Executive Summary
The U.S. Securities and Exchange Commission (SEC) has granted approval to Plume Network as a registered transfer agent, marking a significant regulatory development for the compliant tokenization of Real World Assets (RWA). This approval establishes essential market infrastructure, enabling the legitimate on-chain recording and transfer of RWA ownership. This advancement directly supports the strategic objectives of CXC10, a Faraday Future (FF) associated entity, which aims to tokenize trillions of dollars in physical assets within the automotive ecosystem.
The Event in Detail
On October 6, the SEC officially approved Plume Network as the first blockchain-native firm to operate as a transfer agent. This designation empowers Plume to provide on-chain record-keeping, trade tracking, and fund administration for tokenized assets within existing U.S. regulatory frameworks. The approval is designed to streamline processes that traditionally take months in conventional markets, shortening tokenization timelines from months to weeks by embedding trade reporting and capital table management directly into smart contracts. Plume Network's infrastructure is designed for interoperability with the SEC's systems and the Depository Trust & Clearing Corporation (DTCC), the central hub for U.S. securities transactions. To date, Plume Network has processed over $62 million in tokenized assets and onboarded more than 200,000 RWA holders through its Nest Credit protocol within three months.
Market Implications
This regulatory breakthrough is poised to significantly accelerate the adoption and legitimization of RWA in the crypto sector, potentially attracting increased participation from traditional finance entities. The approval addresses a major hurdle for compliant on-chain asset management, fostering innovation and investment in RWA-focused protocols. The asset management sector, valued at approximately $39 trillion, represents a substantial market for these advancements. Competitors like Ondo Finance have also made strategic moves, acquiring Oasis Pro to develop regulated tokenized securities markets in the United States, managing over $1.6 billion in assets. Additionally, ARK Venture Fund, led by Cathie Wood, invested approximately $10 million in Securitize, a BlackRock-backed firm responsible for issuing BlackRock's tokenized money market fund (BUIDL), which manages $2.8 billion in tokenized U.S. Treasury assets. These developments collectively signify a deepening integration of traditional finance with blockchain technology, reshaping the Web3 ecosystem and influencing investor sentiment by offering yield-bearing, regulated digital assets.
Business Strategy & Market Positioning
Faraday Future founder Jia Yueting announced that Plume Network's SEC approval is a critical step for CXC10's strategy to tokenize trillions of dollars in automotive ecosystem assets, including vehicles, data, and energy. FF made a $41 million investment in Qualigen Therapeutics, rebranding it as CXC10 to focus on crypto index products and ecosystem tokens. YT Jia controls 62% of CXC10 shares, serves as Chief Advisor, and FF's CFO leads CXC10's finance operations, with FF securing board nomination rights for potential control over four board seats. This "dual flywheel" strategy combines FF's core electric vehicle (EV) business with blockchain innovation. CXC10 aims to tokenize various automotive processes, including secure data sharing, compliance verification with sustainability standards, and streamlined financing through tokenized vehicle sales and crypto-backed deposits. This aligns with FF's broader "EAI + Crypto" strategy, which targets generating staking returns of 3%–5% to fund product innovation and stock buybacks. CXC10 plans to offer crypto-native products such as the C10 Index, a market-cap-weighted basket of the top 10 crypto assets, and the C10 Treasury, employing an 80% passive and 20% active portfolio strategy. The initial products from CXC10 are anticipated to be a new category of compliant RWA assets.
Broader Context
The regulatory advancements in the RWA sector, including Plume Network's SEC registration, underscore a global trend toward integrating blockchain technology with traditional finance under clear regulatory frameworks. In 2024, the UAE's Virtual Assets Regulatory Authority (VARA) released its first RWA guidance, and Mantra Chain secured a VASP license. Singapore's Monetary Authority (MAS) is consulting on digital securities frameworks, targeting a mid-2025 rollout. Europe's Markets in Crypto-Assets (MiCA) regulation will provide harmonized rules across 27 member states, covering token classification, custody, and reporting. Hong Kong's Securities and Futures Commission (SFC) plans a pilot program for tokenized funds in Q1 2025. These global regulatory efforts are expected to reduce legal uncertainty by up to 70% and attract an estimated $100 billion in new RWA issuances over the next two years. The increasing regulatory clarity and institutional investments are pivotal in fostering mainstream adoption and challenging legacy settlement systems, positioning RWA as a secure alternative within the digital asset space.
source:[1] Jia Yueting: CXC10's first batch of products will be a new category of compliant RWA assets (https://www.techflowpost.com/newsletter/detai ...)[2] Plume Network Becomes First Blockchain-Native SEC-Approved Transfer Agent, Bridging Wall Street and Web3 - The Daily Star Lebanon (https://vertexaisearch.cloud.google.com/groun ...)[3] Bitcoin Exceeds $126,000 as Real-World Asset Tokenization Accelerates with Key Regulatory Approvals - Edgen (https://vertexaisearch.cloud.google.com/groun ...)
Edgen Crypto·Oct 08 2025, 05:33
