#securities

➤ South Korea's Finance Ministry has declared that tokenized stocks will be treated as securities, not virtual assets, paving the way for taxation this year. ➤ This classification, pending a formal interpretation from the Financial Services Commission (FSC), means tokenized stocks will fall under the Capital Markets Act, allowing for immediate taxation. ➤ The move aims to align the tax framework with the substance of these instruments, despite their blockchain-based form, and could impact offshore transactions as well.

➤ Japan's lower house has approved a bill to classify cryptocurrencies as financial instruments, paving the way for crypto ETFs and reducing taxes on crypto gains to 20%. ➤ The legislation aims to foster innovation by creating a sound trading environment, aligning crypto oversight with traditional securities markets and increasing penalties for insider trading. ➤ Major Japanese banks are also advancing stablecoin projects, indicating a broader move towards regulated digital asset infrastructure and increased institutional participation.

View On WordPress

➤ The XRP Ledger (XRPL) is expanding its utility beyond payments to support a wide range of tokenized assets, including stocks, funds, loans, and repos. ➤ David Schwartz, Ripple's CTO Emeritus, highlighted that enterprises are key to driving mass retail adoption by offering familiar financial services on XRPL. ➤ The expansion into tokenized RWAs and financial products aims to position XRPL as a comprehensive platform for asset issuance, transfer, and settlement, moving beyond speculative use.

➤ SEC Chair Paul Atkins is confident that the CLARITY Act, designed to distinguish digital commodities from securities, will pass Congress and be signed into law by President Trump. ➤ The legislation aims to reduce regulatory uncertainty, encourage domestic crypto innovation, and maintain U.S. leadership in the global digital asset market. ➤ The bill's advancement through the Senate Banking Committee signifies a major step towards establishing a comprehensive framework for digital assets in the United States.

➤ The Depository Trust & Clearing Corporation (DTCC) is partnering with the Stellar Development Foundation to tokenize DTC-custodied assets on the Stellar blockchain, aiming for availability in early 2027. ➤ This initiative involves tokenizing significant traditional asset classes like U.S. Treasury securities, ETFs, and equities, leveraging Stellar's native asset issuance and compliance tools. ➤ The project operates under a regulatory framework established by the SEC, ensuring traditional investor protections are maintained while utilizing blockchain for execution and settlement.

➤ DTCC, a major securities transaction processor, is integrating its tokenized asset platform with the Stellar XLM network by mid-2027. ➤ This integration will bring DTC-custodied securities, including U.S. Treasuries and Russell 1000 stocks, onto a public blockchain, enabling near-instantaneous settlement. ➤ The move is seen as a significant step in bridging traditional and digital markets, potentially pressuring other global market infrastructures to adopt similar tokenization strategies.