Today in crypto, Goldman Sachs and BNY said they’ll allow institutions to access tokenized money market funds with 24/7 settlement and blockchain-based ownership tracking, the US Securities and Exchange Commission (SEC) approved then immediately paused Bitwise’s bid to convert to an exchange-traded fund (ETF), and the US Federal Bureau of Investigation (FBI) dropped its investigation into Kraken co-founder Jesse Powell.
Goldman Sachs, BNY to offer tokenized money market funds for clients
Wall Street giants Goldman Sachs and BNY are preparing to offer institutional investors access to tokenized money market funds, which could unlock real-time settlement, 24/7 market access and more efficiencies across capital markets.
Clients of BNY, the world’s largest custodian bank, will soon be able to invest in money market funds whose ownership is recorded directly on Goldman Sachs’ private blockchain, according to a Wednesday news release.
“As the financial system transitions toward a more digital, real-time architecture, BNY is committed to enabling scalable and secure solutions that shape the future of finance,” said Laide Majiyagbe, global head of liquidity, financing and collateral at BNY.
The initiative includes participation from industry heavyweights including BlackRock, Fidelity Investments and Federated Hermes, along with the asset management arms of Goldman and BNY, per the release.
The development comes on the heels of the newly signed GENIUS Act, which established a regulatory framework for stablecoins in the US. The bill, passed last week with more than 300 House votes, bans interest-bearing stablecoins.
SEC approves, instantly pauses Bitwise ETF conversion
The US Securities and Exchange Commission approved and then immediately paused the conversion of Bitwise’s crypto index fund into an exchange-traded fund on Tuesday, leaving it in limbo pending a review.
The SEC’s Division of Trading and Markets gave an “accelerated approval” for the Bitwise 10 Crypto Index to be converted to an ETF — but in a letter the same day, SEC assistant secretary Sherry Haywood said the order is stayed until the Commission orders otherwise,” and the SEC “will review the delegated action.”
The fund gives exposure to a basket of cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), and Bitwise applied for the conversion in November.
NovaDius Wealth Management president Nate Geraci said it was a “bizarre situation,” and noted it was similar to the Grayscale Digital Large Cap ETF conversion delay, which was approved on July 1 and then paused soon after.
Bloomberg ETF analyst Eric Balchunas said he thinks the SEC might be stalling until the agency comes up with a listing standard for crypto ETFs.
FBI ends probe of Kraken co-founder, returns confiscated devices — Report
The US Federal Bureau of Investigation (FBI) has reportedly ended its investigation of Kraken co-founder Jesse Powell and returned property belonging to him that was seized in a 2023 search of his home.
According to a Tuesday Fortune report, the FBI had returned devices to Powell and ended its probe over allegations he had hacked and cyberstalked the Verge Center for the Arts, a nonprofit he helped found in 2008.
The investigation, reportedly not connected to Powell’s association with Kraken, the cryptocurrency exchange he co-founded, or the crypto industry, resulted in the FBI searching his home and seizing electronic devices that could have contained digital assets.
Reports suggested that Powell had been under investigation by US authorities since 2022. The Kraken co-founder repeatedly denied involvement in the alleged activities and filed a civil suit against members of Verge’s board of directors.
