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Cantor and Securitize collaborate on blockchain-based IPOs

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Cantor and Securitize collaborate on blockchain-based IPOs

Investment giant Cantor Fitzgerald and cryptocurrency-focused broker-dealer Securitize (SECZ), are revamping initial public offerings (IPOs) with tokenization and blockchain technology, the companies said on Wednesday.

Under the agreement, Cantor will leverage its equity capital markets and trading capabilities, while Securitize will provide the tokenization infrastructure used to issue, distribute, and service tokenized securities, according to a press release.

Large traditional finance players are taking rapid steps towards the tokenization of capital markets. This week the Depository Trust & Clearing Corporation (DTCC) announced further plans to tokenize stocks with a range of partners including JPMorgan, Goldman Sachs, BlackRock and Vanguard.

The collaboration will enable public companies to raise capital and issue securities onchain with improved operational efficiency and modernized ownership records, while still operating within the established capital markets framework of traditional public offerings, the companies said.

Rather than focusing on tokenized funds or secondary trading, this partnership extends blockchain infrastructure directly into IPOs and follow-on offerings, a Securitize spokesperson said in an email.

DTCC moves tokenized securities into live trading, marking a milestone for Wall Street’s blockchain push

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DTCC moves tokenized securities into live trading, marking a milestone for Wall Street’s blockchain push

DTCC safeguards more than $114 trillion in securities, making it one of the most important pieces of financial market infrastructure. Every day, it records ownership and settles transactions involving stocks, bonds and other securities. Rather than creating new digital assets, DTCC’s system converts existing securities into blockchain-based “digital twins” that retain the same legal ownership, dividend and governance rights as the underlying assets.

That distinction separates DTCC’s approach from many tokenized stock offerings available today.

Some crypto platforms issue tokenized “wrappers” that mirror a stock’s price but do not necessarily provide investors with the legal rights associated with owning the underlying shares.

DTCC’s model instead allows institutions to convert existing securities between traditional electronic records and blockchain-based tokens without changing ownership.

“They’re the ones who are flipping from one settlement regime to the next,” Mark Wendland, CEO of Canton Strategic Holdings, said in an interview. “I cannot understate the importance of a firm like DTC piloting and doing these real transactions given the role they play in U.S. financial markets.”

Throughout the day, participants demonstrated several use cases. JPMorgan converted holdings of the Invesco QQQ Trust ETF into tokenized assets before using tokenized collateral to satisfy central counterparty margin requirements with CME Group. DTCC also processed tokenized Treasury transactions, equity trades and collateral pledges, while the SPDR S&P 500 ETF Trust, one of the world’s largest ETFs, was also tokenized during the event.

AMLA Warns Customer Migration Could Strain Compliance at Licensed CASPs

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AMLA Warns Customer Migration Could Strain Compliance at Licensed CASPs

Mass user migration following the end of the Markets in Crypto-Assets Regulation (MiCA) transitional period could strain compliance at virtual asset service providers (VASPs) in the European Union, according to Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA). 

“Because we know customers will rush to withdraw, this will put additional pressure on these VASPs,” Szego said during a Wednesday briefing with the European Parliament’s Committee on Economic and Monetary Affairs.

Szego said firms winding down their EU operations could come under pressure as customers rush to withdraw, while licensed crypto companies could face onboarding challenges as they absorb new users. She urged service providers to maintain efficient compliance procedures throughout the transition.

MiCA’s 18-month transitional period ended on July 1, requiring crypto asset service providers (CASPs) to hold licenses to continue serving EU customers. The European Securities and Markets Authority said crypto service providers that remain unauthorized by the deadline must take “immediate” steps to wind down their EU activities.

Related: Last-minute MiCA approvals mark end of EU transition period

AMLA maps next phase of crypto oversight

Ahead of MiCA’s July 1 deadline, AMLA published an advisory note warning crypto firms about money laundering risks arising from the end of the transitional period. The guidance outlined measures for firms winding down their EU operations and licensed providers onboarding new customers to maintain anti-money laundering controls during the transition.

Szego said AMLA will publish a report before the end of the year on money laundering risks in the crypto sector and supervisory practices across the bloc. She added that the authority is also expanding its blockchain analytics capabilities to strengthen oversight of crypto-asset service providers.

The report will also assess how national authorities supervise crypto-asset service providers and identify differences in supervisory practices across member states.

Szego said AMLA intends to use the findings to coordinate follow-up work with national regulators where needed as it works toward more consistent anti-money laundering oversight across the bloc.

Magazine: Will the crypto lobby’s $189M campaign get CLARITY over the line?

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Ostium loses $18 million in oracle attack that gamed its own price-feed infrastructure

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Ostium loses $18 million in oracle attack that gamed its own price-feed infrastructure

An attacker drained approximately $18 million in USDC from Ostium’s liquidity vault on Arbitrum in an oracle manipulation exploit detected by blockchain security firm Blockaid, onchain data shows.

According to Blockaid’s alert, the attacker leveraged a registered PriceUpKeep forwarder, a component of Ostium’s automated infrastructure, to submit oracle price reports with future-dated timestamps. The manipulated reports created the appearance of profitable trades, which triggered an $18 million USDC payout from the vault.

Ostium is a decentralized perpetuals exchange on Arbitrum that allows users to trade real-world assets including commodities, forex, and equity indices, with up to 200x leverage, settling in USDC.

Ostium uses a custom price-feed system to track real-world asset prices, with a third-party automation network called Gelato responsible for pushing those prices onchain at the right moments. A smart contract called PriceUpKeep sits at the center of that process, acting as the trigger that writes the latest price data to the blockchain whenever a trade needs to be executed.

Is Robinhood Chain’s Success Bullish or Bearish for ETH?

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Is Robinhood Chain’s Success Bullish or Bearish for ETH?

Robinhood Chain’s explosive launch this month has reignited one of Ethereum’s longest-running debates: Do successful layer-2 networks increase demand for ETH, the asset, or do the new entrants capture all of the value for themselves?

The retail brokerage’s Arbitrum-based Ethereum L2 has become one of Ethereum’s busiest rollups since its launch on July 1.

More than $141 million in Ether was bridged onto the chain in its first two weeks. DeFiLlama data shows more than half a million wallets now hold ETH on the network, and a memecoin frenzy saw Robinhood Chain surge past the Ethereum L1 and Coinbase’s Base L2 in 24-hour DEX trading volume.

Ether has pumped on the news, gaining around 15% from $1,582 on July 1 to $1,825 by July 13, according to Coingecko data, following a wave of bullish comments.

World Liberty Financial’s Eric Trump posted on July 11, “ETH is pumping hard! Great to see!” while Tom Lee, chairman of BitMine Immersion Technologies, argued the launch reinforces the thesis that “ETH is money,” pointing to the asset’s role as the chain’s native gas token and the L2’s finality on Ethereum’s mainnet.

Ethereum investors have heard similar arguments before.

Related: Robinhood L2 sparks ETH optimism, Saylor ‘muddies waters.’ Hodler’s Digest, July 5-12, 2026

Arbitrum, Optimism and Base each drove waves of users and activity onto Ethereum’s L2 ecosystem, but failed to move the needle meaningfully in Ether’s price, as most of the economic activity remained on the rollups themselves.

Robinhood Chain’s launch is arguably different. Unlike previous rollups built by crypto-native firms, the network was developed by a publicly listed retail brokerage with tens of millions of customers to support tokenized stocks and other real-world assets.

Within days of launch, it already accounted for 6.9% of all tokenized stockholders, according to data from Token Terminal.

Ether price response to Robinhood Chain’s launch. Source Coingecko

And, if Robinhood’s model succeeds, it could encourage banks, brokers and asset managers to build L2s of their own, and cement Ethereum as the default blockchain for TradFi. Deutsche Bank is already in the process of building a ZK-powered Ethereum L2 called DAMA 2, focused on institutional finance.

Why Robinhood could be a turning point

Ethereum’s L2 networks use rollup technology to process transactions away from Ethereum’s main chain and periodically settle them back to the network. Robinhood Chain uses Arbitrum technology and is compatible with Ethereum’s wider ecosystem.

But what has caught the industry’s attention isn’t the technology itself, as much as who is using it.

“It’s a real milestone,” Alex Gluchowski, founder and chief executive of Matter Labs, the developer behind Ethereum L2 zkSync, told Cointelegraph.

“It shows Ethereum L2s have gone from something crypto-native teams experiment with to infrastructure a regulated, publicly listed company will run its business on.”

Rather than building a blockchain from scratch, as Stripe has opted to do with Tempo, Robinhood chose to tailor an Ethereum rollup to its own needs “for privacy, compliance and performance, while still inheriting Ethereum’s security and connecting to its liquidity,” he added.

Max Shannon, senior research analyst at Bitwise, told Cointelegraph that Robinhood Chain’s success is more significant than previous L2 deployments.

“It represents the growth of the Ethereum ecosystem, particularly among major institutions,” he said. “It also arrives at a time when Ethereum has more broadly repositioned itself toward institutions through Eth Labs and Ethereum Institutional.”

Does Robinhood Chain change the investment case for ETH?

For Shannon, Robinhood’s launch strengthens the investment case for Ethereum because it reinforces the network’s position as the leading blockchain for institutional adoption.

He said ETH has the “network characteristics” to become the reserve asset for a growing network of institutional L2s. But like many, he believes Ethereum’s tokenomics need to be improved so that increased network activity is reflected more clearly in demand for ETH.

Ethereum has been criticized frequently for its decision to lower fees for L2s as a way to spark adoption and gain network effects. Ark Invest’s Lorenzo Valente posted on July 14 that Robinhood Chain had generated $816,000 in revenue since launch, with Arbitrum taking a 10% cut, but only 0.15% of the total being paid back to Ethereum.

“If your thesis is ‘ETH is money,’ Robinhood building here is ultra bullish. More activity, more ETH collateral, more lindyness. If your thesis is ‘ETH is a revenue generating asset,’ this is the ultra-bear case.”

GrowThePie said that Valente’s figures for Eth’s share of the revenue were off by a factor of four and argued “0.6% of revenue is the correct figure.” But even the higher figure is not a meaningful driver of revenue to the L1. Robinhood Chain generated more gas fees than any other L2 in the past week, but Ethereum only saw $4,400 of that.

Matze
Matze

Source: Matze, GrowThePie

Gluchowski said ETH’s appreciation would not be based on fee revenue, but would likely come from becoming widely accepted money throughout the L2 ecosystems.

“People might pay fees in stablecoins or never think about gas at all,” he said. “But as more value settles through Ethereum, ETH starts to look less like a fee token and more like a base monetary asset for this system.”

Related: Robinhood says its AI agent feature will ‘soon’ be assisting crypto traders

Even ETH bears like Mike Dudas from 6th Man Ventures, have described Robinhood Chain as “the single most bullish thing I’ve seen in eth-land in years.”

But after Dudas saw Valente’s post, he added the proviso that “Eth cooked unless ‘eth is money’ takes off or the price of l1 settlement increases.”

The value accrual question remains

While Robinhood’s success may have bolstered the case for Ethereum’s scaling strategy, it has yet to settle one of the network’s biggest unanswered questions: how does growing L2 activity ultimately translate into value for ETH?

Shannon said that recent upgrades like Fusaka have improved Ethereum’s scaling capabilities, but despite transaction activity reaching record levels, demand has yet to translate into meaningfully higher fees or increased ETH burn.

“Robinhood will not solve this problem,” Shannon said, and the collective growth of L2s will likely not either… It requires a wholesale change in developer mindset and in ETH’s token economics.”

Another uncertainty is how much ETH institutional users will actually hold directly. As tokenized stocks and other RWAs increasingly trade against stablecoins, many users may rarely interact with ETH, even though it underpins the network behind the scenes.

Robinhood may have shown that a major financial institution is willing to build on Ethereum’s infrastructure, but whether that ultimately translates into stronger demand for ETH remains to be seen.

Magazine Ethereum’s much-hated staking ‘tax’ may already be obsolete

Bitcoin Gets Second Inflation Boost as US PPI Sparks Three-Week Highs

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Bitcoin Gets Second Inflation Boost as US PPI Sparks Three-Week Highs

Bitcoin (BTC) saw three-week highs on Wednesday as US inflation data beat expectations for a second day.

Key points:

  • Bitcoin sees copycat bullish price action as US inflation data cools for a second day running.
  • Risk assets get a more positive outlook as Fed rate-cut odds drop.
  • Traders stay conservative over Bitcoin’s ability to continue higher.

Bitcoin gains after “much better-than-expected” US PPI

Data from TradingView showed BTC/USD reaching $65,500 for the first time since June 22.

BTC/USD 12-hour chart. Source: Cointelegraph/TradingView

The June print of the Producer Price Index (PPI) came in cool at 5.5% year-on-year after a 0.3% monthly decrease, per data from the Bureau of Labor Statistics (BLS).

“The June decline in the index for final demand can be attributed to prices for final demand goods, which fell 1.4 percent. In contrast, the index for final demand services moved up 0.2 percent,” an official news release stated.

PPI one-month % change. Source: BLS

Reacting, economist Mohamed El-Erian was upbeat on the outlook for risk assets and Federal Reserve policy.

“These much better-than-expected figures are set to boost equities and further temper market expectations for upcoming interest rate hikes,” he wrote in a post on X.

PPI joined Tuesday’s Consumer Price Index (CPI) release, which surprised to the downside despite macro pressure from the US-Iran war and its impact on oil prices.

“Inflation expectations continue to decline,” trading resource The Kobeissi Letter added, referencing bets on a Fed interest-rate hike from users of prediction service Polymarket.

The latest data from CME Group’s FedWatch Tool also showed change afoot in expectations for the Fed’s September decision, with a 0.25% hike no longer the most likely option.

Fed target rate probability comparison for September FOMC meeting (screenshot). Source: CME Group

BTC price momentum battles bear-market history

Assessing current BTC price action, market participants avoided overly bullish takes.

Related: Bitcoin gets new $80K August target: Watch these BTC price levels next

“Liquidity sitting above at the $65.6K mark and most importantly, the $67.2K mark,” trader Daan Crypto Trades wrote on X, referring to exchange order-book liquidity.

“Breaking above the latter would turn this into a bigger move and we can start targeting the $70K+ region again and truly position Bitcoin in the middle of its $60K-$80K range.”

BTC/USDT perpetual contract four-hour chart. Source: Daan Crypto Trades/X

Trader and analyst Rekt Capital noted that BTC was approaching its 50-month exponential moving average (EMA) — a level from which the price should be rejected if bear-market history were to repeat.

“If we follow the same statistical pattern seen over the past 12 months, BTC would likely derisk for the remainder of the month and push back down,” trader Killa added on the topic.

BTC chart. Source: Killa/X

The privacy paradox of protecting kids online

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The privacy paradox of protecting kids online

In Utah, which passed State-Endorsed Digital Identity (SEDI) legislation, Cardano Foundation-built Veridian has already shown that digital identity can be delivered in a privacy-preserving way, allowing users to prove that they are over or under a specific age without exposing any other data. It’s a working model of what responsible verification can look like and shows trust does not require unnecessary disclosure. Privacy can be designed into the system from the start.

That is the standard bills like KIDS or KOSA should favor.

If the goal is to protect children, the tools should be narrow, purposeful, and minimally invasive. Broad mandates that push every platform toward more data, more retention, and greater dependence on identity are too blunt and risk creating a multitude of other problems alongside the ones they claim to solve.

A better approach is straightforward. Build for data minimization, limit retention, and use privacy-preserving verification where verification is truly needed. If digital trust can be established without exposing personal data, lawmakers should prefer that path. If safety can be improved without turning the internet into an identity checkpoint, that should be the only option.

Children deserve protection online. But they do not need a policy framework that makes everyone more visible in order to make the internet, and the companies that thrive on it, more accountable.

Open USD poses new threat to Circle by challenging USDC’s core business model, CoinShares says

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Open USD poses new threat to Circle by challenging USDC’s core business model, CoinShares says

USDC’s circulating supply has fallen to about $73 billion from nearly $80 billion in March, trimming its share of the roughly $312 billion stablecoin market as competition from newly regulated issuers intensifies.

Circle shares fell more than 17% on the day Open USD was announced, though CoinShares said the decline was likely amplified by technical selling linked to the Russell index reconstitution.

Still, the report argued the market may be overreacting. Open USD has yet to launch, important details remain unresolved and Circle retains a significant advantage through USDC’s deep liquidity and years of integrations across exchanges, DeFi and payments.

Open USD is unlikely to pose a major threat to Tether, whose dominance in emerging markets and offshore dollar liquidity gives USDT, the largest stablecoin by far, a different competitive moat, the report added.

For now, investors should watch whether Circle changes its distribution strategy and whether Open USD can convert its high-profile backing into adoption, CoinShares said. Until then, the project remains a credible, but unproven, challenge to USDC.

CoinShares is not alone in noting the challenge posed by Open USD. Japanese investment bank Mizuho downgraded Circle to underperform from neutral and slashed its price target to $50 from $85 in a note to clients on Tuesday, arguing that the new rival’s business model threatens the stablecoin issuer’s long-term economics.

Japan’s Landmark Vote Reclassifies Bitcoin And Crypto As Financial Assets

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Japan’s Landmark Vote Reclassifies Bitcoin And Crypto As Financial Assets

Japan’s parliament passed an amendment on Wednesday that reclassifies cryptocurrency as a “financial asset,” a shift that pulls bitcoin and other digital assets out of the country’s payments regime and into the framework that governs stocks, bonds, and investment trusts, according to a report from public broadcaster NHK.

The change strips crypto of its prior status under the Payment Services Act, where regulators treated it as a means of settlement, and folds it into the Financial Instruments and Exchange Act (FIEA), the same statute that oversees traditional securities. 

The amendment moves bitcoin and other crypto under a single investor-protection standard. NHK reports the change takes effect within a year, with a target of fiscal 2027.

Japan’s new authority over bitcoin and the crypto asset class

Japan’s cabinet first approved this measure as a draft amendment in April 2026, but that step only sent the bill toward the Diet for debate. Wednesday’s vote marks the final enactment into law, alongside formal approval of a separate plan to cut the top tax rate on crypto gains from 55% to a flat 20% starting in 2028.

The move rewires how Japan supervises the asset class. As financial instruments, crypto assets now fall under insider-trading rules that bar issuers, exchange operators, and other parties with access to non-public information from trading ahead of events such as token listings, delistings, or major technical incidents.

Exchanges face new disclosure obligations. Platforms must publish data on each token’s issuer, blockchain design, and volatility profile, a standard that mirrors the reporting demands placed on securities firms. Regulators also gain broader market-surveillance authority over the sector, according to local reports. 

Penalties climb under the new law. The maximum prison term for unregistered crypto operators rises from three years to 10, while the top fine increases from 3 million yen to 10 million yen, near $62,000. The tougher enforcement signals a move to treat crypto misconduct with the same severity as securities fraud.

A path to bitcoin ETFs and a tax cut

The reclassification carries two consequences that reach beyond compliance. First, it opens a path for spot bitcoin exchange-traded funds. Because FIEA governs the products that funds can hold, moving crypto under its umbrella removes a structural barrier that kept Japanese asset managers from launching regulated bitcoin ETFs.

Second, it clears the way for a tax overhaul. Japan taxes crypto gains as miscellaneous income at rates that reach 55 percent, among the steepest treatment in any major market. Lawmakers approved a plan to cut the top rate to a flat 20 percent, a level that matches the tax on stock gains. The reduction, tied to the 2026 Tax Reform Outline, activates in 2028.

The reforms arrive as Japan accelerates a broader Web3 push and as regulators weigh reserve requirements for exchanges that resemble the buffers held by securities firms. User accounts on Japanese exchanges have grown, and domestic crypto firms are positioning for a wider base of retail investors.

For an industry that has long viewed Japan as an early and cautious mover, the vote marks a decisive turn toward legitimacy. 

The country that once served as a template for crypto regulation is now aligning digital assets with its capital markets, a decision that could pressure other jurisdictions to follow.

R25 Brings Consumer Credit RWA Vault to Binance Wallet Earn

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R25 Brings Consumer Credit RWA Vault to Binance Wallet Earn

  • R25 has launched Axil Prime Credit on Binance Wallet, bringing tokenized emerging-market consumer loans to retail audience.
  • The 3-month USDC vault targets double-digit gross yield and includes a $300,000 incentive pool.

R25 DApp has launhed an emerging-market consumer-credit strategy on Binance Wallet. The launch tests whether private lending products can attract the same retail demand as tokenized Treasuries.

The Axil Prime Credit vault lets eligible Binance Wallet users deposit USDC into a 3-month lending strategy managed by Axil. The portfolio is intended to generate returns from consumer loans across emerging markets.

Binance began offering access through its Wallet DeFi interface on July 15.

The accompanying campaign has a subscription limit of 70 million USDC and requires a minimum deposit of 100 USDC. Participants during the promotion, which runs through July 19, will divide $300,000 worth of PROS tokens, the native asset of the Pharos network.

Binance Lists a 13% Target Yield

The yield figures require some qualification.

R25 said the vault targets approximately 14.3% gross annualized yield with launch incentives, while Binance’s announcement lists an expected return of 13%, alternately describing it as APY and APR.

The Binance promotion also distributes the $300,000 PROS pool according to each participant’s share of qualifying deposits. The final token reward will therefore depend on total campaign participation and the market value Binance uses when calculating distributions.

That distinction matters because promotional incentives can temporarily lift an advertised return above the cash yield generated by the underlying loans.

The vault is also not a liquid savings product. Deposits are subject to a fixed three-month lock-up, after which redemption requests may take up to 20 additional days to process

Deposits can automatically roll into another three-month cycle when users do not submit a redemption request during the designated window.

The Distribution Model Is the Bigger Development

Consumer loans have appeared in tokenized credit products before.

Credix, for example, began connecting onchain investors with fintech lenders in emerging markets several years ago. Centrifuge and Goldfinch have also financed pools containing consumer loans, receivables and other forms of private credit.

The distinguishing feature of the R25 launch is its distribution.

Instead of asking investors to find a specialist private-credit protocol, bridge assets independently and interact directly with an unfamiliar application, R25 is placing the vault inside Binance Wallet’s DeFi interface.

Users can enter the product through the wallet’s protocol menu and receive APC3M tokens representing their position on Pharos. Binance Wallet describes its DeFi service as an aggregator covering lending, staking, restaking and other onchain yield products.

R25 calls Axil Prime Credit the first emerging-market consumer-credit vault distributed through Binance Wallet. The broader asset class is not new to blockchain, but access through one of the crypto industry’s largest consumer platforms could give it a considerably wider retail audience.

“Bringing R25’s infrastructure to Binance Wallet DeFi puts expert-curated yield in front of millions of users who could not easily reach it before,” Sean Chung, vice president of global business development at R25, said in a statement shared with AlexaBlockchain.

“Custody, issuance, valuation, and redemptions all have to work cleanly before a product like this can be distributed at scale, and that is what our architecture is built to standardize. Axil Prime Credit is the first product to show what it can carry.”

Why Consumer Credit Is Moving Onchain

Tokenized real-world assets have so far been led by instruments that are relatively simple to price and redeem.

Tokenized US Treasury products had about $15.5 billion in distributed value in mid-July, according to RWA.xyz. Tokenized credit, which includes private, corporate, structured and specialty lending, stood at roughly $7 billion.

Consumer credit offers potentially higher yields, but it is considerably more complicated.

Returns depend on thousands of individual borrowers making payments. Investors must also evaluate the quality of loan originators, underwriting standards, servicing arrangements, local legal protections, currency exposure and recovery procedures.

R25 says Axil Prime Credit uses a diversified portfolio and structural protections including overcollateralization, pledged bank accounts and junior capital buffers. Axil is responsible for portfolio construction and credit management, while R25 supplies the tokenization infrastructure and Pharos provides the blockchain settlement layer.

Those protections may reduce losses, but they cannot eliminate defaults.

Unlike an overcollateralized crypto loan, a consumer loan cannot generally be liquidated automatically when its value falls. Recoveries depend on offchain servicing companies, contracts and courts in the countries where borrowers are located.

More From AlexaBlockchain

Earlier Credit Projects Show the Risks

The history of onchain private credit has produced both growth and losses.

Goldfinch financed loans to businesses and lenders in emerging markets, and its loan book approached $100 million at its peak. Galaxy Digital said the portfolio later contracted by more than 70% following defaults.

One Goldfinch borrower, African motorcycle-finance company Tugende, became the subject of a possible near-total loss on a $5 million loan after an unauthorized intercompany transaction. The exposure was spread through Goldfinch’s diversified senior pool, limiting the effect on any single pool investor but demonstrating that tokenization does not remove conventional credit risk.

Other private-credit products have attracted meaningful capital.

FalconX said its tokenized institutional credit vault reached $144 million in June, with a 30-day gross yield of approximately 8.25% before its performance fee. That strategy is based on an institutional loan book rather than emerging-market consumer loans, but its expansion indicates demand for credit yields above those typically available from stablecoin lending markets.

The outcomes also show why transparency becomes more important as these products reach retail wallets.

Investors need timely information about loan performance, arrears, defaults, recoveries, geographic concentration, junior protection and changes in net asset value. A blockchain can record transactions and ownership, but it cannot independently verify whether an offchain borrower will repay.

R25 Is Building for Delayed Settlement

R25’s infrastructure is based on Ethereum vault standards including ERC-4626, ERC-7540 and ERC-7575.

ERC-4626 standardizes how tokenized vault shares are issued and redeemed. ERC-7540 adds asynchronous deposits and withdrawals, allowing a vault to accommodate assets that cannot settle instantly. ERC-7575 supports structures in which multiple asset entry points can be linked to a common vault share.

That asynchronous structure is important for private credit.

A Treasury token may have predictable daily liquidity. Consumer loans instead generate repayments over weeks or months, while valuations, cash movements and redemptions may rely on administrators and banking systems outside the blockchain.

R25’s modular architecture separates custody, valuation, issuance, fees and redemption processing. The design is intended to let one system support both instantly settling crypto strategies and slower real-world portfolios.

The technology may make such products easier to package and distribute. It does not make the underlying loans liquid.

A Test for Retail RWA Demand

The Binance Wallet integration will test whether retail crypto users want exposure to real-world credit when the product is placed alongside familiar DeFi opportunities.

The yield premium is likely to attract attention. But the 3-month commitment, potential redemption delay, borrower defaults and dependence on PROS incentives make the risk profile substantially different from holding USDC or a tokenized money-market fund.

Binance also states that the vault is a third-party service, may not be available in every jurisdiction and is not supervised as a regulated Binance investment product.

For R25, the launch is therefore about more than one vault.

It is an attempt to show that consumer loans, private funds and other assets with delayed settlement can be turned into standardized onchain products and distributed through mainstream crypto wallets.

The above article “A Behind-the-Scenes Look at the Year-Long Creative Journey Behind “Adventures of Pax Pengu & Polly”” was first published on AlexaBlockchain. Read the complete article here: https://alexablockchain.com/creative-journey-behind-adventures-of-pax-pengu-polly/

Read Also: This is the First U.S.-Chartered Depository Bank to Offer Stablecoin Invoicing

Disclaimer: The information provided on AlexaBlockchain is for informational purposes only and does not constitute financial advice. Read complete disclaimer here.

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