🤝 Security Token Prime Insights: 8/26/2024

Exclusive Intelligence for Security Token Prime Members

August 26, 2024

Summary and Key Takeaways

1. State Street Signals Imminent Entry to Tokenization Market

This $4 Trillion asset manager has been vocal about the benefits of tokenization for years but never actually tokenized anything. Now they’ve announced Taurus, a swiss-based tokenization firm, has been selected by State Street to develop a tokenization and custody platform. The move likely indicates that the firm has seen the activity in the space and realized it's time to move. Will they launch a tokenized money market fund or do they have something else in the pipeline?

2. ProvLabs, Figure Markets, and NavLend to Offer Fund Collateralization

A popular use case and feature for tokenization is allowing investors to easily get a loan by posting their tokens as collateral. NavLend is now making that possible for fund units issued on Provenance and listed on Figure Markets. This now enables fund managers a number of liquidity services when using the provenance ecosystem. We’ll have more on this in a special interview!

3. Franklin Templeton Expands BENJI to Avalanche, 2 Weeks After Arbitrum

BENJI is the only tokenized fund to be on Stellar, Polygon, Arbitrum, and now they’re also on Avalanche. BENJI may actually be the most cross-chain supported fund ever. Avalanche has a lot of institutional activity happening as well, which could enable BENJI to be used by those exploring tokenization on Avalanche. However, there are also a lot of retail investors that might be eager to tap into this product.

4. New Stablecoins Coming; Dirham-based Tether in UAE and USD-based Meli Dollar for Latin America

The largest stablecoin provider sets its sights on the UAE with the announcement of plans for a new Dubai Dirham stablecoin. Given the government mandates and plans to become an onchain economy, this move seems prudent to get a head start on supporting this transformation. Meanwhile, Mercado Libre, one of the biggest companies out of Latin America, could be trying to address the currency fluctuation problems in the continent by releasing their own Meli Dollar stablecoin that brings the strength of the US dollar to their customers, starting with Brazil.

NEW STM REPORT AVAILABLE - Updated tZERO Interview!

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 and now with a special interview with tZERO! Check out the updates. 

Notable Market Headlines

Institutional Activity

STM Data

This week the Security Token Market Data Team would like to focus on the biggest price changes which can greatly impact market caps. These are volatility levels that are typically bigger than we’d see in public markets, mainly due to less liquidity in tokenized and private markets. Please find below the top 10 in price change and their respective asset classes::

  • Hashrate Asset Group (-35.14%)

    • Asset Backed Securities

  • 8531 Intervale St (24.79%)

    • Real Estate

  • StoreDot (-22.22%)

    • Equity

  • 14918 Joy Rd (18.85%)

    • Real Estate

  • tZERO (14.62%)

    • Equity

  • 20160 Conant St (13.39%)

    • Real Estate

  • Realio Security Token (13.16%)

    • Equity

  • INX Limited (-11.76%)

    • Asset Backed Securities

  • Republic Note (-11.11%)

    • Asset Backed Securities

  • 13245 Monica St (10.73%)

    • Real Estate

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Events

Recent Recordings

  • (NEW) 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 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.

Hello readers,

As we wrap up the month and soon the summer, we can expect a lot of excitement to bring home the year. September has Token2049 and October has Permissionless. Both will bring increased attention around the RWA narrative and include announcements for some industry “mic drops” before we head into 2025. 

Liquidity products will continue to grow, chains will continue to focus on supporting RWAs, and new offerings will launch. This standard trajectory can be altered by several things such as the November election, a potential change in crypto cycles, and some new big names entering the market as token issuers. Take this time to get ready for the first full, real industry cycle for tokenized assets as a healthy market with thousands of products, hundreds of issuers, and billions in capital flowing. What happens if that goes exponential? 

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

Herwig’s Pick: State Street

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

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