tZERO Newsletter 08.28.2025
The market for tokenized real-world assets (RWA) could expand to $16 trillion by 2030, according to the 2025 Skynet RWA Security Report. Skynet said major banks and asset managers are exploring tokenization as a way to digitize assets ranging from debt instruments to commodities. The report pointed to growing use cases in private credit, trade finance, and money market funds.
Straight from the Top: tZERO Executive Series
tZERO Insights
Fed Governor Michelle Bowman: US Must Embrace Tokenization and Stablecoins or Risk Falling Behind
Federal Reserve Governor Michelle Bowman is calling for the U.S. banking system to embrace blockchain, crypto, AI, and Web3 technologies, or risk falling into irrelevance. Speaking at the Wyoming Blockchain Symposium 2025, Bowman urged bankers and institutions to innovate and adopt new tech as the U.S. begins to implement pro-crypto and pro-innovation regulations for the digital asset sector.
Wyoming Debuts First U.S. State-Issued Stablecoin — Frontier Stable Token (FRNT)
Wyoming has officially launched the Frontier Stable Token (FRNT), the first stablecoin in the U.S. issued by a public entity. Fully backed by U.S. dollars and short-term treasury bills, with reserves legally required to exceed issuance by 2% (102% collateralization), FRNT is now live on seven major blockchains—combining government-level trust with blockchain efficiency.
Redollarization and Digital Statecraft: How Stablecoins Are Rewiring Global Power
When most people think of digital money, they picture Bitcoin or central bank digital currencies (CBDCs) like China’s digital yuan. But beneath the surface, a quieter revolution is underway—one that is reshaping global monetary power. At the center of this transformation is what Izabella Kaminska, founder of The Blind Spot, calls “redollarization”: the resurgence of US monetary dominance through the rise of stablecoins.
Federal Reserve Examines Tokenization, Smart Contracts, and AI for Payments
The Federal Reserve is actively researching how emerging technologies like tokenization, smart contracts, and artificial intelligence (AI) can reshape and modernize payment systems. Fed Governor Christopher Waller highlighted these advancements during his speech at the Wyoming Blockchain Symposium 2025. Waller emphasized the importance of understanding payment technology trends to support the growing overlap between traditional finance and digital assets.
Entering the Digital (Asset) Age: White House Report Recommends Changes to the Taxation of Digital Assets
The President’s Working Group on Digital Asset Markets recently issued a detailed report, titled “Strengthening American Leadership in Digital Financial Technology,” recommending regulatory and legislative proposals to advance the policies established in Executive Order 14178 (Jan. 23, 2025). The report identifies gaps in and recommends changes to current laws and regulations with respect to digital assets.
SkyBridge Capital to tokenize $300 million in hedge funds
The investment management company, founded by Anthony Scaramucci in 2005, will bring two funds onto the blockchain: the Digital Macro Master Fund Ltd and Legion Strategies Ltd. The tokenization will use the ERC-3643 standard, which enables institutional permissions on permissionless chains.
SEC Chair Paul Atkins said the Commission will soon launch the President’s Digital Assets Group as part of a new chapter in US crypto rules. Atkins announced this during his speech at the Wyoming Blockchain Symposium, where he shared his plan for “Project Crypto” and promised to stop using regulation by enforcement.
After providing a technical and economic overview of the digital asset ecosystem, including core blockchain technologies, major market participants, and common transactional activities such as trading, staking, custody, and tokenization, the Report sets out a functional taxonomy for digital assets, though not grounded in current statute, that is intended to guide future regulation of digital assets.