Plume Builds Regulatory-Compliant Bridge Between DeFi and Traditional Finance

Plume Network, a modular Layer 2 blockchain focused on real-world assets (RWAs), has secured registration as a transfer agent with the U.S. Securities and Exchange Commission (SEC), marking a pivotal step in integrating blockchain technology with traditional securities marketsPlume Network Registered by SEC as Transfer Agent for^[1]. The registration enables Plume to manage shareholder records, process on-chain securities transfers, and facilitate real-time reporting to the SEC and the Depository Trust & Clearing Corporation (DTCC), a critical component of U.S. market infrastructurePlume Network Gains SEC Approval As Transfer Agent For RWAs^[2]. This development positions Plume at the forefront of tokenized securities, aligning blockchain efficiency with regulatory compliance.

The approval has already driven significant market activity, with Plume's native token, PLUME, surging 31% following the announcementEnchanting, but Not Magical: A Statement on the Tokenization of …^[4]. The token's price rose from $0.1022 to $0.1342 before stabilizing at $0.12, reflecting investor confidence in the platform's regulatory milestones and its potential to streamline capital marketsEnchanting, but Not Magical: A Statement on the Tokenization of …^[4]. Plume's on-chain transfer agent protocol automates processes traditionally managed by off-chain institutions, reducing tokenization timelines from months to weeks through smart-contract automationPlume Network Registered by SEC as Transfer Agent for^[1]. This innovation supports use cases such as on-chain IPOs, small-cap fundraising, and registered funds, addressing inefficiencies in traditional capital formation.

Plume's infrastructure is designed to serve institutional-grade applications, including partnerships with 40 Act funds-publicly offered investment vehicles such as mutual funds and unit investment trusts that manage over $39 trillion in assetsPlume Network Gains SEC Approval As Transfer Agent For RWAs^[2]. The company has already attracted interest from SEC-registered investment funds, though regulatory hurdles like asset custody remain challengesPlume Network Registered by SEC as Transfer Agent for^[1]. Plume anticipates these barriers will diminish as the SEC proposes new rules in 2026 and finalizes them by 2027Plume Network Registered by SEC as Transfer Agent for^[1]. The firm plans to launch its initial product suite, including Nest protocol vaults, in Q1 2026, allowing users to earn yield from real-world assets through permissionless staking mechanismsPlume Network Registered by SEC as Transfer Agent for^[1].

The SEC's recent openness to tokenization projects has created a favorable environment for such innovations. Commissioner Hester Peirce emphasized the regulator's willingness to engage with issuers, stating that blockchain technology does not alter the legal nature of securities but can enhance operational efficiency. Plume's registration aligns with broader regulatory efforts to harmonize digital asset oversight, including a joint SEC-CFTC roundtable in September 2025 aimed at reducing fragmented regulation and promoting innovationEnchanting, but Not Magical: A Statement on the Tokenization of …^[4]. The CFTC also announced initiatives to enable tokenized collateral in derivatives markets, signaling growing institutional acceptance of blockchain-based infrastructureEnchanting, but Not Magical: A Statement on the Tokenization of …^[4].

Plume's move reflects a strategic alignment with market trends toward tokenized securities. The firm has onboarded over 200,000 RWA holders and $62 million in tokenized assets via its NestCredit protocolPlume Network Gains SEC Approval As Transfer Agent For RWAs^[2]. CEO Chris Yin highlighted the platform's role in bridging decentralized finance (DeFi) and traditional finance (TradFi), stating, "By bringing this process fully onchain, we're building a direct bridge between issuers, investors, and regulators"Plume Network Gains SEC Approval As Transfer Agent For RWAs^[2]. The company is also pursuing Alternative Trading System (ATS) and broker-dealer licenses to expand its compliant capital market infrastructurePlume Network Registered by SEC as Transfer Agent for^[1].

The tokenized securities market, currently valued at $31 billion, is projected to grow to $2 trillion by 2030, driven by institutional adoption and regulatory clarity. Plume's SEC registration and focus on 40 Act funds underscore its potential to accelerate this transition. As the firm advances its product roadmap, it faces the dual challenge of scaling liquidity while ensuring equal rights for tokenized security holders compared to traditional shareholders. The success of projects like Republic's tokenization of Animoca Brands equity on Solana highlights the growing convergence of blockchain and regulated markets.

Plume's regulatory compliance and technological capabilities position it as a key player in the evolving tokenized securities landscape. With immediate infrastructure operational and product launches slated for 2026, the firm aims to redefine the issuance and management of digital assets while adhering to U.S. securities laws. As Commissioner Peirce noted, blockchain's "enchanting" possibilities must be balanced with adherence to legal frameworks-a principle Plume's registration exemplifies.