S&P Index Funds Launched as Crypto Tokens

For the first time ever, tokens pegged to S&P index funds can be traded in the U.S. Read the full article by Vishal Chawla “Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.”

One of the first things that will bring crypto to the masses is the integrations between the traditional and crypto market. Banks and exchanges have the most to gain from a shift to a digital future. This would make a lot of the internal functions faster and more cost-effective. The only thing will be how many of these legacy companies are willing to make the switch after years of doing things their way.

One step towards that came today from the S&P Dow Jones indexes will be tokenized by crypto firm Securitize. This will tokenize the indices of the S&P Cryptocurrency Large Cap Ex-MegaCap Index, and the Kensho New Economies Composite Index. Both of these do follow crypto-related industries such as virtual reality, AI, and fintech. Securitize has also announced that they are using Algorand as the underlying blockchain technology to make this happen. Algorand is super fast and has virtually no transaction fees making it a perfect network to host tokenized stocks, real estate, or any kind of NFTs.

“We have a great relationship with Algorand and issued the largest-ever Reg A+ capital raise on their chain, so when we decided to launch these exclusive funds tracking two of S&P’s most innovative indices, Algorand was the natural choice due to its speed and cost-efficiency.”

This is a small victory for the push for the digitization of stocks and other physical assets. One issue holding things back is still the unclear regulations from the SEC. While the SEC is working on it there is no exact timeline on when we are going to see clarity.