🟣 Polygon Becoming Tokenization Hub?

May day… literally – this year is moving along too quickly! Ray Buckton, Head of Research at RWA World, ready to talk turkey on tokenization. 🦃

BlackRock is once again crushing it. Their BUIDL fund has grown sevenfold to $2.5 billion, with them and four others accounting for 88% of all tokenized US Treasury activity. 🦾

CEO Larry Fink is beyond bullish on the tech – he’s seemingly supportive of the recent stat suggesting $19 trillion in tokenized assets by 2033. 📅

🎯🔥 Rapid Fire Takeaways:

📈 BlackRock’s Fink: ‘Every Asset’—Can RWA tokenization Hit $19T by 2033?

⚔️ Stablecoin Market Sees New Competitors and Backing Options Emerging

🔌 Mastercard unveils end-to-end capabilities to power stablecoin transactions – from wallets to checkouts

🥇 Polygon Surpasses Ethereum in NFT Sales – Driven By RWAs

👀 Crypto banking rule withdrawal by Fed ‘not real progress’ — Senator Lummis

🔥 The DTCC Collateral Appchain wants to rewrite the rules of TradFi settlement

🔍 IMF Panel: Tokenization and the Financial System: Adapting to the New Landscape

But what does this mean for smaller issuers? Are we on the cusp of a renaissance for experimentation, or is this just TradFi banking with extra steps? 🤔

We discuss topics like this and more on Tuesdays at 1 pm EDT, and Thursdays at 2 pm EDT on Wolf Crypto – stop by, join the conversation, and hear from leading issuers and founders on what makes tokenization tick. 🐺

👛 Stablecoins Get New Backings

Another week, another round of stablecoin developments. This time, Tether’s co-founder is highlighting the US dollar facing competition for dominance as the market sees new players along with new options for backing. Specifically, gold-backed stablecoins are making big moves, with BlackRock executives taking note of the central bank shift towards the yellow metal. ⛏️

Corporations are more involved than ever, with PayPal introducing a 3.7% yield on stablecoins to boost market share, and Korean banks launching a joint stablecoin initiative. They’re not alone, with Dutch-based ING working on its own stablecoin and Circle is lining up baking partners for a potential SWIFT competitor. 🏛️

No wonder the Citi Institute predicts that stablecoin issuances will reach $1.6-3.7 trillion by 2030. Mastercard showcased its end-to-end capabilities for powering stablecoin transactions, and Stripe is testing stablecoins on its Bridge. If stablecoins are in your stable, check out the recent report from Innovate Finance on the UK opportunity for the asset class. 📜

🧑‍⚖️ Governments and Corporations

Drama on the hill, with crypto-friendly Senator Lummis calling the Fed’s crypto banking rule withdrawal out for being “not real progress.” She wants to see action on master accounts before she relents. Nevertheless, the SEC chair has suggested that significant benefits could arise from the third crypto roundtable, while the Nasdaq is urging the agency to consider some digital assets as securities. 😦

Meanwhile, New Hampshire’s Bitcoin reserve bill is headed to the Senate for a vote just in time for the ECB to shriek about a “crypto apocalypse” thanks to Trump. They might be right, but not about the apocalypse part – Phixius (by Nacha) is collaborating with Kinexys (by J.P. Morgan) to enhance account validation capabilities. The tech seems to be working swimmingly, as echoed by the World Federation of Exchanges, who see a role for CBDCs in public markets. 🤝

📊 Tokenization Stats And Progress

Where tokenization happens matters to Web3, and Polygon has been pulling ahead. Their NFT sales have surpassed Ethereum, mainly due to RWA. Their CEO is also championing sustainable liquidity in DeFi rather than hype, as the chain collaborates with Pyse to bring tokenized EV fleets to Dubai. 💜

Speaking of Dubai, their VARA is warning against firms falsely claiming involvement in the real estate tokenization pilot. We can see why – Deloitte forecasts $4 trillion in tokenized real estate by 2035. It’s all coming together, with Midas officially soaring past $60 million in TVL as on-chain tokenization rockets into the future. 🚀

Tokenization giant Securitize is collaborating with Mantle to launch an institutional crypto fund, while its Japanese arm is introducing a digital securities platform. RWA accelerator Tokenize Indonesia was also pioneered by Saison Capital, BRI Ventures, and Coinvestasi, while LCX introduces an end-to-end tokenization framework, and Fireblocks announced a collaboration with Calastone on their new tokenization platform. 🆕

🌉 Infrastructure & Partnerships

What’s tokenization without infrastructure? Nexera and KRNL Labs are collaborating to drive institutional-grade tokenization, as Plume appoints Salman Banaei as its new Chief Legal Officer (CLO). As hedge funds go on-chain, interoperability is a significant consideration, making Analog’s recent $15 million raise a sensible one. 

Softbank made big moves this week, teaming up with Floki on robotics and AI, while Softbank Chain launched its Interstellar upgrade. They also partnered with Tether and Cantor on a $3.6 billion crypto venture. The infrastructure is strengthening, with the DTCC Collateral Appchain working on new TradFi settlement rules, and Lyng utilizing a digital asset settlement network that employs tokenized money markets for payments. 🤖

From a governmental and multinational perspective, England concluded its DLT-based FX PvP trials as the EU reviewed the role of DLT in EU capital market integration. The IMF discussed in detail the adaptation to new norms of tokenization, as the BIS, World Bank, and SNB completed their tokenized promissory note proof of concept. 🏛️

🌅 Spring Into Tokenization

Another great week, and it seems to be only up from here.

Make sure to join us on Tuesdays at 1 pm EDT and Thursdays at 2 pm EDT on Wolf Crypto for live panel discussions on the tokenized asset landscape. 

If you’re working in tokenization, we’d love to hear your perspective.

Until next time!