📈 Standard Chartered 15X Bullish on Tokenization than McKinsey?

Standard Chartered says real-world asset tokenization is a game changer – they’re calling for $30 trillion by 2034! So much for McKinsey’s $2 trillion prediction. 👀

Trade finance is projected to account for $5 trillion, strongly validating XDC, which is already making massive inroads into trade finance tokenization. 🚢

🎯🔥 Rapid Fire Takeaways:

🚢 Real-world asset tokenization: A game changer for global trade

🏆 Swarm NFT Initiative Brings Gold-Backed Assets to Users Ahead of MiCA

⛓️ Fidelity, Sygnum partner with Chainlink to bring NAV data onchain

🐜 Ant International uses JPM Coin to Process Billions in Payments3

📜 First KfW Benchmark Bond Issued on Deutsche Börse’s D7

⚪ Circle is First Global Stablecoin Issuer to Comply with MiCA, EU’s Landmark Crypto Law

And why not $30 trillion? The foundational frameworks are actively being laid. 🏗️

This week alone, Singapore’s Project Guardian saw S&P Global Ratings join the initiative, followed by the ICMA, ISDA, and GFMA quickly joining the party! 🎉

🌍 Where in the RWA World?

Lately, everywhere!

Our head of research, Ray Buckton, had an excellent conversation with LandX on the future of RWAs and the importance of agricultural tokenization. Go check it out! 🎧

Some even say agriculture needs blockchain, and our friend Scott Foo has an excellent take on how DePIN Summer is here. Like RWAs, DePIN is part of the tokenized assets umbrella that’s supercharging countless industries, including agriculture. Give it a read! 📑

And make sure to mark your calendars for the RWA World Roundup every Friday at 9:30 am EDT! 🤠

🌊 Rising Tide of Asset Tokenization

Putting Standard Chartered’s prediction to the test, SocGen joined JPM, Citi, BNY, and MUFG to explore a Global Layer One for asset settlement. 🌐

And speaking of JP Morgan, a recent report revealed Ant International has processed billions of dollars worth of payments via their Onyx network. 💰

Tokenized assets are taking center stage for every category of assets in the RWA World taxonomy:

• Commodities: Swarm is using NFTs for gold-backed assets in compliance with the EU’s new MiCA laws. 🥇

• Equities: Backed Finance, which recently closed its $9.5 million Series A, teamed up with INX to tokenize Nvidia stock on Ethereum. 📊

• Real Estate: Mantra raised $11 million to tokenize $500 million worth of real estate assets for UAE-based MAG Group. 🏘️

It gets even better. Fidelity and Sygnum are working with Chainlink to bring the net asset value (NAV) of Fidelity’s $6.9 billion Institutional Liquidity Fund on-chain. At the same time, DBS revealed that it will act as the custodian of Paxos’ new Singapore-approved stablecoin. 🏛️

🔌 Deutschland Bonds and Growing Infrastructure

As the second-most popular jurisdiction for tokenization initiatives, Germany rocketed out of the gate with tokenized bond volume this week. Clearstream’s (a Deutsche Börse subsidiary) sleek D7 platform took the crown. 👑

• DekaBank and DZ Bank used the platform to issue DLT-based bonds for the ECB’s DLT trials. 💶

• KfW issued €4 billion worth of DLT-based bonds dated July 2nd using the D7 platform. 📜

•  KfW is also issuing €100 million worth of DLT bonds on Polygon, working with Hauck Aufhäuser as a custodian for the initiative. 💜

Auf gehts Deutschland! 🍻

Outside of Germany, Sony’s Amber Japan has rebranded to S.BLOX and is pushing further into crypto trading services. Meanwhile, Canton Network, famous for its 45-institution DLT test earlier this year, announced a new utility token, Canton Coin. 🗺️

👁️ Euro Tackles CBDCs 

The European Union took center stage for CBDCs this week. The limitations imposed by MiCA specifically exempt Euro-stablecoins and instead apply to foreign-denominated stablecoins, leading incumbent issuers to make amendments to comply. ✂️

There is a €200,000,000 and 1 million transaction daily volume limit for non-euro stablecoins, suggesting the EU is primarily concerned with tokenized dollars chipping away at its monetary sovereignty. This perspective makes sense, given the dollar’s 98.9% stablecoin dominance. ⛏️

Circle emerged as the first issuer to achieve compliance for its USDC and EURC stablecoins, a successful move given the €200,000,000 and 1 million transaction daily volume limits for non-euro stablecoins. SocGen Forge followed shortly after with EUR CoinVertible (EURCV) stablecoin. 👛

The goal seems to be taking the euro global, as Hong Kong and France announced a cross-border CBDC interoperability trial. It could even work offline, as Crunchfish and Tata Consultancy Services collaborate on offline CBDC payments. 💱

If all else fails, they can always go the Bahamian route. The island nation has given banks two years to accept its “Sand Dollar” CBDC or face stiff penalties. ⌚

👾 Beam Us Up, Scotty

With SocGen 15 times more bullish on tokenization than McKinsey, it’s clear that where we land in 2030 is anyone’s guess. 🎰

One thing is certain: it’ll be a 13 or 14-figure market by the end of this decade. That’s a lot of zeroes on the balance sheet and a lot of hard work by the folks building the future of finance between now and then. 💪

RWA World is here to support however we can. Here’s to a future with instant settlement and a more efficient financial landscape. ❣️