banking sector, Canton offers streamlined processes for cross-border payments, trade finance, and syndicated loans. Its real-time capabilities and privacy features make it ideal for handling high-volume, sensitive transactions.

Payments: In the payments industry, Canton enables instantaneous, secure transfers, reducing the settlement time and operational risks associated with traditional payment systems.

Canton Network Pilot Report: Transforming Financial Markets with Blockchain

The Canton Network pilot, conducted over six weeks in November-December 2023, gathered 155 participants from 45 financial institutions to explore the transformative potential of blockchain technology in capital markets. The pilot aimed to demonstrate that a network of permissioned blockchains could interoperate seamlessly, maintaining privacy and control while enabling atomic transactions. This initiative, the most comprehensive of its kind for tokenised real-world assets, sought to address inefficiencies and unlock new opportunities within the financial sector.

Overview and Objectives

The Canton Network core innovation is the Global Synchroniser, a decentralised service that enables atomic transactions across independently operated blockchains. The pilot set out to achieve three primary objectives:

• Atomic Transactions: Execute transactions across blockchains without sacrificing privacy or control.
• Global Synchroniser Viability: Prove the effectiveness of the synchronisation service in a real-world setting.
• Unified Experience: Provide a seamless experience for buy-side, sell-side, and Financial Market Infrastructures (FMIs).

Participants and Execution

The pilot included a diverse group of financial entities such as BNY Mellon, Goldman Sachs, BNP Paribas, State Street, and Standard Chartered. The participants represented a broad spectrum of the capital markets value chain, including asset managers, banks, custodians, exchanges, and technology providers.

During the pilot, over 350 transactions were conducted across 22 independently operated Canton blockchains. Each participant operated their own Canton node, ensuring complete control over their data and interactions. The use cases focused on complex workflows like collateral and margin management, demonstrating how digital assets, cash, and data can be mobilized efficiently.

Key Findings

Atomic Transactions and Privacy: The pilot successfully demonstrated that atomic transactions could be executed across multiple blockchains using the Global Synchroniser. This ensured operationally risk-free transactions while maintaining the privacy and control necessary for regulated institutions. Participants highlighted the potential to reduce counterparty and settlement risks, which are significant pain points in traditional financial systems.

Operational Efficiency: The ability to synchronise and execute transactions in real-time was a significant advancement. This real-time capability reduces the reliance on intermediaries, lowers operational costs, and shortens settlement cycles. The pilot showcased how assets could be mobilized across the network, enhancing liquidity and capital efficiency.

Interoperability: The Canton Network’s design allows for true interoperability without the need for message-based integrations or bridges, which often reintroduce risks. This interoperability enables different blockchain applications to connect and transact seamlessly, providing a cohesive experience for users across the network.

Use Cases

• Margin Management: The pilot demonstrated a scenario where an investor used tokenised money market funds to meet a margin call. The process involved purchasing tokenized funds, executing a Delivery versus Payment (DvP) transaction, and pledging the funds as collateral. This highlighted the efficiency and potential of using tokenized assets in daily financial operations.
• Repo Financing: Another scenario involved intraday repo financing, where the investor used tokenized bonds as collateral to secure financing. The transaction was executed atomically, demonstrating how the Canton Network can facilitate real-time, secure collateral management.

Feedback and Future Directions

The feedback from participants was overwhelmingly positive. 90% of respondents agreed that the Canton Network effectively demonstrated the ability to perform secure, atomic transactions. Participants emphasised the importance of interoperability and the potential for new business models and efficiencies.

Moving forward, the Canton Network aims to make its Global Synchroniser service permanently available, enabling broader adoption and integration. The network plans to continue developing application templates and fostering collaboration among participants to drive innovation and efficiency in capital markets.

4. Avalanche

Avalanche is a high-performance blockchain platform designed to facilitate efficient tokenization of real-world assets (RWA). By leveraging its unique consensus mechanism and robust infrastructure, Avalanche offers a decentralized environment for asset management, trading, and deployment of decentralized applications (dApps). The platform is powered by the Avalanche consensus protocol, known for its high throughput, low latency, and strong security guarantees. Its innovative consensus mechanism ensures fast and secure transactions, making it suitable for a wide range of applications. Especially the deployment on its subnets is seeing an increasing adoption of RWA projects and use cases.

Key Features and Benefits

• X-Chain (Exchange Chain): Facilitates the creation and exchange of assets.
• P-Chain (Platform Chain): Manages metadata and validator sets for custom subnets.
• C-Chain (Contract Chain): Fully compatible with the Ethereum Virtual Machine (EVM), enabling seamless deployment of Ethereum-based dApps.

Avalache for Real-World Asset Tokenization

Avalanche offers an appealing approach RWA tokenization in terms of scalability, security and efficiency, paired with compliance and control through its subnets. Those subnets provide the possibilities to create use-case tailored custom chains for specific requirements, while sharing network security and interoperability of its network.

Benefits of Tokenization on Avalanche:

• Increased Liquidity: Tokenized assets can be easily traded on secondary markets, providing liquidity for assets that are typically hard to sell.
• Transparency: Blockchain’s immutable ledger ensures transparent and tamper-proof records of ownership and transactions.
• Efficiency: Smart contracts automate various processes, reducing administrative overhead and enhancing operational efficiency.
• Compliance: Built-in compliance features ensure adherence to regulatory requirements, such as KYC/AML checks.

Custom Subnets:

• Tailored Blockchains: Subnets allow the creation of custom blockchains optimized for specific use cases or regulatory environments.
• Parallel Processing: Enhances scalability by enabling multiple subnets to operate simultaneously without interference.

Avalanche Consensus:

• High Throughput: Capable of processing thousands of transactions per second, ideal for high-volume markets.
• Low Latency: Provides near-instant transaction finality, crucial for time-sensitive financial operations.
• Security: Asynchronous Byzantine Fault Tolerance (aBFT) ensures robustness against attacks and network failures.

EVM Compatibility:

• Seamless Integration: Compatibility with the Ethereum Virtual Machine (EVM) allows developers to deploy existing Ethereum dApps on Avalanche with minimal modifications.
• Smart Contracts: Solidity-based smart contracts facilitate complex financial transactions and automations.

Governance and Sustainability

Avalanche is governed by a decentralized community that drives decision-making processes and protocol updates. The platform emphasises sustainability, with its proof-of-stake consensus mechanism ensuring low energy consumption and minimal environmental impact compared to traditional proof-of-work systems.

5. Hedera

Hedera is a distributed ledger technology (DLT) platform designed to provide security, scalability, and decentralization. By leveraging its unique Hashgraph consensus algorithm, Hedera addresses the limitations of traditional blockchain technologies and aims to deliver a high-performance, enterprise-grade solution for various use cases. The Hashgraph algorithm uses a unique consensus mechanism known as gossip-about-gossip and virtual voting. This mechanism allows the network to achieve high throughput, low latency, and asynchronous Byzantine Fault Tolerance (aBFT), making it both fast and secure.

Key Features and Benefits

Hedera offers high transaction speeds and low fees, making it ideal for enterprise applications and the tokenisation of RWAs. Its unique governance model, involving major corporations, ensures stability and security. Hedera’s performance optimized Etherum Virtual Machine (EVM) smart contracts, and its native tokenization and consensus service API’s enable the development of real-time web3 applications and ecosystems. Hedera has also taken a strong focus on RWA with a number of high-profile financial institutions and innovative start-ups leveraging the technology for different use cases.

Key Features:

• Speed: Hedera can handle up to 10,000 transactions per second (TPS), far surpassing most blockchain platforms.
• Security: The aBFT consensus ensures that the network is resilient to attacks and maintains data integrity.
• Fairness: The consensus algorithm ensures fair transaction ordering and time-stamping.
• Stability: Hedera is governed by the Hedera Governing Council, consisting of leading global organizations, ensuring stability and decentralized governance.

Real-World Asset Tokenisation on Hedera

• Liquidity: Tokenized assets can be traded on secondary markets, increasing liquidity for traditionally illiquid assets like real estate and fine art.
• Transparency: The immutable nature of the ledger ensures transparent ownership records and reduces the risk of fraud.
• Compliance: Hedera supports regulatory compliance through account-level configurations, including KYC/AML checks and token supply management.
• Efficiency: The Hedera Token Service (HTS) enables the creation, management, and transfer of tokens with low, predictable fees.

Use Cases:

• Real Estate: Platforms like RedSwan CRE use Hedera to tokenize commercial real estate, making high-value properties accessible to more investors.
• Stablecoins: Hedera’s infrastructure supports stablecoins like USD Coin (USDC), facilitating fast, low-cost, and secure cross-border payments.
• NFTs: Hedera also supports the creation and management of NFTs, with applications in digital art, gaming, and collectibles.

Hedera’s Core Services

Hedera offers a suite of services that empower developers and enterprises to build robust applications:

Hedera Token Service (HTS):

• Enables the issuance and management of native tokens.
• Supports both fungible and non-fungible tokens.
• Ensures compliance and regulatory adherence.

Hedera Consensus Service (HCS):

• Provides decentralized, verifiable timestamps and ordering of events.
• Enhances transparency and auditability for various applications.

Smart Contracts:

• Supports Solidity-based smart contracts for complex decentralized applications.
• Benefits from Hedera’s fast and secure infrastructure.

HBAR:

• The native cryptocurrency of the Hedera network.
• Used to pay for transaction fees and secure the network through staking.

Key Use Cases

Capital Markets:

• Hedera streamlines the issuance, trading, and settlement of securities.
• Reduces costs and enhances the efficiency of financial markets.

Payments:

• Facilitates fast, low-cost, and secure transactions.
• Supports stablecoins for cross-border payments.

Supply Chain:

• Improves traceability and transparency in supply chain operations.
• Enables real-time tracking of goods and verification of their origins.

Identity Management:

• Provides robust solutions for verifying and managing digital identities.
• Reduces the risk of identity fraud and enhances privacy.

Governance and Sustainability

Hedera is governed by the Hedera Governing Council, comprising leading global organisations across various industries. This council ensures decentralized governance and the long-term stability of the network. Members include Google, IBM, LG, Deutsche Telekom, and others.

Hedera is also committed to sustainability. The network is designed to be energy-efficient, with low energy consumption per transaction. Hedera has pledged to be carbon-negative, purchasing carbon credits to offset its emissions.

Polygon

Polygon is proably the most prominent layer-2 solution that has seen significant adoption for RWA tokenization. By providing a robust and scalable infrastructure, Polygon enables the creation, management, and trading of tokenized assets efficiently.

As a layer 2 scaling solution for Ethereum, Polygon significantly enhances scalability and reduces transaction costs, making it a popular choice for DeFi and NFT applications. Its compatibility with Ethereum ensures a robust ecosystem and high throughput. Polygon’s dependency on Ethereum’s underlying network can pose challenges, particularly during periods of high network congestion. However, Polygon is already battle-tested in the industry and an increasing number of RWA projects building on Polygon.

Institutional Use Cases

• Franklin Templeton: Launched its tokenized money market fund on Polygon, enhancing liquidity and access to high-quality investment strategies with faster settlement times.
• Hamilton Lane: Tokenised its flagship $2.1 billion fund through Securitize on Polygon, reducing minimum investment requirements and democratizing access to private equity investments.
• Sygnum Bank: Collaborates with various financial leaders to tokenize private debt and equity products, streamlining the issuance and trading process.

Advantages of Polygon

Polygon 2.0: Introduces a web of interconnected L2 chains on Ethereum, with a shared zero-knowledge (ZK) bridge, enhancing liquidity and ensuring efficient asset management across different platforms.

6. Base

Developed by Coinbase, Base provides a secure and scalable environment for decentralized applications (dApps). Its strong backing by Coinbase offers enhanced security and support, making it a reliable choice for DeFi applications.

Base: Coinbase’s Layer 2 Solution

Base, developed by Coinbase, is an L2 network built on the Optimism stack, providing a secure and scalable platform for tokenizing RWAs. Base leverages the security of Ethereum while offering the scalability needed for large-scale financial applications.

Institutional Applications

• Backed: Issued the first tokenized security on Base, showcasing the potential for RWAs in the DeFi ecosystem. This includes tokenised U.S. treasury bonds, providing a secure and tradable digital representation of traditional assets.
• bTokens: Fully collateralized ERC20 tokens that track the value of underlying securities, ensuring confidence in trading and using these tokens as collateral for other financial activities.

Advantages of Base

• Developer-Friendly: Encourages innovative use cases and supports the development of robust financial products.
• Regulatory Compliance: Designed to meet regulatory requirements, ensuring that tokenized assets are securely and legally managed.

Conclusion

Selecting the right blockchain platform for tokenizing real-world assets involves considering several factors such as scalability, security, regulatory compliance, and the specific use case. Blockchains like Provenance and Canton are more tailored for institutional financial services, Avalanche and Hedera offer broader applications with high scalability, while L2’s like Polygon and Base offer high scalability at low costs from two well-established market players. As blockchain technology continues to evolve and the adoption accelerates on multiple fronts, interoperability and compliance are major topics to consider when building for the future of tokenized asset management, where all of those chains offer their specific solution.

We at RIVA Markets building a whole ecosystem for the capital markets, combining TradFi and DeFi with interoperability fully in-built for our own end-to-end solution, as well as modular API-based service modules for 3rd parties. Our aim is to offer an open hybrid infrastructure for on-chain financial services and investment products, full tokenization and seamless deployment on all major blockchains without limitations.

If you want to know more about our solution suite and modules, and how you can partner with us to transform your business, visit our website https://www.riva.markets or directly write us to info@riva.markets.

RWA on the Rise — The most Promising Blockchains for Real World Asset Tokenization was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.

That the blockchain technology is the next frontier in the financial industry is unquestioned. And not many of us have missed financial service executives praising the potentials of blockchain for the future of finance. We have seen numerous announcements from financial institutions building blockchain solutions, testing tokenized transactions, forming strategic partnerships, launching crypto investment products, or taking stakes in Web3 startups. The latest buzz has centered around the issuance and offering of spot Bitcoin ETFs by several institutions. However, a comprehensive view of these developments is still lacking.

As a pioneering infrastructure and marketplace for the future of capital markets, we felt it was essential to understand what global financial leaders have already built with blockchain technology, which digital asset products and services they offer, and where they have invested so far. However, we found no comprehensive report or structured source that covered the space in sufficient depth. So, we conducted our own research and gathered all the information we could find. The deeper we delved, the more impressed we became by the significant progress — especially among the industry’s biggest players.

“Our findings are more than empowering and clearly demonstrates that the commitments of those major banks with a combined value of more than USD 43 Trillion are not just words, but a testament to the massive potential and transition to the blockchain technology, tokenisation and the future of digital assets.”

The focus on blockchain, tokenisation, DeFi and digital investment products by those financial titans underscores a significant ongoing shift in the financial industry. It confirms that these technologies are no longer just experimental concepts, but essential tools for future-proofing financial operations. As these institutions continue to innovate and adapt, it becomes increasingly clear that blockchain and tokenised RWA (Real World Asset) offerings are set to become an integral part to the future of finance, promising unprecedented levels of efficiency, transparency, and accessibility.

Since we thought that the market is missing the massive progress, we decided to publish our findings in a structured way and share it with the public. The result of our investigation is compiled in this article, “Institutional Blockchain Adoption — The Top 30 Global Banks on the Forefront”, sorted according to their total assets and the relevance in terms of blockchain and digital assets initiatives.

This blog is being constantly updated with ongoing announcements of those banks to keep you readers up-to-date on the progress in the space. (Last update February 2025)

Those are the top 30 global banks we’re delving into this online report:

We’ve compiled the list with those banks that are already known for their blockchain and crypto investment initiatives, organised it according to the total assets of the institutions by S&P Global, and mixed them for a more global coverage. We’ve not taken into account the major Chinese Banks, which have the highest total assets, as we didn’t really find them relevant for our research and this list. But we also want to limit a little bit the expectations as this is not a full picture at all as we cant’t cover really all projects, developments and investments and we didn’t talk with the banks’ teams as this would take many months more to coordinate and cover. Some projects are also already outdated, defunct or replaced, but we also wanted to cover early initiatives of all those banks.

This list highlights the most notable projects, offerings, collaborations and investments those banks did over the years. We’ve also added the sources of those findings for an additional deep dive.

Let’s get into it!

JP Morgan

US — $3'665 Billion

With JP Morgan (JPM) we directly start with one of the most active banks in the space. JPM is leveraging blockchain technology to innovate and transform various aspects of financial services. Even from early on, JPM developed its own blockchain Quorum, which was later sold to Consensys. Through its dedicated blockchain and digital assets platform Onyx, established in 2020, JPM is developing solutions and offering service to reshape the payment and asset management industry. They‘ve already achieved impressive traction focusing on the exchange of value, information, and digital assets. JPM and Onyx also formed strong partnerships and collaborations for remarkable projects in tokenisation of bonds and funds, payments and interoperability, and a number of strategic investments in the space. In November 2024 JPM renamed Onyx into Kinexys.

Onyx Blockchain by JP Morgan

This division within Kinexys (formerly Onyx) is responsible for developing and launching new blockchain applications and technologies on its own Onyx blockchain, pushing the boundaries of what’s possible in the financial sector. After renaming Onyx to Kinexys, Onyx Blockchain is not further promoted as before but the bank own institutional-grade blockchain infrastructure within Kinexsy​ (J.P. Morgan Kinexys | Official Website)​.

Kinexys revealed in June 2024 that their blockchain has already processed more than $1 trillion in notional value and it handles up to $2 billion in transactions daily. The biggest announcement during the “Tokenize This” conference was that JP Morgan plans to open its permissioned blockchain to allow third parties to deploy on it. That will also enable others to tokenise assets on the JP Morgan blockchain (Ledger Insights).

Kinexys Digital Assets

This platform enables the tokenisation and exchange of various digital assets. Cornerstone of the tokenisation solution is the TCN (Tokenized Collateral Network). The TCN enables investors to utilise assets as collateral and transfer collateral ownership without moving assets in underlying ledgers. Notably, JP Morgan has used it to execute tokenised collateral transactions, such as using tokenised shares of money market funds as collateral​. As just recently announced, Fidelity International has tokenised a money market fund on the TCN so it can be used as collateral (J.P. Morgan | Official Website)​​ (Coindesk).

JPM Coin Systems

The JPM Coin System facilitates instantaneous cross-border payments using the JPM Coin, which is part of JP Morgan’s broader strategy to develop next-generation payment rails​. The JPM Coin an be understood as a programmable blockchain-based bank account that can serve many use case, even outside of financial services as a project with Siemens shows for programmable payments. The JPM Coin System and the JPM Coin is indeed an extremely valuable use case utilising the capabilities of smart contracts for conditional transactions that will find much more uses cases in the financial market, but also in many other industries for programmable payments. Such as other JPM Coin projects with Vodafone linking IoT devices to make financial transactions or Broadridge’s Distributed Ledger Repo (DLR) platform (CoinDesk)​ (J.P. Morgan | Official Website)​.

Liink by JP Morgan

Liink is an information exchange network that enhances data sharing and payment-related communications between financial institutions. Liink thereby checks information for verification in its network of financial services prior a transaction and therewith automates the processes to reduce complexity and reduce costs​ (J.P. Morgan | Official Website)​.

Tokenised Municipal Bonds

In April 2024, JP Morgan facilitated the issuance of a $10 million municipal bond for the City of Quincy, Massachusetts, using blockchain technology. This issuance aimed to lower costs, enhance liquidity, and reduce settlement times​ (Ledger Insights)​.

Onyx by JP Morgan Plans for Fund Tokenisation

JPMorgan’s Onyx (now Kinexys) Digital Assets and Apollo conducted a “proof of concept” together with Provenance Blockchain, Axelar, Oasis Pro, LayerZero, Ava Labs, Biconomy and WisdomTree to tokenise funds, manage large-scale client portfolios, execute trades and enable automated portfolio management of tokenised assets. The initiative, part of Singapore’s Monetary Authority Project Guardian, aims to streamline asset management by enabling purchases and rebalancing of tokenised assets across multiple chains and achieve interoperability between them. The project was also discussed during the “Tokenize This” conference in may this year (CoinDesk)​​ (Ledger Insights) (Youtube).

Blackrock Money Market Fund Tokenisation on TCN

BlackRock used the company’s new “Tokenized Collateral Network” (TCN) to tokenise shares in one of its money market funds. It then sent those tokenised interests to Barclays as collateral for an over-the-counter (OTC) derivatives trade between the firms. This is the first collateral settlement for a live client OTC derivative transaction that TCN has facilitated. (Blockworks).

Other notable Collaborations and Partnerships

JP Morgan’s and Onyx progress is truly remarkable and also includes the following collaborations and partnerships:

• Partior Interbanking Network JV: Together with DBS, Temasek Standard Charter (Partior website) (Ledger Insights).
• Versana Syndicated Loan Platform: With Bank of America, Citi, Credit Suisse (now UBS), built on Canton Network (Versana website) (Ledger Insights).
• HQLA-X securities finance and repo solutions platform: Together with HSBC, Deutsche Börse Group, Citi, UBS, BNP Paribas, BNY Mellon, Goldman Sachs, ING, CIBC, Commerzbank (HQLA-X website).
• Investment in Owner: By JP Morgan to build interoperability for tokenised securities and ensure cross-platform liquidity through its open FinP2P protocol (Ownera website).

JP Morgan Innovation Lab

JP Morgan also opened their own innovation lab in Greece in 2022 focusing on blockchain and AI for payments (Ledger Insights).

Consensys acquired JP Morgan’s Quorum Blockchain and JP Morgan Investment in Consensys

JP Morgan made already an early step developing an enterprise-variant of the Ethereum blockchain, which was acquired in 2020 by leading Ethereum development company of Joe Lubin, the co-founder of Ethereum.

In addition to Consensys’ acquisition of Quorum, J.P. Morgan made a strategic investment in Consensys (Consensys).

This has been only an overview of some of activities JP Morgan’s and Onyx blockchain, but here some more sources to discover:

• Ledger Insight — JP Morgan rebrands blockchain unit Onyx to Kinexys
• Cointelegraph — JP Morgan debuts tokenisation platform with Blackrock
• Coinpaper — JP Morgan debuts tokenization in asset management
• Fintech Nexus — JP Morgan Makes Critical Step Towards Tokenization’s “trillion dollar opportunity

Bank of America

US — $3,051 Billion

Bank of America (BofA) has also been already very active in the blockchain and digital asset space, and holds more than 80 blockchain-related patents, which is quite impressive for a bank. BofA is also a notable advocate for the future of tokenisation in asset management, stating that it expects the tokenisation of traditional assets will reshape financial and non-financial infrastructure, and public and private financial markets over the next 5 to 15 years. It also notes that tokenisation is just one of many DLT applications, but could lead to new and more efficient primary and secondary markets for financial and non-financial products. The bank is active in multiple blockchain-related activities and partnerships such as:

Digital Asset Research and Strategy

BofA launched a digital asset research division to explore the broad implications of digital assets across various industries. This division examines how blockchain technology can improve transaction efficiency and reduce friction in financial services​ (Bank of America)​.

Blockchain Patents

Bank of America holds over 80 blockchain-related patents, making it one of the leading financial institutions in terms of blockchain intellectual property. These patents cover a wide range of applications, including private key storage solutions and systems for managing data communication and ensuring data integrity in distributed networks​ (Cointelegraph)​.

Asset Tokenisation Initiatives

BofA’s Global Research department predicts that the tokenisation of traditional assets will reshape financial and non-financial infrastructures over the next decade. This involves using distributed ledger technology (DLT) to create more efficient and transparent systems for managing and transferring assets​ (Bank of America Institute)​.

Paxos Network for Stock Clearing

Bank of America has tested blockchain for stock clearing on the Paxos Network. This initiative is part of an effort to modernise the securities settlement process, reducing settlement times and improving operational efficiencies​ (Decrypt)​.

Spot Bitcoin ETF Offering

The bank has also began offering spot bitcoin exchange-traded funds to eligible wealth management clients, highlighting the growing popularity of the asset class. This is also another notable step of BofA move including crypto investment products directly to its clients (Reuters).

Versana Syndicated Loan Platform

BofA was also one of several major banks like JP Morgan, Citi, Credit Suisse (now UBS) founding the syndicated loan platform built on DAML of the Canton Network Blockchain (Versana website) (Ledger Insights).

Marco Polo Network

BofA was a member of the Marco Polo blockchain trade finance network, which uses R3’s Corda blockchain to enhance transparency and efficiency in trade finance transactions. The network was working with 30 major global banks on solutions such as receivables discounting and payment commitments, aiming to digitise and streamline traditionally paper-based processes. A major deal with BofA fell through early 2023, after which the Irish company had to file for insolvency​ (Ledger Insights)​ (Ledger Insights).

For more information to BofA in blockchain and digital assets, here sources to discover:

• BofA — Transformation Insights
• BofA — Beyond Crypto: Tokenization Report
• Coindesk — BofA Tokenization Is Likely to Transform Infrastructure and Financial Markets

MUFG — Mitsubishi UFJ Financial Group

Japan — $2'968 Billion

MUFG (Mitsubishi UFJ Financial Group) is also already quite active in developing use cases for DLT, focusing on digital assets, stablecoins, and tokenised securities. Starting with the Progmat Coin Platform, MUFG has developed this initiative to a whole network of major Japanese financial institutions, tech companies and a consortium of hundreds of companies working together in a way to build standardisation around Progmat issuing security tokens, stablecoins and utility tokens.

Here are the key blockchain activities of MUFG:

Progmat Coin Platform

MUFG has developed the Progmat Coin platform to facilitate the issuance of stablecoins and digital securities. The platform aims to provide interoperability across multiple blockchain networks, including Ethereum, Avalanche, Cosmos, and Polygon​ (Ledger Insight) (Euromoney).

The Progmat Coin is designed to support stablecoins issued by various trust banks, not just MUFG. Their platform also supports cross-chain transactions, lending, and swaps, ensuring seamless integration across different blockchain networks​ (Ledger Insights)​​.

Progmat Consortium

Initially started by MUFG , Progmat became an own spin-off as a consortium called the Digital Asset Co-Creation Consortium (DACC), together with major Japanese players Mizhuo, Sumitomo Mitsui Trust Bank, SMBC, SBI, JPX, NTT Data, Datachain and an impressive total 228 member companies with a mission to connect society with programmable networks and digitalise all value. So far the consortium has issued more the 200'000 security token units and more than 2'800 utility tokens (Ledger Insights) (Progmat Website).

Stablecoin Issuance

MUFG plans to issue bank-backed stablecoins on public blockchains. This initiative is part of its broader effort to provide a universal digital asset payment method for stablecoins and other crypto assets, potentially including a Japan-based central bank digital currency (CBDC)​ (Cointelegraph)​​ (Cointelegraph)​.

Interoperability and Cross-Chain Settlements

MUFG has partnered with Datachain to develop solutions for blockchain interoperability. This includes enabling the settlement of digital securities using stablecoins across different blockchains, such as R3’s Corda and Ethereum-based GoQuorum​ (Ledger Insights)​.

The bank has successfully completed trials for cross-chain settlements and aims to commercialise these solutions in 2024​ (Ledger Insights)​.

Utility Tokens and NFTs

MUFG has also launched utility tokens on its Progmat platform in collaboration with Tokyo Dome City, offering deeply discounted offers for services like hotel stays and spa visits. These tokens are non-fungible tokens (NFTs) and are part of MUFG’s broader strategy to expand beyond security tokens​ (Ledger Insights)​.

Blockchain-Based Syndicated Loans and Trade Finance

MUFG has been involved in blockchain-based syndicated loan arrangements, such as the €150 million loan for Red Electrica Corporation, which utilised BBVA’s proprietary blockchain platform​ (Mufgmea)​.

Commodity Trade Finance and Participation on the Komgo

MUFG has also is also early started leveraging blockchain in commodity trade finance and joined the Komgo platform, a blockchain-based commodity trade finance platform, aiming to digitalise and optimise trade finance operations​, and has also executed transactions on the platform. (Mufgmea)​.

For more detailed information to MUFG and Progmat, you can visit:

• Progmat
• Cointelegraph on MUFG
• Coingeek

HSBC

UK — $2'864 Billion

HSBC is building its future in digital asset offerings and tokenisation, and even its CEO Noel Quinn is becoming openly bullish on the potential of it. HSBC was also listed at Forbes Top 50 in Blockchain 2023 for its blockchain projects. Just recently he emphasised his and the banks believe in the massive potential of the technology and their commitment beyond the projects as listed below:

Digital Vault and Tokenisation

HSBC utilises R3’s Corda enterprise blockchain on Google Cloud for its Digital Vault platform, which provides custody services for assets issued through private placements, such as equity, debt, and real estate. This move aims to cut onboarding times, reduce costs, and prepare for a future where the full transaction lifecycle can be stored on a distributed ledger (Ledger Insights)​.

Bond Tokenisation Platform Orion

HSBC has developed Orion, a blockchain-based platform aimed at facilitating the issuance, custody, and transfer of digital assets. This platform enhances efficiency and security in the management of securities and other financial instruments. Orion leverages blockchain to streamline processes and reduce operational costs for HSBC’s institutional clients (Ledger Insights).

HSBC has previously run blockchain bond trials. In 2020 it worked with the Singapore Marketnode tokenisation platform to issue a S$400 million bond for agriculture firm Olam and is one of the launch partners together with SGX, Temasek, Barclays, BNP Paribas, BNY Mellon, Citi, Deutsche Bank, HSBC, Orient Securities International, Standard Chartered, Societe Generale and UOB, for the Marketnode solution (Ledger Insights) (Ledger Insights).

Custody of Tokenised Real World Assets

HSBC plans to offer custody services for tokenised real-world assets through a partnership with Metaco, a Swiss digital asset custody technology provider. This service, expected to launch in 2024, aims to store blockchain-based assets, excluding cryptocurrency (CoinDesk)​.

Gold Token for Retail Investors

HSBC launched a gold token aimed at retail investors in Hong Kong, allowing them to invest in physical gold backed by blockchain technology. This initiative marks a significant step in making traditional assets more accessible through digital means (CoinDesk)​.

Blockchain-Based Payments

HSBC has piloted a blockchain-based digital payments platform in Singapore to streamline payments for property developers. This platform aims to automate and digitalise payment workflows, enhancing operational efficiency and transparency (HSBC Singapore)​.

Trade Finance with Contour

The bank also fully commercialised its blockchain trade finance platform, Contour, which facilitates the digitisation of the trade finance process. This platform reduces the time for processing trade finance transactions from days to hours, enhancing the efficiency of global trade (HSBC Business)​​ (HSBC Business)​.

First Blockchain-Based Syndicated Loan

HSBC participated in the world’s first blockchain-based syndicated loan arrangement for Red Electrica Corporation based on BBVA’s proprietary blockchain powered platform. This transaction, conducted alongside BBVA and BNP Paribas, showcased the potential of blockchain to enhance the transparency and efficiency of syndicated loans (Mufgmea)​.

Multi-Currency Digital Bond Offering

Using HSBC Orion, the bank’s leading digital assets platform, HSBC has successfully helped the Hong Kong Monetary Authority (HKMA) complete a HKD6 billion-equivalent digitally native green bond issuance for the Hong Kong government with over 50 global investors (GBM HSBC).

For more detailed insights read also the report of Northern Trust together with HSBC (Northern Trust).

Further sources on HSBC’s blockchain initiatives:

• Be in Crypto — HSBC Digital Asset Strategy
• HSBC — Tokenisation: Driving financial innovation and conservation
• Bitcoin.com — HSBC expands in digital assets offerings
• Blockchain.news — HSBC Letter of Credit Malaysia
• Blockchain.news — We trade
• Blockchain.news — Blockchain Trade between New Zealand and China

BNP Paribas

France — $2'850 Billion

French banking group BNP Paribas has been extremely actively exploring and implementing blockchain technology across various sectors with some major moves, and in particular the tokenisation of asset through multiple projects. It has tested blockchain use cases and how the blockchain technology can process transactions already very early back in 2016, when most people and organisations only just started talking about Bitcoin. Since then, the bank has just strengthened its initiatives and launched many projects successfully such as:

Real-Time Blockchain Payments

BNP Paribas successfully completed its first real-time blockchain payments for clients Amcor and Panini Group already in 2016. These transactions were processed and cleared within minutes, demonstrating the potential of blockchain to eliminate delays, unexpected fees, and processing errors in cross-border payments​ (BNP Paribas)​.

Blockchain Platform for Private Stocks

BNP Paribas Securities Services expanded its blockchain platform to help private companies issue minibonds via crowdfunding platforms. This initiative is in partnership with renewable energy crowdfunding specialists like Lendosphere, Enerfip, and Lumo, ensuring fast, secure, and efficient financial transactions​ (BNP Paribas)​.

Financing for Private Companies

Another early project in collaboration with SmartAngels, BNP Paribas Securities Services launched a blockchain-based platform to allow private companies to issue securities on the primary market and provide investors with access to the secondary market. This platform aimed to accelerate and secure financial transactions using blockchain technology, benefiting both issuers and investors​ (BNP Paribas)​.

End-to-End Fund Transaction Test

BNP Paribas Asset Management successfully conducted a full end-to-end fund transaction test using blockchain. This was achieved through collaboration with Fund Link and FundsDLT, enhancing the efficiency and security of fund transaction processing​ (BNP Paribas)​.

Trade Finance Digitalisation

BNP Paribas has been part of several initiatives to digitalise trade finance using blockchain. For instance, they have been involved in the now insolvent Marco Polo trade finance network, which utilised Corda blockchain to settle digital trade transactions efficiently​ (BNP Paribas)​.

Syndicated Loans with Finastra’s Fusion LenderComm

BNP Paribas, along with other major banks, joined Finastra’s Fusion LenderComm platform in 2019, a blockchain network that facilitates real-time sharing of information about syndicated loans, enhancing efficiency and transparency in the loan market​ (Ledger Insights)​.

Tokenised ESG Bond

In 2022 BNP Paribas structured, tokenised and distributed a bond, the proceeds of which aim at refinancing a solar energy project sponsored by EDF ENR. It enables greater transparency and verifiability of data across the whole value chain, which is key for ESG projects. Both the bond term sheet and ESG data are embedded in the token, representing a strong improvement in terms of verifying investors’ ESG impact (EDF ENR) (BNP Paribas).

SWIFT Blockchain Interoperability Trial

BNP Paribas participated in a SWIFT-led trial using Chainlink’s Cross-Chain Interoperability Protocol (CCIP) together with BNP Paribas, Citi, DTCC to integrate legacy systems with public blockchains. This trial demonstrated the potential for SWIFT’s infrastructure to provide connectivity between traditional financial systems and blockchain networks​ (Ledger Insights)​.

Partnerships with Fireblocks and METACO

BNP Paribas Securities Services is enhancing its digital asset custody capabilities through partnerships with Fireblocks and METACO. These collaborations aim to integrate tokenisation, hot wallets, and connectivity infrastructure, enabling BNP Paribas to support a wide scope of regulated digital assets once regulatory frameworks are in place​ (Ledger Insights)​.

Digital Yuan Wallet Partnership in China

BNP Paribas China, in collaboration with the Bank of China, launched a digital Yuan wallet to support corporate clients for both offline and online payments, contributing to the development of the digital Yuan ecosystem​ (Ledger Insights)​.

Transacting Tokenised Fund Shares with ERGO and MEAG in Germany

BNP Paribas Germany also tested the transaction of tokenised fund shares together with MEAG, a Munich Re company managing € 345 Billion of asset for the German Insurance giants MunichRe and ERGO in 2022, testing the compliance with newly introduced regulation in Germany for electronic securities (eWPG) and for tokenised fund share (KryptoFAV). In addition, the technical solution for maintaining a central register or crypto securities register is an essential component of fundsonchain, which can be managed by custodians outside a central securities depository (CSD) for the first time (BNP Paribas Germany).

Most notable Investments of BNP Paribas:

• Investment in Fnality Series B Round: BNP Paribas participated in a $95 million funding round for Fnality together with many other major global banks, a blockchain wholesale payment and settlement platform designed to enable instant atomic settlement and reduce counterparty risk​ (Ledger Insights)​.
• Investment HQLAX Collateral Platform: BNP Paribas invested in the Series B funding round for HQLAX, a blockchain platform for trading high-quality liquid assets (HQLA). The platform facilitates faster intraday transaction settlements​ (Ledger Insights)​.

Here also some more sources of BNP Paribas on tokenisation:

• BNP Paribas — Tokenisation of Alternative Investment
• BNP Paribas Report — Tokenisation of Alternative Investments
• The Banker — BNP Paribas embraces tokenisation for Project Finance Bonds
• Fireblocks — BNP Paribas Tokenisation Solution

Crédit Agricole

France — $2'542 Billion

Crédit Agricole, the second biggest french bank, is also not far behind BNP Paribas blockchain and digital asset activities and has joined forces with other banks and technology providers leveraging the blockchain technology in various areas of its business. But it has also started its digital asset program together with its Joint Venture Partner Banco Santander and its CACEIS digital asset unit, as well as issued several tokenised bonds and other tokenised asset products.

so|bond Platform

Crédit Agricole CIB, in partnership with SEB, launched the so|bond platform, a public blockchain network aimed at issuing digital bonds. This platform uses the Proof of Climate awaReness protocol to incentivise nodes to minimize their environmental footprint, promoting sustainability. It leverages smart contracts to enhance efficiency, transparency, and operational simplifications in bond issuance and management​ (Ledger Insights)​​ (Ledger Insights)​.

Tokenized Bonds for SMEs

Crédit Agricole Italia, in collaboration with BlockInvest, is developing a tokenized bond solution targeted at SMEs. This initiative, part of the Bank of Italy’s DLT trials, aims to improve the accessibility and efficiency of financial instruments. The project involves accredited investors and focuses on using public blockchains like Ethereum and Polygon for issuing and managing tokenized bonds​ (Ledger Insights)​​ (Ledger Insights)​.

CACEIS Digital Asset Unit

CACEIS, a subsidiary of Crédit Agricole and Santander, has established a business line dedicated to digital assets. It offers digital asset custody, tokenization issuance, and fund distribution services. This initiative enhances their capabilities in managing and securing digital assets, supporting innovations like the digital green bond issuance via the so|bond platform​ (CoinDesk)​​ (Ledger Insights)​.

Interbank Digital Currency Project

Crédit Agricole CIB is part of a consortium with BNP Paribas and Caisse des Dépôts exploring an interbank digital currency for settling security token transactions. This project aims to enable instant atomic settlement and compliance with regulatory standards, leveraging blockchain technology for secure and efficient interbank payments​ (Ledger Insights)​.

Tokenized Non-Performing Loans (NPLs) through BlockInvest

Crédit Agricole Italia-backed BlockInvest is planning to tokenise non-performing loans (NPLs) in partnership with Centotrenta Servicing and Davis & Morgan. This initiative will issue tokenized securities backed by NPLs on the Polygon blockchain, aiming to improve liquidity and efficiency​ (Ledger Insights)​.

Trade Finance Platform

Like many other major global banks, Crédit Agricole joined now defunct Marco Polo in 2019, to solve many of the issues related to trade finance and to replace paper-based processes to reduce transaction time and cost and bring transparency to all trade participants (Crédit Agricole).

Commodities Trade Finance Blockchain Komgo

Crédit Agricole was also one 15 of the world’s largest banking and commodity companies joining Komgo, another project to improve global trade finance, and in particular commodities trading (Credit Agricole) (Ledger Insight).

Here some more information to explore on the activities of Crédit Agricole in the space:

• The Tokenizer — Crédit Agricole Italia and BlockInvest together for the “tokenization” of bonds
• Ledger Insight — Blockchain for Interbank Reconciliations with 32 Banks
• ConsenSys — Komgo Trade Finance

CITI

US — $2'416 Billion

Citi has been one of the most active major US bank, but interestingly not been one of Forbes Blockchain Top 50. With a 100 men-strong team dedicated to digital assets, the bank has projects and solutions ranging from payment service through tokens, FX trading, tokenisation of private markets to custody service for digital assets and even investment in staking service provider as described further here:

Digital Assets Team

Citi is creating a 100-strong team dedicated to digital assets, targeting institutional clients. The team focuses on initiatives such as digital securities, digital currencies, and enterprise DLT. This expansion highlights Citi’s commitment to growing its presence in the digital asset space​ (Ledger Insights)​.

CITI Digital Assets Services

Citi offers dedicated digital assets services to the market, which they formed either through proprietary developments or through partnerships such as:

• Tokenisation of Private Markets Proof of Concept: Citi collaborates with Wellington Management and WisdomTree to explore tokenisation of private markets.
• Citi Token Services for Cash: Creation and testing of Citi Token Services for cash management, which would enable clients to transfer liquidity between Citi branches on a 24/7 basis.
• Citi Token Services for Trade: Creation and testing of Citi Token Services for trade, in partnership with a canal authority, which has demonstrated programmable transfer of tokenised deposits that provided instant payments to service providers via smart contracts.
• Digital Custody and Settlement: First to provide digital custody and settlement services to clients that are participants of BondbloX Bond Exchange (BBX), a fractional bond exchange using distributed ledger technology (DLT).
• Issuing and Paying Agent for Digitally Native Note: Acted as first Issuing and Paying Agent for World Bank on Euroclear’s new Digital Financial Market Infrastructure DLT platform.
• Pricing and Execution of Trades: Developed and tested the use of blockchain infrastructure to price and execute simulated bilateral spot foreign-exchange trades.
• Regulated Liability Network Proof of Concept: Participation in Proof of Concept to explore the feasibility of a shared ledger that enables in an interoperable way the instant transfer and settlement of regulated liabilities, including central bank, commercial bank, and electronic money.

Citi Token Services

Citi has developed Citi Token Services to offer digital asset solutions for cash management and trade finance. This service leverages blockchain and smart contract technologies to provide a fully digital process, enabling instant payments and liquidity transfers between Citi branches globally, significantly reducing transaction processing times​. This development aligns with similar moves by other banks like JP Morgan’s JPM Coin, enhancing global liquidity management for corporate treasurers. (Citi)​​ (Citi)​.

Project Guardian — FX Solution

As part of the Monetary Authority of Singapore’s Project Guardian, Citi trialed an FX solution together with T.Rowe Price and Fidelity International using the Avalanche blockchain. This initiative involved creating a permissioned instance of the Avalanche blockchain to stream FX prices and execute trades in a secure, immutable environment​ (Ledger Insights)​.

Tokenisation of Private Markets together with Wellington and WisdomTree

Citi collaborates with Wellington Management and WisdomTree exploring the tokenisation of private equity funds to offer future services as listed above. A pilot project demonstrated how private assets could be tokenised, enhancing their accessibility and enabling new capabilities through blockchain and smart contracts​ (CoinDesk)​​ (Citi)​.

Digital Asset Custody with Metaco

Citi has partnered with Metaco to develop and pilot digital asset custody services using the Metaco Harmonize platform. This includes custody solutions for cryptocurrencies, digital assets, and DeFi, and the ability to issue and manage tokens​ (Ledger Insights)​​ (Ledger Insights)​.

Citi has made strides in digital asset custody, acting as the first issuing and paying agent for the World Bank on Euroclear’s new distributed ledger technology (DLT) platform. This initiative aims to streamline and secure the issuance and management of digital assets​ (Citi)​.

The bank also provides digital custody services for BondbloX, a platform offering fractionalized bonds using blockchain technology. This enhances accessibility and expands the potential investor base by allowing smaller investments in digital bonds​ (Ledger Insights)​.

Regulated Liability Network (RLN)

Citi conceived the RLN to support central bank liabilities, commercial bank money, and non-bank issuer liabilities on a single DLT network. The initiative aims to facilitate atomic settlement of tokenised assets and promote interoperability across different financial institutions​ (RLN Website) (Ledger Insights)​.

CIDAP Platform

As just recently announced, CITI unveiled its new Citi Integrated Digital Assets Platform (CIDAP) to serve the entire group. Although it is not so much known about the new platform beside it uses the permissioned version of Ethereum’s Hyperledger Besu and that it can also supports other Ethereum and non-Ethereum chains, it can be expected that other services as mentioned above are integrated (Ledger Insights)

Acquisition of SETL by Colendi

SETL, a blockchain firm backed by Citi, was acquired by Colendi. SETL is known for its contributions to the RLN infrastructure and blockchain interoperability solutions. This acquisition aims to bridge internal private blockchains with a public shared environment​. Citi conceived the RLN to support central bank liabilities, commercial bank money, and non-bank issuer liabilities on a single DLT network. The initiative aims to facilitate atomic settlement of tokenised assets and promote interoperability across different financial institutions​ (Ledger Insights)​ (Ledger Insights)​.

Interoperability Development with Axelar

Citi is partnering with blockchain-interoperability protocol Axelar, together with other institutions like Deutsche Bank, Mastercard and Northern Trust (Axelar Website).

Other notable Investments by CITI:

• Investment in xalts: Citi Ventures invested in xalts, a digital asset manager focused on launching ETFs and mutual funds for cryptocurrencies. This move aims to meet the growing appetite for institutional crypto-access investments​ (Ledger Insights)​.
• Backing Elwood Technologies: Citi is an investor in Elwood Technologies, which received UK regulatory approval for its crypto trading platform. Elwood provides institutional access to digital asset liquidity providers​ (Ledger Insights)​.
• Versana Syndicated Loan Platform: Founded together with with Bank of America, Credit Suisse (now UBS) and J.P. Morgan, built on Canton Network (Versana website) (Ledger Insights).
• Investment in Blockchain Infrastructure Provider Blockdaemon: Citi Ventures invested in Blockdaemon, a leading provider of institutional-grade digital asset infrastructure. Blockdaemon helps institutions set up and manage blockchain nodes, providing crucial support for accessing blockchain networks and enabling staking services for more than 60 protocols​ (Citi)​ (Blockdaemon).

For more detailed information of Citi’s activities in the space, you can explore the following additional resources:

• Citi Digital Assets Overview
• Citi’s Tokenisation of Private Markets
• Citi Ventures Investment in Blockdaemon
• Citi — Exploring Tokenization in Private Markets

BNY Mellon

US — $2'000 Billion

BNY Mellon has already built remarkably in the space and was even recognised Forbes’ Blockchain 50 list. BNY Mellon’s CEO Robin Vince has emphasised the importance of digital assets and blockchain technology, comparing its adoption to the historical shift from paper to computers in custodial services. The bank is offering custody for major tokens, tokenisation service, is one of the many big banks building on Canton Network and has partnered and invested in several start-ups in the space. Here some more details and links to their main solutions and projects:

Digital Asset Custody Platform

BNY Mellon launched its Digital Asset Custody platform in the U.S., enabling select clients to hold and transfer Bitcoin and Ether. This platform underscores BNY Mellon’s commitment to supporting digital assets alongside traditional ones​ (CoinDesk)​.

Tokenised Asset Services with Canton Network

BNY Mellon uses the Canton Network to issue and manage tokenised assets, improving the trading and settlement efficiency of digital representations of real-world assets like securities and bonds. The bank also participated in a pilot with 44 other institutions who simulated the use of 22 different DLT applications on the Canton Network. (Ledger Insights)​.

Securities Lending on the HQLAᵡ Platform

BNY Mellon and Goldman Sachs executed their first securities lending transaction on the HQLAᵡ blockchain platform, which tokenises high-quality liquid assets to streamline settlement processes without moving the actual securities​ (Ledger Insights)

Pilot with the Singapore Central Bank for Tokenised Assets

BNY Mellon is participating in tokenisation pilots of the Monetary Authority of Singapore together with other major financial firms JPMorgan and DBS. These pilots aim to explore the use of tokenised deposits, asset-backed securities, and other financial instruments on public blockchains to improve efficiency and transparency in financial services (CoinDesk).

Forbes Blockchain 50

BNY Mellon was recognised in Forbes’ Blockchain 50 list in 2023 for its next to JP Morgan, HSBC, Goldman Sachs, Societe General to mention out of our top 30 list of global banks on the forefront.​ (Forbes’ Blockchain 50) (CoinDesk)​.

Blockchain Innovation Fund in Singapore

BNY Mellon also launched the Blockchain Innovation Fund in Singapore in 2022, managed by its subsidiary Newton Investment Management. The global equity fund invests in companies utilising distributed ledger technology (DLT) across various sectors. The fund aims to capitalise on blockchain’s growth without directly investing in cryptocurrencies, which are associated with higher regulatory risks (Ledger Insights).

Trade Finance

BNY Mellon also joined the now defunct Marco Polo Network to introduce blockchain technology into international trade finance, aimed to digitise the provision of working capital to global suppliers and buyers. This initiative was intended to streamline and improve the efficiency of trade finance processes​ (CoinDesk)​.

BNY Mellon’s Strategic Investments:

• Chainalysis: BNY Mellon invested in Chainalysis, the blockchain analytics firm, to enhance its compliance capabilities for cryptocurrency transactions. Chainalysis helps detect high-risk transaction patterns and provides insights into the source and destination of funds​ (Ledger Insights)​​ (Ledger Insights)​.
• Valkyrie Investments: BNY Mellon participated in an $11 million funding round for Valkyrie Investments, a digital asset manager with a focus on Bitcoin-related ETFs and DeFi hedge funds​ (Ledger Insights)​.
• Talos and Coin Metrics: The bank also invested in Talos, a digital asset trading infrastructure firm, and Coin Metrics, a blockchain data startup, to support the growing digital asset ecosystem​ (Ledger Insights)​.

For more information of BNY Mellon’s projects related to blockchain and digital assets, you can explore the following additional resources:

• BNY Mellon — The Rise of Tokenization
• BNY Mellon — Tokenization: Opening Illiquid Assets to Investors
• Coindesk — Singapore Central Bank Starts Tokenization Pilots Alongside JPMorgan, BNY Mellon, DBS

Wells Fargo

US — $1'881 Billion

Wells Fargo is another of the major US banks that has been already very active exploring use cases, mainly for digital cash and settlements, and it has made already headline for offering Bitcoin and other cryptocurrencies to its high-net-worth client. But so far there seems to be no offering of tokenised assets or service to tokenise assets for clients. Here some of the major projects of Wells Fargo in the space.

Wells Fargo Digital Cash Pilot

Wells Fargo has launched an internal blockchain pilot in 2019 named Wells Fargo Digital Cash. This pilot, operating on a private blockchain network using R3’s Corda technology, aimed to facilitate real-time cross-border settlements within the bank. Initially, focused on transactions in US dollars, with plans to expand to multi-currency transfers. This initiative reflects Wells Fargo’s strategy to enable real-time financial interactions across various accounts and markets globally (Coindesk).

Collaboration with HSBC for FX Settlement

Wells Fargo has partnered with HSBC to use blockchain technology for settling foreign exchange (FX) transactions. This initiative employs Baton Systems’ distributed ledger technology (DLT) to provide real-time transparency and efficiency in FX settlements. The platform enables payment versus payment (PvP) net settlement, reducing settlement risks and associated costs. Initially, this system supports major currencies such as USD, CAD, EUR, and GBP, with plans for further expansion (CityAM) (Wells Fargo Stories).

Collaborate with Mastercard to Test Tokenised Banking Settlements

Another very recent announcement is Wells Fargo’s partnership with Mastercard together with major US banking institutions, including Citi, JPMorgan, Swift, TD Bank N.A., U.S. Bank, USDF, Visa, and Zions Bancorp, to conduct trials of banking settlements using tokenisation (Yahoo finance).

Regulated Liability Network (RLN) Trial

Wells Fargo participated in a successful proof-of-concept trial for the RLN, a project led by the New York Fed and other major financial institutions like Citi. The trial tested commercial bank deposit tokens and a wholesale central bank digital currency (wCBDC) on a shared DLT infrastructure, enhancing cross-border payment speed and transparency (RLN Website) (Ledger Insights).

Cryptocurrency Investment Opportunities

Wells Fargo has also ventured into offering cryptocurrency investment opportunities to its clients. The bank now provides Bitcoin and crypto exposure to its high-net-worth clients through its wealth and investment management division. This service is part of an actively managed Bitcoin and crypto strategy designed for qualified investors. This move aligns with Wells Fargo’s recognition of cryptocurrencies as a viable investment asset, with the potential for growth and portfolio diversification (Nasdaq) (CoinDesk).

Investments in blockchain and digital assets companies

• Talos, an institutional digital asset trading infrastructure, $ 105 Million series B round together with BNY Mellon, Citi, Wells Fargo Strategic Capital and SCB 10X, the subsidiary of Siam Commercial Bank (Ledger Insights).
• OpenRisk Technologies derivative startup, which uses blockchain to manage collateral and liquidity for derivatives traders and commercial loans automation was a notable investment through Wells Fargo’s accelerator program (Ledger Insights).

Banco Santander

Spain — $1'854 Billion

Spanish banking giant Banco Santander has become very active in the blockchain space, investing heavily in new technologies such as DLT with the goal to provide more and better services to its clients globally. But not only that, the bank is also active in solving specific problems in markets like in South America through the use of DLT and tokenisation, as well has started an initiative to identify and support start-ups in the space and seeks to actively partner with them. Notable blockchain initiatives have been:

Partnership with Ripple

Santander partnered with Ripple to improve international payment services. This collaboration led to the creation of One Pay FX, a service that offers faster, cheaper, and more transparent international payments. The partnership has been beneficial in expanding these services to new territories and customer segments, highlighting Santander’s commitment to leveraging blockchain for cross-border transactions​ (Ripple)​​ (Cointelegraph)​.

Blockchain-Based Investor Voting

The bank successfully completed a blockchain-based investor voting pilot, becoming the first company to use blockchain for investor voting at its annual general meeting. This initiative, in partnership with Broadridge Financial Solutions, aimed to enhance the efficiency and transparency of the voting process​ (Cointelegraph)​.

Trade Finance

Santander has been active in blockchain-based payments and trade finance. Through its participation in the we.trade consortium, the bank utilises blockchain’s smart contract capabilities to provide more efficient and cost-effective international trade solutions. This project, built on IBM’s blockchain platform using Hyperledger Fabric, facilitates better cash management, liquidity management, and trading opportunities​ (IBM — United States)​.

Blockchain Identity Project

It is also part of the Dalion project, which involves developing a self-managed digital identity system using blockchain technology. This project, in collaboration with other Spanish companies, aims to improve digital identity management by leveraging blockchain for greater security and efficiency​ (Chain Bulletin)​.

Blockchain-Based Payment Applications

Santander launched a blockchain-based mobile application that allows staff to transfer funds efficiently. This pilot program, uses Ripple’s infrastructure, is set to be expanded to all customers, demonstrating Santander’s proactive approach in adopting blockchain technology for everyday banking services​ (Cointelegraph)​.

Intra Day Repo on JP Morgan Kinexys

Santander CIP (Corporate and Investment Banking) announced two intra day repo transactions, both with a value of $50 Mio early January 2025 on JP Morgans Kinexys Digital Asset platform. This is another trial to utilize the massive potential of the blockchain in intra day repo trading (Ledger Insight).

Partnership with Agrotoken for Tokenised a Agriculture Commodities

Santander Argentina has partnered with Agrotoken, the creators of crypto-soya (SOYA), crypto-corn (CORA) and crypto-wheat (WHEA), the first grain-backed crypto assets that help to save and to make transactions. The first global experience in backing loans with tokens based on agro-commodities. The bank claims that the product represents a number of milestones, as it is the first time that a global financial services platform connects tokens based on agricultural products to financial products. It is also a new experience using blockchain technology to generate new businesses and make the process more efficient. This is a direct initiative by Ana Botín, the Group executive chairman, focusing on technology to provide more and better services (Santander).

Tokenisation of Real Estate and Vehicle in Brazil

Another notable project is the use of tokenisation to streamline the current bureaucratic process of real estate and vehicle transactions, which it sees as a barrier to negotiations, by using its new solution. The proposed method focused on facilitating the negotiation of ownership titles for real estate and vehicles. It involves payment on delivery, where payment for the property occurs at the same time as the transfer of ownership to the buyer. The bank has also presented the concept of creating vehicle NFTs for transit authorities to register and trade between people, along with the concept of NFTs for real estate (Cointelegraph).

Crypto Trading and Custody

End of 2023, the bank also announced its trading and custody solution for BTC and ETH to its private banking clients, predominantly for Swiss bank accounts and has chosen Swiss Taurus as for its custodian solution (Crypto News)(Coindesk)

Santander X — Global Blockchain Challenge

The bank also initiated a global challenge together with Oxentia Foundation, a spin-off from Oxford University Innovation to identify the most innovative startups and scale-ups with the greatest potential for growth in the use of blockchain technology (Santander X).

For more detailed information about Banco Santander’s blockchain initiatives, you can visit the following sources:

• Banco Santander Blockchain
• Cryptoweekly — Santander Brasil Exploring Usage Of Tokenization Platform

Barclays

UK-$1'824 Billion

Barclays has explored the technology maybe even as one, if not the first major global banks, and implemented blockchain technology to enhance various aspects of its financial services. And as it seems, the main focus so far was more on the aspects of payments, tokenised deposits and trade finance, as well as major partnerships and strategic investments. But the start at Barclays was already 2015, by two own workspace in the city of London.

Blockchain Workspaces in 2015

Barclays has established two blockchain workspaces in London, designed to foster innovation and collaboration within the blockchain community in 2015. These labs were aimed to support web3 entrepreneurs, providing a space to develop and test blockchain applications​ (Finance Mags)​.

Trade Finance Transactions

Barclays conducted its first blockchain-based trade finance transaction using a platform developed by Wave, a startup from Barclays’ blockchain accelerator program. This system enhances the efficiency and security of trade document handling, reducing costs and improving transaction speed​ (Cointelegraph)​.

Partnership with Blackrock for Tokenised Money Market Fund on JP Morgan’s Onyx TCN

Barclays has famously partnered with Blackrock in JPMorgan’s Tokenised Collateral Network (TCN), using blockchain to trade tokenised cash deposits and money market fund shares as collateral for derivatives trades. This initiative aims to reduce operational friction in meeting margin calls and improve market efficiency​ (Blockworks)​​ (CoinDesk)​.

Finteum Blockchain Trials

Barclays participated in trials with the Finteum platform for intraday FX swaps and repo transactions. The platform uses blockchain to optimise liquidity management and reduce costs associated with short-term funding mechanisms, aiming to save millions annually for participating banks​ (Ledger Insights)​.

Strategic Collaborations

Barclays has been involved in various strategic collaborations, including the Utility Settlement Coin project, which connects commercial bank money to central bank money using distributed ledger technology. This venture aims to increase efficiency and reduce risks in wholesale markets​ (Barclays)​​ (FIA)​.

Tokenised Deposits

Another notable project was just recently announced in partnership with another British banking giant Barclays, as well as Citigroup, Mastercard, and Visa piloting tokenised deposits in the UK. This stays also in relation to the initiative Agora of the Bank for International Settlement (BIS), global central banks and private financial entities that aims to study the integration of tokenised commercial bank deposits with central bank money. The success of these initiatives would be a great leap forward for easier and faster transactions across different borders and systems, as well as mitigate the occurrence of error or even fraud. Tokenised deposits are also a different take on the discussion of stablecoins and CBDC’s (Central Bank Digital Currencies, basically eliminating the need of it as well as breaking through the hurdles of on-chain settlement (Coingape)(Coingape).

Investment in Crypto Custodian Copper

Barclays had also been of the backers of Copper’s last series B founding round in summer 2022, which is (or was) also the custodian of choice for several major banks in this list. It was unclear for us, as to how that partnership continues as Copper reported its closing of it enterprise business due to regulatory uncertainty, which also led State Street and other banks to cut ties with Copper. But we couldn’t find a clear confirmation of it (Ledger Insights) (Copper).

Investment in Elwoods

Barclays has also joined in a $70 million funding round in Elwood Technologies, the institutional-grade digital asset platform founded by British hedge fund billionaire Alan Howard (Finextra).

Find out more about Barclays activities in the space:

• Barclays Innovation
• Barclays Rise Report Decrypting Crypto

UBS

Switzerland — $1'680 Billion

The Swiss banking giant, which took over the second Swiss banking giant Credit Suisse recently forming an even bigger bank now, has conducted blockchain research more silently than other major banks but seems to take pace now in the space with several initiatives:

UBS Tokenize

The most notable initiative seems to be a really big one for the bank. Embedded in its investment banking division, it supports opportunities across origination, distribution, and custody, initially focusing on tokenisation of bonds, funds, and structured products, and has done a few of them already successfully in different forms on different global markets.

Tokenised Financial Products

• Blockchain-based Bond on SIX Digital Exchange: UBS was the first commercial bank to issue a digital bond that is listed, traded and settled on a regulated digital exchange. The bank is a member of the SDX alongside three other bank members Credit Suisse, Zürcher Kantonalbank and Berner Kantonalbank and issued the CHF 375 million ($370m), 2.33% three-year unsecured bond back in 2022.
• Blockchain Digital Debt to HNWI in Asia: UBS has launched Hong Kong’s first investment-grade tokenised warrant on the Ethereum blockchain. This tokenised warrant offers improved accessibility, efficiency, and transparency for investors by utilising blockchain technology to automate and streamline processes​ (Crowdfund Insider)​.
• Tokenised Fund Money Market Fund: UBS Asset Management initiated a pilot for a tokenised money market fund, using Ethereum’s blockchain to handle fund subscriptions and redemptions. This is part of UBS’s broader strategy to expand its tokenisation services​ (Markets Media)​.
• UBS distributes first fund issued on iCapital’s: Although iCapital is not leveraging tokenisation, it uses DLT for streamlined processes to reduce the efforts of reconciliation as well as other administrative parts in the fund distribution and lifecycle management (Ledger Insights).

Blockchain-Based Repo Transactions

In collaboration with SBI and DBS, UBS executed the world’s first blockchain-based repo transaction. This pioneering transaction demonstrated the feasibility of instant, automated settlements across multiple jurisdictions using a public distributed ledger technology (DLT) network​ (Fintech News)​.

UBS has also joined Broadridge’s Distributed Ledger Repo (DLR) platform, which aims to transform the repo market by enabling the agreement, execution, and settlement of repo transactions on a decentralised platform. This platform has already processed over $35 billion in average daily volume​ (The TRADE)​.

UBS USD Money Market Investment Fund Token

UBS Asset Management has introduced the “UBS USD Money Market Investment Fund Token” (uMINT) in November 2024, a tokenized money market fund utilizing the public Ethereum blockchain. Launched in Singapore, uMINT is available exclusively to accredited investors through authorized distribution partners, with DigiFT being the first. This initiative aims to meet the growing demand for tokenized financial assets, offering investors a secure and efficient means to manage cash and earn yields. The uMINT tokens are transferable among clients who have completed Know Your Customer (KYC) procedures and are whitelisted, adhering to Switzerland’s CMTA standards. This development aligns with UBS’s ongoing efforts in digital asset tokenization, including previous collaborations on digital structured notes and participation in blockchain-based financial pilots (Ledger Insight).

Strategic Investments and Partnerships

• Partnership with Consensys: UBS has invested in Consensys through its UBS Next initiative, supporting the development of blockchain infrastructure and applications. ConsenSys is a leading blockchain company known for its role in creating Ethereum​ (Crowdfund Insider)​.
• Partnership with FundsDLT: UBS Asset Management collaborated with now Deutsche Börse-owned FundsDLT to explore blockchain-based fund distribution models, focusing on improving the efficiency and transparency of fund transactions​ (FundsDLT)​.
• HQLA-X securities finance and repo solutions platform: Together with HSBC, Deutsche Börse Group, Citi, UBS, BNP Paribas, BNY Mellon, Goldman Sachs, ING, CIBC, Commerzbank (HQLA-X website).

For more detailed information UBS’ blockchain and tokenisation activities, you can explore the following resources:

• UBS Tokenize
• Markets Media

Societe Generale

France — $1'588 Billion

Societe Generale has been actively involved in blockchain and digital assets early on and has notable focussed on digital assets and tokenised bond issuance. Through its subsidiary SG-FORGE, it even already obtained a license as Digital Asset Service Provider (DASP) offers several distinct products as follows:

SG-FORGE

Societe Generale — Forge (SG-Forge) is the dedicated digital asset unit of Societe Generale offering services for issuing and managing financial products on blockchain. Products include CoinVertible stablecoin, digital bonds, and structured products. They prioritise compliance, seamless integration with legacy systems, and multi-protocol blockchain support. Key milestones include issuing the first covered bond as a security token and the first financial transaction settled with a central bank digital currency (SG-Forge).

Regulatory Approval

SG-FORGE is already regulated under MiFID 2 and obtained its regulatory license as a Digital Asset Service Provider (DASP) from the French Financial Markets Authority (AMF). This certification ensures a high level of security and compliance for their digital asset operations, aligning with upcoming European regulations​ (Crowdfund Insider)​.

Digital Green Bond Issuance

Societe Generale issued its first digital green bond as a security token on the Ethereum blockchain in November 2023. This €10 million bond enhances transparency and traceability of ESG data and is aimed at financing green activities. The security tokens have been directly registered by SG-FORGE on the Ethereum public blockchain have been fully subscribed by two top tier institutional investors, AXA Investment Managers and Generali Investments, through a private placement.​ The subscription by those two major insurance companies also demonstrates that such institutional investors are getting ready to transition to tokenised securities (Societe Generale)​​ (CoinDesk)​.

Stablecoin — EUR CoinVertible

Early 2023, SG-FORGE launched EUR CoinVertible, an institutional-grade stablecoin on the Ethereum blockchain. Designed to meet the needs of institutional clients, it offers a secure and transparent settlement asset for on-chain transactions and corporate treasury activities. This stablecoin aims to provide robust liquidity solutions and support the digital asset ecosystem​ and is even listed and traded on Bitstamp as EUROCV (SG Forge) ​(Financial Time).

Launch of EUROCV on XRP Ledger

In November 2025 Societe Generale-FORGE (SG-FORGE) annonced its plans to launch its Euro-pegged stablecoin, EURCV, also on the XRP Ledger (XRPL) in 2025. This expansion follows its initial deployment on Ethereum and an announced rollout on Solana. SG-FORGE cites XRPL’s speed, low transaction fees, scalability, and optimization for cross-border payments as key factors for this decision. The move also aligns with SG-FORGE’s use of Ripple’s custody solutions, following Ripple’s acquisition of Metaco, the technology provider for SG-FORGE’s digital asset custody. Currently, EURCV has a market capitalization of €38 million, with four wallets controlling 90% of the balance (Ledger Insight)

Offering of DLT-based Funds through Collaboration with IZNES

Societe Generale Securities Services (SGSS) has expanded its offerings to include the distribution of blockchain-based funds, utilising Distributed Ledger Technology (DLT). Through a collaboration with IZNES, SGSS has introduced a model that enhances fund distribution channels by connecting investors and asset management companies directly. This model has enabled real-time transparency in transaction flows and asset tracking on the blockchain, simplifying processes like subscription and redemption management, KYC sharing, and reducing costs and transaction times. This initiative supports SGSS’s goal of increasing operational efficiency in fund distribution and is part of broader market innovations involving blockchain technology (SGSS).

Custody Partnership with Metaco

SG-FORGE has partnered with Metaco to enhance its digital asset custody capabilities. This collaboration allows SG-FORGE to leverage Metaco’s Harmonize platform to manage and secure digital assets, further integrating blockchain technology with traditional financial systems​ (Metaco)​.

Move into DeFi with MakerDAO

Another very interesting move has been the partnership with MakerDAO. Thereby, SG-FORGE has granted a loan to its mother company Societe Generale to refinance covered bonds held by the bank in the form of security tokens issued natively on the Ethereum public blockchain called the OFH tokens. The loan was funded in the crypto market by borrowing DAI stablecoins from MakerDAO, a market-leading DeFi protocol. The OFH tokens were used as loan collateral and pledged by SG-FORGE to the benefit of the MakerDAO protocol (SG-FORGE) (Blockworks).

Previous Tokenisation Initiatives

Since 2019, SG-FORGE has been involved in structuring and issuing security tokens on public blockchains like Ethereum and Tezos. Notable projects include a €100 million digital bond issued by the European Investment Bank (EIB) in 2021​ (Metaco)​.

Venture Investments

Societe General also invested in several blockchain start-ups already early though its venture unit such as:

• R3: SG Ventures arm invested in R3 already early and is therewith one of the total 42 banks backing the blockchain company.
• Komgo: SG joined other 15 major institutional investor in the Komgo project to improve global trade finance, and in particular commodities trading (Komgo Website).

For more information on Societe General and SG FORGE:

• Societe General — Bank of Tomorrow
• SGSS — Interview with David Durouchoux SG FORGE Digital Capital Markets

Goldman Sachs

US — $1'442 Billion

Goldman Sachs has been deeply engaged in blockchain technology, particularly focusing on enhancing financial transactions through various initiatives. The firm is actively building its own infrastructure on the Canton Network, utilizing the DAML programming language, and has also invested in numerous blockchain and digital asset-related startups.

Canton Network Participation

Goldman Sachs, along with other major financial institutions such as BNY Mellon and Microsoft, participated in the Canton Network, a blockchain initiative designed to improve institutional transactions. This network supports tokenised assets, fund registry, digital cash, repo, securities lending, and margin management, enhancing efficiency and transparency in capital markets​ (CoinDesk)​​ (Cryptopolitan)​.

Enterprise Blockchain Testing

In collaboration with BNY Mellon, Goldman Sachs tested enterprise blockchain solutions for tokenised assets. This included over 350 simulated transactions covering various financial operations, showcasing the potential of blockchain to enhance capital market efficiency​ (CoinDesk)​​ (PYMNTS.com)​.

GS DAP

GS DAP is the result of the Canton implementation efforts, which has won the the Digital Banker Award in 2023 by Euromoney for the best tokenisation initiative, providing services for tokenised asset issuance, access to digital asset for investors and services to those issuers and investors (GS DAP) (Euromoney).

EIB Project Venus for Digital Bond Issuance

The European Investment Bank (EIB) launched its first Euro-denominated digital bond on a private blockchain as part of Project Venus. This €100 million two-year bond, issued, recorded, and settled using blockchain technology on GS DAP, marks a significant innovation in digital finance. Goldman Sachs also played a crucial role as the on-chain custodian, alongside Societe Generale and Santander, facilitating the transaction’s blockchain operations and settlement process (EIB) (Ledger Insights)​.

Public Blockchain Integration

Goldman Sachs’ head of digital assets, Mathew McDermott, has emphasised the potential of public blockchains for future financial services, highlighting their regulatory clarity and potential for increased liquidity. While current efforts are focused on permissioned blockchains, there is a clear intention to explore public blockchain opportunities as regulatory environments evolve​ (Blockworks)​.

Multi-Lender Blockchain Projects

Goldman Sachs is involved in multi-lender blockchain projects to facilitate real-world use cases. These projects aim to integrate blockchain technology into traditional financial systems, enhancing the efficiency and security of transactions​ (PYMNTS.com)​​ (Cointelegraph)​.

Digital Assets in GS Marquee

The Goldman Sachs’ digital asset team has also integrated in GS Marquee system providing deep analytical insights in crypto assets collaborating with MSCI and Coin Metrics. The digital assets solution provides not only insights in digital currencies, but also blockchain infrastructure, digital asset products and on-chain derivatives (GS Marquee) (Coindesk).

Investment in Crypto Trading Platform Elwood

Goldman Sachs co-led a $70 million Series A funding round for Elwood Technologies, a crypto trading platform founded by Alan Howard. Elwood provides institutional access to digital assets, including order management and execution. Other investors include Barclays, Galaxy Digital, and Digital Currency Group. The platform aims to simplify institutional crypto trading through a single API for various exchanges. This funding follows Elwood’s integration with Bloomberg AIM and sale of its blockchain equity ETF to focus on its technology platform (FT).

Investment in Fnality

Goldman Sachs was also the lead investor in Fnality to its latest £77.7 Million round back in November 23 together with many others from our list and more, like BNP Paribas, Nomura, Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, ING, Lloyds, Nasdaq Ventures, State Street, MSFU and UBS. Most of them already contributed in its first round. Fnality blockchain technology offers a resilient way for institutions to use central bank funds for instantaneous, cross-border, cross-currency peer-to-peer payments, collateral mobility and security transactions, and therewith an institutional blockchain payment rail (Fnality) (Reuters) (Reuters).

For further details to Goldman Sachs blockchain activities and services, you can explore:

• GS DAP
• Goldman Sachs — The Future of Digital Assets
• Digital Asset — Goldman Sachs Customer Story
• Coindesk — Canton Pilot
• Ledger Insights

Deutsche Bank

Germany — $1'429 Billion

Deutsche Bank as the only German bank on the list of top 30, although there are already several banks active in crypto due to Germany’s early favourable regulations allowing banks to offer crypto brokerage and custody services to clients. DB has been actively exploring and implementing blockchain technology through various projects and collaborations as well as to mentioned DS, which was formerly a full subsidiary of DB. Here are some of their key blockchain activities:

Project Guardian for Tokenised Funds with the MAS

Deutsche Bank has joined the Monetary Authority of Singapore’s (MAS) Project Guardian to explore asset tokenisation applications in regulated financial markets. This initiative involves testing an interoperable blockchain platform for tokenised and digital funds, aiming to establish protocol standards and best practices for the industry​ (DB)​.

Project DAMA for Tokenised Funds

Deutsche Bank collaborated with Memento Blockchain on Project DAMA (Digital Assets Management Access), which focuses on creating a decentralised platform for tokenised funds. The project includes features such as non-transferable tokens for digital identity (soulbound tokens), decentralised payment gateways, and smart contracts tailored to specific fund profiles​ (CoinDesk)​​ (Markets Media)​​ (Ledger Insights)​.

Digital Asset Custody and Tokenisation with Taurus

The bank has partnered with Swiss crypto technology firm Taurus to develop digital asset custody services. This collaboration aims to provide a comprehensive solution for digital asset safekeeping and tokenisation, enhancing the bank’s capabilities in managing digital assets​ (The Star)​​ (CoinDesk)​.

Stablecoin Payments via UDPN Blockchain

Deutsche Bank and Standard Chartered’s SC Ventures conducted a proof of concept using the Universal Digital Payments Network (UDPN) for stablecoin payments. This trial involved real-time transfers and swaps of synthetic stablecoins between the banks, highlighting the potential for decentralised identity infrastructure and cross-chain interoperability​ (Ledger Insights)​.

Partnership with Bitpanda for Deposits and Withdrawals

A pretty new partnership has been closed with the prominent Austrian crypto exchange Bitpanda. The bank will work with Bitpanda to process customer deposits and withdrawals for the Austrian crypto broker, but will not be involved in crypto transfers through Bitpanda as reported. But let’s see how that further develops (Reuters) (Bitpanda).

Interoperability Development with Axelar

Deutsche Bank is also partnering with blockchain-interoperability protocol Axelar, together with other institutions like Citi, Mastercard and Northern Trust (Axelar Website).

Interbank Blockchain Collaborations

Deutsche Bank has also joined the Interbank Information Network (IIN) led by JPMorgan, which uses blockchain technology to improve the efficiency and security of global payments by facilitating information exchange between banks (Deutsche Bank).

Investment in Partior

In November 2024 Deutsche Bank announced its investment into Partior’s series B round. Partior is a DLT-based payment network that supports the correspondent banking model and was founded by DBS Bank, JP Morgan, Standard Chartered and Temasek.

DWS Blockchain Initiatives

DWS (Deutsche Gesellschaft für Wertpapiersparen mbH) as the former fully owned asset management division with nearly €1 Trillion AuM is also notably becoming increasingly active in the space for digital asset, aiming to become a global leader in tokenised Real World Assets (RWA) and investments funds, and therefore working on several major initiatives in the space such as:

• AllUnity Digital Asset Joint Venture: DWS has partnered with Flow Traders and Galaxy Digital to form AllUnity, a digital assets joint venture. The primary focus of AllUnity is to issue a fully collateralised EUR-denominated stablecoin, aimed at institutional, corporate, and private users. This initiative is set to bridge traditional finance and decentralised finance ecosystems, leveraging regulatory frameworks such as the Markets in Crypto Assets Regulation (MiCAR)​ (DWS Investors)​​ (Ledger Insights)​.
• Xtrackers Crypto ETCs: DWS just recently announced the launched two new Xtrackers Exchange-Traded Commodities (ETCs) in partnership with Galaxy Digital that provide investors with access to Bitcoin and Ethereum. These ETCs offer 1:1 physical backing of the respective cryptocurrencies, facilitating secure and cost-effective exposure to digital assets (Marketsmedia).
• Therefore it has selected Zodia Custody, a leading institution-first digital asset custodian whose shareholders include Standard Chartered, SBI Holdings and Northern Trust, has been selected by DWS Group, one of Europe’s largest asset managers, as a custodian for its crypto exchange-traded products (ETPs) (Ledger Insights).
• Tokenisation of Financial Assets: DWS plans to become a leading player in the tokenisation of real-world assets and investment funds. This involves creating digital representations of traditional assets like stocks, bonds, and real estate on a blockchain, thereby improving market efficiency and accessibility for investors​ (Ledger Insights)​.
• Acquisition Strategies: Following the crypto market downturn, DWS is exploring acquisitions in the digital asset space to capitalise on lower asset prices. Potential targets include Deutsche Digital Assets and Tradias, both of which manage crypto and tokenized assets. These acquisitions would strengthen DWS’s position in the growing market for digital assets and tokenisation​ (Ledger Insights).

For more detailed information of Deutsche Bank’s DLT projects, you can explore:

• Deutsche Bank — Blockchain Interoperability
• Axelar — Internation Interoperability
• Ledger Insight — Zodia Partners with Deutsch Bank’s DWS for crypto ETP custody
• Deutsche Bank Germany (german)

Morgan Stanley

US — $1'180 Billion

Although Morgan Stanley has several activities in blockchain and digital assets, it seems it takes more an active partnership approach working with other major financial institutions and now also going to offer its clients access to Bitcoin funds. The recent investment in Securitize might be also a strategic one to issue own digital assets.

CLSNet for FX Settlements

In collaboration with Goldman Sachs, Morgan Stanley has implemented CLSNet, a blockchain-powered payment netting service for foreign exchange (FX) settlements. This platform, developed by CLS and IBM, aims to reduce post-trade risk, improve intraday liquidity, and enhance operational efficiencies in FX trading​ (Home of FinTech & Banking News)​.

Blockchain-Based Payment Software

Morgan Stanley has adopted blockchain technology for its payment operations. The bank has gone live with new blockchain-based payment software, which aims to streamline processes and reduce costs associated with traditional financial systems​ (Home of FinTech & Banking News)​.

Commitment to Blockchain Innovation

Morgan Stanley continues to explore the potential of blockchain technology through various initiatives and partnerships. The bank’s engagement in blockchain is part of its broader strategy to innovate and improve financial services for its clients by leveraging emerging technologies​ (Morgan Stanley)​.

Morgan Stanley Plans to Offer Cryptocurrency Trading

After the inauguration of the new Trump administration and its plans to make cryptocurrencies and digital assets to a national priority, the CEO of Morgan Stanley announced that is workng with the regulator to offer safe cryptocurrency trading. The bank also announced it is exploring crypto trading offering through its broker E-TRAD, which might be used as integrated service to offer Morgan Stanley clients also directly though the bank (Ledger Insight).

Investment in Securitize

Morgan Stanley led a $48 million Series B funding round for Securitize, a blockchain company that facilitates the issuance of digital asset securities. This investment highlights Morgan Stanley’s commitment to the growth and adoption of digital asset securities. Securitise allows private companies to raise capital using its blockchain-based platform, broadening access to private market investments​ (Blockworks)​​ (Decrypt)​.

Investment in Staking Infrastructure Provider Figment

Morgan Stanley also participated in the series C founding round of Figment, a Canadian-based staking infrastructure provider, through its Counterpoint Global investment fund. Figment runs validators on more than 50 blockchains. (theBlock).

Bitcoin Funds for Wealthy Clients

Morgan Stanley is also set to launch Bitcoin funds for its wealthy clients, partnering with Galaxy Digital and FS Investments. The initiative targets clients with at least $2 million in assets, offering them exposure to Bitcoin through two distinct funds: the Galaxy Bitcoin Fund LP and the FS NYDIG Select Fund. This move reflects increasing demand for cryptocurrency investments among high-net-worth individuals and marks a significant step by a major financial institution in embracing digital assets (Blockworks).

For further details, you can visit sources like:

• Morgan Stanley De-Dollarization
• Morgan Stanley — The Case for Cryptocurrency

Lloyds Bank

UK — $1'057 Billion

Lloyds Bank’s digital asset activities are in particular in digitising trade finance leveraging DLT, but is expected to take more pace in the future leveraging the blockchain and working on digital asset products.

Trade Finance Partnership with WaveBL

Lloyds Bank has partnered with WaveBL, a blockchain-based electronic trade documentation platform. This collaboration allows the bank’s clients to utilise electronic Bills of Lading (eBLs), significantly reducing the time required for processing from days to just hours. This initiative aims to enhance efficiency, security, and reduce the risk of document forgery or loss in international trade​ (Lloyds Bank)​​ (Home of FinTech & Banking News)​.

Trade Digitisation with Enigio

In a long-term partnership with Enigio, Lloyds Bank is expanding the use of Enigio’s trace technology for digital trade documentation. This technology supports the digitisation of promissory notes and other trade finance products, aiming to streamline and secure trade finance operations​ (Lloyds Bank)​ (CargoX).

Participation in UK Regulated Liability Network (RLN)

Lloyds is also invloved in the UK Regulated Liability Network (RLN), experimenting with a retail digital pound backed by tokenised deposits, involving major banks like HSBC, and Barclays in the UK. This initiative aims to enhance interbank payments and digital assets using blockchain technology, ensuring the programmability and uniformity of money (Ledger Insights).

Commodities Trade Finance through Komgo Blockchain Consortium

Lloyds Bank already in 2019 joined the Komgo blockchain consortium, which focuses on digitising and streamlining commodity trade finance processes. The Komgo platform, based on JP Morgan’s Quorum blockchain, helps tackle fraud, increase efficiency, and manage Know Your Customer (KYC) compliance in a secure and decentralised manner. This partnership aims to reduce the cumbersome nature of international trade, making it faster and more efficient for commodities clients​ (Cointelegraph)​​ (Ledger Insights)​.

Investment in DLT Real Estate Firm Coadjute

Lloyds, NatWest, and Nationwide have invested £10 million in Coadjute, a DLT startup focused on real estate. This funding round supports Coadjute’s blockchain platform, which aims to streamline property transactions by enabling seamless communication and data sharing among all parties involved. The investment will help in expanding the platform’s functionality and national rollout. Coadjute’s solution enhances transparency, reduces delays, and simplifies the home-buying process, leveraging R3’s Corda blockchain for secure and efficient operations (Ledger Insights).

Investment in Fnality

Lloyds bank was also one of the many investors in Fnality. A blockchain technology that offers a resilient way for institutions to use central bank funds for instantaneous, cross-border, cross-currency peer-to-peer payments, collateral mobility and security transactions, and therewith an institutional blockchain payment rail that could be material to the future interoperability of securities payment and settlement (Fnality) (Reuters) (Reuters).

For more detailed information, you can explore the original articles on:

• Lloyds Banking Group
• FinTech Magazine

ING

The Netherlands — $1,034 Billion

ING has been actively integrating blockchain technology into various aspects of its operations, focusing on improving efficiency, security, and transparency in financial transactions. Here are some key initiatives:

Trade Finance Transactions with HSBC

ING has successfully completed live trade finance transactions on the R3 Corda platform in collaboration with HSBC. These transactions demonstrate the practical application of blockchain in facilitating secure and efficient international trade deals​ (Global Trade Review (GTR))​​ (ING)​.

Bulletproofs and Zero-Knowledge Proofs

ING has developed and released cryptographic solutions such as bulletproofs, zero-knowledge range proof (ZKRP), and zero-knowledge set membership (ZKSM). These innovations aim to enhance data privacy and security within distributed ledger environments​ (ING Wholesale Banking)​.

Energy Commodities Trading Platform

Already in 2017, ING has joined forces with ABN Amro and Society Generale and energy companies to create a blockchain-based digital platform for the energy commodities sector. This initiative seeks to modernise and transform energy commodities trading by leveraging blockchain technology​ (ING)​.

Securitities Lending through Investment in HQLAx

ING has made a strategic investment in HQLAx, a blockchain-based securities lending platform. This investment builds on ING’s previous involvement, where its blockchain team helped develop the initial version of the HQLAx application. HQLAx leverages distributed ledger technology (DLT) on R3’s Corda platform to enable efficient and secure collateral swaps without the need for physical movement of securities.

The platform enhances collateral fluidity by creating digital collateral records that represent ownership stakes in baskets of securities, facilitating easier and faster transfers between custody accounts. ING, along with other major financial institutions like Commerzbank, Credit Suisse, and UBS, has already executed live transactions on the platform (ING).

Commodities Trade Finance through Komgo Platform

As other institutions with strong activity in global trade finance, as just mentioned Lloyds Bank, ING is a founding member of Komgo, a blockchain-based trade finance platform aimed at digitising and streamlining the commodity trade finance process. This platform enhances efficiency by enabling secure and automated data exchanges for letters of credit, KYC management, and receivables discounting. Komgo is supported by major players in the commodity sector, including Shell and MUFG​ (ING)​​ (Ledger Insights)​.

Trade Finance through Contour Platform

ING co-founded the Contour blockchain trade finance platform, which was officially launched in Singapore. Contour focuses on digitising letters of credit, reducing processing time from five to ten days to under 24 hours. This platform is designed to enhance the efficiency and security of global trade finance​ (ING)​.

For more detailed information, you can explore the following sources:

• Blockchainwelt
• Global Custodian

NatWest Group

UK — $867 Billion

NatWest is becoming increasingly serious on it blockchain and digital assets activities with a dedicated team for digital assets and has even started to provide insights and educational material to its clients to educated them about the possibilities and potentials. Beside industry-common projects related to on-chain settlement, NatWest has ventured into very interesting offerings like carbon credit and rates-related products.

Digital Capital Markets Team

NatWest has established a dedicated digital team within its capital markets business, to enhance its blockchain strategy. The team focuses on delivering credit and rates products through digital channels and currencies, leveraging distributed ledger technology (DLT) to increase transparency, reduce costs, and improve execution speed and capital efficiency​ (Ledger Insights)​​ (CityAM)​.

Project Carbon — Carbon Credits Marketplace

NatWest, in partnership with CIBC, NAB, and Itaú Unibanco, launched Project Carbon, a voluntary carbon marketplace. This initiative aims to create a transparent and efficient marketplace for carbon credits using blockchain technology to ensure full traceability and prevent double counting. This project supports clients in achieving their net-zero carbon goals by 2050​ (Ledger Insights)​.

Blockchain Settlement Tests

NatWest has participated in blockchain settlement tests with UK fintechs, Banco Santander and Fnality. These tests involved the issuance of tokenised securities on a public blockchain, exploring the potential of blockchain technology to improve settlement efficiency and transparency​ using Fnality (Fintech Futures)​.

Investment in in DLT Real Estate Firm Coadjute

NatWest is also an investor together with Lloyds and Nationwide Coadjute, the DLT startup focused on real estate aiming to streamline property transactions by enabling seamless communication and data sharing among all parties involved. The solution that aims to enhance transparency, reduces delays, and simplifying the home-buying process, through its R3’s Corda-based blockchain (Ledger Insights).

Exploration of a Digital Pound

The chairman of NatWest in 2021 discussed the potential for piloting a central bank digital currency (CBDC) in the UK as a digital Pound within a few years. This initiative reflects the bank’s proactive stance on exploring new forms of digital money and its implications for the banking sector​ (Ledger Insights)​.

Historical Involvement in Blockchain

Historically, NatWest has been involved in various blockchain initiatives, such as integrating with Finastra’s Fusion LenderComm for syndicated lending and participating in intraday FX trials with Finteum. These efforts demonstrate NatWest’s long-term commitment to exploring blockchain applications in financial services​ (Ledger Insights)​.

Digital Asset Insights

NatWest provides insights and educational resources on digital assets, including central bank digital currencies (CBDCs) and tokenised securities. The bank’s focus is on helping clients understand the benefits and risks of these innovations and preparing for the digital future of financial markets​ (NatWest Online)​.

For further details, you can visit:

• NatWest Digital Assets Hub

Standard Charter

US — $820 Billion

Standard Chartered is another major US bank that is very actitve involved in several blockchain initiatives like stablecoins and tokenised deposits, tokenisation platform, tokenised bond, tokenised ABS, trade finance and settlement or a carbon market place through the bank and its venture arm SC Ventures. The bank has just recently also announced its own crypto trading desk in its London bank. Especially with its venture investments of SC Ventures, Standard Chartered is building and testing promising use cases such as:

Multi-Token Network with Mastercard

Standard Chartered collaborated with Mastercard on the Multi-Token Network (MTN) to develop real-world applications that reshape consumer and business transactions. MTN was built on SC Ventures incubated Libeara. It was just announced that Mastercard has executed its first live test of the (MTN) involving tokenised deposits and tokenised assets in collaboration with Standard Chartered Bank Hong Kong (SCBHK) and subsidiaries. MTN was used to tokenise the deposit and execute an atomic swap between the tokenised deposit and the carbon credit bought by Standard Chartered’s Hong Kong digital bank, Mox Bank. (Ledger Insights)​.

Libeara Tokenisation Platform

SC Ventures, the innovation arm of Standard Chartered, launched Libeara, a tokenisation platform that democratises investments by creating accessible, transparent, and secure markets. Libeara allows for the issuance of tokenised government bonds, fund units, and other securities, enabling investors to manage their tokens through secure digital wallets​ (SC Ventures | Standard Chartered Bank)​​ (Ledger Insights)​.

Stablecoin Payment Partnership with Deutsche Bank

In a collaborative effort between Standard Chartered’s SC Ventures and Deutsche Bank, stablecoin payments were executed using the UDPN blockchain platform. This Proof of Concept (PoC) trial involved real-time transfers and swaps of synthetic USDC and EURS (Stasis Euro stablecoin) between the two banks. SC Ventures utilised code leveraging UDPN SDKs and APIs for these transactions, while Deutsche Bank used a graphical user interface. This initiative not only demonstrated the feasibility of decentralised financial transactions but also highlighted the potential for cross-chain interoperability in financial services​ (Digital Pound Foundation)​.

Tokenisation of Asset-Backed Securities in Singapore’s Project Guardian

Standard Chartered participated in trials to explore the tokenisation of asset-backed securities (ABS) on public blockchains as another use case of the MAS project Guardian. This particular use case is testing a tokenised ABS, where the asset is a trade finance portfolio from the LinkLogis trade finance platform. The issuance on the Ethereum network is listed on SGX as part of the digital bond sandbox. The aim was to improve the efficiency of asset management and expand investor participation by offering digitally native products on regulated platforms, such as the Singapore Exchange, within a digital bond sandbox environment​ (Ledger Insights)​.

Tokenised Bond Issuance with UnionBank of the Philippines

Standard Chartered collaborated with UnionBank on a project to tokenise bonds. Union Bank of the Philippines and Standard Chartered Ventures said they co-created a blockchain platform for retail bond issuance. It was used as part of a proof of concept to tokenise PHP 9 billion ($190 million) of bonds issued by UnionBank. To comply with retail bond guidelines, the tokens mirrored a traditional transaction, and the tokens were not allocated directly to investors. This proof of concept made the bond buying and selling process completely paperless and more accessible to retail investors, allowing them to interact directly with issuers and benefit fully from their investments​ (Ledger Insights)​.

Blockchain Trade Finance Initiatives

Standard Chartered has collaborated in 2020 with Ant Group to complete the first live transaction on Trusple, a blockchain-enabled trade finance platform. This platform aims to improve access to trade finance for buyers and sellers by leveraging blockchain technology to streamline and secure transactions​ (Standard Chartered)​.

Standard Chartered Crypto Trading Desk

As just announced, Standard Chartered is launching a spot crypto trading desk for Bitcoin and Ether in London as part of their FX trading desk. Although the Basel regime for cryptocurrencies imposes a heavy risk weighting of 1250%, the bank has worked with regulators to meet certain criteria in order to qualify for hedging, which make it now possible with the launch of ETF or ETN listed on a regulated exchange last month make this step now possible (Bloomberg) (Ledger Insights).

Blockchain-based Carbon Market

Standard Chartered, along with BNP Paribas and UBS, has joined Carbonplace, a blockchain-based platform aimed at enhancing the transparency and efficiency of the voluntary carbon market. The platform is designed to address issues such as double counting and lack of transparency by providing full traceability of carbon credit transactions. Standard Chartered’s involvement in Carbonplace highlights its commitment to supporting sustainable business practices and climate goals under the Paris Agreement, facilitating easier access to quality carbon offset projects globally (Ledger Insights).

Interbank Settlement through Investment in Partior

Standard Chartered has invested in Partior, a blockchain-based interbank settlement platform developed in collaboration with JP Morgan and DBS Bank. This platform aims to revolutionise cross-border payments by ensuring near-instantaneous settlements and reducing operational costs​ (Coindesk) (Partior).

Standard Chartered Digital Asset Custody in Luxembourg

As a major announcement in the new year of 2025, Standard Charterd reported it has now created a digital asset custody subsidiary in Luxembourg. This comes only a few months after it announced the same service offering in the UAE. The new Luxembourg entity is said to service for cryptocurrency as well as servicing other digital assets in compliance with the EU’s MiCA regulations. Choosing Luxembourg as the jurisdiction for its custody service also reflects the leading role of the micro-state as major jurisdiction for fund issuance and securitization, and its just in December 2024 adopted Blockchain Law IV to make the state also a leader for the issuance of tokenized bonds and funds (Ledger Insight).

Tokenized Money Market Fund for Retail Investors with ChinaAMC

Standard Chartered and China Asset Management Hong Kong (ChinaAMC HK) announced its partnership in February 2025 to launch one of Asia’s first tokenized money market funds (MMFs) aimed at retail investors. The fund, set to debut still in February 2025, has already received approval from the Securities and Futures Commission (SFC) and will utilize Libeara, a tokenization platform developed by Standard Chartered’s SC Ventures. Standard Chartered will serve as the digital asset service provider and custodian, offering fiduciary, fund administration, custody, and cash services. This initiative follows ChinaAMC HK’s participation in Hong Kong’s Project Ensemble trial and represents a significant step in making traditional financial products more accessible through digitization.

Partnership with Stablecoin Issuer StraitsX in Singapore

Standard Chartered has partnered with Singapore-based stablecoin issuer StraitsX to provide cash management and custody services for StraitsX’s Singapore Dollar (XSGD) and U.S. Dollar (XUSD) stablecoins. This collaboration aims to enhance the security and reliability of these stablecoins, facilitating their use in mainstream finance, particularly for cross-border payments. StraitsX, licensed by the Monetary Authority of Singapore as a major payment institution, has been active in various digital currency initiatives, including trials for purpose-bound money. This partnership further expands Standard Chartered’s involvement in the digital asset ecosystem, following similar services offered to Paxos and the recent formation of a joint venture to issue a Hong Kong Dollar-backed stablecoin (Ledger Insight).

Blockchain and Digital Assets Investments by SC Ventures:

• Investment in Zodia Custody and Zodia Markets: SC Ventures has invested in Zodia Custody, which offers institutional custody services as well as staking to institutions like NAB, DWS, 21 Shares, etc.
• Investment in Zodia Markets: SC Ventures also took a stake into Zodia Markets, an institutional crypto OTC trading platform, which is basically a joint venture by Standard Chartered and OSL (Ledger Insights)​.
• Investment in SWIAT: SC Ventures has also invested in SWIAT alongside with LBBW to further . Originally established by Germany’s DekaBank, SWIAT aims to serve as a secure platform for interbank asset transfers, resembling a SWIFT for digital assets to facilitate the settlement of tokenised securities (Ledger Insights).
• Blockchain Venture with Linklogis: Through SC Ventures, Standard Chartered launched Olea, a joint venture with Linklogis, to reinvent trade finance by matching investors with supply chain financing needs using blockchain for transparency and reduced credit risk​ (Ledger Insights)​.

Early Partnership with Siemens Financial Services to Build an own Blockchain for Trade Finance

The bank has early partnered Siemens Financial Services (SFS), TradeIX and with R3 to utilise the Corda blockchain platform for various financial solutions, including a trade finance platform that aims to digitise and automate processes for greater efficiency and transparency as well asa blockchain-based smart guarantees platform. But it is unknown how far that project went​ (Blockonomi)​.

Public Blockchain Adoption

SC Ventures supports the use of public blockchains, emphasising their potential to encourage broader participation and innovation in the financial ecosystem. This approach aligns with Standard Chartered’s strategy to utilise existing public infrastructure for greater scalability and openness​ (Ledger Insights)​.

For more details, you can explore sources such as:

• Standard Chartered — Taking advantage of tokenisation: A corporate roadmap for 2024
• SC Ventures

BBVA

Spain — $762 Billion

BBVA, the second biggest Spanish bank with a global footprint is already well-known for its innovative strengths on a global and on a local level. It possesses a strong blockchain activity in its Spanish headquarter in Madrid as well as across the world such as in particular in Switzerland, Turkey, Mexico and Columbia.

Tokenised Global Mobile Payments Platform

BBVA has already launched platform to enable secure mobile payments in all countries it operates in 2019. The platform connects to Visa and Mastercard directly from each country’s application enabling new payment experiences owing to the payment tokenisation. It utilises the blockchain technology to enhance security and transparency and supports multiple currencies, aiming to streamline international payments for BBVA’s clients, offering faster and more cost-effective solutions compared to traditional methods (Finextra).

BBVA Green Bond Token

The Spanish banks and Spanish insurance company Mapfre partnered already in 2019 in the issuance of a pioneering tokenised sustainable bond, which has currently at a market cap of $37 Million (Security Token Market)(BBVA).

Crypto Custody Services

Another major step for BBVA has been marked through its Swiss private banking division with migrating on Metaco’s Harmonize platform. The platform is fully integrated as a software as a service (SaaS) on Avaloq’s Crypto Assets platform and Core Banking system, which ensures compliance with the highest regulatory requirements in terms of security and privacy. This move aims to improve agility and security in transaction validation and expand services to potentially include other crypto assets and the tokenisation of traditional assets​ (BBVA) (Cointelegraph)​.

Garanti BBVA Blockchain Innovations

Interestingly, BBVA seems to use its Turkish subsidiary Garanti BBVA to push blockchain innovations with several initiatives.

• Garanti BBVA’s independent company currently provides pioneering trading, storage and transfer services for a variety of cryptocurrencies, including bitcoin (BTC), Ethereum (ETH) and USD Coin (USDC), and plans to continue to add new assets to its platform following a comprehensive security review every month.
• Garanti BBVA Digital Assets, the first initiative of Garanti BBVA Financial Technologies Inc. is also offering crypto wallet service on its mobile platform.
• Garanti BBVA Crypto’ was recently presented the award for ‘Pioneers of Digital Finance’ by KPMG Turkey and the Financial Innovation and Technology Association (FINTR)(Garanti BBVA)

Blockchain Loan Platform

BBVA’s blockchain loan platform, which uses both Hyperledger Fabric and Ethereum, has won banking technology innovation awards. This platform offers transparency and traceability in the negotiation process for corporate loans, enabling real-time monitoring and recording of all deal-related data​ (Ledger Insights)​.

International Trade Transactions

BBVA is using blockchain to streamline international trade transactions. Collaborating with Wave, BBVA has launched a blockchain-based pilot program to automate document presentation in import-export operations, significantly reducing transaction times​ (Finance Mags)​.

European Investment Bank Loan Securitisation

BBVA has utilised blockchain technology to securitise loans for the European Investment Bank (EIB). This blockchain-based deal allows for favourable financing terms and enhanced transparency in the negotiation and execution processes​ (Ledger Insights)​.

Interbank Crypto Platform RULEMATCH

BBVA has gone live on the RULEMATCH platform, which targets institutional crypto trading. This platform supports trading of Bitcoin and Ethereum against traditional currencies and aims to provide institutional-grade liquidity and regulatory compliance​ (Ledger Insights)​.

Syndicated Loan on Blockchain

In collaboration with MUFG and BNP Paribas, BBVA completed the first successful syndicated loan using blockchain technology for Red Electrica, a Spanish grid operator. This $150 million loan demonstrates the potential of blockchain in enhancing the efficiency and security of syndicated loan arrangements​ (ABFJournal)​.

BBVA Mexico Blockchain Web3 Fund

The asset management division of the Mexican branch of the bank has launched its first investment fund in 2022 that targets blockchain and the digital economy and is available to any type of investor. The massive asset manager with a market share of 22% in Mexico invests in fintech, web3 — including blockchain and the metaverse, and tokens with its fund. The latter will include non-fungible tokens (NFTs), tokenised real estate and crypto (Ledger Insights) (BBVA Mexico).

Forbes Blockchain Top 50 for first Blockchain-based Syndicated Loan

BBVA can clearly be seen as a real innovator in the space and has been on the Forbes Blockchain Top 50 list already in 2019, for its first blockchain-based syndicated loan, a $170 million deal for Red Eléctrica Corporación, Spain’s electrical grid operator (Forbes).

Identity Projects

Next to blockchain-based payment and investment product, it also engages in blockchain-based identity solutions we didn’t further consider in this article as the focus is more on institutional adoption for tokenised investment products and it’s infrastructure. Especially in markets like in South America where BBVA has a strong footprint, identity has a higher priority than in European and the US market.

Here some additional links to BBVA’s identity initiatives:

• BBVA
• Identityweek
• BBVA on Identity with Blockchain 2016!
• BBVA on Blockchain
• BBVA on Tokenisation
• Ledger Insights BBVA

NAB — National Australian Banks

Australia — $680 Billion

National Australia Bank (NAB), Australia’s biggest bank has also taken quite comprehensive steps utilising the blockchain in several fields. Most notably it has developed a stablecoin pegged to the Australian dollar, aimed to facilitate cross-border transactions and for the settlement of tokenised transactions. But as just reported it has shuttered the project and so far no reason is known.

Stablecoin Launch and Cross-Border Transactions

NAB issued a stablecoin called AUDN, pegged to the Australian dollar, to facilitate real-time cross-border transactions and carbon credit trading. This stablecoin is more like a tokenised deposit and was deployed on the Ethereum blockchain, used for a successful pilot transaction involving multiple currencies, including AUD, USD, EUR, JPY, and GBP. This initiative marks a significant step in leveraging blockchain for efficient and transparent financial operations​. (NAB News)​​ (Cointelegraph)​​ (Cointelegraph)​.

However, the project has been shuttered as reported during we’ve been delved into the details of NAB’s blockchain-related activities. Interestingly, the in-house team of NAB has left the bank o create a new, digital version of the Australian dollar, to be called Ubiquity and join ANZ, which has also built its own digital Australian dollar A$DC as well as Novatti, an Australian digital payment solution provider, with its AUDD, as also reported by Australian Financial Review. Might be the right move to consolidate those activities. But will be for sure interesting how that further develops. (Ledger Insights) (Australian Financial Review)

Partnerships for Blockchain Infrastructure

NAB partnered with Fireblocks and BlockFold to develop and deploy its stablecoins, utilising their expertise in smart contract creation, secure minting, and custody management. This collaboration underscores NAB’s commitment to integrating blockchain technology into its financial services​ (NAB News)​​ (Ledger Insights)​.

Carbon Credit Settlement

NAB launched a stablecoin specifically designed for carbon credit settlements. This stablecoin aims to streamline and secure the trading of carbon credits, contributing to more efficient and transparent environmental finance solutions​ (Ledger Insights)​.

Trade Finance

NAB became the first Australian bank to join the Marco Polo blockchain trade finance network, which is out of operations now. ​It’s now questionable if and how NAB is continuing leveraging blockchain for trade finance (Ledger Insights)​.

For more detailed information, you can refer to sources like

• NAB News
• CoinDesk
• Ledger Insights

ANZ

Australia — $670 Billion

ANZ (Australian and New Zealand Banking Group), is the other major bank from Down Under the has been actively engaged in blockchain technology through several key initiatives, focusing on payments, cross-border and trade finance settlement, as well as digitised bank guarantees on the blockchain:

Cross-Blockchain Settlements with Chainlink

ANZ has partnered with Chainlink and Avalanche to facilitate cross-chain settlements using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This project aims to enable secure and efficient transactions across multiple blockchain networks, demonstrating the potential of blockchain to enhance asset settlements and reduce operational complexities​ (BlockNews.com — CRYPTO NFT NEWS)​​ (Blockworks) (Avalanche)​.

Stablecoin Initiatives

ANZ issued the A$DC stablecoin, marking the first Australian dollar stablecoin payment by an Australian bank. This stablecoin was used in transactions involving digital asset exchanges and is seen as a significant step towards integrating blockchain into mainstream financial services. The stablecoin is intended for use in various applications, including carbon credit trading and international remittances​ (ANZ Media Centre)​​ (Cointelegraph)​.

ANZ Tokenised Carbon Credits

One of the use cases ANZ sees a big potential leveraging its stablecoin initiative is the tokenisation of carbon credits. Therefore it has with Grollo Carbon Ventures (GCV) to successfully trade Australian Carbon Credit Units (ACCUs). For this use-case, ANZ and GCV sought to test tokenisation of real-world, nature based assets, starting with ACCUs. To do this, ANZ tokenised existing ACCUs and issued its stablecoin, A$DC, enabling GCV to purchase tokenised ACCUs with settlement occurring in near real-time via ANZ smart contracts. The test was carried out using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), together with Swift, which is a special partner for CCIP. The aim was to verify the reliability and security of real-world tokenised asset transactions between open and private blockchains. (IT News) (ANZ) (Cryptotribune) (Swift)

Already in 2022, ANZ partnered with Victor Smorgon Group (VSG), a private investment firm managing the Smorgon family‘s billions in assets, tested a transaction buying Australian Carbon Credit Units in their tokenised form via a partnership with ZeroCap and using the carbon trading platform BetaCarbon with an the involvement of Fireblocks, who was also already deeply involved in the stablecoin project together with its local development partner Blockfold it later even acquired (ANZ) (Fireblocks).

Lygon Blockchain Platform

ANZ is a founding member of the Lygon platform, which digitises bank guarantees using blockchain technology. This platform, developed in collaboration with Westpac, Commonwealth Bank of Australia, IBM, and Scentre Group, aims to reduce the time and risk associated with issuing and managing bank guarantees. Lygon has successfully raised $9.4 million in funding to expand its operations and enhance its capabilities​ (Ledger Insights)​​ (ANZ)​.

Trade Finance and Asset Settlement

ANZ has applied blockchain technology to streamline its trade risk-participation sell-down (RPSD) process, reducing operational risks and improving efficiency. The bank has also been exploring the potential of blockchain to revolutionise Delivery vs. Payment (DvP) processes in securities settlement, leveraging blockchain’s ability to tokenise assets and payments on a single infrastructure​ (ANZ)​​ (CryptoTale)​.

For more detailed information, you can refer to sources like:

• Chainlink
• IT News
• Reserve Bank of Australia

DBS

Singapore — $554 Billion

DBS Bank has started serious blockchain projects early and has been leveraging blockchain technology extensively across various initiatives to enhance its financial services, offering institutional trading and customers and investment products to its private banking clients.

Intraday Repurchase Transactions

DBS became the first bank in Asia to complete an intraday repurchase transaction on J.P. Morgan’s Onyx Digital Assets blockchain network. This platform supports instant settlements and maturity of transactions within hours, significantly reducing the typical one to two-day processing time​ (DBS)​.

Contour Trade Finance Network

DBS has joined the Contour blockchain network to digitise letter of credit transactions across several markets, including Australia, China, Hong Kong, and Singapore. This integration aims to reduce processing times by up to 90% and enhance the security and transparency of trade finance documentation​ (Ledger Insights)​​ (Ledger Insights)​.

Partior Platform

In collaboration with J.P. Morgan and Temasek, DBS launched Partior, a blockchain-based platform for cross-border multi-currency payments. Partior aims to streamline global payments, trade finance, and foreign exchange transactions by leveraging the benefits of blockchain and smart contracts​ (Ledger Insights)​.

Blockchain-Based Repo Transactions

DBS, along with UBS and SBI, pioneered the world’s first blockchain-based repo transaction using a public distributed ledger technology (DLT) network. This initiative was part of MAS’ Project Guardian and demonstrated the feasibility of instant, automated settlements across different jurisdictions​ (Fintech News)​.

Institutional Crypto Trading and Custody

DBS has formed a partnership with SIX Digital Exchange (SDX) to offer institutional-grade crypto trading and custody services. This joint offering caters to the growing demand from institutional investors for secure, regulated, and reliable access to crypto markets. The collaboration combines SDX’s robust custody and post-trade services with DLT Finance’s trading and brokerage capabilities​ (SDX)​.

Digital Bond Issuance

DBS has been involved in issuing digital bonds using Distributed Ledger Technology (DLT) as part of its collaboration with SIX. This includes working with the World Bank and the Swiss National Bank (SNB) to settle bonds using tokenised CHF on the SDX platform. These bonds are listed on both the traditional SIX Swiss Exchange and the digital SDX, bridging conventional and digital finance systems​ (World Bank)​.

For more detailed information, you can explore sources such as:

• Ledger Insights
• SIX Digital Exchange

Itaú Unibanco

Brazil — $440 Billion

Itaú Unibanco, Brazil’s largest private bank, has already made remarkable progress blockchain uses cases, offering tokenisation services and offerings as well working on the use of CBDC together with the Brazil’s central bank together with other banks in the Brazilian market.

Asset Tokenisation Platform

Itaú is launching a new asset tokenisation platform that will convert traditional financial products into blockchain-based tokens. This platform aims to open up to retail investors and offers services including issuance, distribution, and custody of digital assets. It is built on Hyperledger Besu, an open-source Ethereum client​ (CoinDesk)​​ (CoinGeek)​.

First Digital Asset Tokenisation

Itaú successfully tokenised its first digital asset in July 2022. The initial tokenisation involved trade finance receivables with plans to extend tokenisation to other real-world assets like security tokens. Additionally, Itaú has developed a digital asset custody solution​ (Ledger Insights)​.

Cryptocurrency Trading Platform

The bank has integrated cryptocurrency trading into its own investment platform, allowing its more than 60 Million users to trade Bitcoin and Ethereum. This initiative is part of Itaú’s broader strategy to meet the growing demand for crypto-related products among its clients​ (DApp Expert)​.

Participation in CBDC Development

Itaú is one of nine partners collaborating with Brazil’s central bank on developing the country’s central bank digital currency (CBDC), the digital real. This project includes developing payment versus payment (PvP) systems for international transfers​ (Ledger Insights)​.

For more detailed information, you can explore sources such as:

• CoinDesk
• CoinGeek
• Ledger Insights
• Dapp.Expert

ABN AMRO

The Netherlands — $405 Billion

ABN Amro has started already around 2018 in Blockchain-related initiatives and has integrated its digital assets activities in the bank main strategy pillar of “Future-proof Banking”. Since then the dutch bank has been involved in numerous blockchain, tokenisation, and digital asset initiatives, developing and testing use cases in the space driven by their banks innovation team in partnership with the capital markets team. Here are some highlights of their activities:

Commodities Trading and Partnership with Komgo

ABN Amro’s first project in the space was in commodities trading, tracking the shipping containers on-chain and offering this solution to its clients, which also provided its clients major benefits from the precise tracking for trade finance improvement as their head of innovation described in the last years The Banking 50 event (YouTube Banking 50).

Digital Green Bonds

ABN Amro issued a €5 million digital green bond using Tokeny’s platform on the Polygon blockchain. This bond, issued for real estate investor Vesteda, to finance sustainable projects and improve transparency and efficiency in bond issuance. DekaBank purchased the entire issuance, showcasing a successful integration of blockchain in traditional finance​ (Cointelegraph)​.

Corporate Digital Bonds for APOC Aviation

ABN Amro also issued a small €450,000 digital bond on the Stellar blockchain for APOC Aviation earlier that year in 2023, demonstrating its capability to offer innovative financing solutions for commercial clients​ (Fintech News)​​ (Ledger Insights)​.

Forcefield Inventory Platform

Already in 2019, ABN Amro launched Forcefield, a blockchain inventory tracking platform, in collaboration with Accenture, ING, and other industry players. Although positioned as an IoT (Internet of Things) project, this platform enhances the security and efficiency of physical trade inventories though the blockchain, using sensors and near-field communication (NFC) chips​ (Cointelegraph)​.

Mobile Investment Platform with BUX Partnership

ABN Amro Clearing partnered with BUX in 2019 to provide blockchain solutions for a mobile investment platform, leveraging blockchain technology for efficient and transparent stock trading​ for its non-commission stocks (Cointelegraph)​.

European Blockchain Sandbox

ABN Amro is collaborating with Rabobank and Assetblocks in the European Blockchain Sandbox to explore the tokenisation of financial securities and stablecoin integration, aiming to bridge the gap between physical and digital economies​ (Finextra Research)​.

Investment in Digital Asset Holdings

ABN Amro has invested in blockchain startup Digital Asset Holdings and joined the R3 blockchain consortium to leverage blockchain technology for financial services​ (CoinDesk)​.

Here are some more source of ABN Amro relating to blockchain and digital assets:

• ABN Amro Innovation
• ABN Amro Medium Blog — This is what banking will look like in 1o years

Nomura

Japan — $373 Billion

Nomura has been significantly involved in blockchain technology through various initiatives, focusing on asset tokenisation, digital bonds, and decentralised finance (DeFi). Through its digital asset subsidiary Laser Digital with offices in Zurich, Japan, London and Dubai, it is offering trading, building treasury and liquidity solutions, offering investment solutions as well as incubates and invests for institutional digital assets start-ups. Since its inception just over a year ago it has already achieved remarkable progress with service and product launches as well as venture investments like Infintity Protocol, Clear Token, Crossover, Webn, Keimanu and Libre

BOOSTRY and Ibet Platform

Nomura, in collaboration with Nomura Research Institute (NRI), established BOOSTRY, a joint venture aimed at developing a blockchain platform for securities trading called Ibet. This platform facilitates the issuance and trading of digital bonds, reducing administrative costs and improving transparency. BOOSTRY has been involved in issuing Japan’s first blockchain-based digital bonds, offering both conventional and digital asset bonds directly to investors​ (Ledger Insights)​​ (Nomura Connects)​​ (Ledger Insights)​.

Laser Digital

Nomura’s subsidiary, Laser Digital, is a full-service digital asset firm specialising in trading, asset management, solutions and early-stage investing. It offers crypto trading services and custody, services for cross-asset liquidity and treasury management through Talos, digital asset investment products and invests into institutional use case ventures (Laser Digital) (Nomura).

Laser Digital Broker-Dealer and Asset/Fund Management License in Abu Dhabi and VASP Permission in Dubai

Laser Digital has received a Financial Services Permission from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM). This license allows them to offer broker-dealer and asset/fund management services in both traditional and digital assets from ADGM. Laser Digital’s UAE division aims to uphold high standards of compliance and contribute to ADGM’s financial community. The permission comes after Laser Digital already received the operating licence approval from Dubai’s Virtual Asset Regulatory Authority (VARA) to offer broker-dealer services and asset/fund management services in Dubai (Laser Digital) (Laser Digital).

Libre Protocol

Laser Digital has launched several blockchain projects, including the Libre protocol on the Polygon network. Libre aims to tokenise funds, enhancing the management and distribution of alternative asset funds. Notable firms like Brevan Howard and Hamilton Lane are set to use this platform​ (The Block)​.

Infinity Exchange

Laser Digital has also invested in institutional-grade DeFi protocols such as Infinity Exchange, indicating Nomura’s commitment to integrating blockchain technology into traditional financial services​ (CoinDesk)​.

Green Bonds and Sustainability

In partnership with Hitachi and the Tokyo Stock Exchange, Nomura has worked on issuing blockchain-based green bonds. This initiative involves using blockchain to monitor and verify carbon emissions reductions from renewable energy projects, providing transparency and accountability for sustainability goals​ (Ledger Insights)​.

Bitcoin Adoption Fund

Nomura launched a Bitcoin Adoption Fund through its Laser Digital subsidiary. This fund is designed to offer institutional investors regulated and secure exposure to Bitcoin, further demonstrating Nomura’s active participation in the digital asset space​ (CoinDesk)​.

Polygon Staking Fund

Laser Digital has launched an institutional digital asset fund focused on Polygon staking. The Laser Digital Polygon Adoption Fund allows institutional investors to access yields from staking Polygon’s MATIC tokens. This fund, using TruFin’s TruStake solution, simplifies staking by offering a passive investment option. Initially launched in the UK, the fund aims to expand to other jurisdictions, leveraging the security of the Ethereum network and Polygon’s cross-chain capabilities (Ledger Insights).

JPY and USD Stablecoins in Japan

Nomura Holdings, Laser Digital, and GMO Internet Group have partnered to explore issuing JPY and USD stablecoins in Japan. This collaboration leverages GMO’s expertise in stablecoin issuance and Nomura’s digital asset proficiency to develop a “Stablecoin-as-a-Service” solution, ensuring regulatory compliance and efficient blockchain integration. The initiative aims to enhance digital asset accessibility and innovation in Japan’s financial landscape by providing secure, transparent, and cost-effective stablecoin transactions (Nomura).

Laser Digital Venture Investment and Incubator:

Laser Digital is definitely increasing its pace in its venture investments with a number of notable new investments, showing its dedication to invest into innovative infrastructure that is also beneficial building out their services but also in other web3 ventures such as:

• ClearToken: A centralised clearing counterparty (CCP) and settlement infrastructure for digital assets to integrate with institutional digital assets service provider.
• Infinity Exchange: Blockchain infrastructure built for permissionless lending, borrowing and trading of digital assets for institutions and traders.
• Orderly: A DEX (decentralised exchange) SDK for institutional-grade Infrastructure with permissionless shared liquidity for CeFi & DeFi.
• Solv Protocol: An omnichain liquidity and yield infrastructure
• Tevera: Web3 ZK gaming development infrastructure
• Singularity: institutional compliant access layer to decentralised finance (DeFi).
• Webn: Incubator of firms targeting institutional digital assets and web3.

For more detailed information, you can explore the sources from:

• Laser Digital
• Marketsmedia
• Ledger Insights — Laser Digital Polygon Staking Fund
• Mobile Marketing — Laser’s Metaverse Botanical Garten

Erste Bank

Austria — $324 Billion

Austrian Erste Bank Group with its subsidiaries Sparkasse is a major banking group in Austria and in the CEE market has also shown already very interesting projects in the space, especially in the issuance of a bond for the Austrian’s highway financing and construction company ASFINAG, in blockchain-based trade finance and SME finance projects, and the advancement of CBDC together with the Austrian National Bank.

Blockchain-Based Capital Markets Issuance

Erste Bank, in collaboration with ASFINAG, successfully launched Europe’s first entirely blockchain-based capital markets issuance. This initiative utilised a permissioned blockchain platform for issuing a Schuldscheindarlehen, eliminating the need for traditional paper-based processes and enhancing efficiency and transparency in capital markets (Erste Bank).

Trade Finance Platforms

Erste Bank joined the now defunct we.trade platform, a blockchain-based trade finance initiative that merged with the Batavia blockchain consortium. This platform facilitates trade finance transactions, providing a secure and efficient environment for international trade by leveraging blockchain technology to enhance transparency and reduce transaction times (Erste Bank).

Collaborations for SME Financing

In partnership with the European Investment Bank (EIB), Erste Bank implemented a synthetic securitisation transaction to support lending to small and medium enterprises (SMEs) in Austria. This initiative aims to increase lending capacity and promote investment in the local economy by using innovative financial solutions supported by blockchain technology.

CBDC Pilot with Austrian National Bank and Raiffeisen

Erste Bank together with Raiffeisen Bank and Austria’s central bank, Oesterreichische Nationalbank (OeNB), is progressing already to the second phase of its wholesale CBDC Project Delphi. The initial phase involved simulating the issuance and settlement of Austrian Treasury Bonds on a blockchain. The second phase will explore advanced functionalities, including non-fungible tokens (NFTs) and decentralised finance (DeFi). The project aims to achieve real-time settlement (T0), improve efficiency, and reduce intermediaries and costs, while addressing the scalability and operational risks of distributed ledger technologies (DLTs) (Ledger Insights).

For more detailed information, you can refer to:

• Erste Group’s Press Release
• Global Trade Review
• European Investment Bank

State Street

US — $297 Billion

State Street , the smallest US institution on the list but also with already well-known blockchain and digital assets initiatives can’t be missed on the list and we expect much more to come from them with its ongoing reorganisation of its digital assets unit.

State Street Digital

State Street launched its digital assets division, State Street Digital in 2021, focusing on digital assets, blockchain, and tokenisation. State Street Digital was reportedly to be integrated with its proprietary electronic trading platform, which the bank planned to develop into one that can support crypto assets as well as other asset classes. Since then, this unit was building partnerships with several well-known companies in the space to offer dedicated digital asset services. Here’re some of the major development of State Street Digital:

State Street Digital Asset Services

According to State Streets website, the bank is offering the following services:

• Digital Cash: Which is a result of the banks partnership as a founding member of Fnality and is targeting institutional cash payment infrastructure.
• Tokenisation: A service offered through its development with Securrency, including tokenising fund shares, Automating the over-the-counter lifecycle of foreign exchange non-deliverable forwards, and digitised trade processing on their front-to-back platform, delivering aggregated data, analytics and real-time insights through State Street Alpha.
• Trading: A UK-based OTC crypto trading platform for institutional investors through their Currenex trading platform.
• Custody: State Street announced its plans in January 2025 to launch crypto custody services in 2026. This initiative follows the recent rescission of the SEC’s accounting rule SAB 121, which had previously prevented U.S. banks from offering digital asset custody. State Street’s renewed focus on digital assets includes a partnership with Taurus for custody technology and the appointment of a new digital assets leader. A bank like State Street with $4.3 trillion assets under management and $43.6 trillion in assets under custody, most probably sees its main business potential in custody of digital assets as well.

Prior Partnership with Copper

Initially, State Street partnered with Copper to develop a digital asset custody solution. However, this partnership was mutually terminated due to evolving regulatory environments and strategic shifts. Copper faced challenges in obtaining regulatory approvals, leading to the closure of its enterprise infrastructure division and focusing on core competencies like ClearLoop for real-time settlement services​ (CoinDesk)​​ (FundsTech)​​ (Ledger Insights)​.

Investment in Securrency

State Street invested in Securrency, a blockchain-based financial and regulatory technology firm. Securrency focuses on tokenising real-world assets and providing compliance tools for financial institutions. Seccurency was last year acquired and integrated in DTCC (Blockworks)​ (Ledger Insights).

Tokenisation Initiatives

State Street is actively exploring tokenisation for various assets, including ETFs and private assets. The firm is also incorporating smart contracts and distributed ledger technology to automate trade collateralisation processes, enhancing transaction speed and reducing risk​ (State Street)​​ (Blockworks)​.

Integration with AI and Emerging Technologies

State Street is integrating blockchain with artificial intelligence (AI), cloud computing, and the Internet of Things (IoT). This integration aims to bring trust and transparency to AI processes, enhancing data ownership, model reliability, and decision-making transparency in financial services​ (State Street) (State Street)​.

State Street’s Reorganisation of its Digital Asset Unit

After notable leaves and lay-offs of State Street’s digital asset unit at the beginning of this year, it was recently reported that the bank is re-hiring for its digital assets unit (Seeking Alpha).

Annual State Street Digital Asset Study

State Street has conducted and published its Digital Assets Study already two year in a row, which is a great barometer of the readiness of the institutional preparedness for the digital transformation. In 2024 the survey spanned across 300 investment institutions globally. One of the most interesting outcome of this years survey was that 28% answered that they’re “extremely prepared” and another 24% answered with “currently doing this”. Only 9% answered with “extremely unprepared” and another 16% with “somewhat unprepared” (State Street Digital Assets Study).

For more detailed information, you can explore sources such as:

• State Street Digital Assets
• State Street Digital Asset Interoperability

Raiffeisen International Bank (RBI)

Austria — $197 Billion

The Austrian bank is not only one of the two leading banks in its home market Austria together with the Erste Bank Group, but also one the biggest bank across the whole CEE regions (Central Eastern Europe), dominating many of those markets as well. Raiffeisen International made also already waves with its Blockchain initiatives with its own Blockchain Hub in Vienna.

Early Start and the RBI Blockchain Hub

RBI is a leader in blockchain innovation in Austria, joining the R3 Blockchain Consortium in 2017 and the Blockchain Research Institute in 2018. RBI has developed its own blockchain projects, operates a Blockchain Hub, and hosts the annual RBI Blockchain Night. Recognised in Bitbond’s “Tokens Made Easy” report, RBI collaborated with Bitbond and Metaco on a commodity tokenisation project using the Polygon blockchain. This initiative aims to develop a comprehensive tokenisation platform for RBI’s product portfolio, highlighting the bank’s commitment to blockchain and tokenisation. RBI also launched a blockchain-based platform for the settlement of intercompany payments through its Russian branch way back before the war (Ledger Insights).

RBI Coin and Blockchain Interoperability

RBI, in partnership with Bitpanda and the Technical University of Vienna, is working on the Pantos project to implement blockchain interoperability on its RBI Coin. This next-generation digital cash solution aims to streamline inter-bank and inter-company payments, enhancing cash and liquidity management. The RBI Coin leverages Pantos technology to enable interoperability between different blockchain ecosystems, making it a versatile tool for various financial applications​ (CoinDesk)​​ (IBS Intelligence)​.

Stablecoin Project

Raiffeisen is developing a blockchain-agnostic stablecoin project to connect its tokenised fiat currency with multiple blockchains. This project aims to offer greater flexibility and integration across different blockchain platforms, ensuring a seamless transaction process​ (CoinDesk)​.

Blockchain in Supply Chain Finance

As early as 2017, the bank started to explore the use of blockchain technology in supply chain finance together with clients on the Marco Polo Platform. By digitising and securing supply chain processes, the bank worked on to provide more reliable and efficient financial services to its corporate clients (GlobalTrade)​.

CBDC Project with Austrian National Bank and Erste Bank

Raiffeisen Bank is the second participant in the CBDC project with the Austrian National Bank, Oesterreichische Nationalbank (OeNB), and Erste Bank in its wholesale CBDC Project Delphi. Already in the second phase of the project, it will further explore advanced functionalities, including non-fungible tokens (NFTs) and decentralized finance (DeFi). The project aims to achieve real-time settlement (T0), improve efficiency, and reduce intermediaries and costs, while addressing the scalability and operational risks of distributed ledger technologies (DLTs) (Ledger Insights).

Crypto Trading through Partnership with Bitpanda

Since early this year, Raiffeisen Bank is offering crypto trading to its customers in Austria through a partnership with Austrian crypto exchange Bitpanda. The service is directly integrated in its banking app and offered to its retail clients, which can be considered as a big step, especially for a bank with 18 million clients across its CEE market (Coindesk) (Raiffeisen).

For more information to RBI blockchain projects and activities:

• RBI Blockchain Hub
• RBI Elevator Lab
• RBI Elevator Ventures
• Der Brutkasten (in german)

Conclusion

On the one hand side it has taken already a long time that the potential of the Distributed Ledger Technology (DLT) and digital assets are fully recognised and utilised by the institutional market, although many institutions have started early research and testing on various use cases. This has to do with several factors such as the lack of institutional grade infrastructure, the lack of wider market adoption, the lack of regulatory clarity and the lack of trusted distribution network among several others as a recent report of SBI has discovered.

Source: https://www.sbidah.com/news/institutional-adoption-of-digital-assets-2024/

On the other hand, it is really remarkable what we have discovered, how much has been already built and how fast the market is now evolving on so many use cases and their adoption. Most of the barriers to institutional adoption as mentioned are basically resolved through all these developments. This fuels the future growth to embrace the full potential of the tremendous opportunities in terms of transparency, efficiency, accessibility and inclusion.

The Capital Market is inevitably moving towards tokenisation since the technology offers undeniable benefits. And the global banks are clearly getting ready.

The Tremendous Market Potentials ahead

At RIVA Markets, we have identified private markets as those with the biggest potentials. Its highly opaque nature, its inefficiencies with a quite underdeveloped technical infrastructure, and its lack of efficient liquidity provides an invaluable potential making them accessible, transparent, efficient and liquid. By making them transparently accessible, real trust can be built. Especially products like ABS, MBS and CDO’s can and will gain their role they deserve, as the root-causes that led to the global financial crisis 2007/2008 can be fully eliminated. New financial primitives can be developed, and derivatives to provide additional protection can be directly built into smart contracts. The need of independent service providers as well as SPVs to separate the risks from balance sheets and their role for default control become obsolete, as the assets can live on-chain and all rules are hard-coded in smart contracts and automatically enforced.

And this is the area where we also see the biggest catch-up potential we’re building.

Final Words

It is not a complete list and we haven’t repeated all the projects and start-ups where many banks are involved, as it would push the envelope. And some of the projects are already outdated defunct and/ or replaced. But it gives a quite comprehensive overview on the main activities these global financial giants have worked on so far in relation to blockchain use case, implementation and testing, launch and use of stablecoins, launch of investment products, strategic investments into blockchain start-ups and other relevant initiatives.

For us as a team, which has been long in the blockchain space and even much longer in financial services, researching and building on the topic of tokenised asset management since a some time now, we see much more potentials and massive opportunities banks can embrace. But we all need to work further on true interoperability and integration of those new decentralised applications in the financial market infrastructure, as well as educating investors and provide them a seamless and easy user experience.

But this is for sure just the start and we will see much more to come as we’re moving further into “the next phase of global financial markets” to cite Blackrock’s Larry Fink.

Big Cudos also at the end to the team of Ledger Insights, who has covered so many of the institutional blockchain adoption so well over the years. Without that, this list and our upcoming report wouldn’t even have been possible.

Upcoming Report Publication

This article is our blog-related coverage of the Top 30 banks in blockchain, which will be followed up with the publication of our full report that will contain additional details and reports.

Sign-up on our website to receive it directly to your inbox: https://www.riva.markets/

Next Up — Top Asset Managers in Blockchain

Additional to our top banks in blockchain we’ll also release our research into the blockchain and digital assets activities of the global top asset managers, which will also be published as blog article here and as full report. So, watch also out for this.

About RIVA Markets

RIVA Markets is a London-based Fintech, developing a novel End-to-End Capital Market Infrastructure and Institutional Marketplace for the future tokenised capital markets, with initial focus on private and real estate debt. RIVA Markets aims to revolutionise the market delivering the technical infrastructure for $ 15 Trillion debt securities investment market by issuing and managing ABS, MBS, CDO and CLO fully on-chain.

The RIVA Markets end-to-end solution consists of 4 distinct and interconnected modules:

RIVA Prime — On-Chain Loan Origination System

RIVA Securities — Securitisation & Tokenisation System

RIVA Markets — Primary Issuance & Secondary Trading Marketplace

RIVA Capital — On-Chain Fund Management Platform

Follow us and stay tuned as we’ll soon release the full report of this research and also our second report about the blockchain and digital assets initiatives of the biggest global asset managers.

Institutional Blockchain Adoption — The Top 30 List of Global Banks on the Forefront was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.

This article delves into the challenges of RWA liquidity, examines the solutions of major DeFi players for RWA, and proposes solutions to foster interoperability and eliminate “liquidity islands.”

Introduction

Real World Asset (RWA) tokenisation is a paradigm shift for the financial industry. Tokenisation promises to democratise access to investments, streamline transactions, enhance transparency, and.. bring liquidity to illiquid assets. However, the rapid adoption of RWAs has also unveiled significant liquidity challenges. These challenges stem from the fragmentation of liquidity across various blockchain networks, as institutional investors often prefer different blockchains for their specific requirements, as well as regulatory implications for tokenised securities.

The Liquidity Problem in RWA

DeFi has disrupted traditional finance by offering decentralised alternatives to financial services. Yet, as more real-world assets are tokenised, increased liquidity is a major promise. Tokenised assets such as real estate, bonds, and commodities are now traded on blockchain platforms, but liquidity remains fragmented due to differing blockchain preferences among institutional investors to isolated pools of liquidity, hindering the seamless movement of assets between them.

Institutional Preferences and Blockchain Fragmentation

Institutional investors prioritise security, compliance, and transaction efficiency, often choosing specific blockchain networks that meet these criteria. For instance, some may favour Ethereum for its robust ecosystem, while others might prefer private blockchains for their enhanced privacy and control. This diversification of preferences exacerbates liquidity fragmentation, creating “liquidity islands” where assets are confined to specific networks and cannot be easily transferred or utilised across different platforms.

Current Efforts by Major Players

1. MakerDAO and Centrifuge

MakerDAO, a leading DeFi protocol, has partnered with Centrifuge to tokenise real estate loans, using these tokens as collateral for DAI, its stablecoin. This collaboration has demonstrated how tokenised RWAs can provide liquidity to traditionally illiquid assets like real estate debt.

2. Societe Generale — Forge

Societe Generale — Forge issued a €100 million bond as a security token on the Ethereum blockchain. This initiative showcases how major financial institutions can leverage blockchain technology to streamline bond issuance and trading, thereby improving liquidity and accessibility.

3. Pendle

Pendle offers a unique approach by tokenising yield-bearing assets and supporting RWAs such as U.S. Treasury Bonds. This platform enables retail and institutional investors to manage and hedge yields efficiently, bridging the gap between DeFi and traditional financial instruments.

4. OriginTrail

OriginTrail enhances supply chain transparency and trust by integrating blockchain with knowledge graph methodologies. By tokenising assets, it addresses the challenges of misinformation and fosters a secure data exchange across various sectors.

This are just a few examples of the many more out there in the market already, but showcases the potential of merging TradFi with DeFi.

Proposed Solutions for Interoperability and Liquidity

1. Cross-Chain Interoperability Protocols

Developing robust cross-chain interoperability solutions is crucial for enabling the seamless transfer of assets between different blockchain networks. Projects like Cosmos, Polkadot and Axelar are at the forefront of this effort, allowing for greater integration and liquidity flow across diverse platforms. These technologies facilitate the interaction between isolated blockchain ecosystems, effectively reducing liquidity fragmentation.

2. Standardisation of Token Protocols

Implementing standardised token protocols can ensure compatibility and interoperability between different blockchain networks. Initiatives like ERC-20 and ERC-721 tokens on Ethereum have set a precedent, also ERC-3643 specifically for real world assets. Extending such standardisation efforts to other blockchains will harmonise tokenisation practices and enhance cross-chain operations, thereby improving liquidity.

3. Decentralised Exchanges (DEXs) as a Blueprint

Decentralised exchanges that support multi-chain trading can aggregate liquidity from various blockchain networks, providing a blueprint for unified marketplace for tokenised RWAs. Platforms like Uniswap and Balancer have successfully implemented this model for crypto assets, and a similar approach can be adapted for RWAs to eliminate liquidity islands by enabling free trade of assets across different chains.

4. Regulatory Clarity and Compliance Automation

Clear regulatory frameworks and automated compliance features embedded in smart contracts are essential for reducing legal barriers to tokenisation and cross-chain asset transfer. Regulatory clarity will encourage more institutional participation, while compliance automation will ensure smoother operations within the DeFi ecosystem.

5. Liquidity Pools and Incentives

Creating liquidity pools specifically for tokenised RWAs and offering incentives for liquidity providers can enhance liquidity. This model has been successfully used by protocols like Uniswap and Balancer for crypto assets. By providing rewards for liquidity providers, these platforms can attract more participants and increase the overall liquidity of tokenised RWAs.

How we’re Solving the Issues in RWA

RIVA Markets is poised to revolutionise the private and real estate debt investment industry by leveraging blockchain and AI technologies. Addressing the key challenges of accessibility, transparency, efficiency, and liquidity in the debt market, RIVA Markets offers a comprehensive solution through its novel end-to-end capital market infrastructure.

The Problems RIVA Markets is Addressing

Accessibility: Current debt markets are fragmented, with borrowers struggling to connect with lenders and private debt investors missing out on lucrative opportunities. This gap leads to inefficiencies and lost opportunities in the market.

Transparency: Loan data is always siloed and difficult to access, creating high barriers in both the origination and secondary markets. This lack of transparency leads to increased efforts and costs for all stakeholders involved.

Efficiency: Traditional lending processes are slow and manual, taking months to close deals and resulting in high operational costs.

Liquidity: The secondary market for private debt is predominantly over-the-counter (OTC), leading to significant discounts on the face value of debt instruments due to the lack of a unified trading platform.

RIVA Markets’ Solutions and Services

RIVA Prime: Loan Origination

RIVA Prime offers a blockchain-based system for structuring and originating loans efficiently on-chain. By digitising the entire loan origination process, RIVA Prime ensures transparency, security, and speed, significantly reducing the time and cost associated with traditional loan processes.

RIVA Securities: Securitisation & Tokenisation

RIVA Securities provides a platform for the securitisation and tokenisation of assets. By converting traditional debt instruments into digital tokens, RIVA Securities enhances liquidity and broadens the investment potential. Tokenisation allows for fractional ownership, making it easier for a wider pool of investors to participate in private debt markets.

RIVA Markets: Investment Marketplace

RIVA Markets creates a global marketplace for trading tokenised assets and investment opportunities. This platform aggregates liquidity from various sources, reducing the fragmentation seen in traditional markets and providing a centralised venue for trading tokenised debt instruments.

Leveraging Technology for Interoperability and Liquidity

Blockchain Technology

RIVA Markets ensures full transparency and efficiency in the investment process. The blockchain provides a secure, immutable ledger for all transactions, enhancing trust and compliance. The choice of Provenance Blockchain, known for its institutional-grade security and compliance features, is pivotal in attracting institutional investors and ensuring seamless integration with existing financial systems.

AI for Due Diligence

RIVA Markets employs AI-powered tools to streamline the due diligence process. By automating the analysis of loan data and investment opportunities, RIVA Markets reduces the time and effort required for due diligence, improving the quality and speed of investment decisions.

Proposed Solutions for Enhanced Liquidity

Interoperability

RIVA Markets builds directly on interoperability, leveraging Provenance Blockchain based on Cosmos Tendermint SDK and the partnership of Provenance with Axelar, as well as working on the integration of additional chains to enable seamless transfer of assets between different blockchain networks.

Supporting multi-chain trading on decentralised exchanges enables RIVA Markets to aggregate liquidity from different blockchain networks. This approach provides that unified marketplace needed for tokenised RWAs, eliminating liquidity islands and facilitating free trade of assets across chains.

Global Markets Network

At RIVA Markets we believe that RWA is not a game of “The winner takes it all”. We’re convinced that the market can only really flourish by exchanging assets and liquidity across many markets. Hence, we’re actively seeking partnerships with other RWA marketplaces and building on our interoperability approach for seamless connectivity with all those other market players.

Partnerships with Institutions

RIVA Markets is a capital market infrastructure for institutional investors and since also many financial institutions around the globe working, or even already offering, tokenised asset products and trading infrastructure, we’re aiming to work with as many of them as possible to also exchange assets and liquidity with them.

Working with Market Makers

Market Maker have a crucial role in the traditional financial markets as well as in the crypto market. They ensure the constant provision of liquidity and therewith also keep markets and market prices afloat when there’s no immediate buyer matching the trades. We’re also seeking to work with market makers as this growing space of RWA tokenisation offers tremendous growing potentials for them and therewith further bolsters the market.

RWA DeFi Yield and Liquidity Pools

RIVA Markets is already working on RWA DeFi yield and liquidity pools, enabling DeFi investors to deposit stablecoins into various risk-adjusted pools to gain exposure to the different tranches with different levels of diversification of the underlying assets. This provides new RWA investment opportunities to investors and increases the liquidity for the market. By leveraging the principle of DEXs’ and Automated Market Makers (AMM) through liquidity pools, this will add additionally to a successful grow of the whole market.

Conclusion

RIVA Markets is well-positioned to address the liquidity challenges in RWA by leveraging its innovative blockchain-based market infrastructure with a multi-liquidity approach. By leveraging interoperability and multi-chain support, standardised token protocols, institutional partnerships and market makers, as well as incentivised liquidity pools, RIVA Markets aims to build greater liquidity and create a more integrated financial landscape between TradFi and DeFi. This approach not only enhances accessibility, transparency, and efficiency but also unlocks the full potential of tokenised real-world assets, benefiting the growth of this next generation of asset management.

RIVA Markets’ mission to “Transition the private and real estate debt investment industry to a more accessible, transparent, efficient, and liquid market” is poised to drive significant advancements in the DeFi space, paving the way for broader adoption and integration of tokenised assets in the global financial ecosystem.

Want to learn more about our solution? We’d be happy to hear from you.

Addressing Liquidity Challenges in DeFi with the Growth of Real World Asset Tokenisation was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.

The credit market is vital to our global economy, and therewith also for our society. Served by the banking market over centuries, the increasing regulations like the Basel regime in Europe, now in the 4th revision, and the Capital Requirements Regulation (CRR), have led to tighter credit standards and significant decline of credit underwriting by the banks. Especially the real estate market is facing massive difficulties in financing and refinancing, also impacted by the overall pressure on the real estate market globally. CBRE estimates a refinancing gap of €176 Billion between 2024–2027 in Europe alone.

Other than in the US, where the securitisation is a major part of the debt financing market, the European securitisation market has declined from € 2 Trillion in 2007 to less € 1.2 Trillion in Q1/24 according to the latest AFME report of Q1/24 . This has partly to do with tighter regulations after the global financial crisis 2007/2008, as well as the cheap liquidity provided by central banks like the ECB to banks and the extremely low interest rates that made those products unattractive to investors. But we’re still talking about a Trillion Market.

Source: https://www.pimco.com/eu/en/insights/navigating-the-challenges-eu-securitisation-regulation-and-its-effects-on-investors-and-markets

But this is about to change. With the sharp rise of interest rates and therewith attractive yields for investors, alternative lenders such as private credit funds are closing the gap banks leaving in the market. But also banks are increasingly re-starting securitisation efforts as this offers also a great opportunity to offset their balance sheet a free up regulatory risk capital and expand their credit underwriting again.

The Growth of Asset-Backed Securities

According to a report by Verified Market Research, the market for ABS as an overall term for Asset-Backed Securities, Mortgage-Backed Securities (MBS), Collateralised-Loan Obligations (CLO) and Collateral-Debt Obligations (CDO) is about to grow with a CAGR of 7.8% between 2023–2030

Since the capital market in Europe is trailing behind the US, the ESMA (European Securities and Markets Authority) entrusted a committee of experts with the mission of formulating concrete proposals to revitalise the Capital Markets Union (CMU) and in particular measures to support the revival of the ABS market, which is seen as a crucial element for the financial market as a whole.

Next to clear proposals to stimulate capital markets and revitalise the European securitisation market, their proposals also outlines the funding needs in innovative technologies, whereby AI and Blockchain take a big bulk of €23 Billion. It can clearly be said that the EU already in 2020 saw the potential of these technologies, also in the context of revitalising capital markets.

The Role of the Blockchain and Tokenisation in the Revival of the ABS Market

As we might all know, the GFC was triggered by the growing interest in those asset-backed securities by global investors and the irresponsible expansion of mortgage loans to sub-prime loans and moreover the lack of structuring and repackaging into opaque CDO’s.

The blockchain as a immutable decentralised single source of truth for data, combined with the extremely powerful analytical capabilities of AI, will offer greatest transparency and efficient risk analytics to avoid another similar effect like in the sub-prime crisis.

Tokenisation is poised to bring a revival in the realm of Asset-Backed Securities (ABS) including ABS, MBS, CLO’s and CDO’s. The cornerstones of the securitisation market. By leveraging blockchain technology, tokenisation addresses several longstanding issues especially in this market, and paves the way to unlock new potential for these investment products and a better capital market overall.

Enhanced Transparency and Trust

One of the primary challenges in the securitisation markets is the lack of transparency. The global financial crisis of 2007/2008 highlighted how opaque and complex these products could be, leading to significant mistrust among investors. Tokenisation revolutionises transparency by recording all underlying asset details, transactions and ownership changes on a distributed ledger (DLT). This immutable ledger provides real-time visibility into the underlying assets, their performance, potential risks and its trading history.

Investors can track the performance of single assets, asset pools, verify the legitimacy of the underlying assets, and gain confidence that their investments are secure. This increased transparency can restore trust in ABS and MBS products, attracting a broader range of investors and potentially leading to better valuations.

Improved Liquidity

Traditional ABS products often suffer from liquidity issues, especially in times of market stress. Tokenisation can significantly enhance liquidity, making this market more accessible, transparent and efficient on digital platforms. Investors can buy and sell tokens representing the full asset or fractions of an ABS, making it easier to enter and exit positions.

The nature of digital alternative marketplaces is a 24/7 operations providing continuous liquidity, reducing the need for intermediaries and lowering transaction costs. This increased liquidity can make ABS products more attractive to a wider range of investors, including those who may have previously been deterred by the illiquidity of these assets.

Democratisation of Investment Opportunities

Tokenisation can democratise access to ABS products, traditionally the domain of big institutional investors. By creating transparent products in a simpler and more efficient structure, those products have a tremendous potential for other professional investors, in particular private debt funds, but also family offices, which typically engage in bilateral lending, facing high illiquidity of their investment. This democratisation can broaden the investor base, increase market depth, and provide more capital for securitisation transactions.

Moreover, tokenised ABS products can be offered on decentralised finance (DeFi) platforms, where those investors can deposit into risk-adjusted loan pools without the need for traditional financial intermediaries. This shift offers also for those investors alternative investment opportunities in Real-World-Assets (RWA) and provides the market additional liquidity.

Enhanced Efficiency and Cost Savings

The traditional process of issuing loans, structuring and trading ABS products involves numerous intermediaries, including banks, brokers, trustees, accountants and auditors, lawyers, paying agents, transfer agents, custodians, etc. Each adding complexity, costs, and delays. Tokenisation can significantly reduce complexity by streamlining issuance, settlement, and record-keeping through smart contracts on a blockchain. Smart contracts can automatically enforce the terms of the securities, such as interest payments and principal repayments, reducing the need for manual intervention. In fact Smart Contracts can, and ultimately will replace most of those service providers and intermediaries, as all data is on-chain and Smart Contracts executes actions according to fully transparent and auditable programable rules.

These efficiencies lead to significant cost savings, making it more economical to issue and manage ABS products. Lower costs can translate into better returns for investors and more competitive pricing for issuers, encouraging greater activity in the securitisation market.

Innovation and Customisation

Tokenisation will clearly drive innovation in securitised products by enabling greater customisation and flexibility. Issuers can create bespoke tokenised securities tailored to specific investor preferences, such as different risk profiles, maturities, and payment structures. This flexibility can attract a broader range of investors with diverse investment goals and risk tolerances.

Furthermore, the programmability of blockchain technology can facilitate the creation of new types of structured products that combine features of traditional ABS with different asset classes. For example, hybrid tokens could offer exposure to both real estate and other private debt types, providing investors with unique diversification benefits.

Risk Management and Regulation

Tokenisation can also enhance risk management and regulatory compliance in the ABS markets. Blockchain’s transparency and traceability can improve monitoring and oversight, allowing regulators to better understand and manage systemic risks. Automated reporting and compliance features can ensure that tokenised securities adhere to regulatory requirements, reducing the likelihood of fraud and misconduct.

Additionally, the real-time data provided by blockchain technology can enable more accurate risk assessment and pricing of such products. Investors can make more informed decisions based on up-to-date information about the performance and quality of the underlying assets.

Undoubtedly, technology will usher new investment primitives and therewith new opportunities. For sure there are also risks, old one and new ones. It’s not about circumventing regulations like Basel 4 or Solvency 2, it’s quite the opposite. It’s about leveraging the potentials of technology to make the financial industry more efficient, transparent and resilient and manage global systemic risks better avoiding the next GFC and support the economy and the society better.

RIVA Markets as the Market Infrastructure for Tokenised ABS

At RIVA Markets we’ve early identified the potential of the Blockchain and AI in the private credit market and the revival ABS. The recent and foreseeable developments in the market, especially in the light of the ESMA proposal report, it just strengthens our opinion and work innovating this massive and important market, solving real problems as addressed.

Our mission is to provide a novel capital market infrastructure and therewith a primary issuance and secondary market for ABS products leveraging the blockchain and AI.

RIVA Markets includes for distinct and connected solution modules:

RIVA Prime

RIVA Prime is a powerful Loan Origination System (LOS) to originate loans directly on-chain and therewith create full transparency from origination and along its full lifecycle.

RIVA Securities

RIVA Securities is an integrated securitisation and tokenisation solution, offering direct digital securitisation through SPV Compartments and tokenisation in single loan tranche ABS & MBS (SASB — Single-Asset-Single-Borrower), loan pools for CLO’s and CDO’s or any other form of composable securities tokenisation.

RIVA Markets

RIVA Markets is our core and client facing module. A primary issuance and secondary trading marketplace for institutional and professional investors providing a global source of vetted deals, carefully prepared project and deal data, an integrated data room, an integrated AI Due Diligence tool to generate a due diligence report from and into different languages to overcome the language issue, a chat and negotiation function, a term sheet and contract generator with integrated digital signature through DocuSign integration and multiple Fiat and on-chain settlement methods, reducing transaction time by up to 90%.

RIVA Markets is also an all-in-one asset management solution, offering an integrated portfolio management with access to the on-chain application and transaction data. Our integration with Moody’s Analytics and Moody’s Rating provides additional deep-dive into the risks of the underlying asset(s).

Our secondary market enables investors on the one side to sell their assets, and secondary market investors on the other side a source of secondary deals with greatest transparency, which is also supporting the market to become more liquid.

A Solution for Private Market Investors and Banks alike

RIVA Markets is addressing private market investors such as private debt funds, real estate funds, pension funds, endowment funds, family offices, insurance as well as banks asset management divisions, but also banks for their securitisation of loan portfolios.

RIVA Securities has also been built to offer banks and non-bank loan originators a solution to bring their loan portfolios on chain, structure, securitise those loan portfolios and either sell directly to their investors network or list and trade them on RIVA Markets.

The Transition to Tokenised Asset Management and our Hybrid Approach

Although the market for tokenised asset management is growing fast, we’re aware that many institutional and professional investors are not ready yet to deal with tokens directly. That’s why our claim is “Transition to the Future of Tokenised Asset Management”. Hence, we’ve built a hybrid solution for simple bilateral loan agreements, securitised assets and settlement through depository accounts, but with on-chain loans, and the full tokenisation solution. We believe that this allows to leverage the benefits of the blockchain and smoothly transition over to the future of tokenised asset management without hurdles.

Working on Interoperability and Building a Global Network for Distribution and Liquidity

We’re convinced that the market can only flourish when we’re not an isolated market, but cooperating with other tokenised assets markets and institutions already operating their own marketplaces to exchange assets and leverage distribution and liquidity globally. This is why we initially built on the Provenance Blockchain and now integrating other technologies such as the ERC-3643 standard by Tokeny, and further deploying on multiple chains such as Polygon, Base, Avalanche and other EVM Chains offering enhanced privacy, as well as evaluating interoperability solutions such as Chainlinks CCIP in combination with Swift and Axelar.

In this sense we’re living the mantra

“We cannot predict the future but we can work on it”.

Want to learn more about our solution and transition approach? We’d be happy to hear from you.

The Revival of Asset-Backed Securities and Why its Future is On-Chain was originally published in RIVA Markets on Medium, where people are continuing the conversation by highlighting and responding to this story.