A group of major banks in England has launched a program to investigate tokenizing assets. The move comes after the Governor of the Bank of England questioned the usefulness of stablecoins, given that tokenization is an option. Shares of Circle Internet Group (NYSE: CRCL) fell this week, finishing down 11.9%. The drop comes as the S&P 500 fell 0.3% and the Nasdaq-100 fell 0.5%.

Banks in the U.K. have launched a pilot initiative to develop tokenized deposits after the head of the Bank of England expressed his opposition to stablecoin adoption within the industry. A consortium of Britain’s largest banks announced they’re moving forward with blockchain-based deposit tokens, following encouragement from Bank of England Governor Andrew Bailey. Tokenization is the process of creating digital representations of assets, like deposits and bonds, recorded on a blockchain.

President Donald Trump’s Genius Act has provided clearer frameworks for stablecoins in the U.S., but major banks in the U.S. seem to be leaning toward tokenization over stablecoin adoption. Circle has been riding high on expectations that traditional finance would embrace its stablecoin, USDC, as the bridge between conventional banking and crypto. However, it seems that tokenization might curb the adoption of USDC.

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Read more at Yahoo Finance: Why Did Circle Internet Stock Fall 11.9% This Week?