🏦 SEC and OCC Throw a 1-2 Punch, Galaxy's SWEEP, R3 Corda on Solana & More

Summary and Key Takeaways

1. SEC Issues DTCC No-Action Letter, OCC Approves 5 Trust Charter Banks

What a 1-2 punch from US regulators this past week that we’ve all probably seen take over LinkedIn and X (crypto Twitter). Starting with the SEC, they issued a No-Action letter to the DTCC to tokenize highly liquid assets including equities, ETFs, and bonds. This isn’t native tokenization as shares can be held either traditionally or minted into an onchain omnibus account (whitelisted wallets), however bringing this optionality at an operational level is the beginning of what will eventually evolve to bridging these assets to DeFi markets. This onboards existing and future users, but doesn't mean native tokenization is out of the question by any means either. They'll coexist and the DTCC will plug into DeFi rails for interoperability with legacy systems as market participants take their pick of how their assets are issued, held, and used. Importantly, DTCC emphasizes the digital version carries the same entitlements, investor protections, and ownership rights as the traditional asset. It’ll be interesting to see what blockchains get pre-approved to issue on and what the criteria looks like.

Market rails are important and so are custody ones, which is why the OCC conditionally approving 5 trust charter bank applications (and conversions) made a splash the next day. Ripple, Circle, BitGo, Fidelity, and Paxos are all getting upgraded, creating a new competitive landscape between them as well as with traditional custodians. While these new trust charter banks won’t be able to accept deposits, being federally-supervised positions them to custody/operate digital asset services (custody, fiduciary services, trustee/agent roles) alongside traditional frameworks. What does this mean? It means institutions will be more comfortable with these infrastructure providers and therefore increasing in-production use cases. For tokenized securities, that’s the difference between “a token exists” and “institutions can actually settle and service it with controls.” In the coming months we expect to see a lot more partnerships with all of them and TradFi companies (maybe even other banks) followed by announcements of new products and services.

2. Galaxy and State Street Partner on Tokenized Liquidity Fund: SWEEP

Solana Breakpoint brought a lot of announcements naturally before and during the event, with one of the big headlines being the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP). Treasury management is important for any company and those looking to come onchain need a vehicle that’s similar to traditional, liquid options they have offchain. The idea with SWEEP is that qualified purchasers can trade in and out of it at any time, using PYUSD for settlement (Paxos-issued stablecoin for PayPal). But wait, there’s more. Aside from announcing this product will come in early 2026, they also announced that Ondo Finance’s OUSG will be committing a $200M investment into SWEEP. Will this be expanded upon at Ondo Summit in February? State Street being one of the largest global custodians, Galaxy a leading onchain asset manager, and Paxos’ national bank charter conversion together brings an increased level of legitimacy to this kind of asset which raises the question: Who will be the first non-crypto company to use it and expand their around-the-clock treasury management capabilities?

3. R3 Announces Corda Protocol for RWA Vaults on Solana

Earlier this year R3 and Solana announced their partnership to integrate and months later here we have it! R3 will be launching Corda Protocol on Solana which is essentially a Solana-native curated vault platform. The idea is to increase institutional product distribution to Solana users, curating vaults with RWAs which R3 powers $10B+ of. Beyond just giving investors something to invest into (vaults = funds), investors also get a liquid vault token that they can use in other DeFi applications such as borrowing/lending, looping, etc. These kinds of partnerships and infrastructure are what give institutional issuers comfort in participating (if they really want to stick with a private blockchain and all its controls) while not segmenting them away from the investor and developer reach that a permissionless blockchain like Solana brings to the table. Corda protocol is set to launch in the first half of 2026 which raises the question of what the first vault would look like (private credit? Money market funds? Something completely different?)

4. OSL Selects Anchorage for USDGO US Stablecoin Issuance

Hong Kong-based OSL is the first SFC-licensed crypto trading platform and it also supports RWAs such as ChinaAMC’s money market fund. They’re looking to expand to the US through their new USDGO stablecoin which will bring cross-border instant settlement. OSL chose Anchorage Digital as the issuer, the first federally chartered crypto bank in the US, which again reemphasizes the importance of having institutionally-trusted guardrails and supervision to potential customers. Anchorage goes beyond just stablecoin issuance and custody services, they also offer staking, DeFi, and trading among other services that OSL could take advantage of after the USDGO issuance. Crypto companies are building full ecosystems and going beyond the simple issuance service to differentiate themselves, build trust, and most importantly give both issuers and investors the rails they need to interoperate between TradFi and DeFi markets with ease.

5. Canton Selects RedStone to Power Data Feeds, Raises Again from Wall Street

Speaking of infrastructure and trust, Canton Network has been doing a lot of that with institutional players both in the US and outside of it. Their privacy-enabled, public blockchain is a happy medium that many of them are using (including Broadridge’s distributed ledger repos) AND investing into, having just raised $135M back in June with additional investment from BNY, iCapital, Nasdaq, and S&P Global a couple weeks ago. Privacy and security are paramount for banks, asset managers, and FMIs like these which reflects in their hefty investments into the infrastructure. Powering price feeds with precision and connecting assets to DeFi markets efficiently while preserving those pillars is a challenge RedStone is built to support through their customizable, risk-aware data feeds which is why Canton chose them as a core oracle for their ecosystem. This isn’t just price feeds by the way, it’s any data that needs to talk to smart contracts such as NAVs, interest rates, FX prices, and other triggers for automated workflows and risk management (RedStone acquired Credora for their DeFi ratings earlier this year).

When you’re looking to power over $6T in RWAs and $4T in monthly volume, feeds that are efficient and customizable to different needs at scale are the behind-the-scenes work that keeps the end user happy with trust and low cost. Last week we covered how RedStone saved users $1.5M in minting fees for a stablecoin (and growing) by customizing how they price collateral assets. Now imagine the savings and other needs they’ll be addressing at a much bigger scale.

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.

Check out this latest interview with REAL Finance CEO & Co-Founder Ivo Grigorov!

STM.co Data

This is not financial advice.

Think Like Herwig

Hello readers,

Since 2017 I’ve heard people say that the next year is going to be THE year of tokenization. Fast forward to today and every other major fad in crypto took its place. However, nearly a decade later, it’s safe to say that 2026 will actually be the greatest and best year for asset tokenization we’ve ever seen. That’s because new legislation has paved the way for stablecoins to boom which both exemplifies the use case for tokenization but also act as the building blocks for the rest of onchain finance to thrive.

More legislation is coming and more powerful use cases are getting noticed like equities, private credit, and other commodity backed stablecoins taking the stage. Instead of blockchain companies, the sector now has traditional finance incumbents and massive web 2 Fintechs entering with products and services. Meanwhile DeFi is falling apart and yearning for stability through RWAs. 

It’s time for finance to embrace its next evolution and, finally, the world to adopt wallets through or outside of banks. That time is here.

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

Follow me on X / LinkedIn

Security Token Show Ends with 300 Episodes!

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)