In This Newsletter
FinTech Advisory Council Updates
Digital Assets Treasury Companies
Tokenization and EU Access to Private Assets
US Digital Asset Legislation
Milken-Motsepe Prize in AI and Manufacturing
FinTech Advisory Council Updates
This month, the Milken Institute welcomed new members to the FinTech Advisory Council, including Hedera, Plaid Inc., Early Warning Systems, Paradigm, and the Texas Municipal Retirement System. We also participated in a Capitol Hill briefing with Hedera’s founders, focusing on distributed-ledger technology and public-sector adoption.
At our most recent council meeting, two guest speakers shared timely insights. Isaac Stone Fish, CEO of Strategy Risks, discussed geopolitical and market risks stemming from FinTech exposure to China. Barbara Iyayi, CEO of Liquid Credit, spoke about the role of stablecoins as liquidity providers in cross-border trade finance and how they are being positioned for institutional-grade infrastructure.
Digital Assets Treasury Companies
A digital assets treasury company manages a portion of its corporate treasury using digital assets such as Bitcoin or Ethereum. Modeled after MicroStrategy’s Bitcoin-heavy balance sheet strategy, this structure allows companies to allocate capital into blockchain-native assets as long-term reserves. New entrants to the treasury space include ReserveOne, whose reserve strategy draws direct inspiration from the proposed US Digital Asset Reserve framework, and SharpLink Gaming, Inc., which is building an Ethereum treasury.
Ethereum cofounder Joseph Lubin described the corporate strategy on CNBC’s Squawk Box as a mechanism to absorb idle Ether supply and reinforce the network’s infrastructure development. Tom Lee, chairman of BitMine Immersion Technologies, is leading a $250 million Ether acquisition strategy designed to mirror the public-equity exposure model established by MicroStrategy, CNBC reports. Nicole Valentine, director of FinTech, Milken Institute, moderated a conversation with Lee this spring at the DC Blockchain Summit on the “Future of Venture Capital in Digital Assets.”
Tokenization and EU Access to Private Assets
Robinhood recently launched tokenized representations of OpenAI and SpaceX equity for users in the European Union. Tokenization is the process of converting ownership rights of real-world assets into digital tokens that can be transacted on a blockchain. This approach can reduce frictions—such as minimum investment sizes, geographic access barriers, and limited trading hours—while enabling fractional ownership and real-time settlement. The program operates initially on Arbitrum and will later transition to Robinhood’s in-house Layer 2 blockchain for optimized trading. Robinhood’s stock tokens are issued via a special-purpose vehicle, giving users synthetic exposure without equity rights.
In a statement responding to the launch, OpenAI clarified, “These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval—we did not approve any transfer,” TechCrunch reports. The European Commission has raised concerns about investor protections, transparency, and whether these instruments comply with MiFID II requirements, Reuters reports.
Other firms, such as Securitize, are addressing tokenization from an issuer-first perspective, offering fully compliant tokenized securities that represent direct equity positions. Securitize’s model supports on-chain investor onboarding, secondary trading, and regulatory reporting functions designed to meet both institutional and retail standards across the United States and the European Union.
US Digital Asset Legislation
With momentum building around the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act, the Milken Institute has issued a statement of support. This follows our letter of comment on the CLARITY Act and the testimony of Michael Piwowar, executive vice president of Finance at the Milken Institute, before the US House Committee on Agriculture.
“These landmark bills will bring clarity to market structure, protect consumers, and establish a foundation for responsible innovation,” said Valentine. The bipartisan, bicameral proposals aim to modernize US digital asset regulation by clarifying market structure, providing pathways for stablecoin oversight, and addressing systemic risks.
Last Chance: Apply by July 31, 2025, for The Milken-Motsepe Prize in AI and Manufacturing
Manufacturing is vital: It drives economic growth, creates jobs, fosters innovation, and sparks technological breakthroughs. The Milken-Motsepe Prize in Artificial Intelligence and Manufacturing is awarding $2 million total in prizes, including a $1 million Grand Prize, to Series A+ companies in Africa that leverage AI and emerging tech to revolutionize manufacturing value chains. Learn more about the Milken-Motsepe Innovation Prize Program and submit your application.