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DTCC Launches Blockchain Platform for Tokenized Collateral Management

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  • DTCC introduces a platform for tokenized collateral management.
  • Platform offers real-time transfers and smart contract automation.
  • DTCC aims to set global standards for tokenized collateral systems.

The Depository Trust and Clearing Corporation (DTCC) has launched a blockchain platform to manage tokenized collateral. This demonstrates the DTCC’s commitment to developing blockchain and crypto technologies. DTCC seeks to create efficient financial operations and real-time settlement of collateral in financial markets.

Tokenized collateral acts as an important tool for risk management in global markets. However, the current traditional systems experience inefficient processes and delayed transfers of collateral assets. DTCC platform uses blockchain technology to accelerate transfer operations, enable real-time transfers, and execute automated smart contracts processes.

DTCC Blockchain Platform Features

The platform operates on LF Decentralized Trust’s Besu blockchain and integrates DTCC’s AppChain ecosystem. This infrastructure provides financial market participants with improved data control, privacy, and enhanced security. Moreover, the system seeks to decrease operational challenges and boost the transfer of collateral assets.

DTCC officials underlined that blockchain adoption for institutions must include mobile collateral functions. The system enables smart contracts to execute all forms of collateral operations in volatile markets. This level of automation enables quick and efficient trades across various markets.

The platform improves liquidity and capital efficiency for market participants. Moreover, it enables seamless integration of traditional finance with digital assets. The tokenization process fosters the development of decentralized finance (DeFi) applications.

Tokenization Gains Momentum

The DTCC initiative aligns with the broader tokenization trends in the financial industry. Major financial institutions such as BlackRock, Fidelity, and CME Group have started to explore blockchain solutions to tokenize their traditional financial products. Tokenized assets provide increased speed of settlement, better transparency, and reduced operational expenses.

On April 23, DTCC will present its platform at “The Great Collateral Experiment”. This live event will show how tokenized collateral can move efficiently across different markets. The industry participants will carry out real-time tests on the assets to showcase how blockchain benefits financial services.

DTCC aims to collaborate with regulators and other financial market leaders to establish global standards for tokenized collateral systems. The firm seeks to develop an extensive digital platform that addresses the broken structure of modern financial networks. The initiative is part of a wider framework to revolutionize the future of institutional blockchain adoption.

Solana’s Future Secured with Franklin Templeton’s Powerful Fund Launch

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  • Franklin Templeton launches tokenized US Government money fund.
  • SOL network gains institutional confidence from major players.
  • Scaramucci, BlackRock CEO back the networks tokenization potential.

Franklin Templeton is making waves in the crypto space by launching its tokenized money fund on Solana, just days after filing for a Solana Trust. The move positions the network as a key player in the digital asset tokenization space.

Franklin Templeton Launches FOBXX

Franklin Templeton has launched its tokenized US Government money fund, Franklin OnChain US Government Money Fund (FOBXX), on the Solana network. This development comes shortly after the firm filed for a Solana Trust. The launch adds a bullish outlook for SOL price, which has struggled to remain above $200.

The FOBXX fund invests primarily in US government securities, cash, and repurchase agreements fully backed by US government assets. The network is recognized for its speed, security, and censorship-resistance, which Franklin Templeton believes is an ideal choice to enhance global adoption.The firm also offers the fund on Ethereum, Base, Polygon, Avalanche, Aptos, and Arbitrum networks, showing its commitment to multi-chain accessibility.

Solana Gets Tokenization Nod From Major Players

Franklin Templeton has previously expressed confidence in the blockchain network. In 2023, Franklin Templeton predicted that the network would become the third-largest cryptocurrency, behind Bitcoin and Ethereum. Additionally, Franklin Templeton filed for a Solana Exchange Traded Fund (ETF) in Delaware just a day before launching the tokenized money fund, indicating a possible filing with the US SEC in the future.

The launch of this money fund is aligned with broader trends in tokenization. Anthony Scaramucci, founder of Skybridge Capital, expressed his confidence in the network, emphasizing its lower fees and faster transaction speeds. He believes the network will lead tokenization, especially if traditional assets like stocks and bonds become tokenized.

Scaramucci’s views align with those of major financial figures such as Larry Fink, CEO of BlackRock. Fink has long championed tokenization as the future of markets and has even launched a tokenized fund to test this concept.

Tokenization Boom

The launch of the tokenized money fund on Solana is a strong endorsement of the network’s capabilities. The investment community has taken note of the networks tokenization ecosystem, which is attracting significant attention. Franklin Templeton’s involvement signals the increasing importance of SOL network in this space.

The rise of tokenization, supported by figures like Scaramucci and Fink, reinforces Solana’s potential as a leader in reshaping financial markets. As more firms look to tokenize real-world assets, Solana’s high-speed, low-cost blockchain positions it as a strong contender. The latest developments reflect increasing institutional interest in the blockchain network and its role in the future of crypto markets.

Nasdaq Files Proposal for In-Kind Bitcoin Redemptions on BlackRock’s ETF

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  • Nasdaq proposes in-kind redemption for IBIT, aiming to streamline operations and reduce transaction costs.
  • BlackRock’s IBIT ETF reached a milestone, with $60B in holdings as of December 2024, just one year after its launch.
  • As of January 2025, IBIT, the largest U.S. Bitcoin ETF, recorded over $1.1B in inflows in three days.

Nasdaq has submitted a formal application to the United States Securities and Exchange Commission (SEC) for BlackRock to implement an in-kind creation and redemption model for the iShares Bitcoin Trust (IBIT). The proposed model aims to enable participants who are eligible to redeem shares in Bitcoin rather than cash to increase the efficiency of the ETF.

Enhancing Efficiency with In-Kind Redemptions

The in-kind redemption model allows authorized participants to trade in shares to obtain Bitcoin without the need to sell other assets to get cash. This approach does not have broker charges and bid/ask spreads usually encountered in cash redemptions. According to Bloomberg ETF analyst James Seyffart, this model should help enhance the efficiency of Bitcoin ETFs and make the process easier for institutional investors.

However, this model will only be available for authorized participants, the institutions that create and redeem ETF shares. Individual investors will still employ the cash model, as the in-kind model is unsuitable for individual investors. According to market experts, this model will improve the functioning of ETFs, improve price tracking and minimize any inefficiencies in the fund’s trading.

BlackRock’s Dominance in the Bitcoin ETF Market

BlackRock’s IBIT has recorded great successes since its launch in January 2024. The ETF has attracted more than $60 billion of investment, making it the biggest Bitcoin ETF in the United States. A report from Farside Investors revealed that more than $1.1 billion had been pumped into the firm in the last three days of January 2025. Additionally, IBIT achieved more than $2 billion in trading volumes on January 24 to establish its market leadership.

This move comes when BlackRock is expanding its global operations, including launching a similar Bitcoin ETF on the CBOE Canada exchange. These advancements underscore BlackRock’s strategic focus on Bitcoin ETFs and its ability to set benchmarks for competitors. While the in-kind redemption proposal is specific to its Bitcoin ETF, the company has not filed similar requests for its Ethereum ETF product.

Effects on the Broader ETF Market

The firm’s effort to shift to an in-kind redemption model is anticipated to affect other asset managers. Similarly, other firms in the market may consider adopting similar models to build up their ETF strategies. On the same day of the Nasdaq filing, several crypto ETF applications from firms such as CoinShares and Grayscale were filed with the SEC. Grayscale’s filings include unique ETF ideas like the Bitcoin Adopters ETF and Ethereum Premium Income ETF.

The SEC’s decision regarding BlackRock’s proposal may pave the way for other ETFs. If the in-kind model gets approved, it will likely be widely adopted and can enhance cryptocurrency assets in traditional financial markets.

CoinShares Joins ETF Race, Targets XRP and Litecoin Markets

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  • Grayscale and CoinShares have filed for new crypto ETFs targeting Litecoin, XRP, and Solana.
  • Grayscale plans ETFs to track Litecoin and Solana prices without requiring direct ownership of the assets.
  • CoinShares has submitted filings for ETFs focused on XRP and Litecoin to simplify crypto exposure for institutional investors.

Grayscale Investments and CoinShares are making waves in the crypto market with new ETF filings. Both companies aim to launch exchange-traded funds (ETFs) tracking Litecoin, XRP, and Solana. These filings signal a push for more regulated crypto investment options amid increasing demand for mainstream crypto products.

Grayscale and CoinShares File Crypto ETFs

Grayscale has filed applications for ETFs that would track Litecoin and Solana prices without requiring direct ownership. The proposed Litecoin ETF builds on the company’s existing Litecoin Trust, streamlining access for institutional investors. Meanwhile, Grayscale is doubling down on Solana, having previously sought to convert its Grayscale Solana Trust (GSOL) into a spot ETF.

The SEC’s review of Grayscale’s Solana ETF proposal, initially scheduled for January 23, has yet to result in any decisions. This delay suggests the possibility of an extended review period. Grayscale has revised its latest filing to address regulatory concerns, focusing on compliance, custody, and clarity in the ETF structure.

CoinShares has submitted filings for ETFs tracking XRP and Litecoin, aiming to simplify crypto exposure for institutional investors. The XRP ETF seeks to replicate XRP’s performance while addressing custody and security challenges. These filings align with other firms, such as Bitwise, WisdomTree, and ProShares, which are also pursuing XRP ETFs.

CoinShares’ move comes at a pivotal moment, with new SEC leadership adopting a more pro-crypto stance. The firm is likely banking on this shift to improve its chances of approval. If successful, CoinShares could provide investors with streamlined options for entering the crypto market.

Nasdaq and BlackRock Propose Bitcoin ETF Changes

Nasdaq, in collaboration with BlackRock, is proposing changes to enhance its spot Bitcoin ETF. The amendment would allow in-kind redemptions, where authorized participants transfer Bitcoin directly instead of cash. This adjustment could boost efficiency and reduce operational friction in managing ETFs.

The SEC initially required a cash redemption model for Bitcoin ETFs, creating additional layers of complexity. However, the proposed changes could make ETFs trade more efficiently, benefiting institutional investors. While individual investors wouldn’t see direct changes, smoother operations may attract broader market participation.

With Grayscale, CoinShares, and others filing for innovative ETFs, the crypto market is poised for significant developments. The SEC’s recent approval of Bitcoin and Ethereum ETFs sets a precedent that could pave the way for these new products. As institutional demand grows, these filings may mark the start of a more regulated and accessible era for digital asset investment.

Bitcoin ETF Shakeup: BlackRock’s IBIT Bleeds $330M as Competitors Thrive

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BlackRock’s iShares Bitcoin Trust (IBIT) experienced a record $330.8 million outflow on January 2, marking a significant development. This exit is the largest since the fund’s launch, representing over 3,500 BTC leaving the ETF. The event contributed to total daily net outflows across Bitcoin ETFs reaching $242 million.

IBIT Daily Netflows. Source: SoSoValue

This marks the third consecutive day of outflows for IBIT, setting a new record for the ETF. Over the past week, IBIT saw total outflows of $391 million, further underlining the trend. Despite the sell-off, other Bitcoin ETFs from Fidelity, Ark, and Bitwise recorded net inflows on the same day.

BlackRock’s Bitcoin ETF Holds 551,000 BTC

While IBIT faced significant outflows, competing ETFs gained investor interest with substantial inflows. Fidelity’s BTC ETF saw $36.2 million in new investments, while Ark and Bitwise recorded $16.54 million and $48.31 million, respectively. These inflows indicate growing diversification among Bitcoin ETF investors.

Despite these challenges, BlackRock’s IBIT remains a leader in the Bitcoin ETF market. As of December 31, the fund held over 551,000 BTC, representing 2.38% of the total Bitcoin supply. Analysts have noted IBIT’s rapid growth since its launch, citing its unmatched milestones in the ETF space.

IBIT Maintains Strength Despite Recent Outflows

BlackRock’s strategy remains on Bitcoin and Ethereum, with no immediate plans for altcoin ETFs. The company’s ETF division recently emphasized its intention to expand the reach of its Bitcoin and Ethereum products. This strategic focus aligns with analysts’ recommendations to include Bitcoin in traditional investment portfolios.

Despite the record outflows, IBIT’s long-term growth potential remains strong due to its scale and market positioning. The ETF generates significant annual revenue from its holdings and maintains a low expense ratio. Investors and analysts will continue to monitor the fund’s performance and market dynamics.

BlackRock Leads Bitcoin Boom with $627.7M ETF Investment

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  • Institutional Bitcoin Demand Surges with BlackRock Purchase
  • Spot Bitcoin ETF Options Launch on Nasdaq Boosts Optimism
  • Institutional Investors Boost Bitcoin Adoption with Derivative Tools

Institutional investors are flocking to Bitcoin as BlackRock invests $627.7M in ETFs, Nasdaq launches options, and derivatives offer new tools for managing risks and enhancing market depth, paving the way for global acceptance of digital assets.

BlackRock boosts Bitcoin ETF with $627.7M investment

BlackRock recently pumped $627.7 million into its Spot Bitcoin ETF. This major inflow shows an increase in institutional investment in Bitcoin-linked financial instruments. Meanwhile, the U.S Spot Bitcoin ETF attracted a higher inflow of $774.6 million within a day during the same period.

There is a growing trend of huge institutional investments in cryptocurrency-backed ETFs. Investor sentiment has been reflected in the Bitcoin price rise as the financial ecosystem has responded with optimism. Analysts say that these inflows are a result of the growing acceptance of the Bitcoin ETF as a viable financial instrument.

Bitcoin hits new highs amid Nasdaq’s ETF options launch

The launch of Spot Bitcoin ETF options trading on Nasdaq has boosted the cryptocurrency market. There was high demand within the first hour of trading which led to the exchange of 73,000 after the launch. This made BlackRock’s iShares Bitcoin Trust ETF one of the most actively traded options on the market.

As a result, these developments have led to higher participation in the cryptocurrency market. Spot Bitcoin ETFs and derivatives are redefining how investors utilize digital assets. Bitcoin remains on a continuous bullish trajectory, hitting new highs every day. Therefore, these developments are expected to increase the acceptance in the cryptocurrency sector and boost long-term growth.

Bitcoin derivatives reduce volatility, attracting institutional investors

The introduction of Bitcoin derivatives highlights the maturity of the cryptocurrency market. Analysts say trading derivatives helps lower Bitcoin’s volatility and price fluctuation. This makes it easy to predict prices and manage Bitcoin as a viable asset. However, institutional investors consider this a major step towards the integration of digital assets into mainstream financial markets.

Economists and investors say Bitcoin derivatives are more complicated, so they are important for building diversified portfolios and providing instruments that help to navigate risk effectively. Additionally, these instruments introduce new opportunities to manage exposure and explore new investment strategies. Therefore, the derivatives market inspires increased confidence and participation from institutional players.

Bitcoin ETFs and options accelerate the reassessment of the cryptocurrency market. These products enable investors to hedge risks, manage volatility, and diversify revenue sources. This development is a benchmark of the increased recognition of digital assets as important parts of global finance, leading to wider institutional adoption and market growth.

Grayscale Loses Liquidity Edge Over Blackrock, Fidelity Bitcoin ETF: JPMorgan Analysis

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According to JPMorgan, BlackRock, and Fidelity’s spot bitcoin, exchange-traded funds (ETFs) already possess an advantage over Grayscale Bitcoin Trust (GBTC), which holds the largest assets under management, particularly in two liquidity metrics. Despite a slowdown in outflows from Grayscale’s GBTC during the fourth-week post-approval by the U.S. Securities and Exchange Commission (SEC), JPMorgan anticipates the fund will trail behind the newly established ETFs, specifically those from BlackRock and Fidelity, unless it implements significant fee reductions, as stated in the report.

The first metric, JPMorgan’s gauge for market breadth based on the Hui-Heubel ratio, indicates substantially lower figures for BlackRock and Fidelity ETFs compared to GBTC, approximately four times less, signifying broader market coverage for these ETFs, according to the report penned by JPMorgan analysts led by Nikolaos Panigirtzoglou on Wednesday.

The second metric evaluates the deviation of ETF closing prices from their net asset value on average. Analysts note that the ETF price deviation from the net asset values of Fidelity and BlackRock’s spot bitcoin ETFs nearly mirrors that of the SPDR Gold Shares ETF in the latest week, indicating a marked improvement in liquidity. Conversely, deviations for the GBTC ETF remain higher, indicating lower liquidity.

Furthermore, the report highlights that without a reduction in GBTC fees, the fund is likely to experience more outflows and lose assets to alternative ETFs, particularly those offered by BlackRock and Fidelity.

On an another note,

Grayscale CEO Calls for Approval of Options Trading for Bitcoin ETFs

Grayscale’s CEO emphasized the benefits of options for investors, citing their role in facilitating price discovery and navigating market dynamics. In a post on Feb. 5, Grayscale CEO Michael Sonnenshein advocated for regulatory approval of exchange-listed options for spot Bitcoin exchange-traded funds (ETFs). He asserted that options offer value to investors by aiding in “price discovery and can help investors better navigate market conditions or achieve desired outcomes, such as generating income.”

An exchange-traded option represents a standardized contract enabling the purchase (via a call option) or sale (through a put option) of a specified quantity of a particular financial asset at a predetermined price (the strike price) on or before a specified date. Options trading allows investors to forecast the future movement of specific stocks, bonds, or the broader stock market. Within options contracts, traders have the freedom — though not the obligation — to buy or sell an underlying asset by a specified date at a predetermined price.

Sonnenshein highlighted that when the SEC sanctioned the first Bitcoin futures ETF in October 2021, listed options for the ETF became available for trading the following day thanks to automatic effectiveness, which allowed them to adhere to existing regulations.

BlackRock’s Dominance Soars As SEC Greenlights $9 Trillion Bitcoin ETF

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Wall Street titans like BlackRock, a manager of $9 trillion in assets, and Fidelity stand ready to unleash bitcoin exchange-traded funds (ETFs) onto U.S. markets, as Securities and Exchange Commission (SEC) guidance points to approvals in early January.

The SEC must approve or deny spot bitcoin ETF applications by January 10th. A spot Bitcoin ETF prices off the real-time value of Bitcoin. Sources close to major asset managers believe the SEC plans to greenlight multiple applications at once, marking a watershed moment for mainstream cryptocurrency adoption.

SEC’s Cash-Only Stance Challenges Bitcoin ETFs

If approved, bitcoin ETFs would allow everyday investors to gain exposure to the world’s largest cryptocurrency through trusted institutions at less cost than current bitcoin futures ETFs. Shares would trade on major stock exchanges like the NYSE and Nasdaq.

However, the SEC insists applicants only accept cash, not bitcoin itself, when issuing ETF shares. This “cash creation” approach forces ETF managers to constantly exchange bitcoin for cash, adding layers of complexity. It also deprives investors of certain tax advantages.

Some applicants resist the cash creation stipulation. Grayscale believes enabling both cash and “in-kind” Bitcoin transactions best serves investors. But the SEC remains firm, as it still blocks broker-dealers from trading spot bitcoin directly.

BlackRock’s Push: Overcoming SEC Hurdles

The agency cites money laundering, manipulation, and other illegal uses as justification. However, some blame Chairman Gary Gensler’s general skepticism of digital assets. Gensler has not definitively classified Bitcoin as a commodity or security. The same goes for ethereum.

Industry insiders give SEC denials low odds after a recent court victory. In August, the D.C. Court of Appeals overturned the SEC’s rejection of a Grayscale Bitcoin ETF conversion. The precedent should strengthen current applications.

Eager to capitalize is BlackRock, a manager of $9 trillion in assets. CEO Larry Fink calls Bitcoin an international store of value rivaling gold. BlackRock holds over 400 ETFs and continues lobbying the SEC on Bitcoin. With around 24 crypto ETF meetings this year, the agency appears intent on 2023 approvals.

Related Reading | Bitcoin Scarcity Explodes: 90% Mined, 70% Untouchable

ETF Approval: BlackRock And ARK Invest Embrace SEC’s Cash-Only Model

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BlackRock and ARK Invest have revised their S-1 registration statements for spot Bitcoin ETFs in response to the cash redemption model imposed by the U.S. Securities and Exchange Commission (SEC).

The two major applicants for a spot Bitcoin ETF in the U.S., which would track the price of Bitcoin directly rather than through futures contracts or other derivatives, have agreed to accept the cash-only requirement for their proposed funds.

The S-1 amendments were filed on Dec. 18, along with other applications from WisdomTree, VanEck, Valkyrie Asset Management, and Invesco. The cash-only model means that authorized participants (APs), who are entities that can create or redeem shares of an ETF on behalf of investors, can only obtain more shares by bringing cash to the table.

This contrasts with some other spot Bitcoin ETFs that allow in-kind redemptions, which involve non-monetary payments like BTC. ARK’s registration statement indicated that its ARK 21Shares Bitcoin exchange-traded funds would only allow cash creations and redemptions.

The document stated: “Potential in-kind creation and redemption of shares,” adding: “Subject to regulatory approval.” BlackRock followed suit with its iShares Bitcoin Trust ETF S-1 amendment: “These transactions will take place in exchange for cash,” it read: “Subject to regulatory approval.”

SEC’s Cash-Only Model: Impact On ETF Approval

The SEC’s cash-only model is seen as a victory for crypto regulation by some experts and advocates. According to Bloomberg analyst Eric Balchunas, ARK and its partner 21Shares did not want to do cash creations because they feared they would face more scrutiny from regulators than those using in-kind redemptions.

Balchunas stated that if the companies surrender their applications, the SEC will not compromise. This signifie­s the discussion has concluded. He continued, For those seeking January authorization, this re­sult may be favorable.

The SEC has been reluctant to approve any spot Bitcoin exchange-traded funds due to market manipulation, fraud, custody issues, liquidity risks, and investor protection concerns. However, some analysts believe that the SEC may be open to approving some spot Bitcoin ETFs if they meet certain criteria.

“It will make it clear where the ETF gets its underlying Bitcoin from — the ETF will buy them, presumably from reputable exchanges, whereas if you allowed in-kind transfers you wouldn’t be able to know where the Bitcoin transferred came from.”

Related Reading | Crypto Market Recap: Bitcoin & ETH Face Decline as Altcoins Shine Bright

XRP Plunges 12% After BlackRock ETF Hoax

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The price of XRP, the native cryptocurrency of the Ripple network, recently experienced a significant drop of 12%, falling from a high of $0.75 to a low of $0.61. This downturn was triggered by the debunking of a hoax regarding an alleged iShares XRP Trust filing by BlackRock, one of the world’s largest asset management firms.

The false information, which quickly circulated among XRP enthusiasts, claimed that BlackRock had filed paperwork with the U.S. Securities and Exchange Commission (SEC) to create an XRP exchange-traded fund (ETF). This news sent shockwaves through the cryptocurrency market, causing XRP’s price to surge by as much as 10% in anticipation of increased institutional investment.

However, BlackRock promptly denied any involvement in the alleged ETF filing, confirming that the information was entirely fabricated. This revelation led to a swift reversal of the token’s fortunes, with its price plummeting back to its pre-hoax level.

XRP Market Susceptible to Hoaxes

The incident highlights the susceptibility of the cryptocurrency market to false information and underscores the importance of verifying news sources and exercising caution when reacting to market-moving events.

The mechanism behind the hoax involved the creation of a fictitious “XRP ETF” Trust. Jeremy Hogan, a prominent attorney in the crypto space, explained the simplicity and low cost of perpetrating such a fraud. By filing just two documents and paying a nominal fee of $500, a fraudulent “placeholder” can be created on a state website.

Hogan speculated that the criminal behind this hoax could have manipulated the market by buying the token at a low price, selling it at the peak during the hoax-fueled surge, and potentially earning millions in the process.

This incident serves as a reminder of the need for vigilance and critical thinking in the cryptocurrency space, as false information can have a significant impact on market prices.