CFTC Allows Tokenized Investment of Customer Funds and Blockchain Recordkeeping

Seven of the UK's largest banks, including Lloyds, NatWest, Barclays and HSBC, completed the world's first interbank blockchain transactions using tokenized deposits on September 24, 2026, clearing and settling remortgage completions and marketplace peer-to-peer payments on Quant's Overledger platform with support from EY and Linklaters. The program, formally the Grantham Business Tokenized Deposits initiative, connected the seven banks to the Bank of England's RTGS, Faster Payments and Open Banking infrastructure, with the deposits functioning as commercial bank money rather than a separate asset class. The same Quant platform was selected by The Clearing House for its US On-Chain Money Initiative, which will bring tokenized deposits to 25 of the largest US banks, including Bank of America, Citi, JPMorgan, Wells Fargo, HSBC, BNY Mellon, PNC, US Bank and Truist, targeting an H1 2027 launch aligned with the GENIUS Act enforcement cliff of January 18, 2027. Bank of England Governor Andrew Bailey said in a July 2025 interview with The Times that he could not understand the need for stablecoins and believed tokenisation offered more value, a stance favoring tokenized deposits over stablecoins for wholesale settlement. Three digital bonds are planned for early 2027 settled with tokenized deposits, a dedicated company is being formed to govern the program, and a governance framework is being established to manage the transition from pilot to production.

Krungthai Bank has launched PromptFund, a real-time fund service that applies blockchain technology to real-time fund trading. Customers can buy and sell funds with the bank instantly at any time, every day, including holidays. Sell and receive money immediately; buy and receive fund units immediately. This helps reduce the time constraints of the past, when customers had to wait overnight or several days. Customers can also see real-time trading prices to make decisions before placing orders. Mr. Payong Srivanich, President and Chief Executive Officer of Krungthai Bank, said the launch of PromptFund is a major transformation of Thai investing, building on the Digital Bond, Gold Wallet, and Global Savings services under the concept "60 Years Krungthai, Every Step for a Million Futures." Ms. Pornanong Budsaratragoon, Secretary-General of the SEC, said the SEC supports applying Distributed Ledger Technology and Blockchain in the capital market alongside Use Case testing under the Regulatory Sandbox, and is pushing for amendments to the Securities and Exchange Act, which the House of Representatives already approved in principle in the second quarter, to support the issuance of securities by electronic means. The launch of PromptFund is another step in applying the Tokenization policy to real financial services, in line with the SEC's efforts to drive the Digital Securities Ecosystem, or DSE.

WisdomTree announced a landmark partnership with crypto infrastructure provider MoonPay on September 17, embedding its tokenized money market fund WTGXX directly into MoonPay's consumer app and stablecoin reserve framework. The deal gives WisdomTree access to a network spanning over 35 million accounts and 1,700 integration partners, a distribution footprint its proprietary broker-dealer, WisdomTree Securities, could not replicate independently, according to Chief Executive Officer Jonathan Steinberg. The digital push builds on a core business that closed the second quarter of 2026 with a record $162.9 billion in assets under management, its sixth consecutive quarterly record and up from $126.1 billion a year earlier, while operating revenue rose 11.1% sequentially to $177.2 million and operating margin expanded 780 basis points year-over-year to 40.5%. Those gains were partly obscured by balance sheet cleanup, as the firm recognized $68.9 million in losses on convertible note repurchases in the first half of 2026, driving a $23.1 million net loss in the first quarter and lifting the six-month effective tax rate to 51.9%. Short interest stands at 17.34% of float and the stock trades at a forward P/E of 17.30 as of September 24, leaving what the article describes as a balanced risk-reward profile with tokenization upside largely unvalued.