New Crypto Focused S&P Index to Boost Memecoins Like Dogecoin, PEPE?

Key Insights:

• S&P Dow Jones Indices has launched the Digital Markets 50 index, which combines 15 major cryptocurrencies and 35 crypto-related stocks.
• Cryptos must have a market cap of at least $300 million for inclusion, opening eligibility to 278 digital assets.
• Dinari will release an investable tokenized product tracking the benchmark by the end of 2025.

S&P Dow Jones Indices launched a benchmark on October 7 that combined crypto with equities of crypto-related firms for the first time in the indexing giant’s history.

According to the announcement, the S&P Digital Markets 50 aggregates 15 major cryptocurrencies and 35 stocks tied to crypto operations and blockchain technology.

The index launched in collaboration with blockchain company Dinari, which provided tokenized securities for the product.

Eligibility Requirements Opened Door to Hundreds of Assets

Potential new cryptocurrencies must have a market cap of $300 million to qualify for inclusion, while new equity constituents must have a market cap of $100 million.

The $300 million threshold opened eligibility to 278 crypto tracked across major data providers.

The requirement potentially allows memecoins to be included in the index. Dogecoin (DOGE) traded at a market cap above $20 billion at the time of writing, while Shiba Inu (SHIB) maintained a valuation above $8 billion.

Pepe (PEPE) held a market cap above $7 billion. Smaller memecoins, such as Bonk (BONK), with a market capitalization above $1 billion, also met the threshold.

Even newer tokens also qualify under the rules, such as Pudgy Penguins (PENGU), with a market cap of over $1.5 billion.

However, the index did not guarantee inclusion of any specific memecoin, as the market cap threshold is just one of the requirements.

Additionally, no single asset will comprise more than 5% of the Digital Markets 50, and the index will be subject to quarterly rebalancing and governance processes similar to those of S&P’s other indices.

Tokenization Enabled On-Chain Trading

Cameron Drinkwater, chief product officer at S&P Dow Jones Indices, told Barron’s cryptocurrencies and the broader digital asset industry moved from the margins into a more established role in global markets.

The company’s expanded index suite offered market participants consistent, rules-based tools to evaluate and gain exposure to the segment.

Dinari will release an investable token that tracks the new benchmark. The index will be available on Dinari’s dShares platform by the end of the year.

In June, dShares received the first broker-dealer registration from the US Securities and Exchange Commission, allowing them to offer tokenized stocks.

Tokenization refers to digitizing equities for trading through decentralized blockchains, rather than a traditional exchange.

Currently, the offers in the US are wrappers of actual shares, with no direct issuance of tokenized securities on-chain.

Anna Wroblewska, chief business officer at Dinari, said that the index is more than a tokenized offering, but a demonstration of how blockchain-based structures can modernize traditional benchmarks.

She added that the launch “shows how on-chain technology can expand the reach of established financial standards,” making them more efficient, accessible, and globally relevant.

S&P launched multi-asset class indices before, but the combination of stocks and crypto was a first for the company.

Launch Came During Banner Year for Crypto

The S&P announcement comes amid a year of significant developments in the crypto industry.

One of them is the “crypto IPO craze” in the US, where crypto firms are going public with a bang on their initial public offerings (IPOs).

Additionally, the regulatory landscape is evolving. The most recent development was the CFTC’s launch of an initiative in September to enable stablecoins as collateral in derivatives markets.

The friendly regulatory environment is bridging traditional companies to the crypto industry. A recent move was that Stripe unveiled a platform for businesses to issue custom stablecoins and launched Tempo, a layer-1 blockchain designed for stablecoin payments.

With crypto prices rising and federal regulators taking a friendlier approach to digital assets under the President Donald Trump administration, companies like S&P and Dinari were vying to build crypto products that could win over institutional investors.

Indexing should open the market to more investors, although volatility remains part of the appeal.