Stablecoins and tokenized assets are pulling banks, exchanges and crypto companies into the same markets, from payments to stocks and exchange-traded funds, as the boundary between digital-asset firms and traditional finance keeps fading.
In this week’s Crypto Biz, Cointelegraph outlined a series of moves showing that overlap in real time: Binance is taking a $100 million stake in Circle, Canada’s six largest banks are exploring tokenized deposits, and the New York Stock Exchange is working with Blockchain.com on plans to bring US stocks and ETFs onchain. Crypto firms are pushing for a larger role in payments and traditional assets, while banks and exchange operators are moving those markets onto blockchain rails without stepping away from the center of the financial system.
Binance expands its Circle ties with a $100 million investment
Binance is deepening its relationship with Circle through a $100 million investment in the stablecoin issuer and a five-year agreement aimed at expanding USDC adoption across the exchange.
According to a Tuesday filing with the US Securities and Exchange Commission, Circle issued Binance 1,237,011 shares of Class A common stock at $80.84 each in a private placement dated Sept. 17. The purchase price was below Circle’s market price before the transaction closed. Shares of CRCL moved higher after the announcement.
The deal also includes a broader commercial arrangement around USDC. Circle will pay Binance a monthly incentive fee based on the amount of USDC held through Binance’s Modular Smart Contract Wallet infrastructure.
Binance is barred from selling, transferring, pledging or otherwise disposing of the Circle shares for as long as two years, though the lockup can end earlier under certain termination provisions. During that period, Binance keeps the voting rights attached to the shares.
Canada’s six largest banks are testing tokenized deposits
Canada’s biggest banks are jointly exploring tokenized Canadian dollar deposits, a possible new payment rail that would allow digital representations of bank deposits to move between financial institutions.
The group includes Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank Group. The first phase of the project will focus on transfers between participating banks, and the system could later connect with other digital asset networks.
The effort follows guidance issued on Sept. 10 by Canada’s Office of the Superintendent of Financial Institutions, which said tokenized deposits are “not legally distinct from traditional deposits.” In other words, the use of blockchain or other technology does not change their underlying legal treatment.
Unlike fiat-backed stablecoins, tokenized deposits remain liabilities of the banks that issue them. The participating banks said the model could support faster, programmable payments, and other deposit-taking institutions may be able to join later.
The distinction matters as Canada develops its stablecoin rules. The country’s framework applies to issuers that are not financial institutions, while regulated banks and credit unions sit outside that scope.
Stablecoin payment activity rises even as the broader crypto market contracts
Cross-border stablecoin flows jumped in the year through June even as the wider crypto market lost more than a third of its value. Chainalysis said those flows rose 77.5% to $220.3 billion, while total crypto market capitalization fell 37% to $2.1 trillion.
The analytics firm identified 4,708 new cross-border corridors carrying $2.64 billion in value, though the largest corridors still represented 96.1% of the total.
Chainalysis said much of the growth came from transfers averaging about $3,000, a pattern that looks more like trade, remittances and savings than speculation. Tether economist Philip Gradwell described the activity as having a “steady rhythm” typical of business use. StraitsX CEO Tianwei Liu pointed to demand outside Asia for access to dollars, inflation protection and ways around capital controls.
Stablecoin adoption has also risen alongside clearer regulation. The United States enacted the GENIUS Act in July 2025, while the European Union’s MiCA framework and Hong Kong’s licensing regime have brought stablecoins under more formal oversight.
NYSE and Blockchain.com move toward tokenized US stocks and ETFs
Blockchain.com and the New York Stock Exchange are working together to bring tokenized US stocks and ETFs to crypto users through a planned alternative trading system.
The companies signed a memorandum of understanding covering the proposed digital ATS, which still requires regulatory approval. The agreement also includes a market-data partnership between Blockchain.com and ICE Data Services, part of Intercontinental Exchange, the NYSE’s parent company.
TD Securities’ Reid Noch said the partnership is aimed at retail trading activity, especially as tokenized markets create room for 24-hour and weekend trading. Talos’ Tanay Ved said crypto venues are increasingly turning into multi-asset platforms.
Demand is rising as well. According to RWA.xyz, the value of tokenized stocks has reached $3.14 billion, and the number of holders has climbed 72% to 3.87 million.
The partnership comes after the US Securities and Exchange Commission introduced a five-year Innovation Exemption for certain tokenized securities venues. To qualify, tokenized stocks must represent actual shares and carry the same economic and governance rights as their traditional counterparts.