Polkadot has officially launched a capital markets department aimed at bridging traditional finance with its blockchain ecosystem, reflecting the network's desire to attract institutional investors and the growing interest in digital assets.
The Polkadot Capital Group, announced on Tuesday, was established to address the increasing institutional demand for digital assets and improvements in the U.S. regulatory environment.
Its mission is to help institutions explore opportunities in asset management, banking, venture capital, exchanges, and over-the-counter trading through Polkadot's infrastructure.
The department will showcase practical applications in areas such as decentralized finance, staking, and real-world asset (RWA) tokenization.
Department head David Sedacca stated that the team has already been building partnerships with asset managers, brokers, and allocators.
Although headquartered in the Cayman Islands, the department is also influenced by recent regulatory developments in the U.S., such as the passage of the GENIUS stablecoin bill and the House's advancement of bills regarding crypto market structure and anti-central bank digital currency (CBDC) measures.
Founded in 2020, Polkadot is the 24th largest blockchain by market capitalization, valued at approximately $6.1 billion. Its core feature is a multi-chain architecture that allows independent blockchains (called parachains) to connect and interoperate.
Blockchain is moving towards institutionalization, with strong momentum in tokenization and stablecoins.
As more blockchain companies adjust their strategies to meet institutional demands in areas such as asset tokenization, bond issuance, and stablecoin settlement, Polkadot's capital markets transformation is instantaneously adapting to this trend.
In December last year, the brokerage firm Prometheum raised $20 million to promote the on-chain issuance of traditional securities.
In June, Digital Asset raised $135 million to expand its Canton Network blockchain for financial institutions.
At the same time, Polygon is using USDC for bond issuance on the Polygon platform through its partner company Obligate.
Traditional financial institutions have recognized that blockchain can reduce costs, accelerate transaction speeds, and decrease banking friction. Goldman Sachs and Bank of New York Mellon have developed a sandbox for tokenizing money market funds, enabling 24/7 settlement.
