Blockchain & Digital Assets Weekly Briefing - Week 26
- Jun 26
- 12 min read
Week ending 26th June 2026
This week: Baillie Gifford brings a bond fund onchain, Chainlink Labs joins 50+ banks across Europe and South Korea to modernize FX settlement, U.S. credit unions expand into crypto, ICE and OKX deepen institutional tokenization, and Invesco files a tokenized money market fund for stablecoin issuers.
Baillie Gifford, a 118-year-old UK asset manager, just put a bond fund directly on the blockchain.
Chainlink teams up with 50+ banks across Europe and South Korea to make instant cross-border FX settlement a reality.
Credit Unions are finally getting into crypto — and $25 billion in assets are already on board.
ICE and OKX deepen partnership to bring tokenized financial markets to institutional investors.
Invesco is the latest $2.45 trillion asset manager to file a tokenized money market fund for stablecoin issuers.
Baillie Gifford, a 118-year-old UK asset manager, just put a bond fund directly on the blockchain
Baillie Gifford has launched the Baillie Gifford Enhanced Yield Fund, known as BAGEY, with BNY, describing it as the first publicly available, fully native UK-regulated tokenised fund. The fund gives eligible investors access to an actively managed, short-duration portfolio of public corporate bonds through a UK-regulated OEIC structure, and is issued on Ethereum and Solana.
The launch is notable because Baillie Gifford says the fund is not simply a digital wrapper around an existing product. Tokens are issued directly as the investor’s holding in the fund, and public blockchains are used as the legal source of truth for ownership.
Theo Golden, Baillie Gifford’s Head of Digital Assets and Tokenisation, framed the distinction clearly:
“The Baillie Gifford Enhanced Yield Fund is not a token placed on top of a fund. It is a fund issued onchain, with the blockchain serving as the register of record.”
BAGEY is denominated in U.S. dollars and currently targets a yield of about 7%, with a two-year duration and average credit quality of BBB. The fund is daily dealt, has a daily NAV, and is available to eligible investors in the UK, Switzerland and the Cayman Islands, subject to applicable laws and distribution restrictions.
BNY is providing tokenisation and wallet infrastructure for the fund, subject to applicable regulatory approval, while NatWest Trustee and Depositary Services Limited acts as depositary. Eligible professional investors can mint and redeem fund tokens using stablecoins or fiat, with a minimum investment of $100; the fund initially uses USDC, issued by regulated affiliates of Circle Internet Group.
The timing also matters. The launch comes shortly after the FCA published Policy Statement PS26/7, which provides guidance on how authorised fund managers can use distributed ledger technology within the UK's existing regulatory framework.
In May 2026, the FCA and the Bank of England said they were working on a shared vision for tokenisation in UK wholesale markets, with the Bank noting that the next phase is to move “from pilots to production” while supporting financial stability and sustainable growth.
For Baillie Gifford, the core argument is that tokenisation can reduce duplicate records and intermediaries in fund infrastructure. In its own June 2026 explainer, the firm said tokenisation lets it offer investment strategies in digital form, recorded on a blockchain, and reduces the need for duplicate ledgers and go-betweens.
The important point is not that a traditional manager has attached a token to a bond fund. It is that a UK-regulated OEIC is being structured so that the token itself represents the investor’s fund holding, with Ethereum and Solana forming part of the ownership-record infrastructure. That makes BAGEY a significant test case for how regulated funds may be issued, serviced and transferred on public blockchain rails.
Chainlink teams up with 50+ banks across Europe and South Korea to make instant cross-border FX settlement a reality
The foreign exchange (FX) market processes an estimated $9.6 trillion in daily trading volume, yet most cross-border currency transactions still settle on a T+2 basis, meaning final settlement typically occurs two business days after a trade is executed. Project Pangea, announced on 23 June, aims to evaluate whether regulated stablecoins and blockchain infrastructure can reduce that settlement cycle to T+0, or near-instant settlement.
What is Project Pangea?
Project Pangea is a collaborative initiative bringing together Chainlink, FairSquareLab, UniKA (Unified Korea Alliance) and Qivalis to develop a framework for real-time cross-border foreign exchange settlement between Europe and South Korea using regulated euro- and Korean won-denominated stablecoins. According to the announcement, the working group collectively represents organisations associated with more than $10 trillion in assets under management.
Rather than replacing existing banking infrastructure, the project is designed to work alongside it. Banks would continue using familiar SWIFT messaging and ISO 20022 standards, while blockchain infrastructure would handle the final transfer and settlement of tokenised assets.
Who is involved?
The Korean side is represented by UniKA, whose steering committee includes Shinhan Bank, JB Bank, Kbank, FairSquareLab and OBDIA, together with more than ten participating Korean commercial banks, according to the project announcement.
On the European side, Qivalis is developing a MiCA-compliant euro stablecoin and states that it is backed by a consortium of 37 European banks. The company is pursuing authorisation as an Electronic Money Institution with the Dutch Central Bank.
Chainlink provides the interoperability and market data infrastructure through its Cross-Chain Interoperability Protocol (CCIP) and Data Streams, while FairSquareLab contributes the on-chain settlement engine and the project's dedicated Pangea L1 blockchain.
How would it work?
The architecture consists of three layers.
The banking layer uses existing payment rails, including SWIFT and ISO 20022 messaging.
Above that sits a connectivity layer powered by Chainlink CCIP, enabling secure communication between traditional banking systems and blockchain networks.
The settlement layer uses smart contracts and FairSquareLab's Pangea L1 to perform atomic Payment-versus-Payment (PvP) transactions, meaning that both sides of a foreign exchange trade settle simultaneously or neither settles at all. The objective is to eliminate settlement risk while improving capital efficiency.
Why it matters
Project Pangea remains an exploratory framework, not a live production system. The announcement does not provide a production launch date, regulatory approvals or expected transaction volumes.
Nevertheless, the initiative reflects a broader trend among financial institutions to evaluate how tokenised money and blockchain infrastructure can improve wholesale payments without requiring banks to replace their existing systems.
As Fernando Vazquez, President of Capital Markets at Chainlink Labs, said in the announcement:
"Project Pangea upgrades the fragmented foreign exchange model of today with direct, atomic currency swaps using stablecoins."
Whether Project Pangea ultimately reaches commercial deployment remains to be seen. What is already clear is that regulated banks, blockchain infrastructure providers and stablecoin issuers are increasingly collaborating to test how public blockchain technology can support cross-border financial markets.
Credit Unions are finally getting into crypto — and $25 billion in assets are already on board
Three companies — Stablecore, Circuit, and Curql — have joined forces to bring stablecoins and digital assets directly into the banking experience of American credit union members. The early-access program, announced on June 24, 2026, marks one of the most concrete steps yet toward mainstream adoption of digital assets within the traditionally conservative credit union sector.
Who are the players?
Stablecore is a platform designed to enable financial institutions — specifically community banks and credit unions — to offer stablecoins, tokenized deposits, and other digital asset products. The company is backed by a notable roster of investors, including Norwest, Coinbase Ventures, Curql, BankTech Ventures, Cross River Digital Ventures, and angel investor Naval Ravikant, among others.
Circuit, formerly known as Members Development Company, is a Credit Union Service Organization (CUSO) — essentially a collaborative R&D body — now structured as a network of 80 credit union and CUSO owners. Its role is to help credit unions test and scale new technologies collectively, rather than each institution going it alone.
Curql is a collective of over 160 credit unions that jointly invest in fintech companies, with more than 50 fintech investments in its portfolio. Curql was also an early investor in Stablecore, making its involvement here both strategic and financial.
What is actually being launched?
The program gives credit unions access to Stablecore's technology, which enables them to offer digital asset products directly inside their existing digital banking experiences — including stablecoins, tokenized deposits, Bitcoin, on- and off-ramps, and staking.
Three institutions are part of the initial cohort: RBFCU, Stanford Federal Credit Union, and La Capitol FCU — together representing $25 billion in aggregate assets.
Beyond the technology itself, the program will also provide education to both staff and members to ensure smooth execution, preparing credit unions for a long-term shift toward digital asset adoption.
Why now — and why credit unions?
Credit unions have long positioned themselves as member-first, community-rooted alternatives to big banks. But that positioning is under pressure. The initiative is designed to help credit unions attract and retain members who are seeking digital asset capabilities and who might otherwise move their deposits to fintechs, neobanks, or crypto companies.
As Stablecore CEO and co-founder Alex Treece put it:
"By enabling credit unions to offer digital asset products, we are helping them stay relevant against competitive threats, retain their deposits and continue to be the trusted, primary financial partner for their members."
RBFCU President and CEO Mark Sekula echoed that sentiment, stating that the credit union is "committed to meeting members where they're at" and sees the partnership as a way to ensure "the credit union advantage flourishes as a strong and relevant force in the digital asset space."
A compliance-first approach
One detail worth noting for those tracking institutional adoption: Stablecore recently appointed Ben Hailey, a former FDIC regulator, as its Head of Risk and Compliance — a signal that the company is building governance frameworks to support regulated financial institutions at scale.
The bigger picture
This announcement fits into a broader pattern for Stablecore. In the months prior, the company was also selected as a preferred digital asset technology provider by the North Carolina Bankers Association (over 80 member institutions), the Tennessee Bankers Association (175 member institutions), and the Maine Bankers Association. The credit union program extends that momentum into the cooperative banking world.
For the credit union sector — which collectively serves over 140 million Americans — the question is no longer whether digital assets are coming, but how quickly institutions can get ready for them without compromising the trust their members place in them.
ICE and OKX deepen partnership to bring tokenized financial markets to institutional investors
Intercontinental Exchange (ICE), the operator of the New York Stock Exchange (NYSE) and one of the world's largest exchange groups, is expanding its push into digital assets through a new joint venture with crypto exchange OKX.
The 50-50 joint venture, named OKXICE, will focus on building infrastructure for tokenized securities, digital asset derivatives and 24/7 trading. Pending regulatory approvals, the venture intends to operate as a licensed U.S. broker-dealer and futures commission merchant (FCM), allowing institutional and retail investors to access regulated tokenized financial products.
This latest announcement builds on the strategic partnership established in March, which we covered here. At the time, ICE invested approximately $200 million in OKX, valuing the crypto exchange at $25 billion, while the companies unveiled plans to bridge traditional and digital asset markets through tokenized equities, regulated crypto futures and institutional blockchain infrastructure. As part of that agreement, the companies outlined plans to combine ICE's regulated exchange infrastructure with OKX's blockchain technology and its global user base of more than 120 million accounts. Subject to regulatory approval, this includes giving OKX users access to tokenized NYSE-listed equities and ICE futures markets while enabling ICE to expand its on-chain financial infrastructure.
Rather than simply launching new crypto products, the companies are positioning the initiative around modernizing capital markets. Tokenization—the process of representing traditional financial assets on blockchain networks—is increasingly viewed by major financial institutions as a way to improve settlement efficiency, enable around-the-clock trading and expand market accessibility. However, widespread adoption continues to depend on regulatory clarity and the development of compliant market infrastructure.
Former New York Governor Andrew Cuomo will co-chair the joint venture alongside ICE Senior Vice President of Futures Markets Trabue Bland. Cuomo said the partnership intends to pursue the necessary regulatory licenses before expanding into fully tokenized securities.
The collaboration reflects a broader industry trend as established financial market operators increasingly invest in blockchain-based infrastructure. For ICE, the partnership accelerates its strategy to integrate tokenization into regulated financial markets. For OKX, it strengthens the exchange's institutional ambitions and expands its presence in the U.S. market following recent efforts to rebuild its regulatory standing.
Invesco is the latest $2.45 trillion asset manager to file a tokenized money market fund for stablecoin issuers
Last week we covered how State Street, Fidelity, and Morgan Stanley all moved within days of each other to launch money market funds purpose-built for stablecoin reserves — a race triggered by the GENIUS Act's requirement that stablecoin issuers hold their reserves in a narrow set of approved, highly liquid instruments. This week, add another name to that list: Invesco.
Invesco (NYSE: IVZ) is one of the world's largest independent asset managers, overseeing $2.45 trillion in assets. It is best known for its ETF franchise — including the QQQ, one of the most traded funds in the world — and operates across more than 20 countries.
What did Invesco just file?
On June 24, Invesco filed an amended registration statement with the SEC to add the Invesco Stablecoin Reserves Onchain Fund to its Short-Term Investments Trust. The fund is listed with the placeholder ticker [XXXXX] and is expected to become effective 60 days after filing, unless regulators intervene.
The fund is classified as diversified and managed in accordance with Rule 2a-7 under the Investment Company Act of 1940. It will not invest in stablecoins or stablecoin issuers. The fund will not invest in native digital assets, some of which are referred to as cryptocurrencies. It is, in essence, a conventional government money market fund — the blockchain element applies exclusively to how ownership records are kept and how shares are transferred.
How does it fit into the broader picture?
The logic mirrors what State Street and Fidelity filed last week. Under the GENIUS Act, stablecoin issuers must hold reserves in highly liquid, regulated instruments — including eligible money market funds. A standard money market fund, which routinely holds commercial paper, certificates of deposit, or corporate obligations alongside Treasuries, does not qualify. That single constraint created the entire market opportunity, and every major asset manager is now racing to build a GENIUS Act-certified vehicle. The fund will invest in liquid, high-quality, U.S. dollar-denominated assets that stablecoin issuers are permitted to hold under the GENIUS Act framework.
Invesco's fund has an explicit blockchain integration built through its partnership with Superstate Services LLC. Superstate acts as sub-transfer agent under Invesco Investment Services, Inc., maintaining ownership records through a system that combines conventional book-entry records off-chain with digital representations of fund shares recorded on one or more public blockchains. Only pre-approved, whitelisted wallets can transact in the shares. Like every institutional tokenised fund in this space, it runs on a permissioned layer — standard practice when KYC, sanctions screening, and transfer restrictions are non-negotiable. One detail that remains undisclosed: the specific blockchain network has been left blank in the filing itself.
A liquidity caveat
For a product marketed to stablecoin issuers on the basis of round-the-clock liquidity, the filing contains a risk disclosure worth flagging directly. Redemption transactions and peer-to-peer transactions require the shareholder to pay blockchain gas fees. If a shareholder is unwilling or unable to pay gas fees at a sufficiently high rate, the transaction may fail or not be completed in time. In plain terms: if network congestion drives gas fees up at the exact moment a stablecoin issuer needs to redeem — say, to meet a surge in user withdrawals — the redemption request may simply not go through. The issuer remains locked into the fund, at whatever price the fund is valued at next, rather than receiving cash immediately. For a business whose entire model depends on being able to pay out a dollar for every dollar of stablecoin in circulation, that gap — however brief — is a real operational risk.
For purchases and dividend distributions, transaction fees will be covered by Invesco— but this may change in the future, with investors potentially becoming responsible for some or all of their transaction fees.
For a stablecoin issuer that may need to redeem instantly to meet a user withdrawal, that is a non-trivial operational dependency on blockchain network conditions outside anyone's control.
Invesco's prior foothold with Superstate
This is not Invesco's first move in this space. The firm had already taken over day-to-day portfolio management of Superstate's USTB tokenized Treasury fund earlier this year, making Superstate a natural — and already road-tested — partner for this new product.
The scoreboard so far
In the span of roughly two months, every major Wall Street asset manager has either launched or filed a stablecoin reserve vehicle:
Morgan Stanley launched its Stablecoin Reserves Portfolio on April 23, 2026
BlackRock restructured its Select Treasury Based Liquidity Fund to serve the same purpose
Fidelity disclosed its Reserves Digital Fund on June 15, 2026
State Street announced its Stablecoin Reserves Money Market Fund on June 16, 2026, with Anchorage Digital as an initial investor
Invesco filed on June 24, 2026
Why the rush?
The stablecoin market currently stands at $320 billion in circulating tokens, and State Street has projected it could reach $4 trillion by 2030. Even at modest management fees, managing a fraction of that pool generates a substantial, recurring fixed-income fee business with almost no new infrastructure required.
What sets Invesco's entry apart is not just timing — it is the explicit bet that stablecoin issuers will want their reserves to live natively on a blockchain-integrated platform, not merely in a conventional fund. Whether gas fee volatility and an as-yet-unnamed blockchain prove to be obstacles or irrelevant details will depend on how institutional clients actually use the product once it goes live. The 60-day SEC clock is now ticking.
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This article is for informational purposes only and should not be considered financial advice. Please do your own research or consult a licensed financial advisor before making investment decisions.
