DTCC starts tokenizing stocks as 38 companies object to OKX and ICE's tokens, and Ripple gets its final OCC charter

On the podcast

Former CFTC chair Chris Giancarlo thinks the digital euro will be a surveillance tool. He has a warning for stablecoin fans too: "Stablecoins provide no better privacy protection than a Chinese-style or a European-style CBDC."

Also out: Jeff Booth on why the debt can't be repaid.

01 / MARKET STRUCTURE · PRO ANALYSIS

Wall Street tokenizes on its own terms

What's going on here?

On Wednesday DTCC switched on its tokenization service. Its depository holds $114 trillion of securities. It can now turn eligible holdings into tokens that keep the same ownership rights and investor protections, on Canton and DTCC's own private network. Twenty firms signed up, including JPMorgan, Citi, Morgan Stanley and Citadel Securities.

The same week, objections to OKXICE, the OKX and ICE venture for third-party stock tokens, reached 38. It hasn't started trading.

What does this mean?

Last week I wrote that companies would say yes to tokens issued inside the existing custody system. JPMorgan did exactly that: Tuesday's OKXICE notice listed it as an objector, while Wednesday's DTCC launch named it as a signed participant.

I think control explains the split. On OKXICE, someone else makes the token and picks the venue. At DTCC, the token sits on the same books as the share. Omid Malekan of Columbia calls DTCC's version "Tokens in Name Only", because they move only between approved wallets on private networks. He sees that as a weakness. For the banks that signed, it's the selling point.

Related Pro story: The SEC Took the Pen

The 51 Signal: who said no

We counted every company named in OKXICE's eight public notices.

02 / CUSTODY

Google wants banks to keep the keys

What's going on here?

On Wednesday Google previewed a crypto custody tool for banks. Google Multi-Party Compute uses signing-key shares generated and held separately, for example in Google Cloud and on the bank's own servers. In Google's example, two of three must sign. Google said that Alphabet already uses it for its own crypto. It's in private preview, with a commercial launch planned for early 2027. Private-key compromises accounted for 43.8% of crypto stolen in 2024, according to Chainalysis.

What does this mean?

The tech isn't new. Fireblocks, Dfns, Utila, Privy and others already sell this setup, often called wallet-as-a-service. The key is split into shares, nobody holds it whole, and set rules decide who can sign. What's new is the seller.

My read: banks want the custody fee without handing clients to a rival, and custody firms keep getting charters. Ripple bought custody software maker Metaco for $250 million in 2023 and got its trust bank this week. BitGo became a national trust bank last December. Google pitches itself as the neutral supplier: run custody yourself, on its tools.

NYU Stern's Austin Campbell put the stakes for crypto custody firms simply: "The bar may now be 'better than Google'."

Your Take

03 / BANKING

Ripple buys banks a reason to say yes

What's going on here?

On Monday Ripple's national trust bank got final OCC approval, 318 days after its conditional yes. It will manage the reserves behind RLUSD, Ripple's $2.6 billion stablecoin, and act as trustee for holders. BNY, which holds the reserves, now custodies RLUSD for clients and plans direct minting. Coinbase and Robinhood's chain now carry it. Galaxy applied for its own charter on Thursday.

What does this mean?

Ripple doesn't need a bank to issue a stablecoin. It needs one so other banks can say yes to it. A bank's risk team asks three things about any stablecoin. Who issues it? Who holds the cash? Who checks? RLUSD now answers each with a regulated name. In bank sales, that beats yield.

04 / PAYMENTS · PRO ANALYSIS

The card networks pitch the fix

What's going on here?

Visa said on Tuesday that its stablecoin settlement run rate passed $25 billion a year, 10 times the level a year earlier. In January it was $4.6 billion. On Thursday, Mastercard's CEO named the deposit risk in the quote above and pitched its new Global Money Platform. It lets banks and fintechs offer accounts that hold both dollars and stablecoins. "I have really no conversation with a bank CEO where this topic doesn't come up," he said.

Meanwhile, Robinhood's crypto revenue fell 55% to $120 million. PayPal's call never mentioned PYUSD. Asked about lower crypto take rates, its CFO pointed to Robinhood Earn, its stablecoin product, now above $500 million: "we monetize it less than the normal platform." Stablecoin balances keep customers but earn the platform less.

What does this mean?

Mastercard sells to banks. So it names the fear and sells the cure in the same breath. I think that's the smart play. A bank that offers both accounts has a shot at keeping the balance.

Related Pro story: Big banks talk down stablecoins, then co-own one

Quick Hits

• Clearing weighs tokens. The Bank of England opened a consultation on clearing houses taking tokenised collateral. It asks whether stablecoins and tokenised money funds could qualify.

• The Fed holds, two want more. The FOMC held at 3.75% to 4.00%. Cook and Hammack voted for a hike. Reserves still pay 3.90%.

• Lagarde leaves early. The ECB says Christine Lagarde will step down on February 7, 2027, about nine months before her term ends.

• Bessent wants the buyers. Stablecoins are "gonna be an important source of funding for the Treasury," the Treasury Secretary said at Ripple's Swell.

• BlackRock eyes the yen. BlackRock signed an MOU with SBI and Startale to explore pairing tokenized money funds with JPYSC, a yen stablecoin.

• Aviva tokenises its cash fund. Aviva Investors launched a tokenised share class of its £22 billion Sterling Liquidity Fund on the XRP Ledger, seeded with £50 million.

Money Moves

• Wealthsimple, up to C$425M. GIC led the round at a C$13.8 billion valuation, as the Canadian investing app takes on the big banks.

• PhotonPay, $40M Series C. Blockchain Capital led, with SBI joining. The Hong Kong firm links stablecoins to fiat rails for business payments.

• Predicate, $8M Series A. Blockchain Capital led again, with Paxos joining. Predicate writes compliance rules into the token itself.

Boardroom Reads

• Beware Bessent's tilt towards short-term debt. Gillian Tett, FT. Stablecoins are a growing buyer of T-bills. Tett asks what shorter US debt leaves exposed to rate shocks. Paywalled.

• Crypto blitzes midterms with $176 million to support allies as it prepares for post-Trump era. Dawn Kopecki, Reuters. How the industry is buying allies to keep its rule wins after the next administration. Free registration.

• Finance in the intelligence era. Simon Taylor, Fintech Brainfood. When agents hold the mandate and tokens hold the record, know your customer becomes know your agent.

• Issuers Object to OKX-ICE's Stock Tokenization Plans. Alex Thorn, Galaxy Research. Maps the three fights in tokenized stocks: issuer consent, DeFi rules and offshore venues.

• The roles of central banks and central bank money in the evolving payment system. CPMI, BIS. Who gets a central bank account. The Bank of England plans one for big stablecoin issuers.

On the Calendar

• October 30: Existing crypto firms in Brazil must apply for central bank authorization.

• November 2: Canton Strategic Holdings' issuer-backed tokens could start trading. Hong Kong FinTech Week opens.

• November 3: US midterm elections. Comments close on the SEC's transfer agent rules.

• November 4: Circle reports Q3. Treasury publishes its refunding plan.

• November 5: The Bank of England sets rates.

• November 12: The EBA starts supervising USDC for Circle's EU issuer.