Injective Labs’ Post

The tokenized public securities market has grown over 10x in 2023📈 $435M in total market capitalization, will we see $1B in 2024? I'd say its likely.. but I am no genie, instead let me give you a breakdown of those with the most market share currently. 𝐓𝐡𝐞 𝐭𝐨𝐩 5 𝐭𝐨𝐤𝐞𝐧 𝐢𝐬𝐬𝐮𝐞𝐫𝐬: 🔸 Ondo Finance - 31% share / $141M market cap 🔸 Matrixport - 24% share / $108M market cap 🔸 Backed Finance AG - 10% share / $46M market cap 🔸 Hashnote - 10% share / $45M market cap 🔸 Mountain Protocol - 10% share / $44M market cap 𝐓𝐡𝐞 𝐭𝐨𝐩 5 𝐭𝐨𝐤𝐞𝐧 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐬: 🔸 Ondo Short-Term U.S. Government Bond Fund (OUSG) 🔸 Matrixdock Short-term Treasury Bill (STBT) 🔸 Hashnote Short Duration Yield Coin (SDYC) 🔸 Mountain Protocol USD (USDM) 🔸 Backed IB01 $ Treasury Bond 0-1yr (bIB01) Following closely behind the top 5 and certainly worth a notable mention is OpenEden and its TBILL vault product. As you can probably tell, the vast majority of current tokenized securities market share is taken up by bond related products. Yet the team at Swarm not yet mentioned are working very hard to change this - having tokenized popular stocks like Coinbase, Apple and Tesla. (amongst many other iniatives they are working on). During 2024, the upwards growth trajectory of tokenized public securities seems inevitable. It will be interesting to see if the demand for tokenized equities starts to gain more dominance. You can take a deep dive into these analytics, by checking out the Dune dashboard in the comments below 👇

A nice read on collateralized debt position (CDP) stablecoins, mainly on Aave's GHO and Curve Finance's crvUSD👇 https://lnkd.in/dmuV_axy You can also check the article made by our previous intern on the liquidation mechanism used by crvUSD: https://lnkd.in/g7tRPzk8

A subcommittee of the Commodity Futures Trading Commission (CFTC) has made recommendations regarding the use of tokenized shares as collateral. This proposal aims to allow firms to post tokenized shares for derivatives trades. The intention behind this move is to enhance efficiency and reduce costs associated with traditional collateral practices. Tokenized shares represent a modern […]

A subcommittee of the Commodity Futures Trading Commission (CFTC) has made recommendations regarding the use of tokenized shares as collateral. This proposal aims to allow firms to post tokenized shares for derivatives trades. The intention behind this move is to enhance efficiency and reduce costs associated with traditional collateral practices. Tokenized shares represent a modern […]

Breaking: 🚨 Tokenized money market funds are one step away from being eligible collateral in the $700+ trillion CFTC-regulated derivatives market! 💥 According to Bloomberg, "a key subcommittee of the CFTC’s Global Markets Advisory Committee—featuring heavyweights like Citadel, BlackRock, Bank of New York Mellon, and Bloomberg LP—has just approved recommendations for using distributed ledger technology to hold and transfer non-cash collateral. 🔥 The full committee will vote on these recommendations later this year. If approved, it could unlock game-changing capital efficiency by allowing tokenized MMFs to be used as bilateral swap collateral in derivatives trading. 💰 Today, the tokenized US Treasuries market is at just $2B, with BlackRock, Franklin Templeton, and Ondo Finance making up 72% of the market. But if just 1% of the derivatives market adopts tokenized MMFs, it would ignite 🔥 tens of billions of dollars in demand for tokenized MMFs and T-bills. 💸 Is a tokenized collateral boom on the horizon? 🚀 For a deeper dive into the potential of tokenized MMFs in derivatives markets, check out my research here. 👉 https://lnkd.in/gxdYDEp9 Want to stay ahead of the coming wave of tokenization adoption? I dive deep into the tokenization space through my research and GTM advisory work. 💡 Join 4,500+ readers at Tokenization Insight research newsletter https://lnkd.in/eY7Nb7iQ ✉ Book a limited advisory appointment https://lnkd.in/eu2WrRHe 🤝 Save hours of research AND get exclusive insights by Subscribing at https://lnkd.in/gTxp8uWM

Nick Philpott has written a crucial article shedding light on the impending shift to T+1 equity settlement and the strategic use of stablecoins. ⏰ From May 28, 2024, investors face a shift to T+1 settlement, mandated by the SEC for US and Canadian equity transactions, ushering in a new era of efficiency and risk management. However, for some market participants the move to T+1 will be far from easy. ➡ Exploring the various options available to investors, Nick evaluates the advantages and disadvantages of each, highlighting stablecoins as a potential transformative solution.  A comprehensive resource for those seeking to navigate cross-border transaction challenges and harness the power of digital assets. Dive into the full article here 👇 #Settlement #DigitalAssets #Stablecoins #TransformativeSolutions

Stablecoin use cases are further building the argument for institutional adoption of crypto assets

Harvey L. Tokenized MMFs as collateral is possible, the issue (regardless of additive USDC liquidity vehicles) is the T+1 settlement of MMFs (T+3 for Fridays). Frictionless Markets issues: 1. Multi-currency Institutional Deposit Tokens with intra-day settlement ... suited for intra-day collateral. 2. Sterling, EURO Gov & U.S treasury Cash Fund Tokens with standard BlackRock settlement All our issuances are executed from our Luxembourg structure, tax transparent, no withholding tax, under the protection of the Luxembourg Financial Collateral Act 2005 (a globally recognized collateralization framework) Our next product fsBTC will enable BTC to be collateralized 1:1 using the same framework and transferrable across all EVM-chains via Chainlink CCIP. Horses for Courses!

Please see my recent contribution on the Investopedia platform: Payment for Order Flow (PFOF): Definition and How It Works Key Takeaways: Payment for order flow (PFOF) is the compensation a broker receives for routing trades to execute to a particular market maker. Potential advantages of allowing PFOF may include better execution prices and greater market liquidity. PFOF has been criticized for creating potentially unfair or opportunistic conditions at the expense of traders and investors. Brokers are required by the Securities and Exchange Commission (SEC) to inform clients of the compensation they get for routing their orders to particular market makers. Brokerages earn more per trade in PFOF from options trading than from equities. https://lnkd.in/exZGzpec

Comparing OTC Trading Vs Exchange Trading I get asked these questions a lot - what’s the difference between OTC trading and trading on an exchange? Why should I choose one over the other? Here’s the answer to help you make informed decisions: 1. Exchange Trading: Transparency: Public exchanges offer transparency with real-time pricing and order book visibility. Smaller Liquidity: Enough liquidity that allows for quick execution of small trades. High Market Impact: Trades follow standardized processes and are subject to market volatility. Strict Standards:  Exchanges operate under processes that cannot be altered or modified by any single investor such as limited payment methods, strict KYCs and limited volume. 2. OTC Trading: Privacy: OTC trades occur off-exchange, providing enhanced privacy and confidentiality for counterparties. Deep Liquidity: OTC trades are designed to cater for the needs of larger volume traders, hence, it’s easy to access liquidity of any amount. Reduced Market Impact: Large transactions can be executed without impacting market prices since they are conducted off-market. Customization: Terms are negotiable, allowing for tailored pricing and payment terms. 💡Choosing the Right Approach: Private and Large Transactions: OTC trading is ideal for executing large buys or sells that require privacy. Speed and Transparency: Exchange trading suits investors needing quick trades and transparent pricing. Risk Management: Consider the counterparty risk in OTC and market volatility in exchange trading. Understanding these distinctions can help you to choose the trading method that aligns with your investment goals and risk tolerance. ------ If this was insightful, consider re-sharing ♻️ and follow me for more content like this! Interested in exploring Bitcoin OTC? DM me now.