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- 🔪 Yelen Killed Tokenization?
🔪 Yelen Killed Tokenization?
RWA World Newsletter - Dec 6, 2024
Ray Buckton
December 06, 2024
Bitcoin is now over $100,000! 🥳
But… what does this mean in the long term? Marc Andreessen recently uncorked the seemingly bottomless well of stories about unbanking in tech and Web3 – also called Operation Chokepoint 2.0. If the government doesn’t like what you’re building, you can kiss financial access goodbye. 😬
It goes even further. Libra founder David Marcus claims that Treasury Secretary Janet Yellen killed Facebok’s Libra platform in its cradle. 👶
🎯🔥 Rapid Fire Takeaways:
While the covert becomes overt in the US, some jurisdictions keep it overt from the start – Brazil is eyeing a ban on stablecoin transfers to self-custodied wallets to exert more control over the financial system. ⛔
With a new administration kicking off in the US in one month, it seems we’ll be getting a closer look at what tokenization skeletons are in which closets! 🦴
☢️ Spicy Rocks and Partnerships
Many tech companies are now turning to nuclear to power their data centers as AI continues to eat the world, with Meta being the latest. For that, we’ll need price discovery for the underlying asset, and uranium has officially come to the Tezos blockchain, with our friends at Archax h handling the token creation! Uranium is also environmentally friendly, and PowerDime is seeking to tokenize $250 million in renewable energy assets using Chintai’s technology! ♻️
Electricity means sparks, and Ethena and Securitize are proposing USDtb be used for Spark’s $1 billion Tokenization Grand Prix. But TradFi and DeFi go both ways, and BlackRock is now working with Curve and Elixer on a $533 million DeFi fund. The blending of traditional and digital continues to intensify, with tokenization at the center of it all! 🎯
Handshakes and deals make it all possible, and Partior recently welcomed Deutsche Bank as a strategic investor, while Zodia has teamed up with Securitize to enhance the adoption of tokenzied assets. Phlomis Finance and responsAbility, are also partnering to use blockchain to track the latter’s impact investments. 🤝
📇 Papers, Please
You can’t have proper tokenization without adhering to the proper rules and regulations. 21X did just that and recently secured approval from Germany’s BaFin for its tokenized securities exchange. Similarly, MGA, a partner of BlockInvest, was authorized as the third Italian digital securities registry in the country. Meanwhile, the Australian Securities and Investment Commission is seeking feedback on its proposed digital asset guidance to ensure its rules and regulations are strict yet fair. 📜
Spain has had a great week, as Ursus-3 Capital was certified as the country’s first Entity Responsible for Registration and Recording (ERIR), partnering with ONYZE to make it happen. Spanish real estate is also getting an upgrade, with SIX investing in tokenized real estate platform Open Brick. 💲
On the other side of the globe, Japan is more cautious about diving into tokenization full force. They’re proposing lightweight legislation for intermediaries that fall into categories other than crypto exchanges. The jurisdiction has also become more cautious about allowing banks to issue stablecoins – except for trust banks, as per their 2022 legislation. ⛩️
🏛️ CBDCs and Market Infrastructure
Europe has been having a regulatory field day between digital assets and AI. The ECB published its second progress report on the digital euro as trials continue to inform what a digital version of the currency may look like. Additionally, a separate report out of the EU argued that permissionless blockchains could significantly enhance the financial services sector. 💻
The ECBs settlement trials are also progressing nicely, with Clearstream, Eurex, and HQLAᵡ having recently facilitated intraday repos and wholesale DLT settlement assessment results scheduled for January. But it’s not all positive news – Tether set a redemption date for its EURT as recent MiCA legislation has driven the issuer out of the jurisdiction. 💶
In a big push to incentivize innovation, Hong Kong now subsidizes companies issuing tokenized bonds, while Cyprus is eyeing stablecoin guidelines for tokenized collateral. And while Kima undertook Israel’s first tokenized stock purchase for its CBDC, many retailers in Russia are pushing in the opposite direction, suggesting that the country delay its CBDC rollout. ⏱️
But nowhere has tokenization been embraced more fully in such a short time than the isle of Jersey. A small island off the coast of France, the nation released a full landing page arguing that it's the perfect place to tokenize real-world assets. Complete with a full video and multiple articles, old Jersey is leveraging new technology to make a new name for itself. 🏝️
🔍 Tokenization Reports Galore!
It was a fantastic week for reports on tokenization. Standard Charter’s “Stablecoins: The First Killer App” is a must-read and echoes what Nic Carter has been saying for years. Stablecoins have a strong product market fit and are beginning to find use cases outside a cyclical haven for digital asset volatility. 👏
Kaiko Research also released some excellent insights into the evolving exchange landscape, showing that XRP has had a massive day in the sun and that exchange volume has come roaring back to life. The data cuts off just before Bitcoin’s recent surge past $100,000, so this trend will likely only intensify from here. 📈
Finally, Citi’s “Treasury 2030: Modernize or Risk Irrelevance” boasts a bold title and echoes a strong sentiment: 93% of respondents see massive advancements in treasury management in just three to five years. Respondents see DLT and AI playing significant roles in these advancements as the use of blockchain in banking administration is finally entering its heyday. 🏦
😀 What A Week!
$100,000 Bitcoin, reports galore, and a bit of drama to top it all off.
We’ll see you next week for more insights and news.
And don’t hesitate to reach out if you need any introductions or direction in tokenized assets – it’s why we’re here ♥️
