DS3 Crypto on LinkedIn: DS3 Crypto attended multiple meetings at TOKEN2049. See our key thematic… (2024)

Many seem to underestimate the importance of BlackRock's most recent announcement.In collaboration with the tokenization platform Securitize, the world's largest asset manager introduced its first tokenized money market fund - the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).𝐇𝐞𝐫𝐞'𝐬 𝐞𝐯𝐞𝐫𝐲𝐭𝐡𝐢𝐧𝐠 𝐲𝐨𝐮 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐤𝐧𝐨𝐰.👇• The fund is backed by a mix of cash reserves, US treasuries and overnight repos.• Initially, whitelisted investors need to contribute at least $5 million to invest. Over time, this threshold should be lowered to $100,000.• In return, investors receive BUIDL tokens that are tradable with other whitelisted investors.• These tokens are designed to hold a value pegged to one US dollar, additionally allowing BUIDL holders to earn the funds returns in the form of monthly token distributions.So, why is BUIDL a big deal - and why should you care?𝟏/ 𝐏𝐮𝐛𝐥𝐢𝐜 > 𝐏𝐫𝐢𝐯𝐚𝐭𝐞The fact that BUIDL was deployed on Ethereum - the largest, most liquid and probably most trusted smart contract platform in crypto - signals a preference for public instead of private networks for future tokenization initiatives.𝟐/ 𝐃𝐞𝐅𝐢 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧𝐬Building on open and permissionless infrastructure will allow other Decentralized Finance (DeFi) protocols to integrate BUIDL tokens into their platforms (think of collateral in money markets or new synthetic products). This way, the tokens gain additional utility and also become more attractive for crypto-native onchain users - thereby expanding BlackRocks market opportunities.𝟑/ 𝐃𝐫𝐢𝐯𝐢𝐧𝐠 𝐜𝐫𝐲𝐩𝐭𝐨'𝐬 𝐚𝐜𝐜𝐞𝐩𝐭𝐚𝐧𝐜𝐞As the world’s largest asset manager, BlackRock is 𝘵𝘩𝘦 authority in the financial markets.Through its rapid expansion into the crypto and tokenization sphere, BlackRock shifts the public perception of crypto away from the speculative side of the industry, towards the true value that the technology can provide.𝟒/ 𝐅𝐮𝐞𝐥𝐥𝐢𝐧𝐠 𝐭𝐡𝐞 𝐚𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐨𝐟 𝐭𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧More importantly, other asset managers might perceive the move as a wake up call to work on their own tokenization strategies - especially as other market participants start innovating on their business models and operations.𝟓/ 𝐒𝐞𝐭𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐬𝐭𝐚𝐠𝐞 𝐟𝐨𝐫 𝐦𝐨𝐫𝐞BUIDLs success will set the stage for additional tokenized products - the most probable successor being tokenized private credit.____________💡 𝗯𝘁𝘄: On June 18th we'll delve deeper into the opportunity space of tokenization for financial institutions.Visit our website for more information or feel free to reach out to us via DMs if you wish to attend our event.

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Today, most funds are managing or plan to offer exchange-traded products. This is the simplest path to implementation and the easiest to build. Firms have been there before, have investment committees that understand these products, and risks are easier to quantify. Stablecoins and cryptocurrencies are also under management—these are the main instruments owned and managed by crypto hedge funds. Some funds have moved to the frontier and now manage DeFi tokens. Futures are less common among our respondents, but some innovations are making futures more readily accessible, such as margin trading on CBOE Digital, the approval of Coinbase’s futures market, and futures offered by CME.In terms of building new products, pooled vehicles are the top choice for managers, represented by baskets of funds/ETFs. These products are simply in the DNA of asset managers—it is what they know they can build, and managers need far less regulatory clarity than with tokenized securities. Building infrastructure and engaging in DeFi protocols, while clearly on the roadmaps of some managers, have significantly higher risk profiles and longer time-frames than simp. However, tokenized investment products, including investment funds and other pooled investment vehicles created under the Investment Company Act of 1940,are a step forward for the industry. Today’s investment structures were designed in different technological, legal and cultural contexts. While ETFs are about 30 years old and still growing,digitization is starting to introduce competition to existing fund structures. For the investment fund industry, blockchain technology hasarrived with real, tangible benefits for funds—including real-time settlement and an immutable, transparent, distributed ledger. Blockchain-based settlement offers new efficiency in fund administration and transparency for various participants, including fund issuers, service providers, intermediaries, and investors. In fact, among respondentsto an earlier Coalition Greenwich study, 67% of market participants agreed that efficiency in fund administration is one of the top benefits of tokenized funds.Tokenizing bonds is gaining momentum; for example: UBS launched the world’s first digital bond issued by a banking institution globally to be listed, traded and settled on a regulated digital exchange. The digital bond settles via SIX Digital Exchange (SDX).Deutsche Bank became the first bank in Asia to conduct an intraday repo transaction on J.P. Morgan’s blockchain network.Goldman Sachs issued a $100m+ digital bond that settled instantly on its tokenization platform, using CBDC tokens issued by Banque de France.HSBC, BNP Paribas and RBC Capital Markets participated in the EIB’s latest digital bond issuance.As 2023 progresses, banks continue their work on infrastructure to better integrate blockchain technology by focusing on distributed ledger technology (DLT).#digitalassets #assetmanagment

"#BlackRockis about to launch a #tokenizedFund, the BlackRock USD Institutional Digital Liquidity Fund. According to anSEC filing, it has partnered with #tokenization firm#Securitize.The filing didn’t disclose the size of the Cayman Islands fund, but the minimum #investment amount is $100,000.CEO Larry Fink has previously been very optimistic about tokenization.In addition, the spot Bitcoin ETF IBITlaunched about ten weeksago now has assets under management of more than $15 billion. Only two other ETFs have had higher inflows this year: the S&P 500 funds from Vanguard and BlackRock’s iShares. Each of them has assets under management (AUM) of more than $400 billion.BlackRock is also the manager ofCircle’s reserve fundwhich underpins theUSDC stablecoin. So just between IBIT and the Circle fund, the crypto sector accounts for more than $40 billion in BlackRock assets. That said, BlackRock has more than $9 trillion #AUM.The role of Securitize – multi asset class collateral?Securitizehas been pushing hard to achieve this. It grabbed headlines when it tokenized aKKR fundon the Avalanche public blockchain in 2022.However, Securitize was taking the initiative by creating a feeder fund as part of Securitize Capital and tokenizing it. In this case, BlackRock is issuing a digitally native fund using Securitize’s infrastructure.For context, it’s worth noting that Securitize islaunching a lending solution. One of the key potential benefits of tokenization is the ability to move around collateral and mix and match between asset classes. Potentially investors could pledge their crypto to Securitize as collateral to invest in this sort of fund.Yesterday saw the launch ofLibre, a fund distribution protocol backed by Nomura’s Laser Digital and Alan Howard’s Webn. It is also looking to use BlackRock Treasury ETFs precisely to provide digital liquidity on chain.If switching between funds, rather than moving funds off chain, it’s easier to park them in an on-chain money market fund.Meanwhile, the price of the Ondo Finance token shot up from around 40¢ to 56¢. Ondo is the public blockchain protocol that tokenizes BlackRock funds. On the one hand, this looks like competition, although Ondo does not target US investors."Ledger insights#assetmanagement#assetmanagers#Blackrock#blockchain#collateral#digitalfunds#distributedledger#DLT#fundtokenization#funds#realworldassets#RWA#Securitize#tokenisation#tokenizedfunds #digital #liquidity #fund

🚨🔺 ASSET TOKENIZATION SUPERCHARGED BY AVALANCHE VISTA 🔺 🚨The last year has been a particularly challenging one for the crypto industry, with the fallout from last summer’s credit crunch, the implosion of FTX, and persistent regulatory headwinds in the US largely impeding growth and adoption.While DeFi growth has remained stagnant during this period, the institutions are *still here*, and asset tokenization has only gained momentum. 🔹 Some recent data points we’ve seen:▶ BlackRock CEO Larry Fink said that tokenization will be "the next generation for markets”.▶ The market cap of tokenized public securities has exploded from near $0 to over $600M in just the last six months. ▶ Private fund tokenization is seeing institutional adoption, led by big names like KKR, who tokenized their latest healthcare growth fund on Avalanche.▶ Bank of America put out a report detailing the opportunity for tokenized assets to exceed $16T in value by 2030, and cited Avalanche Evergreen Subnets as one of the key platforms driving this future state for financial markets.🔹 Some recurrent feedback from our partners:▶ Banks are viewing the $126B stablecoin market as a strong signal that is pushing their exploration of tokenized deposits and on-chain finance (“OnFi”).▶ Asset managers are looking at tokenization as a new investment wrapper that will eat market share from ETFs, just as ETFs ate market share from mutual funds.▶ Sell-side trading desks are thinking about tokenization enabling 24/7 operations, atomic settlement, and asset programmability.And the list goes on…Amidst this explosion of interest in tokenization, the Avalanche Foundation is adding fuel to the fire with the launch of Avalanche Vista, a $50M investment program that will consider purchasing tokenized assets across the liquidity spectrum, including equity, credit, real estate, commodities, as well as those that are blockchain-native. The initiative aims to support protocols on Avalanche that have a clear value proposition, a comprehensive go-to-market strategy, and a thoughtful view on product-market fit, as we believe these qualities will distinguish the winners of this multi-trillion-dollar opportunity set.The Vista program reflects the Avalanche Foundation’s commitment to driving forward a new financial system — one that’s more accessible, efficient, and cost-effective — that is turbocharged by Avalanche’s revolutionary technology. We could not be more excited to work together toward this bright future. You can read more about the program below, and please don't hesitate to reach out if you’re interested in learning more:💻 Avalanche Blog: https://lnkd.in/epD6cAjq🗞 TechCrunch Article: https://lnkd.in/efYPwjfK#avalanche #tokenization #realworldassets

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Today's Real-World Asset Summit comes with a number of announcements for our vision of an onchain financial system. Welcome to 𝘊𝘦𝘯𝘵𝘳𝘪𝘧𝘶𝘨𝘦 𝘌𝘷𝘦𝘳𝘺𝘸𝘩𝘦𝘳𝘦.We're launching on Ethereum L2 networks Arbitrum ($2B+ value onchain) and Coinbase's Base. Billions of value on these chains will be able to invest directly into real-world assets on Centrifuge.Jesse Pollak: "As we continue to see increased demand for real-world asset investments, we're looking forward to providing Base users with access to a diversified pool of institutional grade assets through our work with Centrifuge"Next up: U.S. Treasuries are coming to Centrifuge, and one of DeFi's largest protocols, Aave Companies, will invest part of their treasury into them.With MakerDAO, another DeFi giant, we're excited to build Proof of Portfolio: a proposed Centrifuge product to solve key challenges of how we bring transparency, reporting to real-world (i.e. offchain) collateral.Circle — a fellow Tokenized Asset Coalition member — provides USDC, the default stablecoin of new Centrifuge pools.We can't wait to build with Mauve, a compliant secondary market provider, as well as Chronicle Labs | Protocol, a provider of real-time price feeds, to further develop the capabilities RWAs onchain. Catch both of these organizations speaking at the Real-World Asset Summit today!The best real-world asset portfolio is a diversified one. That's why we're excited to have Anemoy (tokenized T-bills), New Silver (real estate), and Flowcarbon all launching new pools on Centrifuge — all supported by multichain liquidity.And lastly: we're continuing to build and activate the Tokenized Asset Coalition: a collection of the most important builders in the space. Keep an eye out for what comes next!https://lnkd.in/eKG7t_NK

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This is another great breakdown of Avalanche Vista that illustrates why tokenization is going to be a big growth sector in crypto, and how Avalanche is poised to lead this growth with scalable and customizable infrastructure.

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BlackRock has launched its first tokenized fund, BUIDL, on Ethereum Network. BNY Mellon will serve as the custodian and administrator, also enabling interoperability for the fund between digital and traditional markets. Securitize will serve as the tokenization platform and transfer agent, and will also act as placement agent via its Securitize Markets platform. Benefits of this offering include:✅ Expanding investor access to on-chain offerings,✅ Instantaneous and transparent settlement,✅ Investors can transfer their tokens 24/7/365 to other pre-approved investors✅ Flexible custody options allowing fund participants to choose how to hold their tokensLove to see BlackRock and BNY Mellon open the floodgates and really leading the charge for true innovation, rather than sitting comfortably on inefficient processes for compliance, clearing and settlement.Tokenized real-world assets (especially financial assets) is going to be a big part of market infrastructure in the coming years. If you haven't seen it already, see Larry Fink's recent interview from the link in the comment. If you're looking to explore tokenization proof of concepts to determine how it could impact your organization, reach out to me!KPMG Canada Kareem George Djuric James E. #tokenization #digitalassets #crypto

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Change is inevitable

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**I think the post-AI investment theme in summer-2024 is institutional scaling on EVM**I'm clearly biased, but in my mind, the next theme after AI is going to be institutional scaling of blockchain. Specifically, public blockchains. More specifically, EVM blockchains.That's why I'm so excited by our soon to be public updates and positioning for the next two years with Keyring Network.**Why?**The ansatz is that crypto is just levered SPX + "Crypto Alpha": EVM adoption is correlated to market depth. Depth correlated to price. Price correlated to SPX.Based on this, in my (totally unqualified) view:**+Crypto α** SEC can't go harder. Deceleration is strong +ve.**+Macro** Rates markets seem to be betting on lower rates in '24**+Macro** US election year may see looser monetary policy.**+Adoption** Many buy-side working on EVM projects (1st/2nd-hand source)This leads to a pretty explosive summer of '24. To put money where my mouth is, I've bought as much ETH as my wife will let me get away with, a few weeks back.**How?**In Feb '23 most of TradFi gathered in CfC San Moritz and the (alleged) chatter was "quality of RWAs will increase in 2023".This seems to have been true. Projects are tokenising RWAs of increasing quality ... and getting big (comparatively) AUM almost immediately.The trend started with tokenised spot (TUSD and USDC) and will continue towards cash-like securities moving up the risk curve. The next wave will be exposing USD risk-free-rate (e.g. Maple) and ETFs (e.g. WisdomTree Asset Management) with low risk, highly liquid profiles. Gradually moving into areas of higher credit & duration like corporate bonds and fund tokenisations. Eventually we will see structured products and QIS indices issued directly over smart contract using these underlyings.Highly recommend CNBC interview with WisdomTree's William Peck. An excellent insight into how sophisticated investors are viewing / building the space. This is directly aligned with what we see happening across the industry from talking / working with large asset managers, hedge funds and investment banks.*Verification*The best method of information collection is to think what TradFi would need to start activity on public blockchains. Specifically, what they can never build in-house. Then go ask these people. My favourites are:1. Recruiters specialising in solidity know if hires have specific mandates.2. Infrastructure providers e.g. efficient order routing / block building.*Select Publications*[1] WisdomTree x CNBC: https://lnkd.in/deyCA-pJ[2] Financial Times: https://lnkd.in/d5ThKxVh*Aim here is to dump my current thinking and get back to coding up our next features in python. Like the Pensive in Harry Potter, hopefully this is useful for someone - if it's moronic feel free to tell me. Don’t take this as investment advice; I’m totally unqualified to do that and taking investment advice from one social media post is rarely a good idea.*

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Liquidity: Tokenizing a fund allows for the creation of digital tokens that can be traded on secondary markets 24/7. This provides investors with increased liquidity compared to traditional funds with longer lock-up periods, making it easier to buy and sell their holdings.Fractional Ownership: Tokenization enables fractional ownership, meaning investors can buy and own smaller portions of assets within the fund. This makes investing more accessible to a broader range of individuals who may not have the capital to participate fully.Lower Barriers to Entry:Tokenized funds often have lower minimum investment requirements, making it possible for a more diverse group of investors to participate, including retail investors.Global Access:Digital tokens can be accessed and traded by investors worldwide, eliminating geographic restrictions and opening up investment opportunities to a global audience.Transparency:Blockchain technology provides a transparent and immutable ledger of all transactions, allowing investors to track the fund's performance and holdings in real-time. This transparency can build trust among investors.Efficiency:Tokenization reduces administrative overhead and paperwork associated with traditional fund management. Smart contracts can automate processes like dividend distributions, reducing the need for intermediaries.7Lower Costs:Traditional fund management involves various fees, such as management fees, performance fees, and distribution fees. Tokenized funds can potentially reduce these costs through automation and disintermediation.Enhanced Security:Blockchain technology provides robust security features, reducing the risk of fraud, hacking, or unauthorized access to fund assets. Custody solutions for digital assets are also improving to protect investor holdings.Faster Settlement: Transactions on blockchain networks settle quickly compared to traditional financial systems, reducing settlement times and counterparty risks.Fractional Ownership of Real Assets:Tokenization can extend to real assets like real estate or art. Investors can own a fraction of a valuable asset, which was previously difficult to achieve without substantial capital.Compliance and Regulatory Efficiency: Tokenized funds can incorporate compliance features directly into smart contracts, ensuring that transactions adhere to regulatory requirements automatically.Access to New Investment Models: Tokenization can facilitate innovative investment models, such as revenue-sharing tokens or profit-sharing tokens, which can align the interests of fund managers and investors more closely.https://lnkd.in/gjQmUm2B#blockchainKamlesh Nagware Prasanna Lohar 🚀 India Blockchain Forum Bharat Web3 Association Rohas Nagpal Manav Ailawadi Raj Kapoor Himanshu Sachan Amit Chandra Puneet Dua Metzler Asset Management Cashlink fundsonchain

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