tZERO Newsletter 08.21.2025
Investment banks are facing a pivotal moment—one that could define their role in financial markets for decades to come. The catalyst is a sweeping new roadmap released by the President’s Working Group on Digital Asset Markets, outlining how the United States plans to “usher in the Golden Age of Crypto.”
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Where The Tokenization Space Is Going – Key Trends In 2025
Tokenization is revolutionising how real-world assets are owned, transferred, and traded across the globe. By representing both physical and financial assets as digital tokens on secure distributed ledgers, tokenization is enhancing liquidity, reducing settlement times, and democratising access to investment opportunities.
Crowdfunding Professional Association (CfPA) Slams Republic’s “Mirror Token” Offerings
The CfPA states that while it supports investment access, it opposes Republic’s Mirror Tokens, as these “synthetic instruments diverge from the law’s core intent of directly funding small businesses and fostering community economic growth.” The CfPA outlines four areas of concern, including: Dual Layer Risk, Regulatory Misalignment, Dangerous Precedent, and Complexity, along with Investor Protection concerns.
SEC’s Peirce Says Market Will Sort Out Winners in Tokenization
Peirce noted it will remain critical that companies properly disclose the nature of the assets being tokenized. “It may be a security with different characteristics and that’s something that needs to be conveyed to investors,” she said. A tokenized security is a digital representation of a security — but not direct title to the asset itself — that can be traded on a blockchain network, rather than in a brokerage account.
Justin Sun Battles Bloomberg in Court Over Alleged Breach of Crypto Privacy
Tron founder Justin Sun has taken legal action in the United States against Bloomberg, seeking to prevent the media outlet from publishing what he describes as highly sensitive details about his cryptocurrency holdings. The lawsuit, filed in the U.S. District Court for the District of Delaware, centers on Sun’s claim that Bloomberg violated confidentiality promises and put his personal safety at risk.
The Fed Lightens Its Control Over Banks Active in Crypto
After several years of heightened caution, the US Federal Reserve changes course regarding the crypto activities of banks. The institution ends its specific monitoring program. It believes, indeed, that the risks linked to digital assets are now better understood and manageable within the traditional supervisory framework.
White House Crypto Boss Resigns — What’s Next for U.S. Digital Asset Policy?
Bo Hines, the executive director of the White House Crypto Council, has stepped down and will go back to the private sector. He described his time in the role as “the honor of a lifetime” and commended his collaboration with AI and Crypto Czar David Sacks.
The institutional embrace of digital assets is no longer a futuristic concept but a rapidly unfolding reality. As banks, asset managers, and market infrastructure providers explore everything from tokenized securities to central bank digital currencies (CBDCs), they face a significant and often conflicting set of operational and regulatory challenges.
S&P Dow Jones Indices (S&P DJI), the firm behind the S&P 500 and Dow Jones Industrial Average, is taking concrete steps toward launching tokenized versions of its benchmark indexes, signaling a major shift toward digital finance.