The Global Adoption Of Crypto Infrastructure

Recent headlines have focused on deploying traditional capital in the US, however, the adoption of crypto infrastructure is largely a global phenomenon - We review the adoption of blockchain technology beyond the US in this AM's note South Korea's principal financial regulator has laid out proposals to tokenize 'all types' of securities:Today, the Financial Services Commission (FSC) published a three-stage plan following the third meeting of a consultative body on tokenized securities. The first stage begins when the securities token law takes effect on February 4, 2027, covering private money-market funds and private corporate bonds for institutional investors, with unlisted equities tokenized via trust structures. The second stage would extend the infrastructure to publicly offered securities, while the third would establish on-chain settlement allowing investors to settle tokenized securities with stablecoins. Existing brokerages could handle tokenized securities without additional licensing, though retail investors on OTC venues face an annual net-purchase cap of KRW 100M (~USD 74,000) per platform. The London Stock Exchange has laid out plans to list tokenized equities on its 24-hour trading venue:AnnouncedTuesday, the exchange will partner with Payward, owner of Kraken, to launch digital representations of UK stocks on LSE 24 from next year. The tokens, branded 'xStocks,' are backed one-to-one by listed equities and are slated to begin trading in 2027, subject to regulatory clearance. The LSE framed the move as broadening access to capital markets and easing the movement of assets between market segments, and it comes as the exchange contends with declining public listings. LSE 24,announcedin July, runs 24 hours a day, five days a week and is scheduled for testing at the end of 2026. 'Government, central bank to launch framework for next-gen payment infrastructure:'According toreportingfrom Nikkei, the Financial Services Agency, Ministry of Finance, Bank of Japan and financial institutions will convene a study group, with a development plan expected around the start of 2027 at the earliest. The initial objective is instantaneous, round-the-clock settlement of equities and Japanese government bonds using blockchain infrastructure. Under the arrangement, a portion of the current accounts banks hold at the BOJ would be converted into tokens. According to Nikkei, operations could begin within a few years, with the system potentially live in the early 2030s. The adoption of crypto infrastructure has not been limited to developed markets:Speaking to Bloomberg in January about Tether's gold strategy, CEO Paolo Ardoinosuggestedthe firm expects sovereign issuers to bring tokenized gold products to market in time. There have been early examples of this dynamic: Bhutan and Kyrgyzstan have launched government-backed tokenized gold products. According to itswebsite, Bhutan's TER token is backed by 115 kg of gold, worth ~USD 16M, increasing by 34 kg since April. Kyrgyzstan's USDKG token is backed by USD 54.8M worth of gold, according to itswebsite. Subscribe now CRYPTO HEADLINES According to the IMF, El Salvador did not use public funds for BTC accumulation, instead relying on ' private donations' since June 2025.In a statement related to a review of El Salvador's 'Extended Fund Facility Arrangement,' the IMF also explains that '[g]oing forward, no further Bitcoin accumulation beyond the documented donations is expected.' The IMF also notes that 'understandings were also reached on steps to modernize the legal, regulatory, and supervisory framework for digital assets and to further strengthen the governance and risk-management arrangements for public-sector crypto-asset holdings.' -link- @IMF AMC Entertainment (NYSE:AMC) CEO Adam Aron criticized Robinhood (NASDAQ:HOOD) for tokenizing US stocks including AMC's, calling the practice outrageous and questioning its legality.Aron said AMC has no connection to the tokens, which are not registered under federal securities laws, and will have outside counsel review the matter. Robinhood CEO Vlad Tenev replied: 'What's the concern?' -link- @CEOAdam South Korea's Financial Services Commission outlined a phased roadmap to tokenize traditional securities including stocks, bonds, and funds, starting February 2027. The first phase covers institutional money market funds, bonds, unlisted stocks, and fractional investment securities. Later phases extend to all publicly offered securities and onchain stablecoin settlement. Proposals to revise subsidiary legislation are planned by end-September. -link- @CoinDesk Coinbase (NASDAQ:COIN) filed a notice registration form with the SEC this week seeking approval to list 24/7 equity perpetuals, Chief Policy Officer Faryar Shirzad said Thursday.The company would also need CFTC sign-off. Coinbase launched equity perpetual futures for non-US users in March, covering stocks including Apple, Microsoft, NVIDIA, and Amazon. -link- @TheBlock OpenReserve, backed by Andreessen Horowitz, received preliminary conditional OCC approval for a de novo national bank charter.The proposed full-service bank must raise at least USD 210M in initial paid-in capital and maintain a 12% Tier 1 leverage ratio for three years. Plans include tokenized deposits, digital asset custody, and a stablecoin-issuing subsidiary. -link- @TheBlock New Jersey filed a writ of certiorari asking the US Supreme Court to rule on whether Dodd-Frank preempts state regulation of sports bets on CFTC-registered prediction markets.The Tuesday petition follows conflicting appeals court rulings: the Third Circuit sided with Kalshi against New Jersey in April, while the Ninth Circuit upheld Nevada's authority last week. -link- @CoinDesk Hardware wallet producer Trezor said an additional 67,000 US customers were affected by a data breach at its shipping provider ShipMonk, up from an initial estimate of 14,000.Customers who ordered between November 2019 and August 2021 had names, emails, numbers, addresses, and order details exposed. Trezor systems were not compromised, but the data enables phishing attacks targeting seed phrases. -link- @Cointelegraph TOP ARTICLES Bloomberg:Stablecoins Raise Debasement Trade Paradox in Latin America WSJ:Bitcoin Retakes $80,000 as Bond Yields Retreat OPEN-SOURCE RESEARCH / LONG-READ OF THE DAY A memecoin making app becomes crypto's top fee generators as Robinhood Chain activity explodes, CoinDesk, September 3, 2026 CoinDesk reviews memecoin trading activity on Robinhood Chain. CRYPTO MULTIMEDIA Inside Ethena's new neobank built exclusively on AVAX, The Block, September 3, 2026 Guy Young, Founder of Ethena and John Nahas, CBO at Avalanche Foundation, discuss discuss a new 'neobank' built on top of Avalanche. CHART OF THE DAY Cumulative flows into US BTC ETFs stand at USD 55.44B after USD 730M in net inflows yesterday, the best daily result since January. FRNT is a digital asset investment bank offering capital markets and advisory services to institutional investors participating in or entering the space. The Company aims to bridge the worlds of traditional and web-based finances with a technology forward and compliant operation. Business lines include deliverable trading services, structured derivative products, merchant banking, advisory, consulting, lending origination and principal investments. Headquartered in Toronto, FRNT was co-founded in 2018 by CEO Stéphane Ouellette.