Digital assets are evolving from speculative assets like Dogecoin and nonfungible tokens (NFTs) and into mainstream finance. This evolution includes stablecoins and tokenization. Computershare Ltd. (CMSQY), Jack Henry & Associates Inc. (JKHY), JPMorgan Chase & Co. (JPM) and Visa Inc. (V) are among the companies involved with this evolution.

We introduce you to stablecoins in the Alternative Investments article in this issue. As Laura Shin of Unchained explains, these are digital assets backed by enough reserves to support their value. Almost all current stablecoins are pegged to the U.S. dollar, meaning that their value rises and falls based on how the greenback trades. As we went to press, the largest stablecoins were Tether and USDC.

Stablecoins offer faster and lower-cost settlement than the current dominant payment systems. Visa is interested enough in them that it is operating a global settlement pilot program. This program supports nine different blockchains and more than 130 stablecoin-linked payment programs.

Regional and community bank software provider Jack Henry is working to facilitate stablecoins. Last month, CEO Greg Adelson told analysts, “Beta testing with clients to send and receive USDC is going well … At this point, we are largely awaiting final regulatory guidance to proceed.”

How stablecoins will impact the interest we earn on savings accounts, certificates of deposit (CDs), etc., is a source of debate. Coinbase offers a 3.50% reward for holding the USDC stablecoin. A recently added clause to the Digital Asset Market Clarity Act of 2025 (the Clarity Act) prohibits digital asset service providers and their affiliates from paying deposit-like interest on stablecoin balances. Rewards can be paid on transactional activities, such as making a payment. The Clarity Act remains under debate in Congress.

JPMorgan Chase allows its institutional clients to transact with its deposit token, JPM Coin. Vetted parties can make payments, post collateral and settle transactions on a public blockchain.

Computershare, which some of you may have used to participate in stock dividend reinvestment plans, recently introduced Issuer-Sponsored Tokens (ISTs). ISTs allow investors to own shares in a digital form. You can trade the IST on a digital ledger or switch them back to a traditional share.

This month’s Alternative Investments article is certain to be followed by more. As the financial system evolves, we want you to have the proper knowledge to make the best decisions for your portfolio.

Wishing you prosperity and good health,