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Tag: tokenization

  • Wall Street Is Going On-Chain, And Investors Still Don’t Get It, Says Bitwise CIO

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    Wall Street firms are launching tokenized funds, stablecoins, and on-chain products, yet Bitwise’s CIO says that investors remain stuck in outdated crypto narratives.

    Bitwise’s Chief Investment Officer Matt Hougan believes there is a fundamental disconnect between perception and reality in the crypto market. He argued that investors often misinterpret what is truly happening because behavioral biases, particularly anchoring bias, distort their view.

    Anchoring bias, the tendency to fixate on the first piece of information encountered, shapes how people evaluate opportunities. This leads them to overweight initial impressions even when new evidence emerges. Hougan stated that this factor played a key role in his own entry into crypto in 2018.

    Tokenization Is Exploding

    In his latest memo, Hougan stressed that Wall Street is moving on-chain and pointed to several concrete developments. Paul Atkins launched “Project Crypto,” a commission-wide initiative aimed at modernizing securities regulation so that US markets can operate on-chain. Larry Fink said the industry is entering the early stages of tokenizing all assets. BlackRock followed that view by launching its $2 billion BUIDL tokenized Treasury fund on Uniswap. Apollo tokenized its $700 billion Diversified Credit Fund across six blockchains and announced plans to acquire a stake in Morpho.

    Additionally, major banks, such as JPMorgan, Bank of America, Citigroup, and Wells Fargo, are discussing a joint stablecoin. JPMorgan has already launched a deposit token on Base. Fidelity is hiring a DeFi vaults manager.

    Despite these initiatives, the Bitwise exec said that traditional investors fail to register these changes. Even crypto investors themselves, he added, exhibit fatigue from repeated claims of institutional adoption. Data, however, tells a different story.

    Where Does the Value Go?

    Tokenized real-world assets have grown sharply from 2020 to 2025. Hougan warned that while the opportunity is clear, the exact path to capture it is uncertain. Questions remain about whether value from tokenization will accrue to public Layer 1 networks like Ethereum and Solana, to quasi-private blockchains such as Canton Network and Tempo, to DeFi tokens, or to companies building in the ecosystem, including incumbents like BlackRock and JPMorgan, versus crypto-native firms.

    “The biggest alpha opportunities come when the consensus narrative is stale and reality has moved on, but investors are still anchored on the old story. That’s exactly where we are with crypto today. “

    Meanwhile, crypto analytics platform Presto Research expects tokenization to be a central driver of crypto’s next institutional phase. In its 2026 outlook, the firm projected that the combined value of tokenized real-world assets and stablecoins will approach $490 billion by the end of 2026.

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    The report also observed that growth will be fueled by demand for tokenized US Treasury bills and credit instruments.

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    Chayanika Deka

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  • Presto Research Predicts $160K Bitcoin, $490B Tokenization in 2026

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    After hype-heavy cycles, Presto expects Bitcoin to reach $160K as tokenization and institutional crypto accelerate.

    Crypto analytics platform Presto Research this week published its 2026 outlook, projecting Bitcoin (BTC) at $160,000, tokenized assets nearing $490 billion, and confidential decentralized finance (DeFi) climbing past $10 billion as crypto shifts deeper into institutional finance.

    The report argued that after a messy but formative 2025, the market is shedding hype-driven growth in favor of cash flow, regulation-ready products, and infrastructure built for large allocators rather than retail mania.

    Institutional Maturation to Drive New Highs

    In the comprehensive year-ahead report, Presto’s analysts projected that the total value of tokenized real-world assets (RWAs) and stablecoins will approach half a trillion dollars by the end of 2026.

    They see this growth propelled by continued demand for U.S. Treasury bills and credit instruments on blockchain networks, alongside the steady rise of stablecoins for global payments. This trend highlights a shift from speculative trading to practical financial utility.

    Central to their price outlook is a $160,000 target for Bitcoin. This projection relies on a framework evaluating the cryptocurrency’s on-chain adoption rate against potential investor caution surrounding future quantum computing challenges.

    The experts applied what they call a “30% quantum haircut” to account for investor uncertainty around the need for future-proof encryption upgrades.

    “When a risk that was once a vague, distant ‘someday’ suddenly gets pulled forward in the collective conversation, investor psychology can shift,” the report cautioned, pointing to quantum readiness as a new variable in valuation.

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    Separately, the market watchers forecasted a major advance for private financial activity on blockchain, forecasting confidential DeFi tools to grow to hold $10 billion in assets as regulatory and institutional demand for discretion increases.

    Underlying the Predictions: A Market Growing Up

    Presto’s review of 2025 highlighted a year of contradictions: landmark policy wins like the passing of the GENIUS Act and major public listings were offset by tight monetary policy that limited broad price gains.

    The firm noted that while fundamentals like protocol revenue became a central talking point, market performance often ignored them, instead favoring narrative and liquidity dynamics.

    This environment, Presto’s analysts argued, is set to evolve. Their expectation for 2026 is that financialization will deepen, with traditional finance giants expanding crypto custody and trading services. Furthermore, they estimated that the rise of AI agents capable of executing microtransactions, facilitated by protocols like Coinbase’s x402, could potentially generate well over 300 million transactions monthly, turning experimental demos into functional businesses.

    A final, telling projection is that “median altcoin funding rate ≤ 0% becomes a norm.” This shift from perpetual optimism to a default cost for holding most speculative tokens would be a profound change. “Funding is finally pricing in reality,” the report concluded, suggesting a harsh but necessary reckoning for assets without sustainable demand.

    According to Presto, these combined forces point to a market slowly outgrowing its volatile past, where measurable value creation and risk management will start to outweigh pure speculation in the new year.

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    Wayne Jones

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  • Toyota Explores Blockchain to Digitize Vehicle Ownership

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    The blockchain has gained popularity as it introduced cross-border transactions and the creation of borderless networks, which have become increasingly prominent in the real-world assets (RWAs) space. However, in this asset class, specifically mobility, it cannot be simplified and removed from boundaries created by commercial practices, regulations, and institutional frameworks.

    Toyota’s Blockchain Lab, the R&D arm of the carmaker, has been busy exploring the blockchain and its potential applications in its vehicles, potentially overcoming traditional hurdles such as registration, insurance, and maintenance, among others, by creating a verifiable “Trust Chain” that represents multi-party relationships on-chain.

    Current-Day Obstacles

    They proposed a concept called the Mobility-Oriented Account (MOA) last year, to understand this framework from the perspective of the connection between the user and mobility. The initiative aimed to describe mobility as an “abstract account,” but it also exposed that the notion could not completely capture the complex relationships involved in it.

    Their most recent paper is a continuation of the research from a different point of view. MOA attempted to outline mobility from an individual entity, whereas the current goal is to describe it with the network in mind. We can already grasp mobility as part of a network, given the complex relationships that encapsulate it.

    Source: Toyota Blockchain Lab

    Mobility is currently being reimagined, no longer just a means of transport, but rather a valuable asset that generates value. The rise of electric and autonomous vehicles is peaking global interest in the value of mobility, and how it can be uncoupled from its traditional roots. Three structural gaps prevent any attempts at making this possible.

    One is organizational, where vehicle registration records and operational information are kept by governments and corporations, which restricts initial valuation and assessment. Then there is the industrial sector, where no open and interoperable network exists between entities within the ecosystem—finally, the national gap, where registration, tax, and insurance records are not unified under a single certificate.

    The Mobility Orchestration Network (MON)

    This new concept is a protocol-layer blockchain architecture designed to orchestrate trust and unlock the value of mobility assets across organizational, industrial, and national boundaries. It combines three on-chain verified proofs, or Trust Chains, as a single one cannot fully outline mobility asset value.

    • Institutional Proof: Vehicle title/registration, insurance compliance, to establish legality

    • Technical Proof: VIN, manufacturing data, sensor integrity, to ensure it’s fit for purpose

    • Economic Proof: Usage metrics, maintenance, and revenue history, to attest to economic value

    This is how the MON concept addresses the organizational gap. The introduction of Trust across sectors is addressing the industrial gap, connecting them seamlessly, which, in itself, reinforces the value of mobility. We can think of it as a catalyst, with its primary role being to orchestrate the many networks that work together.

    Source: Toyota Blockchain Lab

    The goal for the final, national gap is to enable global circulation of value without making any changes to the already existing local ecosystems. A key point here is that MON is designed as a protocol rather than a single platform, allowing different systems to be integrated seamlessly across borders.

    Real-World Implementation

    So far, it has been outlined how Trust Chains can help define the on-chain identity of a mobility asset. MOA functions as a container for it, holding the proofs it carries, but to grasp different types of information, it’s split into two distinct accounts.

    • T‑MOA (Trust-side): Holds finalized institutional and economic proofs

    • U‑MOA (Utility-side): Manages real-time operational verifications (e.g., driver credentials, vehicle status)

    Additionally, a tokenization framework must be present, enabling a gradual transition from non-fungible mobility ownership (via NFTs) to fungible financial assets. This reflects its evolving nature—from ownership to liquidity.

    How It Looks As A Prototype

    MON employs a multi-chain approach, utilizing Avalanche as its foundational layer, and deploys separate chains for Trust (MON), Capital (tokenized assets), Utility (mobility operations), and Stablecoin networks—all interconnected via Avalanche’s Interchain Messaging (ICM) system.

    Source: Toyota Blockchain Lab

    The ICM is the infrastructure that ensures complete and secure communication across different blockchain networks. Some prominent protocols are integrated into the intricate network, including IBC from Cosmos and CCIP from Chainlink.

    A separate structure called the Trust Gateway acts as the off-chain bridge to on-chain trust. Several mechanisms are involved, including Verifiable Credentials, Decentralized Oracles, Trusted Intermediaries, and others.

    Source: Toyota Blockchain Lab
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    Dimitar Popov

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  • Web3 advisor Coinsilium to guide LC Lite in token launch

    Web3 advisor Coinsilium to guide LC Lite in token launch

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    Web3 advisor Coinsilium Group Ltd. has inked a deal with global trade exchange platform LC Lite, steering the ship for its upcoming token launch.

    The collaboration aims to integrate distributed ledger technology (DLT) features into LC Lite, to enhance marketplace liquidity and foster stability in cross-border export financing.

    Coinsilium’s strategic advisory services come to the forefront as LC Lite, which was recently acquired by Incomlend, aligns itself with the Web3 advisor. Incomlend, a company focused on addressing loopholes in the global trade finance ecosystem, has joined forces with LC Lite.

    LC Lite aspires to introduce Web3 principles to Incomlend, with a focus on enhancing marketplace liquidity, providing multi-currency solutions for cross-border export financing, and fostering broader stablecoins adoption.

    The collaboration positions LC Lite to seize emerging opportunities within the rapidly expanding digital asset market. This move aligns with broader industry trends, as evidenced by the growing institutional interest in crypto investments, with companies like Coinsilium joining the bandwagon.

    Coinsilium’s involvement goes beyond advising on tokenomics for LC Lite’s planned token launch in Q4 2024. The collaboration extends to leveraging Coinsilium’s extensive network, connecting LC Lite with major service providers and cryptocurrency firms. This strategic alliance facilitates LC Lite’s integration into the broader crypto ecosystem.

    The compensation model for Coinsilium’s services is noteworthy — payment in various cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and project-specific digital tokens. This aligns with the industry’s evolving landscape and showcases a commitment to embracing the very technologies Coinsilium advocates.

    Eddy Travia, chief executive officer of Coinsilium, emphasizes the potential impact of LC Lite on the multi-trillion-dollar trade finance market. His statement reflects a measured optimism, avoiding hyperbole, and focuses on the tangible benefits that LC Lite could bring to real-world assets.

    Jean-Charles Devin, co-founder and director of LC Lite, underscores the value of Coinsilium’s reputation and expertise in the blockchain and cryptocurrency space. The emphasis on collaboration and shared innovation sets the tone for a partnership grounded in mutual growth and success.

    Together, Coinsilium and LC Lite aim to establish a robust foundation for sustained growth, empowering businesses with streamlined cross-border payment solutions for real-world assets. The narrative avoids overused phrases, maintaining a clear and informative tone throughout.

    Coinsilium is a blockchain and open finance venture operator based in Gibraltar. The Londn-based company, which became the first blockchain entity to launch an initial public offering (IPO) in 2015, has evolved to offer revenue-generating strategic advisory services.

    This includes notable ventures such as a fifty-fifty partnership with IOV Labs in Singapore and a collaboration with blockchain technology experts Indorse to establish Nifty Labs, a non-fungible token (NFT) technology development studio in Gibraltar.

    The rise of institutional adoption

    A survey conducted by Coinbase in November suggests a growing interest in institutional crypto adoption.

    Additionally, the approved spot Bitcoin exchange-traded funds (ETFs) by the Gary Gensler-led U.S. Securities and Exchange Commission (SEC) is noted as a historic decision with major financial institutions like Grayscale, Fidelity and BlackRock entering the Bitcoin investment space. 

    The Bitcoin ETF move is viewed as a catalyst for legitimizing and stabilizing Bitcoin as an asset class. Recently, Blockworks revealed that the ETFs have amassed over $25 billion in collective assets under management in the space of one month. 

    The subsequent uptrend in the price of Bitcoin aligns with the wider institutional interest fostering a positive sentiment in the crypto. 

    As of the time of writing, the total cryptocurrency market cap stands at $2.06 trillion, with Bitcoin commanding a 52.7% market share, per data from CoinGecko. 


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    Ogwu Osaemezu Emmanuel

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  • Hong Kong regulators wary of unauthorized crypto staking

    Hong Kong regulators wary of unauthorized crypto staking

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    Hong Kong’s Securities and Futures Commission (SFC) has issued a cautionary statement, alerting the public to be wary of high-yield crypto investment schemes including the “Floki Staking Program” and “TokenFi Staking Program.” 

    SFC warn investors 

    According to a recent announcement, the Hong Kong Securities and Futures Commission (SFC) has made it clear that both the “Floki Staking Program” and “TokenFi Staking Program” lack authorization for offering to the Hong Kong public. 

    The regulator says both offerings involve cryptocurrency staking services that claim to deliver notably high annualized returns, ranging from 30% to over 100%, therefore, investors must exercise caution and diligence in light of these potentially suspicious schemes.

    Additionally, the administrator overseeing these products has been unable to satisfy the SFC regarding the feasibility of achieving the high annualized return targets.

    Highlighting the accessibility of information about these products to the Hong Kong public through the Internet, the SFC took proactive measures. On Jan. 26, the commission added both products and their related details to the SFC’s Suspicious Investment Products Alert List.

    Expressing concern, the SFC cautioned investors about “staking” arrangements associated with virtual assets, noting their potential classification as unauthorized collective investment schemes and the inherent high risk. 

    The regulator says these investment products carry elevated risks, and as such, investors may find themselves with limited or no protection under the Securities and Futures Ordinance (SFO), exposing them to the risk of losing their entire investments. 

    The SFC advised investors to exercise caution, especially when encountering investment products that promise returns that seem “too-good-to-be-true,” urging vigilance in making investment decisions.

    It will be recalled that in a statement released on Dec. 13, 2022, the SFC reiterated its caution to investors regarding the risks associated with virtual asset investment schemes, specifically highlighting “staking” services. 

    The SFC emphasized that such arrangements could potentially be categorized as Collective Investment Schemes (CIS), directing this reminder to both investors and individuals participating in these virtual asset arrangements.

    In line with its commitment to regulatory oversight, the SFC asserted its readiness to take appropriate actions in the event of any breaches of the law.

    Floki responds  

    In a live spaces recap on X (formerly Twitter), the Floki team responded to the developments involving the SFC. The crypto platform stressed that the SFC’s primary concern revolves around the remarkable performance of the staking programs.

    Unable to divulge details regarding their discussions with the SFC, Floki clarified that they partnered with a marketing agency to launch promotions for the Floki Staking Program and TokenFi Staking Program. The agency secured media exposure, and the Floki team was under the impression that they had received approval.

    The Floki team refrained from commenting on the continuation of the marketing campaign in Hong Kong for the time being. They have reassured investors of their commitment to navigating all appropriate channels to meet the requirements set by Hong Kong authorities.

    Furthermore, the SFC reiterated its commitment to enforcing regulatory standards and safeguarding investors from fraudulent schemes. 

    Hong Kong legislator supports spot Bitcoin ETF adoption

    In related news, Hong Kong lawmaker Johnny Ng has called on the government to promptly introduce spot Bitcoin (BTC) exchange-traded funds (ETFs).

    The decision comes on the heels of the recent approval of similar products in the U.S.

    Anticipated to debut by mid-2024, Hong Kong’s first spot crypto ETFs have been under review by the SFC and the Monetary Authority.

    The move is viewed as a significant stride towards aligning with global financial trends and solidifying Hong Kong’s standing in the crypto industry. The swift adoption of spot Bitcoin ETFs in Hong Kong could also have a profound impact on the region, as highlighted by industry insiders and experts.

    The introduction of ETFs is deemed pivotal in aligning regulatory and industry expectations on controls and compliance, paving the way for this reality in the Asian market, where Hong Kong aspires to be a testing ground for the broader region.


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    Ogwu Osaemezu Emmanuel

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