Presented By:

Your First Captivating Topic of the Week

💰 Blockstream to Expand Upon $210M Convertible Note Financing

Blockstream has been in the game for quite some time now as an infrastructure provider and as it relates to security tokens they’ve been a leader in bringing RWAs to the bitcoin blockchain via their L2: Liquid Network. Doubling down on their efforts, they just got access a brand new $210M war chest via a convertible note. Led by Fulgur Ventures, this note is meant to grow the Liquid Network and expand their Bitcoin treasury.

What’s been tokenized on the Liquid Network?

About $1.8 billion worth of assets have been issued on Liquid, with one of their most notable offerings being the Blockstream Mining Note ($BMN) which gives investors exposure to bitcoin mined - a hashrate-backed security token. Their first one, BMN1, delivered cash-on-cash returns of up to 103% over its three-year term. Building on this success, they launched BMN2 in July via STOKR which is now on its Series 4 issuance. This closes in 6 days at the time of writing so check it out if you’re interested!

Other examples of assets tokenized on Blockstream includes $1B in promissory notes from Mexican fintech Mifiel and STOKR’s MicroStrategy Note (CMSTR), each backed by 100 shares of the Nasdaq-listed company. CMSTR is tradable on SideSwap, a Liquid Network based decentralized exchange (DEX).

What’s next?

With this new financing we expect to see even more issuances on Liquid Network, potentially seeing the L2 integrate into additional marketplaces, and of course see their bitcoin treasury grow from its current 3,844 BTC locked on-chain.

This is all in addition to other infrastructure endeavors they may have in motion such as their cloud infrastructure service, Greenlight.

This is not financial advice.

A Message From Security Token Market

Are you going to be in New York City or Miami next week? Meet some of the team!

Your Second Captivating Topic of the Week

🤫 Hashnote’s USYC Comes to Canton Network for Privacy

Hashnote is an on-chain first digital asset manager backed by DRW and Cumberland. Their US Yield Coin (USYC) has around $300M in AUM and invests in reverse repo activities on government-backed bonds. They’ve been around for some time but this week’s news is catered towards institutional participants which is that they’ll be integrating more privacy in how USYC is used.

For some context, Canton Network is a consortium put together by Digital Asset (company behind DAML) and 30+ institutions. This network has performed pilots in the past with 100s of financial players in the space involved with the goal being interoperability across their platforms. Broadridge is a Canton Network member and at TokenizeThis 2024 Prakash Neelakantan from their team said

Hashnote’s CEO Leo Mizuhara backed this up saying that public blockchains and privacy don’t have to be separate an that’s what they’re proving now.

What’s the privacy component?

According to the press release, “USYC holders to hold and deliver collateral across the Canton Network without anyone other than the issuer and the holder knowing.”

This would help keep trading activity somewhat confidential and giving the asset utility while still reducing counterparty and settlement risk. Because of Canton’s connectivity and the asset’s composability, other partners in the Network will be able to add in their own utility and this ultimately serves the investor. With so many liquidity products coming to market it’s going to come down to which options give the most yield but also which ones make holders’ lives easier.

This is not financial advice.

Companies of the Week

Herwig’s Pick: Ethena

Kyle’s Pick: Anduro

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! 

Reports

RWA Securities Market Update: September 2024

We're excited to release the September 2024 edition of our RWA Securities Market Update report, brought to you by INX, which features benchmarks against the CoinDesk 20 Index (CD20)! In this month’s market report, we have meticulously tracked 649 security tokens spanning across 35 marketplaces and 10 blockchains.

Sections include:

• Key Takeaways

• Quantitative Highlights

• Asset Class Breakdown

• On-Chain Liquidity Products

• Platform Spotlight: INX

• New Tokens and Announcements

State of the Tokenization Industry 2024 Report

We are very excited to publish our State of the Tokenization Industry 2024 report tomorrow with our sponsor SteelWave Digital! The Security Token Market team covers this year’s headlines and key takeaways, sorted into the following categories:

Search away, share it with a colleague, and revisit the same link for future updates!

TokenizeThis 2024: Highlights and Key Takeaways Report

The TokenizeThis 2024 Conference Highlights Report is Now Available! This was the industry’s event of the year with 500+ registered attendees, 40+ speakers, and 20 sessions & side events in Miami, FL!

There was so much to do you may have missed some panels but not to worry, the STM Team has put together a summary of it all just for you.

This is not financial or investment advice.