In recent developments, BlackRock is exploring the tokenization of exchange-traded funds (ETFs) on the blockchain, influenced by the positive performance of its spot Bitcoin ETFs. The asset manager aims to possibly launch funds that expose real-world assets while navigating regulatory challenges. Tokenized ETFs could offer trading beyond regular hours and collateral use in decentralized finance (DeFi). Concurrently, Chinese regulators are reportedly limiting state-owned and other major firms’ participation in cryptocurrency activities in Hong Kong, with banks indicating they may withdraw applications for stablecoin licenses following regulatory policy changes. Meanwhile, Goldman Sachs' CEO David Solomon expressed skepticism about the Federal Reserve cutting rates by 50 basis points, suggesting a lesser cut of 25 basis points is more likely. His view aligns with market expectations indicating that lower interest rates could make riskier assets like cryptocurrencies more attractive to investors. These developments highlight ongoing shifts in the financial landscape concerning cryptocurrency and traditional financial institutions.

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