🤝 Security Token Prime Insights: 12/23/2024

Exclusive Intelligence for Security Token Prime Members

December 23, 2024

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Summary and Key Takeaways

1. STM Releases Tokenized Real Estate Report

STM is proud to release the Global Tokenized Real Estate Market Guide 2024, 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. 

Tokenization has significant impacts on capital markets, with real estate standing to be one of the most to gain considering its  opaque and archaic infrastructure. It’s no wonder that so much of it is leveraging blockchain for liquidity, collateralization, added utility, and operational efficiencies across different methods of tokenization. Because of this, STM believes this asset class will be a key driver in growing assets on chain.

2. RWA Foundation to Release Whitepaper Tomorrow Sharing Its Vision

With the successful launch of the RWA Foundation last month, we’ve seen the community grow incredibly fast! With the X account reaching over 1,000 followers and the telegram group having hundreds of active RWA crypto natives, the interest in the vision behind the RWA Foundation is mounting. The whitepaper will be released tomorrow so keep your eyes peeled and make sure you follow!

3. Hashnote’s USYC Crosses $1B in AUM and Becomes Largest Liquidity Product

In last week’s STM Data section, we covered $USYC’s rapid growth, reaching $902M at the time. Less than a week later it crossed $1B on December 18th, making it the first liquidity product to do so and surpassing BlackRock’s $BUIDL. The cause? Just like Ondo’s OUSG is primarily backed by BUIDL, DeFi protocol Usual’s stablecoin, USD0, is backed by USYC. 

This goes to show the power of backing other assets, as those assets’ growth fuel the liquidity products’ by transitive property. To encourage further adoption, Usual also redistributes a portion of the yield to token holders, essentially giving investors an incentive to go with USD0 over non-yield generating stablecoins.

4. Robinhood Has Officially Entered the Chat

We’ve reported before how Robinhood has been hinting at one day supporting tokenized stocks and other investment products to their tens of millions of customers. Now with almost $40B in crypto assets under custody and $3 Billion in volume last month alone, the firm is happily reaping the benefits and the Robinhood crypto executive confirmed tokenization is something they are “eager to get into”. No doubt stablecoins and similar products will become available soon.

Still, you can’t get out of Robinhood with your crypto. Could this be something that holds them back from full on adoption or is this simply about offering new products to customers with better efficiency and benefits all around?

5. JPMorgan Sees BlackRock ETF Invest in its First Tokenized Municipal Bond

Back in April the city of Quincy, Massachusetts issued a $10M municipal bond on JPMorgan’s Kinexys’ (Prev. Onyx) new Digital Debt Service. BlackRock’s iShares Short Maturity Municipal Bond Active ETF (MEAR) has now become the first investor to participate in this issuance, with about $6.5M worth in their possession. 

This is a great step forward in having traditional funds/ asset managers allocating into tokenized products and recognizing their potential. According to Bloomberg, this is even shown in an update to their ETF’s prospectus. BlackRock is clearly making moves on both the sell and buy sides now when it comes to tokenization. Just like we saw the effects of BUIDL, it’s possible this allocation will catalyze other funds to also participate in tokenized offerings as a part of their portfolio.

Notable Market Headlines

Institutional Activity

STM Data

This week we’d like to share a sneak peak of the data you can expect in our new tokenized real estate report, released today! Here’s two of them. Want more?

Security Token Prime is Made Possible Thanks to Our Enterprise Partners

Hello readers,

Happy holidays and a heartfelt thank you to everyone who has been a supporter of STM, especially those who have been following us for over 5 years! We couldn’t be more excited about the market outlook next year. Tokenization and RWAs are front and center for both crypto and finance with stablecoins and money market funds paving the way. When you hear folks like Chamath explain how SpaceX is using stablecoins to save money for global payments from its customers, it’s a sign that the crypto membrane barrier has been broken and people are starting to understand the potential of blockchain as a whole beyond Bitcoin. Nothing else except for maybe NFTs stuck with the mainstream. Now RWAs will become the influx of real world users to crypto and blockchain thanks to the numerous applications catching wind right now. It’s beyond awesome!

We’ve also taken 2024 to internally prepare STM for what’s coming. After all, we recently we already broke Van Eck’s third of ten predictions from this year which is that we will see $50B in tokenized RWAs, with $50.3B tracked on STM.Co at the time of writing! We have the data whether people like it or not, we go to great lengths to try to find it all. And you’ll get a brand new look and feel and even MORE data coming at you next year for STM. TokenizeThis is perfectly timed to be THE conference for RWAs of the year. And we’ve got some WILD aces up our sleeve coming out next year beyond that. 

Meanwhile, grab some popcorn and crack open the RWA Foundation whitepaper or Tokenized Real Estate guide this week! Call STM Santa Claus because we are about to start doing a whole lot of giving to our users and the industry soon. I’ll remind you once again to buckle up and enjoy the ride.

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: Securitize
Company of the Week - Kyle: Akemona

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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