🤝 Security Token Prime Insights: 7/1/2024

Exclusive Intelligence for Security Token Prime Members

July 01, 2024

Summary and Key Takeaways

1. Arbitrum Foundation Awards 11M ARB to BUIDL, 24M ARB to 5 Other RWAs

Naturally blockchain foundations have to manage their treasury. This can prove to be a significant challenge when that treasury is completely correlated to volatile crypto holdings. The new wave of RWAs offering yield backed by treasuries and kind are obviously a far more attractive choice for treasury management. Going beyond how Arbitrum enabled community voting to help pick out the winners ($BUIDL, $USDY, $USTB, $USDM, $TBILL, $blB01), we anticipate other blockchain foundations to follow Arbitrum’s lead. Crypto and RWAs will continue to merge and in this case we’re talking about a total of roughly $28M USD in treasury funds based on ARB’s ~ .80¢ price as of writing.

2. The Largest Digital Bond In History; €4.3 Billion by KfW Bank

Single handedly the largest DLT-based issuance to date, this low coupon, 3-year bond was issued using Deutsche Boerse’s Clearstream and D7 Platform by the German government-owned bank. Of course, this bond is not on a public blockchain meaning there is no onchain data to point to. Banks continue to crawl using DLT before thinking about walking or running using a public blockchain. Instead, the savings and transparency in itself are sufficient for the bank as this is their second digital bond issuance.

3. TokenizeThis Workshop Tour Around the US Launches September

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. 

Notable Market Headlines

Institutional Activity

STM Data

This week the Security Token Market Data Team would like to share stats we’ve seen across all the marketplaces we track. Looking at the graphic above you’ll notice US volume has had quite the increase this week and it’s led by none other than $INX with $193,093.11 traded throughout last week. While we usually consider “high volume days” for INX to be in the low 5-figures, on June 27th we saw $77,897.74 followed by June 28th’s $58,127.10 and tailing off with other “high volume days.”

What could have caused this? 
INX already has a strong community of followers, especially on X/ Twitter. Looking at theirs we noticed that on the first day of these bigger volumes there was an AMA with issuer Trucpal, sharing updates and insights on the market. The next day, INX started hinting at their upcoming tokenized NASDAQ debut followed by another hint on June 30th. 

Keep an eye out for that announcement on our socials and track all security tokens on STM.co! Remember, if you want to see any spikes in the market, just zoom in on your preferred dates.

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Recent Recordings

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Hello members,

With multi-billion dollar bond issuances, multi-million dollar treasury investments, and Project Guardian bringing together the biggest names in finance - you simply can’t afford not to understand tokenization. That’s why we thought one of the best things we can do to push the industry forward is launch a workshop series tour. 

Our full day masterclass can get just about anyone up to speed. So if you know someone at your firm or someone you know is keen to learn, you have your recommendation now. By spreading the word about our workshop, you’re doing your part to help the industry adoption too. Thank you to everyone who has been supporting us for so long! 

Happy tokenizing,
Herwig
CEO, Security Token Group 
@tokenwig

Helpful Resources

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