ARK Tokenizes Venture Fund on Ethereum as U.S. Crypto Rules Evolve

The cryptocurrency and blockchain sector continues to see new financial products emerge as U.S. regulators develop rules for tokenized securities and stablecoins. ARK Invest, founded by Cathie Wood, has partnered with Securitize to bring the ARK Venture Fund on Ethereum blockchain, giving eligible investors blockchain-based access to a portfolio spanning private and public companies.

The fund, identified as ARKVX, invests in companies associated with disruptive technologies and includes exposure to private businesses alongside publicly traded firms. Securitize, which specializes in tokenizing real-world assets, said the partnership represents an expansion of ARK’s investment strategy onto blockchain infrastructure. The firm reported more than $5 billion in assets under management as of July.

The ARK Venture Fund has been tokenized through Securitize, bringing an investment vehicle focused on private and public technology companies onto blockchain infrastructure and expanding digital access to the strategy.

The fund provides exposure to a range of private companies and startups that have traditionally been less accessible to retail investors through conventional investment channels. Its holdings and exposure include companies such as OpenAI, Stripe, Anthropic, Databricks, Neuralink, Perplexity AI, Epic Games and The Boring Company, alongside publicly traded companies including Alphabet, Nvidia, Robinhood, Tesla, Coinbase and Shopify, according to the announcement.

The structure does not eliminate the regulatory and eligibility requirements associated with the underlying securities. Instead, tokenization provides blockchain-based infrastructure for representing ownership interests in an investment product.

SEC Opens Door to Tokenized Stock Trading

The launch follows an SEC action on Sept. 17 that granted temporary, conditional exemptive relief to certain Tokenized Securities Venues. The measure allows qualifying venues to facilitate permissioned trading of tokenized National Market System stocks using automated market makers and liquidity pools.

The SEC’s action is significant for the development of onchain capital markets because it establishes a regulatory framework for certain tokenized stock trading activities while the agency considers longer-term rules. The exemption is temporary and conditional rather than a blanket authorization for unrestricted tokenized stock trading.

The SEC order also sets conditions concerning the underlying securities. Tokenized NMS stocks must meet specified requirements, including provisions concerning the rights attached to the securities and the ability of issuers to object to trading on a tokenized securities venue.

The regulatory development could support broader experimentation with blockchain-based market infrastructure, including potential improvements in how securities are issued, transferred and settled.

Federal Reserve Proposes Stablecoin Framework

Separately, the Federal Reserve on Sept. 24 requested public comment on two proposals implementing its responsibilities under the GENIUS Act. The proposals focus on payment stablecoin issuers supervised by the Federal Reserve and would establish requirements for reserves, capital, risk management, and applications by banks seeking approval to issue payment stablecoins.

The first proposal would require covered stablecoin issuers to fully back their tokens with permitted reserve assets, including short-term Treasury securities and other high-quality liquid assets. It would also establish standardized capital requirements and risk-management standards while setting requirements for firms that safeguard reserve assets.

The second proposal would create a tailored application process for supervised banks seeking approval to issue payment stablecoins. Applicants would need to provide business plans and financial information, with procedures covering appeals, hearings and final regulatory determinations.

The Federal Reserve proposals would establish reserve, capital, risk-management, and application requirements for payment stablecoin issuers under the GENIUS Act, creating a more defined regulatory framework for bank-supervised stablecoin activity.

Bitcoin Market Remains Volatile

The regulatory and institutional developments come as cryptocurrency markets remain sensitive to broader risk conditions. While preparing this article Bitcoin was trading near $83,900, with its weekly gain reduced to less than 4%.

The price movement highlights the distinction between cryptocurrency market performance and the continuing development of blockchain-based financial infrastructure. While Bitcoin and other digital assets remain subject to market volatility, tokenization initiatives are increasingly focused on securities, funds and payment instruments.

The combination of ARK’s tokenized fund, the SEC’s temporary framework for certain tokenized stocks and the Federal Reserve’s proposed stablecoin rules indicates that blockchain technology is increasingly being incorporated into established financial structures. The next stage will depend on regulatory feedback, investor participation, and how effectively these systems operate at scale.