{"id":15942,"date":"2025-09-12T05:29:49","date_gmt":"2025-09-12T03:29:49","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=15942"},"modified":"2025-09-12T05:29:49","modified_gmt":"2025-09-12T03:29:49","slug":"crypto-chronicles-todays-market-movements-and-trends","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/09\/12\/crypto-chronicles-todays-market-movements-and-trends\/","title":{"rendered":"Crypto Chronicles: Today’s Market Movements and Trends"},"content":{"rendered":"

“`html
\n<\/p>\n

\n

Today in crypto, BlackRock is allegedly examining tokenized ETFs, Chinese authorities aim to limit crypto operations of state-owned enterprises in Hong Kong, and Goldman Sachs\u2019 CEO asserts that the Fed is improbable to lower rates by 50 basis points.<\/p>\n

BlackRock evaluates ETF tokenization as JPMorgan highlights industry evolution: Report<\/h2>\n

BlackRock, the globe’s foremost asset manager, is reportedly investigating methods to tokenize<\/a> exchange-traded funds (ETFs) utilizing blockchain technology, following the robust results of its spot Bitcoin ETFs.<\/p>\n

Citing insiders acquainted with the conversations, Bloomberg reported<\/a> Thursday that the firm is contemplating tokenizing funds tied to real-world assets (RWA). However, any such endeavor would need to overcome regulatory challenges.<\/p>\n

ETFs have emerged as one of the most preferred investment instruments \u2014 so prevalent that they now surpass publicly listed equities, as indicated by Morningstar<\/a>.<\/p>\n

Tokenizing ETFs could conceivably enable them to trade outside typical market hours and be utilized as collateral in decentralized finance (DeFi) platforms.<\/p>\n

BlackRock\u2019s fascination with tokenization is not recent. It currently administers the globe\u2019s largest tokenized money market fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL)<\/a>, which contains $2.2 billion in assets distributed across Ethereum, Avalanche, Aptos, Polygon, and other blockchains.<\/p>\n

JPMorgan has described<\/a> tokenization as a \u201cmajor advancement\u201d for the $7 trillion money market fund sector, highlighting the initiative started by Goldman Sachs and Bank of New York Mellon, which BlackRock will join at the outset.<\/p>\n

Under this initiative, BNY clients will gain access to money market funds with ownership of shares recorded directly on Goldman Sachs\u2019 private blockchain.<\/p>\n

Chinese businesses may encounter restrictions on stablecoin operations in Hong Kong: Report<\/h2>\n

Chinese tech giants, state-owned entities, and financial institutions functioning in Hong Kong may face limitations on stablecoin and crypto operations<\/a>.<\/p>\n

According to a Thursday report<\/a> from local news outlet Caixin, mainland Chinese firms functioning in Hong Kong<\/a> may be compelled to withdraw from cryptocurrency-associated activities. The Hong Kong branches of several state-owned firms and Chinese banks are also anticipated to refrain from competing for a Hong Kong stablecoin license.<\/p>\n

The information follows revelations that HSBC and the Industrial and Commercial Bank of China (ICBC), the largest bank globally by total assets, intend to seek stablecoin licenses in Hong Kong<\/a>. Hong Kong\u2019s fresh stablecoin regulatory framework commenced on Aug. 1 with a six-month transition phase<\/a>. Regulators noted that 77 institutions had shown interest in applying.<\/p>\n

According to Caixin, recent policy changes indicate that Chinese banks and other entities pursuing a Hong Kong stablecoin license will likely withdraw from the competition. An anonymous senior player in the financial sector reportedly informed the outlet that those entities may delay their stablecoin license applications.<\/p>\n

The report comes in the wake of another Caixin article suggesting that the Hong Kong Monetary Authority (HKMA) may relax capital requirements for banks managing crypto.<\/p>\n

According<\/a> to a Thursday Caixin article, the HKMA is reportedly contemplating easing capital guidelines for banks custodying crypto by reducing their capital expectations.<\/p>\n

Source: <\/em>Whale Insider<\/em><\/a><\/figcaption><\/figure>\n

Goldman Sachs CEO skeptical Fed will reduce by 50 basis points<\/h2>\n

Goldman Sachs CEO David Solomon stated on Wednesday that it\u2019s improbable the Federal Reserve will lower interest rates<\/a> by 50 basis points next week, only days after Standard Chartered Bank expressed its expectation for a more significant reduction owing to August\u2019s lackluster job report.<\/p>\n

\u201cWhether we see a 50 basis cut or not, I don\u2019t think that\u2019s likely,\u201d he shared with CNBC. \u201cI\u2019m quite certain we\u2019ll experience a 25 basis rate cut.\u201d<\/p>\n

His perspective aligns with\u00a0the general market sentiment, as CME FedWatch indicates that 92.2% foresee a smaller cut, while 7.8% anticipate a 0.5% cut at the Fed\u2019s upcoming Sept. 17 assembly.<\/p>\n

Solomon remarked he \u201ccould envision one or two additional cuts, dependent on how economic conditions evolve from this point forward.\u201d<\/p>\n

This month\u2019s Fed rate cut meeting holds significant importance not only for the broader market but also for crypto, as reduced interest rates enhance the appeal of riskier assets like crypto to investors.<\/p>\n