🤝 Security Token Prime Insights: 8/12/2024

Exclusive Intelligence for Security Token Prime Members

August 12, 2024

Did You Catch STM’s Latest Report?

Look out for STM’s latest report: State of the Tokenization Industry 2024 - The Year of the RWA which features over 350 service providers and tokenization issuers and their updates for the year to date across 18 categories from blockchains to issuances to DeFi and all the updates from tokenization platforms and marketplaces. Dive into the report, made possible thanks to SteelWave Digital! 

Summary and Key Takeaways

1. SDAX Announces Listings Value of $1 Billion USD on Its Platform

Singapore-based SDAX, a fully licensed and live marketplace for tokenized securities has achieved a major milestone. They’ve announced over $1 Billion is now on the exchange, showing promise for the company. As SDAX continues to grow, Singapore remains one of the most active, fully functioning jurisdictions for tokenization.

2. Franklin Templeton Expands $BENJI to Arbitrum

Multi-chain assets will be a normal thing in the future. For certain products like the tokenized money market fund BENJI, it’s a surefire way to grow AUM. The crypto industry is waking up to the benefits of having tokenized liquidity products bringing RWA yield into their ecosystems for settlement and trading, collateral and margin, and DeFi utility. This multi-chain strategy has put this tokenized fund within roughly $100M away from achieving the status of largest tokenized fund in the world, which currently belongs to BlackRock’s BUIDL. 

3. SBI Finds Its Stride In Tokenization

One of Japan’s biggest investment banks is on a tear lately. Last week we announced their partnership with asset manager giant Franklin Templeton and now this week they’ve announced 3 new products coming to their already live digital arm of their exchange called START. They also announced plans to list bonds on top of the real estate offerings they’ve done to date. 

Meanwhile, Kyobo securities out of Korea follows Franklin Templeton’s lead and partners up with SBI too. SBI is clearly planning to become a powerhouse in this industry and with MUFG also active, Japan remains one of the most advanced countries using tokenization technology.

4. The Bitcoin Hotel Won’t Be Funded By Bitcoin Technology

The token construction bond announced by Bitfinex Securities back in April of this year has closed and failed to reach its target. It’s a shame to see the lack of demand and there could be a number of reasons why it didn’t see more traction but certainly this won’t stop Bitfinex from launching more offerings and continuing to hone its offering types to fit its audience. El Salvador’s Hampton by Hilton airport hotel will likely need to look to traditional financing to get off the ground.

5. Trump Sons Could Be Launching an RWA for DeFi

Crypto sleuths have connected a post on X between real estate magnate and Trump insider Steve Witkoff with that of Donald Trump Jr.’s recent post announcing a soon-to-be released game changer for DeFi. Could the connection be RWAs? Real estate is right up their alley and natural fit for tapping into DeFi. Let’s see what happens. 

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 an excerpt from the Equity section of our July 2024 monthly report. 

  • Market Cap: $17,317,364,159 (0.95% MoM)

  • Volume: $2,900,122 (-39.24% MoM)

CoinDesk 20 Index Benchmark: Equities experienced a slight decline in performance in July 2024 which isn’t too surprising, looking at public markets. With that in mind, crypto did a bit better but not by much. August, however, is expected to have some movement depending on how markets react to the beginning of the month’s events. 

Insights: The market cap has held steady since last month, however trading activity has taken a step back by almost 40%. A top contributor to Aktionariat’s volume is Vidby however that has changed, ultimately dropping Aktionariat’s volume from ~$389K to just ~$200K in July 2024. 

A similar scenario has been noticed for Realio Security Token ($RST), dropping to $462K from June’s $2M in volume which was impressive as that was near Enegra’s ($EGX) volume despite RST’s much smaller market cap. 

Looking at market cap movements, to no surprise they’re mostly steady. tZERO equity tokens are a bit down in market cap while EGX saw a “relatively small” increase in market cap of $200M with a similar $2M volume to last month.

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Upcoming Events

  • Weekly Industry Updates Breakdown - Tuesday August 12th at 3:30pm EST

  • Risk Management in Tokenized Assets with Moody's and Particula - Thursday August 22nd at 12pm EST

Recent Recordings

  • 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)

Hello readers,

What an incredible response to our State of the Tokenization Industry report we released last week. It’s clear to us people are finding a lot of knowledge and quickly accessible information thanks to this document. We aim to continue to update it throughout the year as best we can, so please feel free to send in any missing news you think should be on there. 

The report also highlighted that despite the insane excitement and traction around US treasuries and money market funds, there are a number of other RWA categories seeing success too. Between real estate, bonds, tokenized stocks, and private credit, the RWA market seems to be much bigger than just liquidity products coming to DeFi. 

We’ve got a long time remaining in the year with numerous products announced without being released yet. I can’t wait to see where this all goes next. Stay tuned for more huge updates from STM coming soon!

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

Herwig’s Pick: Franklin Templeton

Find out why and more every Friday live at 1pm EST on LinkedIn or X/ Twitter. Past episodes available on Youtube or your favorite podcast platform! 

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