Dune Analytics has recently indicated that key developments now appear to signal a deepening integration between traditional finance (TradFi) and cryptocurrency, as regulated institutions adopt blockchain technology for settlement, stablecoins, tokenization, and derivatives. This evolution blurs longstanding boundaries, aiming for greater efficiency while raising questions about responsible innovation and competition.
A key step came on May 29, 2026, when the SEC granted Paxos Securities Settlement Company registration as a central securities depository—the first for a blockchain-native firm under Section 17A.
Paxos, a stablecoin issuer with products like PYUSD (issued for PayPal) and gold-backed PAXG, has operated live equity clearing since 2020.
This approval enables atomic delivery-versus-payment on-chain, potentially slashing settlement times, capital requirements, and risks compared to legacy systems.
It positions Paxos as a full-stack provider for institutional tokenization of equities, bonds, and real-world assets (RWAs).
Further accelerating tokenization, the Depository Trust and Clearing Corporation (DTCC) announced plans to bring custodied assets onto the Stellar blockchain, with availability targeted for the first half of 2027.
This follows a 2025 SEC no-action letter and aligns with DTCC’s multi-chain approach. Initial focus includes Russell 1000 equities, major ETFs, and U.S. Treasuries.
Given DTCC‘s handling of quadrillions in transactions and trillions in assets, even modest adoption could vastly expand the current ~$27 billion tokenized RWA market.
Stellar currently supports diverse RWAs, from money market funds to sovereign bonds.
On the stablecoin adoption front, fintech SoFi introduced SoFiUSD (SOFID) directly in its app for 14.7 million users, marking the first offering from a U.S. national bank.
Issued under OCC oversight and backed by bank-held assets (though not FDIC-insured for the token), it supports buying, selling, and redemption.
While on-chain supply remains modest (~$100 million primarily on Ethereum), the move prioritizes customer retention over broad market competition.
Analysts anticipate more banks issuing stablecoins to keep payments in-house rather than ceding ground to dominant players like USDC and USDT.
Tether’s U.S.-focused USAT stablecoin, launched via compliant Anchorage Digital, has surged 5x to $157 million, reflecting regulatory tailoring. Issued under the emerging GENIUS Act framework, it targets institutional use with broad but concentrated holdings.
This contrasts with Tether’s offshore USDT dominance (~$130 billion), illustrating jurisdictional segmentation in response to rules like MiCA in Europe.
In derivatives, the CFTC approved Kalshi’s BTCPERP—the first regulated U.S. Bitcoin perpetual futures—while CME expanded 24/7 trading for crypto products.
This brings weekend hedging and tighter spot-futures alignment to institutions, aiming to repatriate activity from offshore venues.
On-chain platforms like Hyperliquid still lead in perpetual open interest, but regulated entrants now match key features with added compliance appeal.
These milestones highlight TradFi’s adoption of blockchain tech for many of the so-called core functions, enabling considerable efficiency gains in settlement and access.
Tokenized RWAs exceed $27 billion but remain segmented, with limited DeFi composability so far. As incumbents scale on-chain, crypto-native platforms must innovate to retain their edge. Dune Analytics acknowledged that the overall result may not be full merger but rather a kind of hybrid market where regulation and technology converge, potentially transforming digital finance.