🤝 Security Token Prime Insights: 12/30/2024

Exclusive Intelligence for Security Token Prime Members

December 30, 2024

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Summary and Key Takeaways

1. RWA Foundation’s WALLY DAO Whitepaper is Now Available

What are you waiting for? This is required reading! If you did read it, tell us what you think about the $WALLY token and our vision to unite the RWA industry to build the largest decentralized community focused on tokenization. 

Read the whitepaper at RWAF.xyz

2. WhiteRock Finance Launches Tokenization Platform for Public Markets

One of the ultimate goals with tokenizing traditional assets is to make them more accessible and add utility to them by bridging them to DeFi applications. Public markets have the perception that they don’t need blockchain due to more robust infrastructure that exists compared to private markets. That said, there are plenty of reasons to tokenize assets on NASDAQ, LSE, and NYSE which is exactly what WhiteRock Finance is doing with their new platform.

They’ve tokenized stock in 500+ public companies with over $100 million in volume - that’s no small amount! WhiteRock started with bonds and equities but it doesn’t stop there. The platform will also be introducing their native token ($WHITE) and stablecoin ($USDX) which will power a lending platform and DEX in the future. With these developments it’ll be easier to take loans out against your portfolio of public stocks and move them to other dApps in their WhiteNetwork ecosystem. This will eventually expand to IP rights, real estate, and commodities… imagine the trading volume potential! 

3. Agridex Settles Their First Tokenized Coffee Transaction on Solana

Herwig’s final company of the week winner for 2024 was Agridex for illustrating the power of tokenization applied to commodities. A South African coffee export transaction valued in their local Rand currency settled on chain in Great British Pounds (the final destination of the coffee beans being the UK). The savings? From an average of 5-7% down to .50% and a lifecycle of 10 to 14 days turned into the same day. Read that again! Now that’s something no exporter would ever want to go back to after experiencing tokenization. With $9M in fresh funding, Agridex - which is built on Solana -  is set to be a leader in the space.

4. BlackRock Plays Nice with Kinexys by JPMorgan; Buys Tokenized Municipal Bond

We reported earlier this year that Kinexys (previously Onyx by JPM) launched their Digital Debt Service which means they now offer tokenized bonds issuance and administration and possibly more. They’ve announced one public deal with the City of Quincy, Massachusetts for a $10M muni-bond. Now it turns out that a BlackRock ETF is one of the buyers of this bond. This further reinforces the fact that Larry Fink is walking the walk. He isn’t just making an investment and launching a pilot, they are engaging in tokenization across the spectrum now. This is the organizational commitment that is needed to fully realize the benefits and efficiency of tokenization.

5. Obligate RWA Products Now on Archax

Debt is an ever growing asset class coming on-chain but it’s no secret that there’s minimal visibility into their volume. That changes soon with distribution expansion partnerships like the one Obligate and Archax just made! Switzerland-based Obligate allows companies to issue debt on their platform rather than going to a bank. By listing these assets on Archax we can expect offerings to be filled faster thanks to adding in the Archax investor audiences and, presumably, one day will be traded on Archax’s UK-based exchange when it goes live. 

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

It’s the end of the month meaning we have another monthly market update report coming in the next week or two. Good news, we’ve surpassed a market cap of $50 billion just in time to close 2024. Let’s take a quick look at growth across liquidity products which is driven by a few key players this month:

Where do you predict we’ll be at in market cap of tokenized assets by December 2025? Tweet and 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,

If you think about it, RWAs are already at a quarter of a trillion dollar market cap. That’s $200B in stablecoins + $50B in equities, bonds, real estate, and everything else. That is nothing to scoff at given we’ve seen plenty of 10x growth over the years so if there was no growth for crypto next year (incredibly unlikely but for the scenarios sake) and we saw a 10x in RWAs we’d almost have equal sized markets! The flipping of RWAs to cryptos is a given to me at this point, the question is how soon.

Maybe we should start tracking a BTC to RWAs dominance chart too? The kicker is that when crypto goes up, RWAs follow so next year is bound to be the banner year for both, especially in the event we see improved crypto regulation and some kind of national bitcoin reserve or policy. 

Happy new year everyone! Let’s all win together and make RWAs the new face of finance in 2025.

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: Agridex
Company of the Week - Kyle: WhiteRock Finance

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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