Alessio Quaglini

🚨 Tokenisation, stablecoins, staking - what's next for the UK?🚨 Two speeches of note today at the City & Financial Global Tokenisation Summit. 1️⃣ Sasha Mills, Executive Director for Financial Market Infrastructure at the Bank of England, talked about innovation in wholesale financial markets. 2️⃣ Tulip Siddiq, Economic Secretary to the Treasury, talked about the government's plans for crypto, stablecoins and staking. 🤔 What did they say? 1️⃣ Sasha Mills, on innovation in wholesale financial markets: Digitisation has been the combustion engine of financial markets, transforming paper-based systems to computer-based activity, on to the digital systems of today. Tokenisation can further revolutionise financial markets. Not a novel concept – but the real innovation is the type of infrastructure on which that token sits, and what that enables. ✅ Distributed ledgers can reduce the need for a single central party to perform record-keeping on the ledger. ✅ No single point of failure in how critical data is stored. ✅ Cryptographic techniques to secure data can reduce risk by improving the security and integrity of financial transactions ✅ Programmability has facilitated the consolidation and collapsing of the trade and post-trade functions, resulting in reduced settlement risk, and unprecedented efficiency gains in the trade lifecycle. 🤔 What is the Bank of England’s role in this reinvention? ✅ Digital Securities Sandbox (DSS): ➡ allows industry to experiment with developing technologies to issue, trade and settle digitally native securities, and ‘digital twin’ tokenised securities in a safe and secure environment for a range of regulated asset classes. ✅ Innovations in Money: ➡ Money needs to keep up with tokenised assets. BoE considering ways to enhance usefulness of central-bank money as a settlement asset for digital asset transactions. Also considering what additional functionality a wholesale central bank digital currency could bring. ✅ Post-trade settlement: ➡ Traditional processes are sequential and often manual, time-consuming, costly, and operationally risky for all users of financial markets. The tokenisation of securities on distributed ledgers – digital securities – offers the potential to merge trade and post-trade functions, shortening settlement cycles and offering more programmability and automation in financial transactions. 2️⃣ Tulip Siddiq, on plans for crypto, stablecoins and staking: ✅ Government to introduce regulatory regime for cryptoassets. ✅ Stablecoins to be regulated at same time as cryptoassets. ✅ Issuance and custody will be regulated. ❌ No longer a phased approach. ❌ Stablecoins not to be in scope of payment services regulation. ❌ Staking is not a Collective Investment Scheme. ............. 🤔 What's next? ⏩ Expect to see the framework early next year. I'd love to hear your thoughts 👉 #HMT #BoE #innovation #tokenisation #stablecoins #staking

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USDT Q3 20204 Attestetation Report by Tether.io 1️⃣ . Total Reserves: Tether International Limited (BVI) and Tether Limited (Hong Kong) are the entities issuing Tether tokens backed by #assets, with total #reserves amounting to $125.47 billion USD and liabilities totaling $119.38 billion USD. This leaves an excess of assets over liabilities of $6.09 billion USD.The total reserves are 134.424 billion, meaning that 93% of the reserves are controlled by the Holding group. 2️⃣ .  Reserve Composition:    🔼 Cash and Cash Equivalents: The majority is held in U.S. Department of the Treasury Bills ($84.55 billion) and Overnight Reverse Repurchase Agreements ($12.54 billion), ensuring high #liquidity.    🔼 Money Market Funds: Tether holds $6.44 billion in money market funds MMF, which have indirect exposure to U.S. Department of the Treasury Bills.    🔼  Other Assets: These include secured #loans ($6.72 billion), precious metals ($4.96 billion), #Bitcoin ($4.78 billion), and corporate #bonds ($17.5 million).    3️⃣ .  Investment Instruments: Reserves are predominantly in short-term U.S. Department of the Treasury bills, fully #collateralized reverse repurchase agreements, precious metals (specifically LBMA standard gold bars), #Bitcoin, and other #digitalassets. These assets are structured to minimize risk and maintain #liquidity to back the issued tokens.    4️⃣ .   External Investments: Beyond #reserves directly backing the tokens, Tether Investments Limited holds long-term assets in areas like technology infrastructure, #Bitcoin mining, and venture capital. However, these investments are not part of the reserves that directly back the tokens. More information: https://tether.io/ Our Perspective ✴ Tether.io is consolidating its position as one of the largest holders of U.S. Department of the Treasury , which shows that as a payer providing #liquidity to the market, its dominance is essential in the system, although its level of transparency is not as desired. Therefore, this continued growth in continuing to mint its stablecoin, assuming the current trend in stablecoin collateral choices continues (or is forced by a regulator), will create structural demand for short-dated U.S. Department of the Treasury. Recommended issuance should on the margin lean to a higher proportion of #T-bills as the basis of stablecoin reserves, a brilliant move by the government that has the crypto ecosystem tied to its debt. #Blockchain #Stablecoin #Reserves #Peg #Debt #Treasury #liquidity David M. Juan Antonio Sáez González Ankur Joshi Anton Golub

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Worth mentioning: Tether, USDC, and DAI surpass Visa's 2023 monthly transaction volume. According to Nansen: Stablecoin Trading Volume in the past 30 days: ➡️ Tether - $654 billion ➡️ DAI - $394 billion ➡️ USDC - $321 billion The total volume of the three stablecoins, $1.369 trillion. This exceeds the monthly average of market leader Visa in 2023, which stood at $1.23 trillion. Of course, it depends on who's counting and what is counted, nevertheless the trend seems to be pretty clear here.

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Digital Assets 2024 OMFIF OMFIF Digital Monetary Institute R3 Stellar Development Foundation - CBDCs favoured over other stablecoins settlements. - Tokenization will transform the Financial market infrastructure - Security risk a leading concerns for digitalisation -Bond market will lead the asset tokenization Faster settlement a clear benefit for tokenisation. Standardisation and faster settlement would most improve post-trade processes. #digitalassets #tokenization #adoption #dlt #blockchain Prasanna Lohar FSV Capital FSV Labs Garranto Academy Sreeman Mannamu India Blockchain Forum Xaults Nakul Garg CrowdInvest MOI Technology

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When dealing with VASPs, it's important to know that institutions are comprised of multiple legal entities in different countries. In VASPnet's latest report on the regulatory status of the top 100 centralised crypto spot exchanges (CEXs), we identified: 📌 442 regulatory records ⤵️ 📌 on 357 unique legal VASP entities ⤵️ 📌 associated with 88 of these VASP institutions. Nearly 30% of these 442 regulatory records refer to virtual asset service provider (#VASP) entities that: 🟠 have been regulated but are no longer regulated, or 🔴 are known to a regulator but are explicitly not authorised by the jurisdiction’s relevant National Competent Authority (#NCA). 🤠 Why is this important? You do business with a legal entity, not a trading name; this entity can be licensed, registered or prohibited from offering crypto-services. With billions in value changing hands with firms with no supervision at all, you need to know whether your counterparty is under adequate supervision! Read VASPnet’s latest report for more insights on the regulatory status of the world’s top crypto spot exchanges 👉 https://bit.ly/3B7MTby *Miscellaneous refers to regulatory records on legal entities that have a pending regulatory status, are exempt and permitted to undertake activities or are no longer exempt.

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👉 FIT21 🚨 BREAKING: House to consider the Financial Innovation and Technology for the 21st Century Act. #FIT21 will deliver robust consumer protections and regulatory clarity for digital asset markets. https://lnkd.in/dyTwG6mr ~~~ #finance #web3 #FED #investors #interestrates #crypto #inflation #startups #stocks #wallstreet #IPOs #QT #VCs #bitcoin #Ethereum #ETFs

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Bank for International Settlements – BIS project Dynamo- CBDCS, Stablecoins, AND Deposit Tokens, wholesale adoption, exploration and challenges #cbdc #stablecoins #deposittokenization #tokenization Prasanna Lohar Bank for International Settlements – BIS FSV Labs FSV Capital

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Launched as part of the Monetary Authority of Singapore (MAS) Project Guardian, new pilot demonstrates how financial institutions can leverage existing Swift infrastructure to facilitate off-chain cash settlements for tokenized funds. Swift UBS Chainlink https://lnkd.in/g3N3znZV #ProjectGuardian #Tokenization #Blockchain #digitalassets

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Interesting points from #venturecapital to credit #tokenization is the future of financial assets. The #mining industry is about to be revolutionized by this tech innovation and we are the ones who will make it happen. Ondrej Rob thanks for sharing!

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**Margin Syndicate Bot Report – 17 November 2024 UTC PM** --- **Open Drawdown:** 3.97%   To ensure complete clarity, we now report Open Drawdown instead of Open P&L, highlighting our commitment to transparency and precision. **24-Hour Profit Update:** 1.59%   Our profitability remains consistent as we adapt to market conditions. Despite low volumes over the weekend, we’ve achieved steady gains while maintaining reduced risk exposure. --- **Analysis & Market Context:**   This weekend, we extensively analysed grid systems and DCA (Dollar Cost Averaging) strategies. The results confirm that our DCA system generates profitability and has significantly lower risk, yielding more substantial results without the stress of excessive exposure. Weekend trading often presents unique challenges; however, our strategy remains resilient. Allocations are carefully monitored to ensure that risk is productive and aligned with our daily profitability targets. The collaboration between **Stormzy** and **Chase & Status** perfectly reflects today’s market rhythm—dynamic yet measured, requiring the intensity and flow to stay ahead. 🎵 [Stormzy x Chase & Status - BACKBONE https://lnkd.in/eKSAwU4q --- **Outlook:**  We target over 2% daily gains while maintaining reduced exposure and optimised performance. The weekend slowdown has not deterred us—our system is designed to adapt, evolve, and thrive under all conditions. --- #OpenDrawdown #DailyGains #CryptoTrading #CompoundingModel #PortfolioManagement #ExponentialGrowth #OptimizedTrading #HighVolatility  Another day, another win. Let’s keep driving forward.

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Hong Kong FinTech Week takeaways: The integration of blockchain technology and the tokenization of Real-World Assets e.g. stocks, bonds, deposits & stablecoins by existing Financial Intermediaries is a key area of focus for Hong Kong as they embrace next-generation financial markets infrastructure. Most notably, HSBC, one of the world’s largest banks, is betting on Hong Kong and strategically aligning itself with the Middle East. In its recent restructure, the bank will now divide itself geographically into Eastern and Western markets. In the East, HSBC Asia-Pacific has a mandate to make "Asia and the Middle East become one super region" as they have "seen an increasing engagement between Asia and the Middle East.” HSBC is moving the needle when it comes to the adoption of blockchain tech as it's the first global bank to offer retail investors in Hong Kong fractional ownership of physical gold via their "HSBC Gold Token". They also tested the interoperability of these gold tokens by including the capability to convert them into Ethereum based fungible tokens, while at the same time piloting quantum-safe technology. When financial behemoths like HSBC plan for the eventual distribution of tokenized financial products on open source blockchains which can interoperate with other Distributed Ledger Technologies (DLTs) and digital wallets, it's likely that financial activity will converge on-chain sooner than we think...👀 Source: https://lnkd.in/gZ2D35HT #hkftw #hongkong #middleeast #blockchain #crypto #tokens #cryptocurrency #ethereum #bitcoin

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Cross border FX transaction using Finternet . Finternet: the financial system for the future with unified ledger , digital assets, tokenisation and open infrastructure platforms initiated by Bank for International Settlements – BIS https://lnkd.in/gGpHcA6q #crossborderpayments #tokenization #blockchain

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Cross-border Regulatory and Supervisory Issues of Global Stablecoin Arrangements #crypto #stablecoins #regulatory Financial Stability Board (FSB)

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J.P. Morgan Project EPIC : Tokenized Finance with On-Chain Enterprise Privacy, Identity, and Composability. Tokenized finance transforms assets into digital tokens, enabling liquidity and innovation. On-chain enterprise privacy ensures sensitive data is protected through encryption. Identity frameworks provide secure, verifiable participation, while composability allows seamless integration of decentralized financial services. Together, these pillars create a scalable, secure, and interconnected ecosystem for modern finance. #tokenized #finance #digitalassets #tokenization FSV Capital FSV Labs Prasanna Lohar ZONIX Spydra Brú Finance Rooba.Finance Ryzer MOI Technology LF Decentralized Trust India Chapter SEIYAJ TECH

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Tokenised assets to command 1% of mutual fund AUM by 2030 Tokenised funds could reach US$600 billion of assets under management (AUM) by 2030, according to research by Boston Consulting Group (BCG) in a study with fund manager Invesco US. That figure would represent 1% of total AUM for mutual funds and ETFs. Given its size, this is an impressive figure. But what will it take for this hypothesis to become reality? Initial use cases of tokenization have shown that companies use special purpose vehicles (SPVs) to manage assets. Similarly, the tokenization of funds (unit trusts and/or fund companies) can be implemented. Once operational, token funds offer investors benefits such as 24/7 secondary transfers and fractionalization, a lower threshold for investment and instant collateralization when regulatory guardrails are in place. But this is where the discourse begins, as regulatory certainty and legal enforceability are needed to pave the way. The topic of market making will be no less exciting. I am convinced that an immense market will emerge. What other challenges do you see and where will “the market” go? #Tokenization, #TokenizedAssets, #RWA, #Blockchain, #Regulation

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Currently, 134 countries are exploring CBDCs, and the size of the tokenised assets market is forecast by Standard Chartered and Synpulse to rise as high as $30 trillion by 2034. 91% of institutional investors also say they’re interested in investing in tokenised assets, according to a survey from Celent and BNY Mellon. https://lnkd.in/dnckbCCP Swift #tokenization #tokenizedmoney #blockchain

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Grayscale Investments , a leading digital asset management firm, has announced the launch of two new investment trusts focused on Sui and TAO, expanding its portfolio of crypto investment products. Grayscale Sui Foundation Trust The Grayscale Sui Trust is a single-asset investment trust that allows eligible investors to gain exposure to Sui's native token, SUI. Sui is a layer 1 smart contract blockchain designed to support highly scalable decentralized applications (dApps). By investing in the Grayscale Sui Trust, investors can participate in the growth potential of the Sui ecosystem without directly holding or managing the underlying cryptocurrency. Grayscale Bittensor Tao Trust The Grayscale Bittensor Trust is a single-asset investment trust that invests in TAO, the native token of the Bittensor protocol. Bittensor creates a marketplace for machine intelligence, incentivizing open-source AI development and enabling decentralized AI networks. By investing in the Grayscale Bittensor Trust, investors can tap into the growing demand for decentralized AI solutions. Key Features Daily Subscriptions: Both trusts offer daily subscriptions, allowing investors to invest a fixed amount of money at regular intervals. Eligible Investors: Only eligible individuals and accredited institutional investors can participate due to the high-risk nature of the investment. Security: Grayscale's trusts are designed to provide a secure way to invest in cryptocurrencies, with robust security measures in place to protect investor assets. Regulatory Compliance: Grayscale's trusts are designed to comply with relevant regulations, providing investors with a trusted and reliable investment vehicle. Market Impact The launch of the Grayscale Sui and TAO trusts has already had a significant impact on the market, with SUI experiencing a 28.47% increase and TAO an 8.01% increase in price. This surge in demand demonstrates investor interest in these emerging cryptocurrencies and the potential for long-term growth. Investment Risks Investing in cryptocurrencies, including SUI and TAO, carries significant risks, including market volatility, regulatory uncertainty, and security risks. Investors should carefully consider their risk tolerance and investment goals before investing in these trusts. In addition to the recently launched Sui and TAO trusts, Grayscale's product lineup includes Grayscale Bitcoin Trust (GBTC): A single-asset investment trust that allows investors to gain exposure to Bitcoin (BTC). Grayscale Ethereum Trust (ETHE): A single-asset investment trust that invests in Ethereum (ETH). Grayscale Digital Large Cap Fund (GDLC): A diversified investment fund that tracks the performance of the top digital assets by market capitalization. Grayscale Bitcoin Cash Trust (BCHG): A single-asset investment trust that invests in Bitcoin Cash.

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