BlackRock Targets the Idle Cash Piling Up on Crypto Exchanges
Adoption
”BlackRock Inc. is bringing its roughly $2.5 billion money market fund to cryptocurrency exchange operator OKX, with Standard Chartered Plc holding the underlying assets — the latest sign that Wall Street infrastructure and digital-asset markets are converging. Under the arrangement, the tokens of the BlackRock USD Institutional Digital Liquidity Fund (ticker BUIDL) sit in regulated custody at Standard Chartered while showing up as available collateral on OKX, meaning traders can post it as margin while it keeps earning interest instead of sitting idle. The setup solves a basic inefficiency: cash posted as collateral on crypto exchanges has traditionally earned virtually nothing. BlackRock’s fund, which invests in Treasuries and repurchase agreements and is designed to hold a stable $1 value, turns what would otherwise be idle cash into a productive asset, a structure that is starting to grow in crypto markets.”
Source: Bloomberg
US SEC Seeks Comment on NYSE Arca Proposal For 85% Eligible-asset Rule in Crypto ETF Listings
ETPs
“The U.S. Securities and Exchange Commission is asking for public comment on a proposed NYSE Arca rule change that could alter how crypto commodity exchange-traded products are structured. In a notice published Monday, the SEC said NYSE Arca wants to amend its generic listing standards for Commodity-Based Trust Shares so that at least 85% of a trust’s net asset value consists of assets already allowed under existing listing rules. The remaining 15% could be held in other assets that do not independently qualify, so long as the trust still meets the rest of the rulebook, according to the filing. NYSE Arca said the threshold is meant to allow broader product design while keeping the bulk of exposure tied to assets that meet existing surveillance-linked eligibility criteria.”
Source: The Block
JPMorgan Taps Former Goldman Exec to Lead Blockchain Unit
Adoption
”JPMorgan Chase & Co. has named former Goldman Sachs Group Inc. executive Oliver Harris to lead its blockchain division Kinexys, as the bank looks to grow the adoption of products and services built using crypto’s underlying technology. Harris — who joined the bank earlier this month — will be focused on commercializing Kinexys’s applications and strengthening engagement with institutional clients, the bank said in a statement on Tuesday. He replaces Naveen Mallela, who left the bank earlier this year to join Standard Chartered as global head of payments. Kara Kennedy, who was Kinexys co-head alongside Mallela, will serve as global head of market development for the blockchain division, reporting into Harris.”
Source: Bloomberg
State Street to Launch Tokenized Fund Servicing From Luxembourg by Year's End
Tokenization
“State Street said Tuesday it plans to launch tokenized fund servicing from Luxembourg by the end of 2026, marking another step by a major global custodian to bring traditional fund infrastructure onchain. The service will be delivered through State Street Investment Services and is intended to extend the firm’s existing fund administration, custody, and transfer agency capabilities, an announcement on Tuesday said. State Street noted that the offering will support tokenized funds alongside traditional vehicles within a single operating model. Tokenized funds refer to investment vehicles whose ownership records or operating rails are represented on blockchain networks, rather than being handled entirely through older back-office systems.”
Source: The Block
CFTC Sues Wisconsin in Agency's Legal Campaign Defending Prediction Markets Authority
Legal
“Wisconsin has joined the growing number of U.S. states being sued by the Commodity Futures Trading Commission as that agency insists on its jurisdiction over prediction markets trading at firms such as Kalshi and Crypto.com. Several states have gone after those businesses, accusing them of violating state gaming laws via the betting taking place on the growing platforms, but CFTC Chairman Mike Selig has led a legal pushback against states including New York, Arizona, Illinois and Connecticut. He's argued that the derivatives regulator, which he leads as the sole member of what's meant to be a five-member commission, has 'exclusive jurisdiction' over the trading of event contracts that he argues are an emerging form of the same kinds of derivatives activity long handled by the CFTC.”
Source: CoinDesk
