📈 Tokenized Treasuries Go Parabolic

That didn’t take long. Tokenized Treasuries have officially sprinted past $1.5 billion in total market cap. 🏃

With records like that, it’s no surprise that real-world assets were the best-performing crypto sector for May. 🏆

🎯🔥 Rapid Fire Takeaways:

🏋️ Paxos Unveils Yield-Generating Stablecoin Lift Dollar

💸 Franklin Templeton Enables USDC Conversions on Benji Investments Platform

📜 How will Europe’s elections impact digital euro legislation?

📊 New Texas-based stock exchange looks to take on Nasdaq, NYSE

😬 Crypto Marketplace Bakkt Weighs Potential Sale, Breakup

🤝 Fidelity International joins JPMorgan’s tokenized network

These trends are only increasing in pace, with global markets starting to embrace the new infrastructure. 🤗

A little market competition never hurt anyone (except maybe incumbents,) and some surprising names are throwing their ten-gallon hats into the ring! 🥊

🎥 RWA World Features! 

The RWA World crew has been busy – we were recently featured on VanEck subsidiary Segmint’s podcast! 🤝

Our Head of Research, Ray Buckton, also sat down with Jax Dwyer of the Building Web3 Podcast to talk tokenization and where it’s all headed. 🔍

Of course, we had another blockbuster week with Wolf Web3, where we dove deep into tokenized assets and their implications. Make sure to join us next Thursday at 2 pm EDT! 📅

Oh! And don’t forget to join us with Mattereum every Wednesday, 9 am EDT, for deep RWA wisdom and compliance talk! ☕

🏛️ Market Infrastructure and Institutions

Distributed ledgers promise to overhaul archaic financial systems, but they’re not a surefire win. Bakkt, a compliant end-to-end crypto infrastructure provider owned by the NYSE, launched in 2021 to shaky reception and is now considering a breakup and sale. Not before one last gambit – they’re working with Crossover Markets on an Electronic Communication Network (ECN) for institutions to hopefully turn things around quickly. 🎲

On the flip side, the newly formed Texas Stock Exchange (TXSE) is having a field day – with the backing of Blackrock and Citadel, the exchange aims to launch sometime in 2026. The Lone Star state is ranked 9th in the world by GDP, eclipsing Russia, Mexico, Australia, and… New York, making it a strong contender for the new seat of financial power in the United States. 🤠

In other market news, Figure has launched a new marketplace for private credit loans on the Provenance blockchain, promising faster settlement and better pricing transparency. Swiss service provider Bitcoin Suisse has tapped Obligate to expand its lending business with tokenized bonds, while Fidelity has joined the swelling ranks of J.P. Morgan Onyx users. 🏢

💵 Stablecoins and Yield-Generating Products

Stablecoins, the original tokenized real-world asset, is enjoying a renewed day in the sun with the burgeoning global interest in tokenization. ☀️

Mountain Protocol, responsible for the yield-bearing USDM stablecoin, recently completed an $8 million Series A round. The how-do-you-pronounce-this M^0 Foundation pulled even more capital, closing a $35 million Series A to support its efforts to empower institutional clients with stablecoin minting services.

It’s not all sunshine and rainbows for stablecoins, though. Paxos has announced a 20% reduction to its workforce, particularly close to when PayPal received a New York Trust Charter. Recall Paxos initially helped PayPal issue their PYUSD stablecoin, so newly minted friends may have turned rivals rather quickly. ⚔️

Down, but not out! Paxos also announced Lift Dollar (USDL), a yield-generating stablecoin with daily accruals. This move could help reverse its short-term fortunes. But they’re playing on an increasingly crowded field. Franklin Templeton has turned on USDC conversions with the help of Zero Hash, allowing customers to redeem their stablecoins for US dollars and buy shares of their FOBXX U.S. Government Money Fund. 💸

⚖️ CBDCs and Regulatory Developments

It seems like not a week has gone by without new CBDCs on the block. 🏛️

This time, the Italian Banking Association is trialing two wholesale CBDCs, while Russia aims to kick off cross-border CBDC payments by 2025 with neighboring Belarus. Meanwhile, in China, banks are already transferring digital Yuan across borders using mBridge, while Thailand is kicking off a test of programmable payments in its digital asset sandbox. 🌐

On the regulation front, the US Financial Services Committee’s recent hearing on real-world asset tokenization revealed diverse views, with most rationale concerns based on financial oversight and macroeconomic stability. However, some legislators even took to Twitter to air their shockingly misinformed grievances against tokenization, Bitcoin, and other digital assets. 🤨

Europe’s recent elections also panned out more right-leaning than some predicted, leading to questions about how this development will impact digital euro progress. The Old World could soon follow suit, with CBDCs becoming increasingly political in the United States. 👀

🌞 A Boon in June 

So far, tokenization summer is in full bloom. 🌷

Don’t miss your insight into the action with Wolf Web3 on Thursday at 2 pm EDT! 🕝

Or, if you’re an early bird, catch Mattereum on Wednesday at 9 am EDT! 🐓

Whatever your tokenization preference, RWA World has you covered. 🤝