Welcome to the seventh letter from TheIntersection team. We hope you are enjoying this weekly letter. Our aim is simple: to decode and deconstruct the world of real-world asset tokenisation, stablecoins and DeFi for mainstream professional investors.
In this issue:
- News: $26bn barrier broken, focus on market infrastructure
- Data: An excellent primer on Ethereum and flows
- Analysis: Tokenising equities: Can Nasdaq fuse TradFi and DeFi?
- Opinion: Explosive RWA growth heralds a major shift in market structure
- Our weekly events round-up
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News in Brief
Tokenised assets surge past $26bn
The value of tokenised real-world assets has climbed to more than $26bn, nearly quadrupling from around $6.6bn a year ago, according to data cited by PYMNTS. Growth has been driven by rising institutional demand across multiple asset classes, with at least six segments -including private credit, U.S. Treasuries and commodities -each now exceeding $1bn in on-chain value. Why it matters: Tokenisation is moving beyond niche pilots into a broader set of financial products. Expansion across asset classes suggests institutions are increasingly using blockchain infrastructure for real-world assets -particularly in yield-bearing areas like credit and government debt.
Private credit emerges as the fastest-growing segment
Tokenised private credit has grown rapidly and now represents one of the largest segments of the RWA market, second only to Treasuries. The appeal lies in improved transparency, with on-chain structures giving investors real-time visibility into loan performance, repayments and covenant compliance. Why it matters: Private credit has historically been opaque and illiquid. Tokenisation could make it more transparent, accessible and easier to distribute - particularly for institutional investors seeking yield.
Tokenised Treasuries remain the anchor asset
Tokenised U.S. Treasuries have reached around $10.8bn as of late February, rising by more than $1bn since the start of 2026, according to RWA.xyz data cited by KuCoin. Why it matters: Treasuries are emerging as the core on-chain cash equivalent -combining yield, liquidity and collateral utility in a format institutions already understand.
Exchanges and post-trade infrastructure are catching up
The NYSE is exploring plans for 24/7 blockchain-based trading in tokenised equities, while infrastructure providers are increasingly focused on atomic settlement, automated compliance and seamless capital movement. Why it matters: The market is moving beyond issuance. The next phase is about liquidity, settlement efficiency and making tokenised assets tradable at an institutional scale.
Regulators are making tokenised products easier to structure
Recent legal and policy developments suggest tokenised mutual fund shares and similar products are entering the regulated product perimeter. Financial institutions are increasingly using existing securities frameworks to scale tokenised offerings. Why it matters: Clearer legal treatment lowers barriers for large asset managers, enabling tokenised bonds, funds and credit products to be issued within familiar regulatory structures.
Deep Dive
2026 is becoming the year of usable tokenised market infrastructure
The Top Line: The focus of tokenisation is shifting from asset creation to market functionality, with liquidity, settlement and embedded compliance emerging as the key priorities.
The Details
A recent industry note from ChainUp and 1exchange suggests tokenisation is finally moving beyond its proof-of-concept phase. The emphasis is no longer on how to issue tokens, but on how to make them behave like real financial instruments -tradable, liquid and operationally efficient. That shift brings new priorities. Infrastructure is being built around secondary market liquidity, automated compliance, continuous trading, and atomic settlement -where payment and asset transfer occur simultaneously on-chain. This removes the need for reconciliation and reduces reliance on delayed settlement cycles. These developments are already influencing institutional strategy. The NYSE is exploring 24/7 trading models for tokenised equities, while tokenised Treasuries are increasingly being used as a liquidity layer within on-chain finance. At the same time, market participants are working to integrate custody, clearing and execution into unified systems, rather than leaving tokenised assets fragmented across platforms. The broader shift is subtle but important: tokenisation is becoming less about innovation and more about infrastructure. The platforms that succeed are likely to be those that make regulated trading, settlement and collateral movement feel seamless -and ultimately routine.
Further reading
● ChainUp / 1exchange -Why 2026 Marks the Pivot for Real-World Asset Tokenization from Experimental Pilots to Active Global Markets
● KuCoin -Tokenized U.S. Treasuries Rise Over $1B Since 2026 Began
What is Ethereum?
We thoroughly recommend an excellent overview of the world of Ethereum published recently at Token Takeaway. The deep dive - Ethereum: On Track for Mass Adoption - is by Shehriyar Ali from ByteTree Research. according to Shehriyar, “Ethereum is a global, immutable blockchain network secured by a decentralised set of validators distributed worldwide. It functions as a programmable platform that enables developers to build decentralised applications and services without relying on central authorities. Today, Ethereum has over 389 million unique wallet addresses, with more than 1 million active addresses daily.”
Ethereum: Daily Active Addresses
Source: Etherscan.io
“The ecosystem now includes thousands of applications, billions in total value locked, a thriving stablecoin economy, and over 100 active Layer-2 (L2) networks. Importantly, Ethereum is handling this scale of activity far more efficiently than in previous cycles.”
Ethereum: Daily Transactions
Source: Etherscan.io
“As gas costs have declined, there has also been a noticeable increase in dust transactions. These are very small-value transfers made viable primarily because fees are now low enough to justify them. Although this type of activity does not represent deep or meaningful economic use, it was an anticipated side effect of expanded block capacity and lower transaction costs. According to Coin Metrics, from 3 December 2025, when Fusaka went live, through to late January 2026, dust transactions accounted on average for 11% of total transactions and 26% of active addresses on the Ethereum blockchain. While this may seem significant, dust transfers still account for only a fraction of the overall network activity and do not meaningfully distort the broader picture of usage.”
Ethereum: Average Transaction Fee
Source: Etherscan.io
“Despite record transaction counts, average transaction fees have remained relatively contained, something that would have been highly unlikely prior to the Ethereum 2.0 roadmap. The contrast highlights how materially Ethereum’s infrastructure has improved, even if price action has yet to reflect it.”
More HERE
By John Gray
Tokenising equities: Can Nasdaq fuse TradFi and DeFi?
Nasdaq has submitted a filing with the SEC to support the trading of tokenised securities. What does this mean for the future of DeFi?
Back in November 2022, Nasdaq.com ran an article titled ‘Decentralised Finance is the Future’. “Exciting times are ahead,” wrote the author, Merav Ozair. “In the foreseeable future, financial and economic services will run on Distributed Ledger Technology (DLT) – a decentralised database managed by multiple participants, with no central administrator.” Within 15 years, Ozair estimated, “DLT will be the ‘rails’ of all financial products and services.”[1] What’s more, “DeFi will play an integral and instrumental role in the evolution of the metaverse.” Ah, those heady, post-pandemic days, when the metaverse was the next big thing, and AI was still science fiction!
In any case, it is notable that Nasdaq was prepared, at a relatively early stage, to give airtime to the idea that DeFi might prove genuinely transformative. Of course, this early enthusiasm around DeFi’s potential was tempered by the major unwind that was already in the offing when Ozair’s article went live. High-profile failures — most notably the collapse of Terra’s algorithmic stablecoin and the bankruptcy of centralised intermediaries like FTX — triggered a sharp contraction in activity, liquidity and valuations. Total value locked fell by more than two-thirds from its peak.
But the reset was not purely destructive. Surviving protocols simplified token economics and prioritised security and transparency. By the end of 2023, DeFi had re-emerged smaller and more realistic about its limits. We could say that, post-reset, DeFi feels less utopian and more institutional. It is increasingly seen as a tool, or an infrastructural toolkit, more than a parallel financial system.
This is the context in which Nasdaq seems to at last be taking DeFi seriously – and not just by publishing editorials from aspiring thought leaders.
How does Nasdaq want to integrate DeFi?
In September last year, Nasdaq submitted a filing with the US Securities and Exchange Commission (SEC) seeking approval to support the trading of tokenised securities.
Under the proposed changes, member firms and investors would be able to trade tokenised versions of equities and exchange-traded products (ETPs) directly on the exchange’s markets. According to Chuck Mack, Nasdaq’s Senior Vice President of North American Markets, the goal “is to integrate digital assets into Nasdaq’s current infrastructure and systems, which will advance financial innovation while maintaining stability, fairness, and investor protection.”[2]
The filing sets out a streamlined model for trading tokenised securities within existing regulatory structures. A security listed on Nasdaq could be traded in either tokenised or conventional form, without altering the trading process itself.
This is key: unlike existing platforms, which create separate tokenised versions of stocks, Nasdaq’s proposal would let investors buy shares with either traditional or tokenised settlement. The tokenised shares would carry the same rights as ordinary shares.
At the point of order entry, participants would also choose whether the transaction is cleared and settled in tokenised or traditional form. Nasdaq would relay those instructions to the Depository Trust Corporation (DTC). Tokenised and non-tokenised shares would be fully fungible: they would trade under the same order entry and execution rules, and share the same CUSIP identification number. Thus, in effect, tokenisation would change the settlement mechanics rather than the security's legal or economic character.
Nasdaq is targeting a Q3 2026 launch, should approval be granted.
Why now?
In the words of Chuck Mack, “Blockchain technology can provide a number of potential efficiencies, including faster settlements, improved audit trails, and a more streamlined flow from order to trade to settlement. Additionally, once an equity asset is on a blockchain, it has the potential to be used in new ways.
“All of this potential means there’s excitement around this technology, and we’re hearing from the market that there is demand for a way to trade tokenised securities. We want to be a part of the solution, helping markets evolve to continue to meet investor needs and making sure it’s done right.”
In short, DeFi is at a tipping point. Customers are asking for it, and the technology has reached a point where Nasdaq judges there is no risk – reputational or otherwise – in integrating it. In fact, reading between the lines, the real risk is to not integrate DeFi in some way and end up becoming irrelevant.
What’s been the reaction?
The move has been called a watershed. If the SEC approves the proposal, it will mark the first time tokenised securities are listed on a major US exchange. It will also open broad access to retail investors and, in theory, offer greater legitimacy and regulatory assurance than smaller platforms can provide.
Still, there are a number of uncertainties. Straight out of the gate, it raises regulatory questions. How the SEC will approve the trading of tokenised equities and ETPs remains unclear, and Nasdaq must demonstrate it can maintain compliance with securities laws. State-level regulators could layer on additional scrutiny, complicating the legal landscape.
Market structure and risk is another concern. Decentralised trading could fragment liquidity, complicate price discovery, and introduce new vectors for manipulation. Settlement and clearing processes will need to function across both traditional and blockchain systems, with Nasdaq proving it can monitor and enforce trades effectively.
Technology and adoption risks are another issue. Smart contracts and DeFi protocols are vulnerable to cybersecurity threats, and even minor outages could disrupt trading. Institutional investors may be cautious, leaving retail-heavy markets exposed to volatility. Presumably, Nasdaq’s backrooms are abuzz with teams devising solutions for these and other issues. If the SEC is on board with the general idea, it will likely provide input on the specifics. Still, the path to fully integrating DeFi into Nasdaq’s markets will be messy and iterative. Progress will be closely watched by both regulators and investors.
Will other major exchanges follow suit?
They already are.
In February this year, the NYSE announced plans to launch a tokenised stock trading platform as early as Q2. Recent SEC guidance will allow tokenised versions of Russell 1000 stocks, major ETFs, and other issuers’ shares. The platform will operate 24/7 with instant settlement, keeping tokenised and traditional shares interchangeable to avoid market fragmentation. Trades will use the NYSE’s existing systems, while blockchain reporting adds transparency and reduces some risks associated with public blockchain trading. To support limited early liquidity, the exchange will offer both a standard order book and a request-for-quote functionality, allowing retail investors to interact with institutional liquidity providers.
The plans are broadly aligned: both Nasdaq and NYSE aim to let investors trade tokenised shares with full shareholder rights, 24/7 access, and regulated oversight. The main differences are technical nuances, like custody setups or matching engines, but the core idea — tokenised stocks as mainstream market infrastructure — is the same. NYSE’s announcement feels partly reactive: it can’t risk ceding the innovation narrative to Nasdaq, especially as both exchanges compete for tech-savvy retail and institutional investors. Other major exchanges are likewise taking steps towards tokenisation of equities. LSEG, for instance, in January launched its Digital Settlement House (DiSH), providing 24/7 settlement of tokenised commercial bank deposits across multiple currencies and networks. A lot will be riding on Nasdaq’s and NYSE’s forays into the tokenisation of equities.
If it goes well, it will represent a successful hybridisation, giving rise to an entirely new vision of what finance could look like. If it goes badly, it will be just another case of a legacy incumbent trying to remain relevant in a world which no longer needs it. DeFi is the future, but will Nasdaq be around to see it?
[1] https://www.nasdaq.com/articles/decentralized-finance-defi-is-the-future
[2] https://www.nasdaq.com/newsroom/qa-nasdaqs-new-proposal-tokenized-securities
Explosive RWA growth heralds a major shift in market structure
By Nic Puckrin, CEO and co-founder of Coin Bureau
Tokenised real-world assets have seen explosive growth so far this year. Total RWA assets have jumped 26% year-to-date to $26.78 billion, according to data from RWA.xyz. The most pronounced growth was in the tokenised commodities sector, where assets soared 62.5% YTD to $5.77 billion at the time of writing.
That’s a huge jump, at a time when the market cap of digital assets overall has plummeted. But it’s not just the growth that matters, it’s what this growth reveals about investor sentiment and capital flows. The total assets are still small by global market standards, but they herald a big structural shift.
RWAs are not just acting as a new investment wrapper, like ETFs. Rather, they are creating an entirely new liquidity layer for real assets. One that operates outside of traditional market hours, but is increasingly acting as the price discovery mechanism. For now, it’s mostly precious metals, but soon it could be equities, bonds, and more. We are only beginning to understand the full implications of this shift.
The new liquidity layer
Commodities have been the first proof of concept, with tokenised gold the most obvious initial use case for RWA tokenisation. The price of the shiny metal is up 17.7% YTD, and investors have been increasingly accessing it via blockchain-based products. The two largest – Tether Gold (XAUT) and Paxos Gold (PAXG) – have taken in the lion's share of the inflows this year.
But it’s not just the appetite for gold that’s interesting here; it’s the fact that tokenisation is facilitating the creation of a parallel market that runs 24/7. On weekends, amid geopolitical shocks and Friday night announcements, traders can now buy or sell gold during hours when traditional exchanges are closed. During volatile times, the on-chain gold market is becoming the primary market.
This is a sign of a much bigger shift toward the tokenisation of everything. And this has profound consequences for both the structure of the digital asset market and the underlying assets now increasingly traded on it.
The weekend gap
The clearest evidence for this new dynamic is what happens when traditional markets close. 24/7 trading exposes a weekend gap that leads to a bifurcation in underlying assets, particularly during high-volatility events. During weekend trading, tokenised gold absorbs the volatility of the underlying asset. Considering that a large proportion of major, market-moving announcements have been made late on a Friday during President Trump's administration, this weekend gap is particularly meaningful.
Take the current war in Iran, for example. When the first strikes hit, tokenised gold jumped to a premium on tokenised exchanges. PAXG rose 2.2% to $5,344/oz, while Tether Gold had climbed to $5,292/oz (+1.2%). Then, spot markets followed this move on Monday, with spot gold rising nearly 2% to reach $5,368-$5,390. Almost exactly where PAXG was trading over the weekend, in fact. There are other examples where the price overshot somewhat in on-chain gold markets over the weekend and reversed come Monday, but the trend is broadly the same.
Bifurcation of capital flows
And this reveals a very interesting dynamic: a market that has essentially split into two. The spot market, where the normal weekday trading happens, and the on-chain market, which essentially acts as a price discovery mechanism that sets traders up for the Monday morning move. The on-chain market is no longer following spot. In the moments that matter most, it is leading it.
Investors – and increasingly, these are institutional investors – are turning to on-chain markets when their traditional intermediaries are unavailable. It’s a workaround to avoid the constraints of traditional trading hours. When a war starts on a Saturday night, the most efficient way to access investment markets is the one that wins. And news flow hasn’t exactly been following office hours of late.
That’s a major liquidity shift. For the first time in decades, traditional financial assets like equities, bonds and derivatives are no longer the most accessible or the most tradeable. A tokenised gold position is, in fact, more liquid at 11pm on a Saturday than a listed equity. This throws the volatility and risk profiles based on traditional Monday-Friday patterns out of the window, and it will continue changing as more and more asset classes become tokenised.
Volatility, correlations and the equity market
It's fascinating on its own, but it's particularly interesting because discussions around 24/7 equity trading have intensified of late. Not long ago, Nasdaq announced plans to partner with Kraken, a leading digital asset exchange, for 24/7 trading. It's been on the cards for a while, and for a while, the pros and cons have been debated. Now, it's starting to feel a lot more real.
The gold example is instructive here too. If traders can react to Friday night earnings or a Saturday piece of news immediately, the Monday morning shock disappears. But the price move doesn't. And if liquidity is low because fewer people are trading on the weekend, this could create short-term price shocks in equities that we have seen in the crypto market on the back of major news. Retail investors trading on weekends could feel this particularly acutely.
But there is also a flip side. If equity markets go 24/7, some of the speculative energy that currently flows into crypto and tokenised assets during off-hours may migrate back into stocks. The volatility that tokenised gold currently absorbs on a Saturday night might, in a world of 24/7 equities, be distributed differently across asset classes. It certainly fundamentally changes the models that professional investors have relied on for decades.
The impact this will eventually have is genuinely hard to predict. But it’s clear the market is reshaping itself entirely with the advent of tokenised securities. Investors would do well to start with a simple question: how many of their risk models were built on price histories that only capture Monday to Friday? Because the market that generated those numbers no longer exists.
The author holds positions in digital assets. This article is for informational purposes only and does not constitute investment advice.
About Nic Puckrin: Nic Puckrin is CEO and co-founder of Coin Bureau. Nic Puckrin is a former Goldman Sachs quantitative analyst and Imperial College Financial Engineering graduate who has spent over a decade analysing macro drivers and institutional capital flows in digital asset markets. He is co-founder and CEO of Coin Bureau, a research-led digital asset analysis platform.
Events on our Radar
Digital Assets Forum Abu Dhabi launches on 13 May 2026, bringing together banks, asset managers, regulators, and digital asset leaders to discuss tokenisation, market infrastructure, and institutional adoption across the Middle East and global capital markets - tickets HERE
Bitcoin 2026 – Las Vegas, 27-29 April - premier Bitcoin ecosystem event – tickets HERE
DigiAssets Connect Zurich, 16-17 June - Custody, banking, and institutional infrastructure – tickets HERE
