- Traditional financial institutions are increasingly interested in tokenizing assets on public blockchains, according to Celisa Morin.
Traditional financial institutions are increasingly interested in tokenizing assets on public blockchains, according to Celisa Morin, former Vice President of Platform Distribution at Grayscale.
Morin, now heading the crypto department at law firm Reed Smith, believes that a new narrative led by BlackRock in the traditional finance (TradFi) sector could drive more firms to tokenize assets on public chains rather than private ones.
Morin points to BlackRock’s recent launch of its $100 million tokenized ‘BUIDL’ fund on the Ethereum network as a significant development.
The fund, which now holds $288 million in assets, has been established on a public blockchain despite potential legal challenges and controversies surrounding public wallets.
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Morin also highlights Franklin Templeton’s forward-thinking move to launch its tokenized money market fund on the Ethereum layer-2 network Polygon in October 2023.
The Franklin OnChain U.S. Government Money Fund (FOBXX) has already tokenized $360.2 million in US Treasuries, contributing to a total of $1.08 billion in tokenized U.S. Treasuries across 17 products.
In contrast, Morin expresses skepticism about the approval of spot Ether exchange-traded funds (ETFs) in May.
Citing the lack of communication between the United States Securities and Exchange Commission (SEC) and prospective fund issuers, Morin agrees that the chances of approval by VanEck’s deadline on May 23rd diminish with each day the SEC refrains from engaging in public comment.
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