🤝 Security Token Prime Insights: 1/6/2025

Exclusive Intelligence for Security Token Prime Members

January 06, 2025

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Summary and Key Takeaways

1. Plume Kicks Off 2025 with Full Force

What a way to start the year with Plume Network announcing a variety of partnerships, a fund, and more. Starting with the fund, Plume is launching a $25M fund meant to grow the “RWAfi” ecosystem as they call it. This initiative was led by notable names such as Galaxy Digital, Superscrypt, Hashkey, and others with focus areas including innovative products, both retail and institutional developments, and overall infrastructure to continue creating applications for traditional assets to come on-chain. 

On the partnerships front, Ondo will be issuing their $USDY product natively on Plume Network (not a wrapper). As a reminder, USDY (US Dollar Yield Token) is a tokenized note secured by short-term US Treasuries and bank demand deposits and with this integration, non-US and institutional investors will be able to more easily access the utility of stablecoins and yield that comes with Ondo’s products. If that’s not enough, how about another issuance through their partnership with Maseer? The Abu Dhabi- based tokenization company will be bringing $200M worth of carbon allowances on the RWA-focused blockchain, allowing them to be collateralized and integrated with DeFi. 

2. Nest and Dinari Tokenize a Blackstone ETF Vault

Speaking of Plume, this piece of news deserved its own feature. Although it’s not the first, it’s great to see a Blackstone product (in addition to BlackRock) back in the tokenization market this past week as DInari and Nest partnered up. Blackstone’s Senior Loan ETF is now accessible via a vault, essentially allowing for increased, permissionless mobility in the DeFi space. 

Are you locked up into the fund? No. Your stablecoins are staked in a vault, you receive SRLN.d (tokenized version of the Blackstone ETF), and accrue the yield from it until you’d like to redeem back for USDC 1:1. Seeing more DeFi bridges to traditional assets will help grow the tokenization space because it gives TradFi a way to interact with other infrastructure, while also driving crypto money into traditional assets, tapping new audiences.

3. Frax Announces Allocations for BlackRock and Superstate Products

Stablecoins will continue to grow but to do so, investor confidence in their reserves has to also be there along with yield-generation. This is where allocating into other tokenized assets comes into play as it all lives on-chain and Frax is doing just that. Their frxUSD Stablecoin will be backed by BlackRock’s BUIDL and not just one, but both of Superstate’s funds: USTB (T-bill fund) and USCC (crypto carry fund). While the 4-5% being offered by the tokenized liquidity products, the addition of USCC’s 13.84% 30-day yield could boost incentive to use frxUSD over other stablecoins.

4. DigiShares Announces “Launch” Platform

We’d like to shout out one of our partners in the space, DigiShares, for today’s announcement of their “DigiShares Launch” platform. This is meant to help bring existing cap tables on-chain to leverage tokenization while still giving investors a seamless experience. 

Key Features of DigiShares Launch:

  • Multi-Chain Token Minting: Issuers can mint tokens on several leading blockchains.

  • Investor Onboarding with KYC: Ensures compliance and security with integrated Know Your Customer (KYC) processes.

  • Support for Self-Custodial Wallets and Stablecoins: Accepts any self-custodial wallet and various stablecoins for flexible transaction options.

  • Cap Table Management and Stablecoin Distributions: Streamlines investor and asset management efficiently.

  • Connection to External Trading Venues: Includes links to external trading platforms such as RealEstate.Exchange.

  • Access to Internal Trading Marketplace: Offers a proprietary trading platform to facilitate asset trades.

Let’s talk about fees. Although this isn’t their white-label solution, for issuers looking to get started in tokenization, DigiShares is offering all of this for a one-time onboarding fee of $3,000 and a monthly fee of $300 per asset. What’s next? Their Realestate.Exchange should be coming live soon as well and we’ll be keeping an eye out!

Notable Market Headlines

Institutional Activity

New Report Now Available

STM is proud to release a comprehensive report on tokenized real estate, highlighting over $30 Billion worth!

Take a read as we break down the current market size, various use cases, growth over the last 5 years, lessons from failed offerings, and ultimately where STM predicts the tokenized real estate market to be by 2030.

STM Data

Happy New Year from the STM Data Team! Keep an eye out for our December 2024 market update report in the next week or so. In the meantime, make sure to check out our new Liquidity Products tab on STM Charts!

One of the visuals you’ll notice is this breakdown of the assets by platform. It’s clear Hashnote is currently dominating the $3.8 billion asset class. This is a chart worth keeping up with as standings could change throughout the year depending on how much each of the tokens is being supported and new entrants.

Key drivers? Liquidity products being used for treasury management for crypto-native organizations, collateralization on crypto derivatives exchanges, expanded blockchain support, and more.

What would YOU say is also a key driver or which of these tokens do you think will come out on top by the end of 2025? Let us know on X!

For more data insights and charts, visit STM.Co 

Security Token Prime is Made Possible Thanks to Our Enterprise Partners

Hello readers,

We’re seeing a rise in offerings, platforms, chains, marketplaces and market activity. What a way to start the year! It’s clear this cycle crypto natives have a firm grasp of what RWAs are and their potential as a technology. Simultaneously the biggest banks and asset managers are bringing real commercial use cases and tokenized products to the market, making strategic investments or creating their own IP along the way. 

Expect to see a lot more of all of the above this year with some groundbreaking levels of real enterprise activity and DeFi integrations getting hot too. What are your predictions for 2025? I called mine out on the Security Token Show last week, be sure to like and subscribe to stay updated!

Happy tokenizing,
Herwig “Happy” Konings
CEO, Security Token Group 
Follow me on X / LinkedIn

Events

Recent Recordings

  • (NEW) AI In Digital Assets Marketing and PR with Rob Gonda (Recording Link)

  • Navigating PR Between TradFi and Web3 Media with Amsterdam Group (Recording Link)

  • Beyond the Hype: Cracking the Code of Successful Asset Tokenization with BlockInvest and Polygon (Recording Link)

  • Risk Management in Tokenized Assets with Moody's and Particula (Recording Link)

  • Blockchain Meets Construction with Inveniam & LV8R Labs (Recording Link)

  • Non-Performing Loans with BlockInvest and Davis & Morgan (Recording Link)

  • Issuer Spotlight: Tuscany National Token (Recording Link)

  • Platform Spotlight: Block Time Financial (Recording Link)

  • The TradFi/DeFi Hybrid with Maple, Centrifuge and Swarm (Recording Link)

  • Platform Spotlight: REtokens' New Platform with Tyler Vinson and David Kirschbaum (Recording Link)

  • Powers Hour: New SEC “Dealer” Rule Expansion and DeFi Impacts (Recording Link)

Company of the Week - Herwig: Frax
Company of the Week - Kyle: Nest

Find out why and more every Friday live around 2pm EST on LinkedIn or X/ Twitter. Past episodes available on Youtube or your favorite podcast platform! 

Helpful Resources

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