"Federal Reserve Seeks Answers as Tokenization Reshapes Finance’s Future"

The U.S. Federal Reserve has announced a conference on payments innovation, focusing on topics including decentralized finance (DeFi), stablecoins, and the tokenization of financial products. Scheduled for October 21, the event will bring together industry leaders, policymakers, and technology experts to explore ways to improve the safety, efficiency, and innovation of the payments system [1]. Federal Reserve Governor Christopher Waller emphasized the importance of examining opportunities and challenges in emerging technologies, stating the conference aims to gather diverse perspectives on advancing the future of payments [3].

The conference will cover a range of critical areas such as the convergence of traditional and decentralized finance, emerging stablecoin use cases, and the role of artificial intelligence in modern payment systems. Tokenization of financial products and services will also be a central theme, reflecting the increasing interest from financial institutions and regulators in leveraging blockchain technology for asset representation and trading [1]. The event aligns with a broader trend of heightened Wall Street interest in tokenization, spurred by the recent passage of key stablecoin legislation and the onchain value of tokenized real-world assets reaching a record high of $27.8 billion [1].

The growing onchain value of tokenized real-world assets (RWAs) has surged 223% since the beginning of the year, driven largely by tokenized private credit and U.S. Treasury debt. Ethereum remains the dominant blockchain platform for asset tokenization, holding a 56% market share in the space. When including layer-2 networks, Ethereum’s dominance rises to over 77% [1]. This momentum is further supported by partnerships such as Chainlink’s collaboration with Ondo Finance, which launched a platform offering tokenized U.S. stocks and exchange-traded funds, described as a step toward "Wall Street 2.0" [1].

The Federal Reserve’s decision to focus on tokenization and DeFi reflects an evolving regulatory landscape. While the Fed has not been formally involved in recent digital asset policy developments—having been excluded from the President’s Working Group on Digital Asset Markets—it has played a consultative role in shaping the broader digital asset regulatory environment. The agency’s limited but advisory role is also evident in its involvement with the GENIUS Act for stablecoins [2]. This October conference is expected to provide further clarity on the Fed’s stance toward the integration of new technologies into the U.S. financial infrastructure.

The conference will be open to the public via livestream on the Federal Reserve’s website, with additional details to be released in the coming weeks. It marks a continuation of the Fed’s efforts to engage with emerging technologies and maintain a forward-looking approach to the evolving payments landscape. As the financial sector increasingly embraces tokenization and decentralized models, the event underscores the central bank’s commitment to fostering innovation while ensuring stability and security in the financial system [3].

Source:

[1] Fed Announces Tokenization Conference As RWA (https://cointelegraph.com/news/fed-prepares-conference-discuss-tokenization-amid-big-week-rwa)

[2] Fed plans payments innovation conference, incl stablecoins (https://www.ledgerinsights.com/fed-plans-payments-innovation-conference-incl-stablecoins/)

[3] Press Releases (https://www.federalreserve.gov/newsevents/pressreleases/other20250903a.htm)