Kraken, Fidelity, Santander, and Google are among the major players that are now building on Ethereum to push the boundaries of cross-border payments and stablecoins.
Ethereum is becoming the blockchain of choice for global financial institutions, with 35 projects launched across asset management, payments, and DeFi in the last few months.
xStocks, by Kraken, is one of the most significant applications; it allows users to tokenize U.S. stocks and ETFs as ERC-20 tokens. With Kraken, the qualified clients will now be able to deposit and withdraw fully collateralized equities on Ethereum. Ondo Finance has also introduced Ondo Global Markets, including accessibility to more than 100 tokenized stocks and ETFs in the United States, as well as DeFi lending and trading.
Elsewhere, China AMC, the largest asset manager in Asia, has also rolled out its Select USD Money Market Fund on Ethereum, which provides high-quality 24/7 settlement of USD short-term instruments. In the US, Fidelity has introduced the Fidelity Digital Interest Token (FDIT), which allows its clients to get the speed of on-chain settlement without losing the predictability of traditional financial instruments.
A number of financial institutions are using the Ethereum blockchain to make cross-border settlements. UBS, PostFinance, Sygnum, and the Swiss Bankers Association have successfully tested the Deposit Tokens on Ethereum, making cross-bank settlements legally binding on the open blockchain.
Similarly, Santander Openbank opened ETH trading services in Germany. American Express has also released the Amex Passport, a blockchain-based travel stamp, which was minted as NFTs on Ethereum Layer 2 (L2) Base.
As the ecosystem news portal of Ethereum described, SWIFT and 30+ banks are working on a blockchain ledger to support tokenized assets and 24/7 cross-border payments, built on the Ethereum infrastructure.
On the institutional asset management front, BlackRock, as we earlier reported, has applied to launch a staked ETF, which would enable investors to claim Ethereum native staking rewards. In Europe, the largest asset manager, Amundi, tokenized its euro money market fund on Ethereum via the mainnet, where it could now settle and compose euro-denominated capital 24/7.
Other groups, such as BNY Mellon and Securitize, also launched a tokenized AAA-rated CLO fund on Ethereum, which is a major milestone in the direction of tokenizing traditional credit assets. At the same time, the fintech company Ant Group, which owns Alipay, introduced JovayNetwork, a Layer 2 based on tokenizing institutions on Ethereum, extending the influence of the blockchain into the institutional space further.
In addition to financial institutions, Ethereum is becoming a key player in stablecoin development and cross-border payments. Sony Bank is set to debut a USD-pegged stablecoin on its Ethereum Layer 2 Soneium later this year.
In Africa, the continent’s largest mobile money platform, M-Pesa, has partnered with ADI Foundation to bring over 60 million users on-chain via Ethereum’s infrastructure, to enable instant cross-border payments and stablecoin transactions.
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