A subcommittee of the Commodity Futures Trading Commission (CFTC) has approved guidelines for using tokenized shares of money-market funds as collateral in traditional finance.
As reported by Bloomberg on October 2, these guidelines aim to integrate blockchain technology with non-cash collateral management in accordance with U.S. regulatory standards.
If endorsed by the full committee later this year, the recommendations could boost the adoption of tokenized collateral, enhancing capital efficiency for companies.
This initiative supports BlackRock’s BUIDL fund and Franklin Templeton’s FOBXX, which together dominate the tokenized U.S. treasuries market, holding nearly half of the $2.3 billion sector.
In decentralized finance (DeFi), Aave has proposed a Stability Module that would utilize BUIDL shares to maintain its stablecoin, GHO, pegged to the U.S. dollar.
Users can provide USD Coin (USDC) as collateral to acquire BUIDL shares, diversifying GHO’s backing while generating yields for stablecoin holders. Ethena Labs is also launching UStb, a stablecoin fully backed by BUIDL, to provide a stable funding alternative to its existing stablecoin, USDe.
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Aptos (APT) is set to make its mark in Japan by acquiring HashPalette, a key player in the country’s blockchain sector.
Financial institutions in North America, Europe, and Asia are preparing to take part in upcoming digital asset trials orchestrated by SWIFT.
An upcoming HBO documentary, directed by Cullen Hoback, is set to explore one of the biggest mysteries in the digital world: the identity of Bitcoin’s creator, Satoshi Nakamoto.