Programmable Finance Rises: Tokenization Bridges Traditional Finance and Decentralized Finance

The process of integrating traditional financial assets with blockchain technology is gaining momentum, as leading organizations from both industries collaborate to connect established markets with decentralized finance (DeFi). Recent advancements demonstrate a rising movement toward asset tokenization and interoperability across blockchains, as institutions aim to leverage blockchain’s speed and programmability while adhering to regulatory standards.

Mantle, a high-throughput blockchain platform focused on real-world assets (RWAs), has teamed up with Bybit and Backed to

, making it possible to trade shares such as (NVDAx), (AAPLx), and MicroStrategy (MSTRx) on blockchain networks at any time. This partnership enables users to move tokenized stocks smoothly between Bybit’s platform and Mantle’s blockchain, effectively linking centralized exchanges (CEX) with DeFi protocols. The project of tokenized assets as essential components for blockchain-based capital markets, where programmable financial tools can automate strategies and boost liquidity.

At the same time,

and NPEX, a regulated stock exchange in the Netherlands, are and data protocols to bring European securities onto blockchain platforms. By implementing Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and DataLink, these organizations are creating secure systems for cross-chain settlements and real-time market data sharing. This development for tokenized stocks, enabling assets issued under European regulations to be accessed or settled within DeFi across various blockchain networks.

In the realm of stablecoins, BNY Mellon has introduced the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a money market fund created to hold reserves for U.S. stablecoin issuers in line with the recently passed GENIUS Act

. The fund invests in short-term U.S. Treasury securities and cash, offering a regulated solution for stablecoin reserves that complies with federal asset-backing requirements. , made the fund’s first investment, demonstrating institutional trust in the expanding stablecoin sector. With the stablecoin market now surpassing $305 billion, BNY’s initiative to upgrade traditional financial systems using blockchain technology.

Together, these efforts signal a transition toward tokenized financial markets, where real-world assets are made programmable and can interact across different blockchains. Mantle’s CEO stated that tokenized stocks are “transforming the relationship between traditional markets and blockchain,” while Chainlink’s CBO remarked that such partnerships are “setting the standard for regulated markets to function directly on blockchain networks”

. As the infrastructure for blockchain-based capital markets evolves, is anticipated to create new possibilities for liquidity, accessibility, and technological advancement.