The market for tokenized US Treasury securities has surpassed $10.8 billion in market capitalization, driven by institutional interest despite macroeconomic uncertainty and a downturn in the crypto market. The sector has grown significantly since 2024, with a notable boost from the launch of BlackRock's USD Institutional Digital Liquidity Fund. The Depository Trust and Clearing Corp. plans to introduce a tokenization service for Treasurys, further validating the sector.

Broadridge Financial Solutions has expanded its Distributed Ledger Repo platform to include G7 securities, moving beyond its previous support for tokenized US Treasury collateral. The platform, which processed an average of $351 billion in daily repo transactions in August, aims to enhance liquidity and capital efficiency by automating the repo transaction lifecycle using distributed ledger technology and smart contracts.

A group of 21 global financial institutions, including Goldman Sachs, Bank of America, Citi and Deutsche Bank, plans to establish a new company this year to issue a dollar-pegged stablecoin in the first half of 2027. The group spans North America, Europe and Asia, and intends to expand into other G7 currencies, starting with the euro, as major financial institutions increase their use of blockchain-based payment technology. The effort would compete with Qivalis, a separate consortium planning to launch a euro-pegged stablecoin later this year.

The Securities and Exchange Commission has proposed a significant overhaul of transfer agent rules, the first major update since the 1980s, which could have a substantial impact on tokenization. The proposal includes a question about whether a shareholder can be registered without providing a name and mailing address, using only an email and wallet address instead.

Tokenized deposits are more likely to function as money than stablecoins, Bank for International Settlements General Manager Pablo Hernandez de Cos said at the Jackson Hole Economic Symposium. Tokenized deposits maintain the singleness of money, are more interoperable, and are easier to supervise for anti-money laundering and counter-terrorist financing purposes, Hernandez de Cos said.

The Financial Stability Board warned G20 finance ministers and central bank governors that frontier AI models could pose growing risks to financial stability, with cyber risk the most immediate concern. In a letter ahead of the G20 meeting, FSB Chair Andrew Bailey said advanced AI could change the speed, scale and economics of cyberattacks and urged regulators to prioritize safe release practices. The FSB also warned that markets remain vulnerable to a disorderly correction.