Evgen Verzun🛡️’s Post

Tokenized RWA platforms are reforming the financial domain by offering unprecedented access to real-world assets. Experience the power of fractional ownership and liquidity. Adopt this innovative approach and redefine your investment strategy today. Read More: https://lnkd.in/gTmyVQFp #RWAPlatforms #InvestmentEmpowerment #TokenizedAssets #FinancialInclusion #InvestingRedefined

As the tokenization of Real World Assets (RWAs) expands, new thinking will emerge to solve old problems. Reimagining blockchains as the ultimate middleware for regulated securities activity? Check.

Important moves in the markets: Steps... 1. Tokenized Securities leveraging DeFi infrastructure. 2. Tokenization of asset classes in securities that are traditional and also non-traditional. (think treasuries, bonds, and also fractions of expensive shares, Berkshire Hathaway stock could be tokenized into fragments) 3. Using AMM, Defi and CEFI order books under one platform to enhance liquidity and price discovery in the markets. (Most equities listed on the OTCMarkets, Nasdaq, NYSE, LSE, and others are not very liquid) 4. Best execution coming to digital assets

BUIDL Becomes the World’s Largest Tokenized Fund! In early July, BlackRock’s BUIDL reached a $500 million market cap, securing its place as the largest tokenized treasury fund just four months post-launch. By October 2024, BUIDL’s market cap rose to $533 million. This milestone was reached as Ondo Finance, a company specializing in tokenizing real-world assets, acquired additional BUIDL to back its OUSG token. Currently, OUSG is the largest BUIDL holder with $173.7 million, followed by stablecoin issuer Mountain Protocol, which uses BUIDL to collateralize its yield-bearing stablecoin, USDM. According to blockchain data from Etherscan, BUIDL now holds over $533.5 million in tokenized U.S. Treasuries. This aligns with a broader trend where U.S. Treasuries lead the charge in real-world asset (RWA) tokenization, providing a stable and low-risk option for blockchain-based cash holders seeking secure yields. The tokenized treasury market has more than doubled in 2024, growing to $2.43 billion by June 7, up from $780 million in January, according to rwa XYZ The sector currently offers an average yield to maturity of 4.94%. Agne Linge, Head of Growth at WeFi, an on-chain non-custodial neobank, told Techopedia: “BUIDL is a stablecoin-like asset tailored specifically for institutional investors,” highlighting its niche role in the market. Linge noted that BUIDL’s potential profitability could rival that of USDT, which reported $4 billion in profits from holding U.S. Treasuries, Bitcoin, and gold. “BUIDL’s role as a financial instrument for collateral in digital asset trading illustrates classic supply and demand dynamics,” she added. The growing interest in tokenized treasuries comes as digital asset companies and financial institutions move traditional assets like government bonds and private credit onto blockchain networks for faster settlements and increased efficiency. Navigating Regulatory Ambiguity Around Tokenized Assets Despite ongoing regulatory uncertainty, tokenized assets are finding a foothold within existing commercial laws. A report from asset manager State Street highlights recent updates to the Uniform Commercial Code (UCC) that introduce “controllable electronic records,” giving tokenized securities a legal basis. These updates enable tokenized assets to represent ownership or rights under recognized legal frameworks.

⚙️ Efficiency and automation in RWAs transactions surpass traditional finance limitations, enhancing the investment experience.

Tokenized Money-Market Fund Shares Approved as Trading Collateral The emergence of Tokenized Shares is transforming modern trading, particularly in the context of money-market funds and collateral trading. As financial firms like BlackRock and Franklin Templeton explore this new landscape, understanding how tokenization enhances asset management and regulatory compliance is crucial for the future of these investment vehicles. Understanding Tokenized Shares Tokenized shares represent a groundbreaking shift in the financial ecosystem. Essentially, they are digital versions of traditional shares, created using blockchain technology. This process allows for assets, like stocks in money-market funds, to be traded more flexibly and efficiently. By turning these shares into tokens, investors can experience lower costs, faster transactions, and enhanced accessibility. The emergence of tokenization is not just about creating a digital currency; it's about changing how we manage assets. For instance, money-market funds traditionally deal with short-term investments like Treasury bills or commercial papers. By tokenizing these funds, investors can enjoy quicker settlement times and improved liquidity. This means that assets can be sold or traded more swiftly, benefiting everyone from institutional giants to everyday investors. The Role of Financial Firms When we talk about tokenized shares, major players like BlackRock and Franklin Templeton come to mind. These financial firms are at the forefront of exploring and implementing tokenization in trading. They are working diligently to secure regulatory approval, which is crucial as it ensures that tokenized shares meet legal standards and investor protections. The collaborative effort among these financial firms is noteworthy. Not long ago, there was a significant vote to approve guidelines regarding the use of tokenized shares. This vote means that there will be standardized approaches to collateral trading and managing tokenized assets. Such guidelines pave the way for a more structured and secure trading environment, essential for growing investor confidence. Guidelines for Tokenized Shares from Financial Firms So, what exactly do the newly approved guidelines for tokenized shares entail? These guidelines emphasize compliance and adherence to regulatory frameworks, ensuring that all trading activities are handled transparently and efficiently. Compliance with these guidelines is vital because it protects both investors and firms. When financial institutions follow clear regulations, it minimizes the risk of fraud and enhances overall market credibility. This is especially important for collateral trading, where tokenized shares can function as a secure means of backing transactions. Trading Guidelines and Their Impact The implications of these trading guidelines can profoundly influence industry practices. For one, they could encourage more firms to adopt tokenized shares, leading to...

Understanding Asset Tokenization: Learn about the growing trend of asset #tokenization, expected to tokenize $16 trillion in real-world assets by 2030. Explore its impact on finance:

Deutsche Börse, the powerhouse behind the Frankfurt Stock Exchange, is making waves by entering the crypto asset space with their new platform! 🤯 This exciting development is fueled by MiCA regulations, which allow established financial institutions to offer crypto services with 'just' a notification to national competent authorities. 🤝 This move signals a major shift in the industry, bridging the gap between traditional finance and the dynamic world of crypto. #DeutcheBörse #Cryptocurrency #MiCA #FinancialInnovation

Nabla is putting Forex onchain. Nabla's innovative Forex trading AMM utiliizes single-sided pools and oracle pricing to significantly lower liquidity costs. Discover more in our tech deep dive ⬇ https://lnkd.in/gm67qaKk

Smart Contracts and Their Crucial Role in DeFi Derivatives The decentralized finance (DeFi) world is constantly evolving, and smart contracts are at the forefront of this change. Smart contracts are vital for many financial instruments, including derivatives, and are used to automate agreements and ensure DeFi platforms operate smoothly. Smart Contracts role in DeFi Derivatives In this article, we’ll take a closer look at smart contracts and their crucial role in DeFi derivatives, exploring their functions, benefits, and impact on traditional financial markets. What are Smart Contracts? Smart contracts are […] Smart Contracts and Their Crucial Role in DeFi Derivatives #DeFiderivatives #RoleofsmartcontractsinDeFiderivatives