Rich by Coin

Figure is reportedly introducing a tokenized class of stock that trades on blockchain rails. Figure launched OPEN last month, announcing that it aimed to be the first issuer to use the network, having filed the public registration statement to do so last fall. Figure’s FGRD token will be issued, traded and settled directly on-chain on the OPEN network, without relying on traditional Wall Street clearing and custody systems.

“OPEN reinsequity trading,” Cagney said at the time. “The significant benefits over the centralized incumbent model incent companies to use OPEN and their investors demand it.” After originating over $20 billion in on-chain credit, we’re now excited to bring public equity to Provenance Blockchain.

In examining the tokenization marketplace earlier this month, PYMNTS wrote that there was a “more complicated reality” emerging in parallel with the “conceptually linear” pitch put forth by the industry. “The technology behind asset tokenization largely works as advertised,” the report said. Public blockchains run 24/7 and settlement finality is measured in minutes, sometimes seconds. Custody tooling has matured, and institutional-grade infrastructure exists.

However, liquidity is still elusive for most tokenized real-world assets. Volumes are thin, bid-ask spreads are wide, and exits are often determined by issuer discretion and legal processes that sit off chain. Many of the top 10 tokenized real-world assets (RWAs) by value are commodity-backed stablecoin instruments and not the kind of financial derivatives tokenized markets depend on to scale, the report said. “For CFOs and treasury teams evaluating tokenized RWAs as part of their liquidity, yield, or balance-sheet strategy, the central lesson is that ‘on-chain’ is not synonymous with ‘liquid,’ and that many tokenized RWAs can behave far more like private instruments than tradable securities,” PYMNTS wrote.