The S&P Dow Jones Index (S&P DJI) discusses the major exchanges, custodians and Defi protocols for licensing and listing tokenized versions of benchmarks, according to US equity director Stephanie Rowton.
Rowton told CointeLegraph that index providers are taking a “strategic approach” to ensure that tokenized S&P products are only available on platforms that meet high standards of transparency, security and regulatory compliance.
“By establishing these types of relationships, we hope to be able to work together to participate in a robust infrastructure that supports trading and accessibility of tokenized versions of the index.
The push to blockchain is because institutional interest in tokenized financial products will accelerate. S&P DJI entered the space by licensing the S&P 500 with Centrifuge on the S&P 500.
Lowton said the move has already generated “increasing curiosity and engagement” from both traditional finance (TRADFI) and decentralized finance (DEFI) market participants. “This interest reflects wider market trends as investors increasingly seek innovative and efficient ways to interact with established financial products,” she added.
Overview of the global RWA market. sauce: rwa.xyz
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bridging tradfi and defi
Lowton said blockchain technology has “transforming potential” in financial markets. “As demand for digital assets grows, tokenization may play a key role in filling the gap between traditional finance and decentralized finance,” Lowton noted.
She added that S&P DJI's tokenization strategy is consistent with the company's mission to meet the needs of “a new generation of investors looking for innovative ways to tackle established benchmarks.”
Interest in tokenized index products is the most powerful among digital native investors, including institutions seeking to diversify their portfolios, such as crypto and blockchain participants. Regionally, Europe, Asia and Ratum lead prices.
Lowton also revealed that the company is evaluating opportunities for tokenizing other flagship benchmarks, such as the Dow Jones Industrial Average and Theme Index. “We recognize that different investor segments may have different interests in a particular index and aim to meet market demand accordingly,” she said.
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2030 Vision of Tokenized Indexes
Lowton said that tokenized indexes will be “crucial” in global markets by 2030, increasing access and liquidity to cross-border markets. This technology can reduce traditional investment barriers and enables new strategies that leverage Defi features such as fractional ownership and automated trading.
However, she pushed back the notion that tokenization threatened S&P DJI's traditional licensing business. Instead, she described it as a “complementary innovation,” expanding commercial opportunities and opening up index investments to new audiences without compromising the integrity of the benchmark.
Rowton's comments show that tokenized stocks continue to gain momentum, with the market capitalization of blockchain-based financial products reaching $370 million by the end of July.
Last week, Openeden partnered with BNY Mellon to manage and detain the assets behind Tbill, a tokenized US financial product. This is the first Moody “A” rate tokenized financial fund to use Global Custodians.
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