RWA.xyz

The number of addresses holding a stablecoin has soared past 100M, to 107M! Market caps have started to grow again, and active addresses are as strong as ever! Read about this and more in our latest contribution to @ournetwork_!

Moody's, a leading traditional finance ratings agency, interviewed us about the impact of tokenization on private credit and other real-world assets! Here are the key takeaways: 📓 1. Traditional private credit is the top risk-adjusted asset class of the last decade, but is generally only available to professional investors. Tokenization can change this, allowing access to this lucrative asset class to accredited and even retail investors. 2. Tokenization can greatly increase the transparency and efficiency of value transfer throughout the lifecycle of a credit fund, including LP subscription and redemption, loan disbursement, interest payments, and collateral liquidation. This is due to the automation that is possible with smart contracts, along with near-instant settlement of tokens. These could also enable liquid trading of LP shares and individual loans, but this is yet to be seen. 3. Adoption of tokenized private credit is higher in emerging markets with less developed financial systems, where there is a greater need for access to credit. Latin America, Africa, and South-east Asia, are the most common recipients of on-chain, RWA lending. 4. All lending contains risk, and tokenized credit is no different. 4% of on-chain loans experienced a missed payment, compared to 1.5% in traditional markets. Yields were not higher to make up for these defaults: 9.6% in tokenized private credit, and 11.8% measured by the Cliffwater Direct Lending Index. This suggests some degree of adverse selection taking place amongst borrowers. One key to further growth is closing this gap by having higher-quality issuers and originators tokenize their assets 5. Tokenized private credit has largely evaded regulatory scrutiny, with issuers tending to operate under Reg D and S exemptions under the US Securities Act. This mirrors its traditional financial counterpart, which tends to have less oversight than public credit, a much larger market. These were just a few of the insights in a wide-ranging interview, so be sure to check out the full report below!

Moody's, a leading traditional finance ratings agency, interviewed us about the impact of tokenization on private credit and other real-world assets! Here are the key takeaways: 📓 1. Traditional private credit is the top risk-adjusted asset class of the last decade, but is generally only available to professional investors. Tokenization can change this, allowing access to this lucrative asset class to accredited and even retail investors. 2. Tokenization can greatly increase the transparency and efficiency of value transfer throughout the lifecycle of a credit fund, including LP subscription and redemption, loan disbursement, interest payments, and collateral liquidation. This is due to the automation that is possible with smart contracts, along with near-instant settlement of tokens. These could also enable liquid trading of LP shares and individual loans, but this is yet to be seen. 3. Adoption of tokenized private credit is higher in emerging markets with less developed financial systems, where there is a greater need for access to credit. Latin America, Africa, and South-east Asia, are the most common recipients of on-chain, RWA lending. 4. All lending contains risk, and tokenized credit is no different. 4% of on-chain loans experienced a missed payment, compared to 1.5% in traditional markets. Yields were not higher to make up for these defaults: 9.6% in tokenized private credit, and 11.8% measured by the Cliffwater Direct Lending Index. This suggests some degree of adverse selection taking place amongst borrowers. One key to further growth is closing this gap by having higher-quality issuers and originators tokenize their assets 5. Tokenized private credit has largely evaded regulatory scrutiny, with issuers tending to operate under Reg D and S exemptions under the US Securities Act. This mirrors its traditional financial counterpart, which tends to have less oversight than public credit, a much larger market. These were just a few of the insights in a wide-ranging interview, so be sure to check out the full report below!

🌐 This Week in Tokenization: June 28, 2024 Welcome to our newsletter! Every week we summarize the most important stories in tokenization. Sign up below. From MiCA to 100M stablecoin holders..let's explore this week's top stories 🧵👇 1 ) MiCA Enforcement on Stablecoins Approaches 👨⚖️ From next Monday onwards, stablecoin in activity in the European Union must comply with the requirements set out in the MiCA regulations. Bitstamp has already delisted Tether's EUR-pegged stablecoin $EURT. 2 ) Arbitrum Endowment Committee Recommends Allocation to Six RWA Products 🆕 This list includes BlackRock and Securitize $BUIDL, Ondo Finance $USDY, Superstate $USTB, Mountain $USDM, OpenEden $TBILL, and Backed Finance $bIB01. 3 ) Stablecoin Holders Surpass 100M 📈 Tether $USDT is held by the most number of onchain accounts, with a grand total of 63M holders. Following Tether is Binacne $BSC-USD with 20M holders and Circle $USDC with 12M holders. 4 ) RWAs as Second Best Performing Sector in Crypto 🥈 According to data from BitEye, memecoins led the competition by recording a staggering 1,834% returns since the start of 2024. In second place was RWA utility/governance tokens, which returned 214% to investors. 5 ) Other Highlights Stablecoin issuers are now the 18th largest global holder of US Treasurys Standard Chartered predicts $30.1T of tokenized assets by 2034 McKinsey predicts $2T by 2030 Superstate and Ondo facilitate some of first trades collateralized in tokenized Treasurys 🌐 Sign up to our weekly newsletter for more alpha on the latest RWA market activity, regulation, and trends. https://www.rwa.xyz/blog

🌐 Last Week in Tokenization: June 20, 2024 Welcome to our newsletter! Every week we summarize the most important stories in tokenization. Sign up below. From Tether's new gold-backed synthetic dollar to a Moody RWA rating..let's explore this week's top stories 🧵👇 1 ) Emerging Use Case For Tokenized Treasurys 🆕 Tokenized Treasurys are increasingly being used as collateral. Superstate's $USTB and Securitize's $BUIDL can be used as collateral on FalconX. Ondo Finance's $USDY can be used on Drift Protocol. 2 ) SEC Commissioner Supports Tokenization 📈 On June 14th, Mark Uyeda emphasized tokenization's potential to transform capital markets at a securities market event. He cited higher security, transparency, and immutability as reasons for adoption. 3 ) Tether New Protocol 🤑 "Alloy" allows users to lock up Tether Gold ($XAUT) tokens in exchange for a synthetic dollar, $aUSDT. $aUSDT combines the proven unit-of-account characteristic of the U.S. dollar with the resilient store-of-value characteristic of gold 4 ) Moody's Awards Investment-Grade "A-bf" Rating to OpenEden's Tokenized T-bills 🏆 It is the first and only tokenized US T-Bill product globally to receive a rating from the credit ratings agency. 5 ) Other Highlights MakerDAO is voting to offboard Monetalis for failure to report Securitize facilitates Marui's green bond issuance Spiko raises 4M Euros in presale Ondo Finance $USDY available on Shopify through Helio Pay Index Coop RWA index is live 🌐 Sign up to our weekly newsletter for more alpha on the latest RWA market activity, regulation, and trends. https://www.rwa.xyz/blog

🌐 Last Week in Tokenization: June 14, 2024 Welcome to our newsletter! Every week we summarize the most important stories in tokenization. Sign up below. From a tokenized Treasury milestone to the impacts of MiCA ...let's explore this week's top stories 🧵👇 1 ) Tokenized Treasurys Surpass $1.5B Milestone 📈 Since 2023, total value of tokenized Treausry products is up 1335%. There are now 24 tokenized Treasury products, up from 3 at the start of 2023. Securitize's $BUIDL is the largest product. Ondo Finance is the largest provider. 2 ) According to @coinbase, 35% of Fortune 500 Executives Are Planning Tokenization Projects 🚨 7/10 Fortune 500 executives are interested in learning more about a stablecoin use cases. 86% recognize potential benefits of asset tokenization for their company. 3 ) How MiCA Could Affect the Stablecoin Market ❓ Circle's Senior Director Patrick Hensen believes EUR-denominated stablecoin momentum will grow. In contrast, Tether's CEO Paolo Ardoino fears "requirements could make EU-licensed stablecoins extremely vulnerable and riskier" 4 ) Other highlights Obligate and Alloy partner to bring bonds into institutional portfolios Ripple announces digital gold coming to XRPL Bitcoin Suisse tokenizes bond on Polygon Figure Markets launches FTX claims marketplace Paxos cuts 20% of workforce 🌐 Sign up to our weekly newsletter for more alpha on the latest RWA market activity, regulation, and trends. https://www.rwa.xyz/blog

🌐 Last Week in Tokenization: June 7, 2024 Welcome to our newsletter! Every week we summarize the most important stories in tokenization. Sign up below. From a government hearing to a DAO RWA investment..let's explore this week's top stories 🧵👇 1 ) US House Subcommittee Hearing on Tokenization 🏛️ On Wednesday, industry leaders and congressmen came together to debate tokenization. Debates mainly centered around the feasibility of including tokenized securities on public blockchains. 2 ) Binance Updates Stablecoin Strategy Ahead of MiCA 🆕 Binance announced that it will restrict the availability of non MiCA compliant, Unauthorized Stablecoins for European Economic Area (EEA) users across its product offerings, starting from June 30th. 3 ) Exotic RWAs are Piquing Interest 🎻 Galaxy Digital tokenized a Stradivarius violin to collateralized a loan. Republic Digital tokenized equity shares in Watford FC. 4 ) Shortlist for Arbitrum's RWA Program Released 📝 On Wednesday, the Arbitrum DAO unveiled a shortlist of providers eligible to become a service provider for its Stable Treasury Endowment Program (STEP) program, which plans to allocate 35M $ARB to RWAs. 6 ) Individual Protocol & Issuer Headlines Paxos debuts yield bearing stablecoin Ethena Labs surpasses $3B Umar Farooq, CEO of JPM Onyx becomes firm's head of payments Mountain Protocol raises $8M M^0 raises $35M Misyon Bank launches Eurobonds on Avalanche 🌐 Sign up to our weekly newsletter for more alpha on the latest RWA market activity, regulation, and trends. https://www.rwa.xyz/blog

Tokenized US Treasurys are growing exponentially: Time to $500M: 502 days Time to $1B: 280 days Time to $1.5B: 70 days At this rate, we will hit $2B within a month! Is this rate of growth sustainable?

🌐 Last Week in Tokenization: May 31, 2024 Welcome to our newsletter! Every week we summarize the most important stories in tokenization. Sign up below. From a House hearing on RWAs to a new tokenization report from the DTCC...let's explore this week's top stories 🧵👇 1 ) Distribution: How Top RWA Issuers Are Differentiating Themselves From the Rest 🔝 There has been a plethora of RWA issuances recently. The top products are differentiating themselves with aggressive distribution strategies. 2 ) House Subcommittee Announces Hearing on Tokenization 👨⚖️ The hearing, specifically titled "Next Generation Infrastructure: How Tokenization of Real-World Assets Will Facilitate Efficient Markets" is set to take place on June 9th at 9am ET in Washington. 3 ) DTCC, Clearstream, Euroclear, and BCG Release Case Study on Digital Asset Securities 🔍 The report delves into the control principles asset issuers need to consider prior to tokenizing their assets. 4 ) Other Highlights PayPal $PYUSD goes live on Solana PayPal receives NY crypto trust charter GnosisDAO partners with Visa Mastercard blockchain identity infra goes live Centrifuge receives $10M to tokenize a private credit fund on Plumenetwork Maple Finance launches institutional yield protocol Helix goes live with RWA perp market Ondo Finance goes live on Ethereum, partners with Galaxy Exchange and Msafe Index Coop has a snapshot vote open for its RWA index Fortunafi raises $9.5M 🌐 Sign up to our weekly newsletter for more alpha on the latest RWA market activity, regulation, and trends. https://www.rwa.xyz/blog

🌐 Last Week in Tokenization: May 23, 2024 Welcome to our newsletter! Every week we summarize the most important stories in tokenization. Sign up below. From shifting political sentiment in the US to MakerDAO RWA drama ...let's explore this week's top stories 🧵👇 1 ) Shifting Political Attitudes Toward Crypto in the US 🗽 Several significant political events suggest a shift in attitudes toward crypto ahead of the 2024 elections: 1. Overturn of SAB121 2. Passing of FIT21 in House 3. Optimism for $ETH ETF passing 4. Firing of FDIC Chair 2 ) Should Issuers Tokenize or Simply Create a Derivative? 🆕 Coinbase is launching retail-sized futures for oil and gold. Ostium Labs is launching perps for copper, oil, soybeans, and other assets. What issuing mechanism will be more effective at bringing RWAs onchain? 3 ) MakerDAO's Missing RWA Provider and Visions for "PureDAI" 🔍 The MakerDAO community has expressed concerns about an RWA provider who has failed to report offchain holdings. Meanwhile, Rune, the founder of MakerDAO has been focusing on an RWA-absent "PureDAI" stablecoin. 4 ) World Bank Issues its First CHF Digital Bond Offering 🏦 The World Bank issued a 7-year CHF 200M bond in partnership with the Swiss National Bank last week. The bond will be settled with tokenized CHF on SDX. 5 ) Chainlink Completes Fund Tokenization Pilot with DTCC 🆕 The DTCC, the world's largest securities settlement system, completed a pilot project with Chainlink. The purpose of the project was to establish a process to report RWA data to private and public blockchains. 6 ) Other Highlights The largest Colombian bank launches stablecoin ("Wenia") BVNKFinance embeds PayPal's $PYUSD Oobit embeds Tether's $USDT KlimaDAO partners with Japan's largest bank to settle tokenized carbon credits Mastercard 'sMulti-Token Network goes live 🌐 Sign up to our weekly newsletter for more alpha on the latest RWA market activity, regulation, and trends. https://www.rwa.xyz/blog