GENIUS Act, JPMorgan's Deposit Token, Global Settlement, & More RWA News

Summary and Key Takeaways

1. GENIUS Act Passes Senate, Moves on to Compete with STABLE Act

The long hyped GENIUS Act that is supposed to pave the way for new stablecoin legislation for the finance and tech sectors and usher America into a new era of crypto has passed the US Senate. This means it's off to the House where there is a trail of dead bodies in the form of more stablecoin and crypto regulation. There is a lot of contention between the STABLE act designed to keep the stablecoin business monopoly for the banks while the GENIUS Act enables new competitors but critics also argue that this bill is designed to curb innovation. We’ll have to see if the bill is GENIUS enough to pass. 

2. J.P.Morgan’s Deposit Token to Issue on Base, Meets with SEC Crypto Task Force

In case you missed it on Wednesday’s edition, J.P.Morgan is clapping back at stablecoin issuers with their own twist. Rather than a stablecoin, JPM’s issuing a token (JPMD) representing existing cash deposits for institutional clients to use onchain. What’s the difference? Aside from the potential to pay interest (yield) in the future, bank deposits only need to have 10% in reserves meaning this token is more scalable. While it conforms to institutional needs for rails they’re used to, crypto-natives may seem a bit more skeptical as Proof of Reserves oftentimes comes into question in the stablecoin space. Interestingly, JPMD will be issued outside of their private network on the Base blockchain, making it more compatible with future applications.

On that note, last Tuesday, 3 JPM team members met with the SEC Crypto Task Force with one of those topics being an analysis on “the potential impact of existing capital markets activity migrating to public blockchain. Specifically what areas of the existing model might change, and how firms could assess the risk and benefits of those changes.” The JPMD issuance on a public L2 is a step forward with this point of view and we’ll keep an eye on who the first institutional clients to use this will be. 

3. Luxembourg Issues Digitally-Native Treasury

When people talk about tokenized treasuries, they oftentimes refer to everything BUT tokenized treasuries like funds and other vehicles investing into or majority into treasuries (offchain). That can hopefully end now with what seems to be the 2nd actual treasury now being tokenized and it’s being done by Luxembourg. The forward-thinking country’s State Treasury issued €50 million worth of them on HSBC’s Orion platform. 

Capital markets coming onchain only reaches its full potential if most of the infrastructure and the assets themselves are onchain, especially if they’re the ones being built on top of. What does this mean? In the case of tokenized treasuries, if they’re backing stablecoins, it’ll be easier to see Proof of Reserves onchain if the treasuries themselves also live on it which provides more comfort and builds more trust with investors. Is Luxembourg setting the example for other jurisdictions to follow? Who will be next?

4. BUIDL Now Accepted as Collateral on Deribit and Crypto.com

Collateral mobility will continue to be a driving force behind tokenizing assets and BlackRock’s $BUIDL is once again proving its utility as it approaches $3B in AUM. While it was already being used to post margin on platforms like FalconX and Hidden Road (acquired by Ripple), it’s now expanding its ecosystem to also be used on Deribit (acquired by Coinbase) and Crypto.com. Both are quickly showing their new focus on RWAs with this move happening just over a month after Crypto.com joins the Lynq Network and Coinbase seeking to trade tokenized equities. Given the relationships brewing here amid recent acquisitions, it’ll be interesting to see how BUIDL (and similar products) will be used in addition to posting margin like Arca’s TFND will to settle transactions.

5. Global Settlement Tokenizes $75M Oil & Gas Real Estate Deal

After helping with the launch of Security Token Market, Kyle Sonlin got tired of waiting for the market to grow and decided to do something about it with his own blockchain. That moment has now come with the first deal by Global Settlement Network being officially finalized and live on testnet. Not only a first for the cross-chain, cross-border commodities focused L1 blockchain called GSX, but this might be the first for an Oil & Gas related token. Too bad you can’t invest yet because this deal isn’t even seeking capital, it’s already complete! A great first win of many to come for Global Settlement no doubt. 

This is not financial advice.

RWA Foundation & WALLY DAO

Check out this new ad for RWAs created by STM in-house using AI and a weekend of messing around. The WALLY DAO website is officially live! Check it out at WALLYDAO.xyz

Monday’s Onchain: Weekly X Spaces

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STM.co Data

Real estate, specifically in Michigan, continues to take a dive for another week with the combination of thin liquidity and rising Midwest housing inventories amplifying the downdraft. Rounding out the laggards, Realio Security Token ($RST) surrendered 18 percent, erasing the prior week’s gains as investors lightened positions.

EnergyFunders ($ENFD) surged 8% as crude prices could increase due to the Strait of Harmuz. Commodity-linked RWAs will trade almost like high-beta energy ETFs, meanwhile tokenized stocks saw growth this week, echoing their traditional counterparts.

This is not financial advice.

Think Like Herwig

Hello readers,

These AI video tools are really mindblowing! I’m sure you expected me to say tokenization instead of AI video tools but that’s how I decided to spend this past weekend to see what all the fuss is about. Combine a creative sesh with Jason’s prompt skills (STM.co’s COO) and you’ve got yourself a full on trailer that would normally cost $100,000+ for just $125. 

AI will take over RWAs too. I predict it will only be a matter of 3 to 5 years before AI agents are powering more financial transactions than humans will bother to. Once your portfolio and markets move onchain, AI agents can finally transfer real instruments of value. They certainly can't simply open up a bank account and at best could leverage another human to get tasks. With tokenization, anything becomes possible really. Portfolio rebalancing, investment sourcing, diligence, and execution, trading strategies, and more will flow through the blockchain powered, AI operated, internet of finance. 

First comes DeFi, then come the AI bots. Let’s keep putting the world onchain.

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

Follow me on X / LinkedIn

Companies of the Week

Company of the Week - Herwig: Global Settlement Network
Company of the Week - Kyle: Oxbridge Re

Find out why and more every Friday live around 12pm EST on LinkedIn or X/ Twitter. Past episodes available on Youtube or your favorite podcast platform! 

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)