Wall Street and crypto converge on stablecoins and tokenized assets
Binance has taken a $100m stake in Circle, Canada's six largest banks are testing tokenized deposits and the NYSE is working with Blockchain.com on tokenized US stocks.
Key points
- Binance bought 1,237,011 Circle Class A shares at $80.84 each in a Sept. 17 private placement worth about $100 million, per a Tuesday SEC filing.
- Circle will pay Binance a monthly incentive fee tied to USDC held through the exchange's Modular Smart Contract Wallet infrastructure, under a five-year deal.
- Canada's six largest banks are jointly exploring tokenized Canadian dollar deposits, after OSFI said on Sept. 10 such deposits are not legally distinct from traditional ones.
- Cross-border stablecoin flows rose 77.5% to $220.3 billion in the year through June, while total crypto market capitalisation fell 37% to $2.1 trillion, Chainalysis said.
- Blockchain.com and the NYSE signed a memorandum of understanding for a digital alternative trading system for tokenized US stocks and ETFs, subject to regulatory approval.
Crypto companies and traditional finance are moving onto the same ground, as stablecoins and tokenized assets push banks, exchanges and digital asset firms into shared markets. CoinTelegraph's weekly Crypto Biz column said the dividing line between the two sectors is blurring, with each side seeking a role in how money and assets move.
The clearest example is Binance's $100 million investment in Circle, the issuer of the USDC stablecoin. A Tuesday filing with the US Securities and Exchange Commission shows Circle issued Binance 1,237,011 Class A common shares at $80.84 each in a Sept. 17 private placement, a price below Circle's market level before the deal closed. CRCL shares rose after the announcement.
The investment sits alongside a five-year commercial agreement to widen USDC adoption on the exchange. Circle will pay Binance a monthly incentive fee based on how much USDC is held through Binance's Modular Smart Contract Wallet infrastructure. Binance cannot sell, transfer, pledge or otherwise dispose of the shares for up to two years, though the lockup may end sooner under certain termination provisions, and it keeps voting rights meanwhile.
Binance takes Circle stake
In Canada, the country's six largest banks are jointly exploring tokenized Canadian dollar deposits as a possible new payment rail. Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank Group are taking part. The first phase covers transfers between the participating banks, with links to other digital asset networks possible later.
The project follows guidance from Canada's Office of the Superintendent of Financial Institutions on Sept. 10 that tokenized deposits are not legally distinct from traditional deposits, so using blockchain does not change their legal treatment. Unlike fiat-backed stablecoins, tokenized deposits stay liabilities of the issuing banks. The banks say the model could support faster, programmable payments, and other deposit-taking institutions may join. The distinction matters as Canada writes stablecoin rules that cover non-financial institution issuers, leaving regulated banks and credit unions outside their scope.
Stablecoin payments are growing even as the wider crypto market shrinks. Chainalysis found cross-border stablecoin flows rose 77.5% to $220.3 billion in the year through June, while total crypto market capitalisation fell 37% to $2.1 trillion. The analytics firm identified 4,708 new cross-border corridors carrying $2.64 billion, though the largest corridors still held 96.1% of total value. Much of the growth came from transfers averaging about $3,000, a pattern Chainalysis linked to trade, remittances and savings rather than speculation. Tether economist Philip Gradwell described a steady rhythm typical of business use, while StraitsX chief executive Tianwei Liu pointed to demand for dollar access, inflation protection and ways around capital controls outside Asia.
Canadian banks test deposits
On tokenized equities, Blockchain.com and the New York Stock Exchange signed a memorandum of understanding for a digital alternative trading system that would bring tokenized US stocks and ETFs to crypto users, subject to regulatory approval. The deal also covers a market-data partnership between Blockchain.com and ICE Data Services, part of NYSE parent Intercontinental Exchange. TD Securities' Reid Noch called it a bid for retail trading activity, especially as tokenized markets allow 24-hour and weekend trading, and Talos' Tanay Ved said crypto venues are becoming multi-asset platforms. RWA.xyz data puts the value of tokenized stocks at $3.14 billion, with holders up 72% to 3.87 million. The move follows the SEC's five-year Innovation Exemption for certain tokenized securities venues, where eligible tokens must represent actual shares with the same economic and governance rights.
