BlockchainReporter Weekly Crypto News Review: TradFi Goes On-chain

This week in crypto saw major strides in regulation, infrastructure, and cross-chain innovation. Grayscale finally secured SEC approval to convert its crypto fund into a spot ETF. Meanwhile, Robinhood’s move into tokenized stocks via Arbitrum signaled growing convergence between traditional finance and blockchain. Other key developments of this week include Gate launching the world’s first tokenized futures market, Crypto.com integrating dYdX for high-leverage on-chain derivatives, and Algorand teaming up with Wormhole to enable seamless cross-chain token transfers.

Grayscale Wins SEC Approval to Convert Crypto Fund into ETF

In a big win this week, Grayscale secured approval from the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large-Cap Fund into a spot exchange-traded fund (ETF). This marks a key milestone in expanding its regulated crypto investment products. The fund tracks the CoinDesk Large-Cap Select Index and includes five leading cryptocurrencies by market cap. These coins include Bitcoin (80.2%), Ethereum (11.3%), XRP (4.8%), Solana (2.7%), and Cardano (0.81%).

This move is part of Grayscale’s broader plan to convert its crypto trusts into ETFs, aiming to reduce arbitrage spreads and improve investor access. The approval follows a 2022 SEC rejection, which Grayscale legally challenged. In 2023, a federal court ruled in Grayscale’s favor, leading to this recent greenlight in July 2025. Analysts see the decision as a step toward more diversified crypto ETFs, potentially paving the way for single-asset products like those for $XRP, $SOL, and $LTC.

Robinhood Partners with Arbitrum to Launch Tokenized Stocks for EU Users

The second most important news is about Robinhood. Robinhood has teamed up with Ethereum Layer-2 network Arbitrum to offer tokenized U.S. stocks and ETFs to European users. The trading will occur on blockchain rails, enabling seamless access through Arbitrum’s decentralized infrastructure.

As part of the partnership, Robinhood plans to launch its own Layer-2 chain using Arbitrum’s Orbit tech stack. Robinhood CEO Vlad Tenev emphasized that crypto is evolving from a tradable asset into a core financial infrastructure. Arbitrum co-founder Steven Goldfeder noted the move aligns with crypto’s mission to build a more open and efficient financial system. Despite the backend shift, Robinhood’s user experience in the EU will remain familiar.

Gate and xStocks Launch World’s First Tokenized Futures Market

In another important move, crypto exchange Gate has partnered with tokenized equity platform xStocks to launch the world’s first tokenized futures market. With this launch, the aim is to bridge traditional finance (TradFi) with crypto. The partnership introduces tokenized versions of major U.S. stocks, such as AAPLx, TSLAx, and METAx, for both spot and futures trading.

These tokenized assets offer 24/7 access and allow for two-way USDT-based strategies, giving traders greater flexibility and real-time exposure to equities. Gate Alpha will soon expand offerings with SPYx, MSTRx, and TELAx futures. This move lowers global barriers to equity trading, combining the convenience of crypto markets with traditional asset access. With this launch, Gate has joined exchanges like Kraken and Bybit in advancing tokenized finance.

Crypto.com Taps dYdX for 50x Leveraged On-Chain Derivatives

Crypto.com has integrated dYdX into its self-custodial on-chain app, enabling users to trade derivatives with up to 50x leverage. The move brings institutional-grade infrastructure and perpetual contract support to a broader, decentralized user base.

The integration maintains Crypto.com’s existing app interface while leveraging dYdX’s backend, which has powered over $1.49 trillion in trades. This partnership enhances performance, scalability, and user control, offering a robust on-chain alternative to centralized trading platforms.

Algorand Partners with Wormhole to Enable Cross-Chain Native Token Transfers

The Algorand Foundation, in collaboration with Wormhole and Folks Finance, is bringing cross-chain native token transfers (NTTs) to its ecosystem. This move allows assets to move natively across multiple blockchains without the need for wrapped tokens. Wormhole is a major cross-chain protocol enabling secure communication across over 40 networks. Folks Finance, a DeFi platform on Algorand, plays a key role in implementing NTT support.

With this integration, developers can mint NTT-enabled tokens on Algorand, and users can seamlessly transfer assets between Algorand and other NTT-powered chains. The collaboration strengthens interoperability, enhances liquidity, and reduces fragmentation across Web3 ecosystems.

Conclusion

This week’s developments highlight a pivotal shift as traditional finance increasingly embraces decentralized technologies. From Grayscale’s SEC-approved ETF to Robinhood’s tokenized stocks and Gate’s innovative futures market, the line between TradFi and DeFi continues to blur. As platforms like Crypto.com and Algorand push the envelope on scalability and interoperability, the global financial system inches closer to a more open, efficient, and on-chain future.