Crypto and TradFi Converge on Stablecoins, Tokenized Assets

The line between crypto companies and traditional finance is blurring. Binance is buying a $100 million stake in Circle, Canada’s six largest banks are exploring tokenized deposits and the New York Stock Exchange is working with Blockchain.com to bring US stocks and ETFs onchain.

Crypto companies want a bigger role in payments and traditional assets, while banks and exchanges are bringing those markets onchain without giving up their place at the center of the financial system.

This week’s Crypto Biz highlights how stablecoins and tokenized assets put crypto companies and traditional finance on increasingly overlapping turf, with both sides vying for control over how money and assets move.

Binance bets $100 million on Circle in expanded USDC deal

Binance is deepening its ties to Circle with a $100 million investment in the stablecoin issuer and a five-year agreement to expand USDC adoption across the exchange.

According to a Tuesday filing with the US Securities and Exchange Commission, Circle issued Binance 1,237,011 shares of Class A common stock at $80.84 apiece in a Sept. 17 private placement. The purchase price was below Circle’s market price before the deal closed. CRCL shares rose following the announcement.

The investment comes with a broader commercial agreement around USDC. Circle will pay Binance a monthly incentive fee based on the amount of USDC held through the exchange’s Modular Smart Contract Wallet infrastructure.

Binance is restricted from selling, transferring, pledging or otherwise disposing of the Circle shares for up to two years, although the lockup can end earlier under certain termination provisions. Binance retains voting rights on the shares during that period.

Canada’s biggest banks test tokenized deposits

Canada’s six largest banks are jointly exploring tokenized Canadian dollar deposits, a potential new payment rail that would allow digital representations of bank deposits to move between financial institutions.

The initiative brings together Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank Group. The first phase will focus on transfers between participating banks, with the system potentially connecting to other digital asset networks later.

The project comes after Canada’s Office of the Superintendent of Financial Institutions clarified on Sept. 10 that tokenized deposits are “not legally distinct from traditional deposits,” meaning the use of blockchain or other technology does not change their underlying legal treatment.

Unlike fiat-backed stablecoins, tokenized deposits remain liabilities of the banks that issue them. The participating banks say the model could enable faster, programmable payments, with other deposit-taking institutions potentially joining in the future.

The distinction is particularly relevant as Canada develops its stablecoin rules. The country’s framework applies to non-financial institution issuers, while regulated banks and credit unions fall outside its scope. 

Stablecoin payments surge as crypto market shrinks

Cross-border stablecoin flows surged nearly 78% to $220.3 billion in the year through June, even as the broader crypto market lost more than a third of its value.

According to Chainalysis, cross-border stablecoin flows increased 77.5% while total crypto market capitalization fell 37% to $2.1 trillion. The analytics firm identified 4,708 new cross-border corridors carrying $2.64 billion, although the largest corridors still accounted for 96.1% of total value.

Chainalysis said much of the growth came from transfers averaging about $3,000, a pattern more consistent with trade, remittances and savings than speculative activity. Tether economist Philip Gradwell described the activity as having a “steady rhythm” typical of business use, while StraitsX CEO Tianwei Liu pointed to demand for dollar access, inflation protection and ways around capital controls outside Asia.

Stablecoin adoption has also coincided with greater regulatory clarity. The US enacted the GENIUS Act in July 2025, while the European Union’s MiCA framework and Hong Kong’s licensing regime have brought stablecoins under more formal oversight.

NYSE, Blockchain.com team up on tokenized US stocks

Blockchain.com and the New York Stock Exchange are teaming up to bring tokenized US stocks and exchange-traded funds to crypto users through a planned alternative trading system.

The companies signed a memorandum of understanding covering the new digital ATS, which remains subject to regulatory approval. The agreement also includes a market-data partnership between Blockchain.com and NYSE parent Intercontinental Exchange’s ICE Data Services.

TD Securities’ Reid Noch described the partnership as a bid for retail trading activity, particularly as tokenized markets open the door to 24-hour and weekend trading. Talos’ Tanay Ved said crypto venues are increasingly evolving into multi-asset platforms.

Demand is also growing. The value of tokenized stocks has reached $3.14 billion, while the number of holders has climbed 72% to 3.87 million, according to RWA.xyz.

The partnership follows the US Securities and Exchange Commission’s introduction of a five-year Innovation Exemption for certain tokenized securities venues. Eligible tokenized stocks must represent actual shares carrying the same economic and governance rights as their traditional counterparts.

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