💸 Alibaba to Use JPM, FIS and Intain Help Regional Banks, Tokenized Stocks Boom, and More

Summary and Key Takeaways

1. Alibaba to Use Kinexys by J.P.Morgan for Cross Border Payments

Kinexys by J.P.Morgan has been putting great emphasis on the payments side lately and last Wednesday announced that their deposit token, JPMD, is now available on Base for institutional clients to use. B2C2, Coinbase, and Mastercard all participated in earlier proof of concepts but two days later another client came to light and that’s Alibaba. Their president, Kuo Zhang, sat with CNBC and on Friday shared that they're working on AI to essentially streamline payment smart contracts in B2B sales and specifically with JPM on cross-border payments. This would be a huge commercial client to have given how global of a company they are, making them a prime candidate for an onchain B2B payment solution that solves for settlement, different currencies, and other factors. It’s unclear what role Kinexys will be playing specifically, however their Kinexys Digital Payments arm would likely be onboarding Alibaba counterparties as clients and open accounts linked to their JPMD balances. 

Again Alibaba would be a big client to use Kinexys across its ecosystem which could reach billions in volume and help inspire others to join as well. With that in mind, there’s more work to be done on tokenized deposits and a large task is interoperability between different blockchains and different banks, which JPM is working on with Singapore’s DBS. Both banks offer their clients tokenized deposits but those clients can’t send JPMD to a DBS account yet. A major hurdle is that JPMD is on Base (public blockchain) while DBS runs on a permissioned blockchain hence this new partnership. Want to learn more about Kinexys Digital Payments? Hear from Jeremy Pollack at TokenizeThis 2025 in NYC!

2. FIS and Intain Launch Loan Marketplace for Regional and Community Banks

Intain is back in the news and this time we’re seeing them work with FIS to target over 2,000 US regional and community banks by launching their new Digital Liquidity Gateway. Traditionally these banks are those that serve small and medium sized businesses with loans however have a difficult time securitizing them and accessing larger investor capital. Powered by Avalanche, the Digital Liquidity Gateway plugs into FIS and uses AI to automate workflows involved in loan securitization which contributes to ongoing efforts in proving blockchains’ value-add from an operational perspective. Like with Figure’s HELOC securitizations, it’ll be interesting to see how much in savings can be captured thanks to Intain and FIS’s new collaboration. Cheaper and more efficient access to capital markets means better borrowing conditions for the end consumer and as they put it in the press release, they can better serve Main Street America. While it’s not the sexiest topic, fixing the plumbing at institutional levels with blockchain will help open up new opportunities and for the end retail user to benefit as well.

3. Mercurity Fintech and Chaince to Work with M2M Capital on AI-Powered Valuation and Tokenization

Private market assets are hard to create a secondary market for due to multiple reasons, lack of price discovery being one of them. M2M Capital is working to solve that using AI for valuation and pairing it with a tokenization platform for those assets which would be powered by Chaince Securities as the broker-dealer - a subsidiary of Mercurity Fintech Holdings (NASDAQ: MFH). Tokenization has solved many problems, from faster settlement to increased utility using DeFi and collateral mobility, however liquidity continues to be a big issue across the board. If you’re looking to buy or sell a tokenized private company, how do you know if you’re doing so at a premium or discount to its value? Having real-time analytics, valuation, and overall data will help increase liquidity and enhance investor confidence in participating in onchain markets. We see this also with Inveniam’s efforts and their new Diol data marketplace, Credora and Particula’s onchain ratings, and others creating infrastructure to help tokenized assets increase liquidity potential and utility. We’ll be keeping an eye on this collaboration, any MFH clients that decide to onboard, and of course any other partners that join the platform to further enhance these offerings. 

4. Tokenized Stocks are Booming with xStocks Breaking $2B in Onchain Volume & Dinari Going Even More Global

Tokenized US equities have been around for some time but it wasn’t until earlier this summer that they got real attention and traction when Robinhood announced their plans to develop and roll out their own technology to enable this as well as xStocks by Backed rolling out on Kraken and other popular crypto exchanges. We’ve never seen such volume in this asset class onchain with a new report suggesting xStocks itself has surpassed $2 billion in onchain transaction volume with another additional $8 Billion processed via centralized methods. Although they began on Solana, xStocks has since become multichain on Ethereum as well and their products are now available on half a dozen different cryptocurrency exchanges worldwide. And speaking of international, Dinari is another competitor that has been picking up steam (Gemini exchange by the Winklevoss uses Dinari for their tokenized US equities offering) that recently announced a partnership with 1exchange in Singapore. This signals that even RWA marketplaces, not just crypto exchanges, are also adding this catalog of products to their venues through simple API integrations like the one Dinari provides. Expect this to be an enormous category and talking point next year as adoption continues to strengthen this year. 

5. REtokens’ to Launch $5M RegCF Offering Tomorrow

Last week we mentioned that one of the RWA industry’s very own is tokenizing itself. That’s right - in case you missed it - REtokens is now available for anyone to invest in onchain via WeFunder starting tomorrow. Another example of a full end-to-end provider, REtokens has both tokenization engine technology and a broker dealer license for an ATS venue all centered around onchain real estate, the biggest asset class being tokenized. We will be hosting the CEO Tyler Vinson on the RWA Foundation’s X spaces at 10am EST on Thursday this week. The opportunity to participate in the offering can be found here. Good luck REtokens team!

This is not financial advice.

RWA Foundation & WALLY DAO Updates

The RWA Foundation introduced the RWA Pod as “A permissionless way for anyone to support RWAs using crypto with multiple RWA project tokens as yield.”

In partnership with PERQ, the RWA Pod allows you to deposit ETH, USDC, ARB, and S/ Sonic. Participants will receive tokens on multiple blockchain protocols related to RWA projects that the RWA Foundation has qualified and selected as Founding Members.

Two of the tokens in the POD rewards are Brickken’s BKN and DRVN’s BSTR. Want to learn more about them? Check out interviews with their founders now available on X and on YouTube, go ahead and check them out 👇!

STM.co Data

This is not financial advice.

Think Like Herwig

Hello readers,

Did you catch the announcement about Edel Finance? They are the new Aave style lending protocol for tokenized stocks building on Ondo and xStocks in order to allow borrowing and even yield earning against tokenized US equities. They launched their token last week with much success it seems despite the bear market. I currently do not own any in my wallet but I plan on picking some up I think. This is the type of technology that helps bring RWAs to DeFi and really scale its potential. Plus, I have to hand it to them because they have some awesome design style. If it isn’t clear from this week’s newsletter, tokenized stocks are going to be major headlines for months to come and likely will become just as hot of a subject as stablecoins. It’s about time we move on from the main attraction being boring treasury and money market funds!

Happy tokenizing, 
Herwig “Happy” Konings
CEO, Security Token Group 

Follow me on X / LinkedIn

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Check out the latest and final episode of the Security Token Show as well as the full catalog on Youtube, Spotify, Apple Podcasts & Google Podcasts.

Reports

RWA Tokenization: Key Trends and 2025 Market Outlook

Check out a report we contributed to: RWA Tokenization: Key Trends and 2025 Market Outlook. Led by Brickken, this report brings multiple parties together in diving into tokenization, with STM.co supporting with both data and some of the written sections.

What’s Inside?

✅ A Breakdown of Tokenization and Related Benefits
✅ Key advantages for issuers, investors, and institutions
✅ How the market is evolving and trends shaping adoption in 2025
✅ What’s next? Expert insights on regulation, DeFi integration, institutional involvement, and market growth

STM’s RWA Market Prediction for 2030

STM.co is proud to release a thorough report on our prediction on the tokenized real world asset market growth. This report explores the variety of opportunities within each asset class to capture value on-chain.

Tokenization can be applied to just about any object and asset type. Art, carbon credits, life insurance, and other sub $5 trillion asset classes weren’t even considered in estimates.

In order for STM to derive its 2030 market predictions, the following asset classes were evaluated: currency, M2/M3, real estate, commodities, public equities, private companies and funds, bonds, credit and lending markets.

This is not financial or investment advice.

Helpful Resources

• $30 Trillion by 2030 - STM

• Global Tokenized Real Estate Market Guide 2024 - STM

• TokenizeThis 2024: Highlights and Key Takeaways - STM

• TokenizeThis 2023: Highlights and Key Takeaways - STM

• State of Security Tokens 2023 - Q4 - STA

• State of Security Tokens 2023 - Q3 - STA

• State of Security Tokens 2023 - Q2 - STA

• State of Security Tokens 2023 - Q1 Extended - STA

• Real-World Asset Tokenization 2023 According to STM - STM

• Tokenizing an Asset in 3 Easy Steps - Security Token Show

• Rich Data in Private Assets - STM

• State of Security Tokens 2022 - STA

• State of Security Tokens 2023 - Institutional Edition - STA

• Tokenization for Institutions - What You Need to Know - STM, Arca (YouTube)