🤝 Security Token Prime Insights: 11/11/2024

Exclusive Intelligence for Security Token Prime Members

November 11, 2024

If this email was forwarded to you, sign up here to receive it directly in your inbox every Monday morning!

Summary and Key Takeaways

1. New Global Dollar Network Token by Paxos and Big Partners

We’ve got a new stablecoin featuring an impressive ecosystem including governance partners Anchorage Digital, Galaxy Digital, Bullish, Kraken, Nuvei, and Robinhood while being issued by Paxos. The stablecoin is issued out of Singapore with DBS bank acting as the custody partner. The token will be issued on Ethereum and claims to take advantage of being a regulated stablecoin over its competition. With so many stablecoins, CBDCs, deposit tokens, and other payment innovations, it’s hard not to be excited about the stablecoin market which is leading the growth of the RWA market.

2. Institutions Centering Aim Around Fund Tokenization and Payments

It’s another week which means another tokenized money market fund use case, this time from Citi and Fidelity International. Meanwhile UBS announced its own blockchain-based payments system and Project Guardian continues to deliver results on the benefits of fund tokenization specifically. Tokenized commercial paper is also drawing a lot of interest from TradFi as seen in the latest ECB trials. As we soon enter 2025, it’s safe to assume that fund tokenization and payments technology will lead the adoption charge. 

3. Onyx by JPMorgan Rebrands to Kinexys Across All Units

It’s no secret that JP Morgan’s Onyx was not only an industry pioneer and leader, but it was also one of the cooler brands in the space. Compared to some of their peers’ branding like GS Digital Asset Platform or Citi Integrated Digital Asset Services, Onyx looks leagues ahead in terms of originality. Well throw all that brand love out the window because Onyx is now called JPM Kinexys. Supposedly if you combine kinetic and connection that’s what you get but is it a better brand name? It’s possible trademark issues or something else is at play causing this rebrand or maybe JPM’s Onyx was feeling so old (they launched JPM Coin in 2020) that they wanted to seem new and relevant again.

4. Brickken Chosen for BNB Chain No-Code RWA Tokenization Solution

Tokenizing assets is rather easy for the experienced innovator in the space, however day-to-day issuers may have trouble getting started. Binance’s BnB chain is looking to help with that by implementing no-code solutions for the everyday issuer to bring their cap table on-chain. As one of the those solutions, Brickken was recently selected as an official tokenization partner with step-by-step instructions on BnB’s website. Aside from being a tokenization engine, Brickken also loops in other service providers in the space to enhance offerings such as legal firms, marketing & PR, and more. Other tokenization partners on BnB Chain include Bitbond, InvestaX, and Tokeny to name a few. 

As part of the announcement, Brickken also shared a case study with Hydrokkken which is tokenizing clean energy. Their A round tokenized shares in hydrogen sold out in 24 hours, raising $3.05 million at 32 USDT each and 320 USDT minimum. Their B round is now active and ends in 4 days as of the time of writing. 

5. TokenizeThis 2025 Announced for April 16th-18th in NYC

Security Token Market’s annual industry conference will be back next year and moving from Miami to the heart of finance in the big apple. Featuring keynotes, speakers, panels, and demos, TokenizeThis aims to be the largest premiere event dedicated to real world assets exclusively.

This year’s edition of TokenizeThis featured incredible speakers like Carlos Domingo, CEO of Securitize, Ex-SEC Commissioner Troy Paredes, and Anthony Bassili, the head of tokenization at Coinbase, alongside many other speakers from the likes of JPM Onyx-turned-Kinexys, DTCC, Franklin Templeton, Northern Trust, RealT, Propy, Maple, Avalanche, Stellar, Solana, Polygon, and many others. Tickets and the speaker line up will be announced later this year so be sure that you’re signed up for STM.co’s newsletter or visit summit.stm.co.

Notable Market Headlines

Institutional Activity

NEW STM REPORT AVAILABLE TOMORROW

Security Token Market is proud to release October 2024’s market report, analyzing secondary market activity and benchmarking against the CoinDesk 20 Index (CD20).

In this month’s market report, we have meticulously tracked 680 security tokens spanning across 35 marketplaces and 10 blockchains.

Sections include:

  • Key Takeaways

  • CoinDesk 20 Index Benchmark

  • Quantitative Highlights

  • Asset Class Breakdown

  • On-Chain Liquidity Products

  • New Tokens and Announcements

STM Data

Look out for STM’s RWA Securities Market Update: October 2024 report releasing tomorrow! Here’s a sneak peak for our subscribers:

Market Highlights

In October, trading activity declined a significant amount, -42.13% at 147 tokens, compared to 254 tokens in September 2024. Additionally, the overall trading volume showed a decrease of -27.07% from $4,180,650 in September to $3,048,764 in October.

On the other hand, the market cap increased by 10.84% over the month, rising from $41,757,649,597 on October 1st to $46,285,735,297 by the close of the month.

CoinDesk 20 Index Benchmark

A hypothetical, equally-weighted security token bundle of all STM-tracked RWAs showed decent growth, outperforming the CoinDesk 20 by 3.88%. This is a turn of events from September where the CD20 was up 13.12% on the month vs. security tokens’ 1.06%. 

This growth for security tokens comes at a great time to continue riding momentum going into November, where we expect there to be even bigger growth post-election. That said, although the basket grew, there is some concern around the decrease in volume in October which will be touched on, by asset class. 

Security Token Prime is Made Possible Thanks to Our Enterprise Partners

Events

Join us for a session with serial entrepreneur and intrapreneur Rob Gonda on how to use AI in marketing and PR for your digital assets. 

We'll be exploring

  • How issuers can leverage AI to identify and reach potential investors

  • How AI is affecting marketing and PR strategies via automated content creation and in-depth audience research

  • Navigating AI challenges and more

Rob will be sharing insights from his endeavors and previous experiences, including his work with Amsterdam Group and being the first Chief Digital and Data Officer at McDonald's.

Recent Recordings

  • (NEW) 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)

TokenizeThis Workshop Tour Around the US

Get your tickets today for a full day masterclass around tokenization from A to Z. There continues to be a massive education gap in the industry and off the success of the original workshop in Miami last May, we’ve decided to go nationwide. We’ll be visiting NYC, Houston, Boston, LA, SF, Atlanta, and Chicago, check out workshop.stm.co for more information. Use code PRIME for 15% off.

Hello readers,

The RWA primary and secondary market isn’t quite yet experiencing the euphoria that crypto traders are feeling. The RWA industry has been evolving rapidly week after week and has grown immensely since the start of the year but has yet to experience a moment of intense growth due to market exuberance. Stablecoins are now at nearly $200 Billion in size and with crypto traders maximizing their gains this next cycle, it’s bound to eventually balloon (I personally think to over $1 Trillion next year). It’s possible that everything stays inside the memecoin casino but I don’t believe that will be the case. 

We will see by TokenizeThis 2025 that RWAs are now part of the mainstream narrative and that the only thing preventing its meteoric success in the next phase of the bull market is natively-DeFi support and a large product library. The latter is already being solved for by the hundreds of platforms and thousands of asset issuers out there, so that leaves solving for the bridge for RWAs to crypto natives. 

So I’ve decided to build that bridge and launch a crypto native organization dedicated to just that. Expect a massive announcement on November 19th as I reveal this new initiative from Security Token Market at the Benzinga Future of Digital Assets conference, a fitting venue by the name alone. Shoot me a message if you’re curious to learn more!

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

Herwig’s Pick: Brickken

Kyle’s Pick: Global Dollar Network

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

Helpful Resources

We hope you enjoyed this week's Security Token Prime Insights email - if you have any feedback on either what you liked or what you’d like to see, please reply to this email with it.

This newsletter should be not be considered financial advice.
Security Token Prime Insights is for informational purposes only.