Banks are transitioning from chatbot-based artificial intelligence to agentic AI, which can autonomously handle complex tasks. A McKinsey & Co. report projects agentic AI could reduce bank unit costs by 15% to 20% but could erode up to $170 billion in profit pools by 2030 if banks fail to adapt. Industry leaders, including Jonathan Pelosi of Anthropic and Scott Mullins of Amazon Web Services, emphasize the importance of targeting operational improvements and maintaining human oversight.

The London Stock Exchange Group is bidding for a government contract to support the UK's first digital gilt as part of a broader push into blockchain technology. The contract involves providing services for a pilot digital gilt instrument.

Securitize has received a license from Spain's CNMV to operate a distributed ledger technology trading and settlement system under the EU's DLT pilot regime, making Securitize the only firm licensed to operate regulated digital securities infrastructure in the US and the EU. Securitize, which manages $4.6 billion in assets, including the BlackRock BUIDL money market fund, has chosen the Avalanche blockchain for the platform.

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BlackRock CEO Larry Fink and COO Rob Goldstein highlight the transformative potential of tokenization in finance, emphasizing its ability to settle transactions instantaneously and digitize private-market assets. They liken the current state of tokenization to the early days of the internet and stress the need for regulatory updates to ensure safety and transparency as traditional finance and digital assets converge.

Digital financial infrastructure is becoming a key asset class for private equity, driven by the convergence of financial services, technology and infrastructure. This shift is creating significant investment opportunities as legacy systems are replaced with real-time, digitally native systems. The payments sector is particularly attractive, with mega deals like Global Payments' $24.25 billion acquisition of Worldpay highlighting the trend.

New Issue IQ has partnered with Boltzbit to automate bond issuance processing, allowing clients to access new issue information within 90 seconds of a bond announcement. "Boltzbit's technology lets us structure deal data the moment it's announced, turning primary market chaos into something clients can actually use," New Issue IQ CEO John Tokarowski says. "This capability enhances the experience for our corporate bond clients today and positions us to transform new issue workflows across loans and other asset classes that still rely on outdated systems."

New US digital-asset regulation, including the GENIUS Act, is enhancing investor confidence in blockchain technology by providing clarity for stablecoins and other cryptocurrencies. This regulatory clarity is expected to drive institutional adoption of digital assets and position stablecoins as essential financial infrastructure.

The International Monetary Fund has issued a warning about the risks of tokenized markets, noting that while asset tokenization can increase transaction speed and reduce costs, it also has the potential to amplify volatility and pose systemic risks. The IMF says that automated trades could lead to flash crashes and that complex smart contracts could create a domino effect during market stress. The International Organization of Securities Commissions has joined the IMF in expressing concern about liquidity risk and vulnerabilities related to third-party issuers.

Federal Reserve Governor Michelle Bowman testified before lawmakers that US bank regulators are actively developing a supervisory framework for stablecoin issuers, including capital, liquidity, and redemption standards, to ensure consistency under the new statutory mandates. She warned that gaps in oversight could create risks to consumers and financial stability, particularly if stablecoin activities migrate outside regulated banking. Bowman also stressed that innovation in payments can deliver benefits, but must be accompanied by clear rules, coordinated interagency supervision, and safeguards that maintain market integrity and protect the broader financial system.

US Federal Deposit Insurance Corp. Acting Chair Travis Hill plans to propose rules for stablecoin issuers this month under the Guiding and Establishing National Innovation for US Stablecoins Act. The first proposal will focus on the application process for federal oversight, followed by rules on capital requirements and liquidity standards for banks issuing stablecoins.