Tokenized Investment Funds Go Onchain: What It Means for Smart-Contract Engineers

Summary: By 2025, tokenized money-market and credit funds made the leap from pilot programs to full-blown production. They came equipped with multi-chain share classes, on-chain NAV feeds, and exchange collateralization. In this post, we break down what engineers who are building or integrating these funds need to focus on next--think permissioned token design, compliance attestations, NAV/oracle plumbing, cross-chain share-class strategies, custody/TA integrations, and a gas-abstracted user experience. We’ll use real, up-to-date examples to guide you through this.

Why this matters now

• As of November 27, 2025, the market for tokenized Treasuries has grown to about $9.1B on-chain, a significant jump compared to last year. Meanwhile, the total value of real-world assets (RWA) tracked by RWA.xyz sits around $36B. You can check it out here: (app.rwa.xyz)
• BlackRock's BUIDL, which kicked off in March 2024, has now spread to seven different networks and racked up over $1.7B in assets under management (AUM) by March 25, 2025. Fast forward to November 2025, and it’s even being accepted as off-exchange collateral on Binance, plus they rolled out a share class on the BNB Chain. Get the details here: (theblock.co)
• Franklin Templeton made waves with its FOBXX (BENJI) by becoming the first U.S.-registered mutual fund to have its shares tracked on public chains. They kicked off peer-to-peer share transfers in April 2024 and reported about $795M in AUM by October 31, 2025. More info can be found here: (franklintempleton.com)
• Circle's USYC, a tokenized money market fund, is live on Ethereum, Solana, Base, and BNB Chain. It's super easy to redeem for USDC, thanks to almost instant transactions, and it’s used as off-exchange collateral on Binance. Check it out here: (circle.com)
• WisdomTree and Hamilton Lane are pushing tokenized funds further into multi-chain and DeFi territories. Securitize has gotten in on the action by enabling cross-chain share-class movement using Wormhole and integrating tokenized funds into Aave Horizon through Chainlink’s NAVLink. You can dive into the details here: (coindesk.com)

For decision-makers, “onchain fund” has moved beyond just a proof-of-concept. For engineers, it’s a detailed systems challenge that spans compliance, issuance, pricing, transfers, custody, and integrations.

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The new onchain fund stack (2025 edition)

Here's the reference architecture that we regularly use at 7Block Labs, complete with some real-world examples.

1. Permissioned share tokens (the security layer)
2. Identity and compliance attestations (the eligibility layer)
3. NAV, pricing, and distribution (the economics layer)
4. Mint/redeem flows and asynchronous settlement (the lifecycle layer)
5. Cross-chain share classes (the distribution layer)
6. Custody/TA integrations and P2P transfers (the ops layer)
7. Collateralization/DeFi hooks (the utility layer)
8. Upgradeability, admin safety, and monitoring (the safety layer)
9. Gas abstraction and UX (the adoption layer)

We take a closer look at each one with some hands-on, implementer-level details.

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1) Permissioned share tokens: pick the right standard and controls

• Standards to know:
  • ERC-3643 (T-REX): This one's all about permissioned tokens and comes packed with features like identity registries, compliance modules, recovery/force-transfer options, and partial freezes. It’s super popular in regulated RWAs. Check it out here.
  • ERC-1400 suite (1410/1594/1643/1644): If you’re looking to implement partitions (or “tranches”), bind documents, or handle controller operations, this suite has got you covered. More info can be found here.
  • ERC-1404 (Simple Restricted Token): Want something lightweight? This standard offers a simple transfer-check interface and easy-to-understand restriction codes. Dive into the details here.

Recommendation for 2025

• Default to ERC-3643 for institutional funds.
• Fall back to ERC-1400 when partitioned balances and document binding are super important.
• Use ERC-1404 only for those minimal gating situations.

For more details, check out the full specs here.

Minimal Transfer Guard Pattern (Pseudocode)

Here's a quick look at the minimal transfer guard pattern in pseudocode. This approach helps ensure that the transitions between states happen smoothly and safely.

function transferGuard(currentState, targetState) {
    if (isTransferAllowed(currentState, targetState)) {
        executeTransfer(currentState, targetState)
    } else {
        logTransferBlocked(currentState, targetState)
    }
}

function isTransferAllowed(currentState, targetState) {
    // Define your logic for checking if the transfer is allowed
    return true // or false based on your conditions
}

function executeTransfer(currentState, targetState) {
    // Logic to handle the transfer
    currentState = targetState
}

function logTransferBlocked(currentState, targetState) {
    // Logic to log the blocked transfer attempt
    print("Transfer from " + currentState + " to " + targetState + " is blocked.")
}

Feel free to tweak the logic to fit your needs!

// Simplified: combine allowlist + sanctions + KYC attestation checks
function _beforeTokenTransfer(address from, address to, uint256 amt) internal view {
  require(allowlist[to], "to not allowed");
  require(!ChainalysisSanctions.isSanctioned(to), "sanctioned");
  require(_hasValidKyc(to), "kyc missing/expired");
}

• Chainalysis’ sanctions oracle is up and running on various EVMs! Just call isSanctioned(address) in your transfer path and make sure to mirror it with offchain pre-checks. Check it out here: (go.chainalysis.com)

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2) Identity and compliance: attestations that travel across chains

• Roll out W3C Verifiable Credentials v2.0 (the 2025 W3C Recommendation) to handle KYC/AML and investor-category claims. We’ll tie eligibility on-chain using EAS (Ethereum Attestation Service) schemas. Check it out here: (w3.org)

Attestation Gating Example

To access this, you'll need to ensure that your investor wallet has a recent “Qualified Purchaser” claim that’s been signed by your KYC provider.

import { IEAS } from "@ethereum-attestation-service/eas-contracts/IEAS.sol";

IEAS public eas;
bytes32 public qpSchemaId;

function _hasValidKyc(address user) internal view returns (bool) {
  // Pseudocode: query EAS for the latest attestation matching qpSchemaId & user
  // Production: index offchain & cache to minimize gas; verify expiration and issuer DID.
  return AttestationLib.hasActive(eas, qpSchemaId, user);
}

• The EAS open contracts and SDK make it super easy to handle on-chain and off-chain attestations using schema registries. This way, you can steer clear of hardcoding allowlists for each chain. Check it out here: github.com

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3) NAV, pricing, and distributions: constant-$1 vs rising-NAV models

You’ll come across two different mechanics:

• You've got the constant NAV share sitting around $1, which comes with clear dividend accruals and payouts. Just look at BUIDL, for instance--they're dishing out daily payouts, and their March 2025 monthly payouts even broke records! Engineers have to work their magic on precision accruals, distribution snapshots, and fee-netting to keep everything running smoothly. (theblock.co)
• Then there’s the rising NAV token that keeps on accruing without any airdrops or rebases--just like what Superstate funds do. The way they set price steps to reflect yield is a neat trick; it makes it easier for everyone downstream to handle integrations. (superstate.com)

NAV Data Plumbing:

When we talk about NAV data plumbing, it’s all about ensuring that our data flows smoothly and efficiently across different systems. This involves a series of processes and tools that help us manage, cleanse, and integrate our data for optimal use.

Key Components of NAV Data Plumbing

Here are some of the fundamental elements that make up NAV data plumbing:

1. Data Integration:
   • This is the backbone of our plumbing. We want to pull in data from various sources, whether they're databases, APIs, or other platforms. It’s all about getting the right info in the right place.
2. Data Cleansing:
   • Clean data is crucial! We need to identify and fix any errors or inconsistencies in our datasets. This helps maintain accuracy and ensures that our analyses aren’t thrown off by bad input.
3. Data Transformation:
   • Sometimes, our data needs a bit of a makeover. This step involves altering the format or structure of the data to make it more useful for analysis. Think of it as getting your data dressed up for a big event.
4. Data Storage:
   • Once we’ve got our data integrated, cleaned, and transformed, we need a proper place to store it. Using databases or data warehouses that can handle large volumes of data is key here.
5. Data Governance:
   • We can’t forget about governance! It’s essential to have policies and procedures in place to ensure data privacy, security, and compliance. After all, we want to keep our data safe and sound.

Tools You Might Consider

Here are a few tools that can help streamline your NAV data plumbing efforts:

• ETL Tools: Tools like Apache NiFi, Talend, or Informatica are great for data integration and transformation.
• Data Cleaning Software: Check out Trifacta or OpenRefine for effective data cleansing.
• Storage Solutions: Consider options like Amazon S3 or Google BigQuery for robust data storage.

Final Thoughts

Creating a solid NAV data plumbing infrastructure is vital for any organization that relies on data for decision-making. With good practices, the right tools, and a little bit of effort, we can ensure our data is always in tip-top shape!

• If your fund is cool with some public oracle exposure, you might want to consider publishing your NAV using Chainlink’s NAVLink or a similar aggregator. It's already up and running for several issuers and has been put to the test in Aave Horizon pilots. Check it out here: (prnewswire.com).
• For those focusing on credit or private strategies, we’re seeing RedStone in action with daily NAV updates in Securitize/Hamilton Lane SCOPE. The approach combines an on-chain NAV registry, issuer-signed updates, and circuit breakers. Want to learn more? Take a look here: (finance.yahoo.com).

Pro tip: Even if you're dealing with $1 stable-NAV funds like FOBXX/BENJI or BUIDL, it's a good idea to keep your on-chain accounting state transparent. That means publishing details about yields, cutoffs, and fees for better composability and auditability. Franklin's platform has now rolled out intraday, second-level yield allocation. Engineers ought to work on designing pro-rata accruals that can stay consistent even in the face of reorgs. Check it out here: (ftinstitutional.com).

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4) Mint/redeem flows: asynchronous by design (and ERC-7540 helps)

• Think of subscriptions and redemptions as requests that wrap up once we’ve done the offchain settlement checks, which could be T+0, T+1, or even batched. For a smoother integration experience, let’s use ERC‑4626 as our external interface. Plus, adding ERC‑7540 (that’s the asynchronous vault extension) will help us manage delayed claims without a hitch. (ethereum.org)

Example Interface Shape:

Here's what an example interface shape might look like:

// ERC-4626-like wrapper
function requestRedeem(uint256 shares, address receiver) external returns (bytes32 requestId);
function claimRedeem(bytes32 requestId) external returns (uint256 assetsOut);

Circle’s USYC offers super-fast redemptions up to a certain limit, with options for T+0 and T+1 beyond that. To create a smoother user experience, make sure to model your queue, caps, and fees in a similar way. Check it out here: (circle.com)

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5) Cross-chain distribution: separate share classes, not bridges

• BUIDL has rolled out native share classes across a bunch of blockchains, including Ethereum, Arbitrum, Optimism, Avalanche, Polygon, Aptos, Solana, and now, BNB Chain for the Binance collateral program. This is all being coordinated by Securitize and Wormhole. Instead of bridging a single share token, they recommend issuing specific classes for each chain and letting the transfer agent (TA) along with your registry handle the 1:1 supply integrity. You can read more about it here.
• Securitize has also teamed up with Wormhole to enable position transfers between supported chains while keeping the TA as the go-to source for all the information. It's essential for engineers to maintain pause controls for each chain and keep the share-class metadata secure in an official registry. For more details, check it out here.

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6) Custody and Transfer Agent (TA) ops: wallets, P2P, cap table

• Your TA is like the golden record. It officially tracks who owns BENJI at Franklin Templeton, and guess what? It now lets KYC’d holders do P2P transfers! The engineers just need to set up transfer hooks that connect to the TA registry and make sure everyone’s eligible on both ends. (franklintempleton.com)
• Don’t forget about multi-custodian support for institutions: Anchorage, BitGo, Copper, and Fireblocks are some of the go-to names in the BUIDL world. Make sure you design whitelisting and omnibus flows to keep things running smoothly. (prnewswire.com)
• Keep an eye on bank/exchange venues. DBS is currently piloting sgBENJI on their Digital Exchange, and they’re working on lending and collateral options. Your ops contracts will need to have flexible pledge/lock mechanics and TA-initiated force transfers to make sure collateral is enforced. (reuters.com)

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7) Collateralization and exchange integration: the new “cash leg”

• BUIDL and USYC are now cool options for off-exchange collateral (thanks to Binance) and have also caught the eye of prime brokers like Hidden Road. This means that your yield-bearing fund shares can now serve as working margin assets. Just keep in mind that you’ll need strong price oracles, LTV/HLV schedules, and clear liquidation paths in your smart contracts. Check out more on this here.
• Don't forget about composability! Funds are being increasingly referenced in DeFi money markets (like Aave Horizon with NAVLink). It’s a good idea to encode pause/guardian roles and add oracle sanity checks to keep potential spillover risks in check. For additional insights, take a look at this article here.

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8) Upgradeability, admin safety, and monitoring

• For smooth and adaptable upgrades, go with UUPS proxies (thanks to OpenZeppelin). Make sure to secure the upgradeTo process using multi-sig and timelock; don't forget to emit upgrade events for any offchain monitors. Check out the details here: (docs.openzeppelin.com).
• It’s essential to stick to a storage-layout discipline (using the oz-upgrades plugins), along with having clear pause, freeze, and force-transfer flows, especially if you're dealing with regulated funds (think ERC‑3643/1400). You can find more about that here: (github.com).

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9) Gas abstraction and UX

• EIP‑4337 smart accounts, along with Paymasters, make life easier for KYC’d investors (like covering gas fees in USDC). This is super important for enterprise wallets and making sure P2P transactions stay compliant. (eips.ethereum.org)

Pattern:

• When an investor signs a UserOperation to either subscribe or redeem, the Paymaster steps in to verify the investor’s EAS KYC attestation. If everything checks out, the Paymaster covers the gas fees.
• To keep things tidy, link your Paymaster policy to your TA registry. This way, you won’t accidentally sponsor wallets that aren’t eligible.

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Practical code patterns

Here are some concise, easy-to-digest snippets that capture the essential mechanics:

A. Permissioned ERC‑20 with attestations + sanctions check

pragma solidity ^0.8.20;

interface ISanctions { function isSanctioned(address a) external view returns (bool); }
interface IAttestationReader {
  function hasValid(bytes32 schema, address subject) external view returns (bool);
}

abstract contract PermissionedToken {
  ISanctions public sanctions;
  IAttestationReader public attest;
  bytes32 public kycSchema;
  mapping(address => bool) public taAllowlist; // TA-managed

  error NotAllowed();
  error Sanctioned();
  error KycMissing();

  function _eligibility(address to) internal view {
    if (!taAllowlist[to]) revert NotAllowed();
    if (sanctions.isSanctioned(to)) revert Sanctioned();
    if (!attest.hasValid(kycSchema, to)) revert KycMissing();
  }
}

• Make sure to integrate the Chainalysis oracle for sanctions, along with your EAS schema for kycSchema. You can check it out here.

B. ERC‑4626 interface with asynchronous “claim” (ERC‑7540-style)

interface IAsyncShares /* ERC-4626 surface */ {
  function deposit(uint256 assets, address receiver) external returns (uint256 shares);
  function requestRedeem(uint256 shares, address receiver) external returns (bytes32 reqId);
  function claimRedeem(bytes32 reqId) external returns (uint256 assetsOut);
  event RedeemRequested(bytes32 indexed reqId, address indexed owner, uint256 shares);
  event RedeemSettled(bytes32 indexed reqId, uint256 assetsOut);
}

• Support this with an offchain settlement adapter that unlocks assets once the custodian cash settles; take a cue from USYC’s instant-cap and T+0/T+1 approach. (circle.com)

C. Cross-chain share-class registry

struct ShareClass { uint256 id; string chain; address token; bool active; }
mapping(bytes32 => ShareClass) public shareClasses; // key: keccak256(symbol, chainId)

function registerShareClass(string memory symbol, uint256 chainId, address token) external onlyTA {
  bytes32 key = keccak256(abi.encode(symbol, chainId));
  shareClasses[key] = ShareClass({id:uint256(key), chain:_toStr(chainId), token:token, active:true});
}

• Consider every network as its own unique class; shift positions across chains using TA-guided cancel/mint actions or a regulated bridge with TA verification, much like Securitize operates through Wormhole. (wormhole.com)

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Concrete examples you can copy

• Money-market funds:
  • BUIDL: You're looking at daily dividends and some cool multi-chain native share classes like ETH, Arbitrum, Optimism, Avalanche, Polygon, Aptos, Solana, and even BNB now! They have some impressive AUM milestones along with Binance collateralization. Engineering takeaway: You’ll want to focus on implementing dividend accounting, creating a share-class registry, and setting up custodial allowlists. (prnewswire.com)
  • FOBXX (BENJI): This one's a SEC-registered 1940 Act mutual fund operating on Stellar and Polygon. It supports P2P transfers and offers intraday yield calculation on the Benji platform, ensuring precise distribution. Key takeaway: Treat your TA as the system-of-record; make sure to integrate P2P with compliance checks and pro-rata accruals. (franklintempleton.com)
  • USYC: This is an ERC-20/SPL tokenized money market fund that allows for near-instant USDC redemptions. It's multi-chain (think Ethereum, Base, Solana, BNB Chain) and can be used as collateral on exchanges. Key takeaway: You should design atomic USDC rails and focus on capacity-limited instant liquidity. (circle.com)
• Private credit:
  • Hamilton Lane SCOPE is now multichain thanks to Wormhole and features daily NAV updates via RedStone. Plus, it allows for on-demand redemptions up to certain caps. Key takeaway: it's time to get on board with asynchronous vault patterns and NAV oracles. (finance.yahoo.com)
• Asset Manager Platforms:
  • WisdomTree Connect: This platform offers 13-14 tokenized funds that span across EVMs and chains focused on real-world assets (like Plume). They provide on-chain NAV for CRDT through Chainlink. The main takeaway here? It's all about standardizing fund data feeds to make DeFi integrations smoother. Check it out here.

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Emerging best practices (engineer’s checklist)

• Token design
  • Go with ERC‑3643 (or ERC‑1400 if you need partitions/docs). Don't forget to implement force-transfer with clear events and a recovery playbook. Check it out here: (eips.ethereum.org).
• Identity and compliance
  • Issue W3C VC v2.0 credentials offchain and anchor eligibility onchain through EAS. Plus, add some runtime sanctions checks using the Chainalysis oracle. Learn more at (w3.org).
• NAV and distributions
  • Publish the NAV using Chainlink NAVLink or something similar; even if you're working with stable NAV funds, you should still show the accrual state. For those rising NAV models, skip the rebases and just step up the price. Find out more at (prnewswire.com).
• Lifecycle
  • Expose ERC‑4626 and throw in async requests (ERC‑7540); make sure to codify instant-liquidity caps and service levels. You can read more on this at (ethereum.org).
• Cross-chain
  • Avoid bridging just one token; instead, issue share classes per chain. Use TA-controlled cancel/mint or controlled interoperability options like Wormhole, complete with audit trails. More details here: (wormhole.com).
• Custody/TA
  • Keep a TA-managed allowlist for custodian omnibus and self-custody wallets. Log all corporate actions onchain for easy reconciliation and enable P2P transactions where it’s allowed. Get the scoop at (franklintempleton.com).
• Collateralization
  • Set up a solid oracle design (think NAV + sanity bounds), go with conservative LTVs, and include liquidation hooks. Make sure to test everything with your exchange/prime broker partners. More info at (coindesk.com).
• Upgrades and safety
  • Use UUPS proxies along with multi-sig + timelock features. Keep an eye on upgrade events and oracle updates; don't forget to add pause/freeze switches for safety. Check it out at (docs.openzeppelin.com).
• UX
  • Sponsor gas fees using 4337 Paymasters for KYC’d investors, and try to unify flows with USDC rails. More details here: (docs.erc4337.io).

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In-depth: implementing intraday yield that survives reorgs

Franklin Templeton’s Benji platform has an exciting feature that really stands out: “intraday yield.” This nifty function distributes income by the second as shares change hands. If you want to give it a try, here's how to replicate it:

• Keep a high-resolution accumulator for each share class: (cumulativeRate, lastUpdate).
• Whenever there's a transfer, minting, or redemption, make sure to settle the sender and receiver accrual up to block.timestamp; also, update the entryIndex for each address.
• Process daily distribution events, even on weekends, but ensure that transfers stay predictable during short-term forks by only settling on finalized blocks or by introducing a slight finality delay.

This is similar to how constant-product AMMs manage fees, but instead of relying on price fluctuations, it uses a time-indexed yield curve. You can check out more about it here.

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Network selection notes (as of December 1, 2025)

• Right now, EVM mainnet and L2s are the go-to spots for institutional funds, with players like BUIDL, USYC, WisdomTree, and SCOPE leading the charge. Meanwhile, we’re seeing Solana and BNB Chain pick up steam thanks to their high-throughput distribution and exchange collateral offerings. If you're an engineer, make sure to set aside some budget for chain-specific share classes and custody whitelists. (theblock.co)
• Non-EVM networks are still in the mix: for instance, Franklin Templeton is making strides with Stellar, while DBS and Franklin are testing out XRP Ledger for their sgBENJI issuance in Asia. Don’t forget to ensure that your identity and compliance layer is portable! (franklintempleton.com)

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What’s next in 2026: standards hardening and regulated venues

• We're likely going to see W3C VC v2.0 become more common among brokers and custodians, making cross-chain eligibility checks a breeze. You can check out more about it here.
• Expect to see more tokenized funds stepping up to publish their on-chain NAV using standardized oracle interfaces like Chainlink NAVLink and RedStone. This is a big deal because it allows for safer DeFi collateralization at scale. Read more about it here.
• Collateral programs on exchanges are really taking off! Binance just rolled out BUIDL/USYC, and we might see other platforms follow suit. This is pushing engineers to nail down the oracle and liquidation standards for fund shares. More details can be found here.

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A concise build plan you can execute

• Week 0-2: Kick things off by picking a token standard (like ERC‑3643 or ERC‑1400) and figuring out our share classes for each target chain. We’ll also set up the TA registry and integrate a sanctions oracle. (eips.ethereum.org)
• Week 2-4: Next up, we’ll roll out the ERC‑4626 wrapper with async redeem, inspired by the ERC‑7540 style. We'll connect the NAV oracle (using either NAVLink or RedStone) and get started on our distribution accounting, whether that’s daily or continuous. (ethereum.org)
• Week 4-6: During this phase, we’ll integrate EAS-based KYC attestations along with a revocation flow. Plus, we’ll add a 4337 Paymaster for gas sponsorship and deploy the UUPS with timelock/multisig governance. (attest.org)
• Week 6-8: Finally, we’ll establish custodian allowlists, omnibus flows, and P2P constraints. We’ll also test collateralization on a pilot venue, think Aave Horizon-style or a prime broker sandbox. (franklintempleton.com)

Make sure your system comes packed with detailed event logs, circuit breakers, and playbooks to handle force transfers, oracle outages, and cross-chain sync issues.

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Closing thought

Tokenized funds are officially part of the real infrastructure now. If you can implement the right controls (like permissioned tokens, attestations, and NAV oracles), the perks are immediate--think 24/7 settlement, composable collateral, and automated treasury operations. The teams that come out on top in 2026 will be the ones that treat compliance, pricing, and cross-chain share classes as core software challenges--because that’s exactly what they are.

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Sources

• Check out the latest RWA market data and Treasuries totals right here.
• BlackRock is making waves with its BUIDL growth, a solid multi-chain presence, dividends, and collateral on Binance. You can read more about it here.
• Franklin Templeton's BENJI just rolled out P2P transfers, and they've got some cool AUM and an intraday yield feature. Check out the details here.
• Circle's USYC is going multi-chain, offering near-instant redemptions and Binance collateral too. Get the scoop here.
• Securitize has launched cross-chain capabilities with Wormhole and integrated DeFi NAVLink. Dive into it here.
• Curious about ERC standards and 4337 Paymasters? You can find all the info you need here.
• Hamilton Lane is joining the multi-chain scene with SCOPE + RedStone NAV. Learn more here.
• WisdomTree is expanding its tokenized fund offerings and making NAV on-chain. Check out the full story here.
• Lastly, Chainalysis has rolled out a sanctions oracle for on-chain screening. Get the details here.

7Block Labs

At 7Block Labs, we’re all about crafting top-notch, regulated-grade onchain fund infrastructure. If you’re looking for a working reference implementation that ticks all the boxes--standards-compliant, thoroughly audited, and customized to fit your custodian or transfer agent--we’d love to assist you!