Tokenization

The Financial Conduct Authority (FCA) is currently exploring whether it could determine money laundering registration applications more quickly for firms already authorized, the report said.

Ondo’s OUSG token, one of the largest on-chain tokenized Treasury products, has accrued $134 million of assets under management on Ethereum.

Crypto investors now effectively lend $614 million to the U.S. government via different tokenized Treasury products, according to real-world asset data firm RWA.xyz.

The new fund will invest in short-term U.S. government bonds, relying on a traditional Wall Street transfer agent for keeping track of holders but using Ethereum as a secondary record-keeping source.

Implementation of blockchain technology will accelerate as the opportunity cost of uncaptured efficiencies increases, the report said.

About 2% of global money supply, via stablecoins and CBDCs, could be tokenized over the next five years, which is about $3 trillion, the report said.

The bank said it expects blockchain infrastructure and tokenization to transform financial and non-financing infrastructure and markets over the next five to 10 years.

Demand for tokenized versions of short-term U.S. government bonds has been increasing as crypto investors turn to real-world assets to earn returns on their investments.