Governments On-Chain: Munis and Subsidies

🌴 Your Weekly Security Token Digest

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Goooood Morning, Rainmakers! ☀️

As always, we have two captivating topics for you to dive into:

1️⃣ 🏦 City Issues Muni Bond on Onyx by JPMorgan

2️⃣ 💸 Tokyo Subsidizes Security Token Offerings

Without further ado, it's time to…

Get Liquid 💧

Your First Captivating Topic of the Week

🏦 City Issues Muni Bond on Onyx by JPMorgan

Onyx by JPMorgan has been a go-to example for years in the tokenization space. Within Onyx you can find multiple services such as

  • Onyx Digital Assets (RWA tokenization)

  • Coin Systems (payments and settlement)

  • Liink (data sharing/ P2P information exchange)

  • Blockchain Launch (bespoke blockchain solutions)

and now we have their Digital Debt Service.

Their inaugural issuance? This will be a $10M municipal bond (tax-free) with the City of Quincy just outside Boston, Massachusetts.

One of the ideas with a muni bond is that it gives communities/ residents the opportunity to participate financially in their local developments. While this one may be on JPMorgan’s private-permissioned ecosystem, it serves as a great start to one day open it up to retail participation.

Over time, we should see blockchain technology usher in lower issuance costs, enhanced liquidity, and reduced settlement times

Rick Coscia, Quincy’s Strategic Asset Manager

It’s important to keep in mind institutions may prefer to slowly roll out new endeavors, such as amongst themselves, through Proof of Concepts and pilots which. I can definitely see this opening up in the near future as tokenization continues to pick up steam.

That being said, we’re also aware of 2 other institutions also working together on a muni bond… will that one be open to individual investors? Keep an eye on What’s Drippin’ as we’ll be sure to cover it once it launches!

Want to meet someone from Onyx Digital Assets? Product Manager Stephanie Lok will be speaking at TokenizeThis 2024 this week in Miami! Get your tickets ASAP!

This is not financial advice.

A Message from TokenizeThis

We’re only a few days away from the tokenization event of the year, featuring 40+ innovative leaders speaking on panels, fireside chats, and keynotes alongside the expo floor and networking opportunities!

Don’t have a ticket yet? Get yours today and use WD20 for 20% off!

Your Second Captivating Topic of the Week

💸 Tokyo Subsidizes Security Token Offerings

Need motivation to tokenize? How about making it cheaper?

That’s right, the Tokyo Metropolitan Government is looking to solidify their position in the market by making it easier for issuers to go on-chain, offering them to cover half the bill (2/3 for startups) up to ¥5M. Have an ESG project or something unique in the investor experience? Tokyo may cover more of the costs for you.

I think this is a great way to stimulate their on-chain participation as costs can sometimes be a barrier to entry depending on the size of the asset being considered to be tokenized. Japan is already a leading country in the security token space with multiple issuances, millions in bonds, the Japan Security Token Association (which STM is a part of), and more!

Who are some of the notable players in Japan?

  • Nomura’s Laser Digital

  • Osaka Digital Exchange

  • MUFG’s Progmat

  • Securitize Japan

  • Daiwa Securities

  • Sumitomo Mitsui Financial Group (SMBC)

This is not financial advice.

💦 What else is Drippin’

Reports

STM Monthly Report - March 2024

We're excited to release the March 2024 edition of our monthly report! March 2024 has been a remarkable month for the tokenized securities space with the launch of BlackRock’s BUIDL fund via Securitize, increased volumes across ALL asset classes, and RealT’s capital raise leveraging a Swiss framework to name a few catalysts.

In this month’s market report, we have meticulously tracked over 532 security tokens spanning across 12 marketplaces and 10 blockchains.

Sections include:
👉 Key Takeaways
👉 Asset Class Breakdown
👉 Marketplace Spotlights
👉 On-Chain Treasury Products
👉 New Tokens and Announcements

State of Security Tokens 2023 - Q4 Report

We are very excited to publish our State of Security Tokens 2023 - Q4 report with our client and sponsor Blue Water Financial Technologies . Peter Gaffney and the Security Token Advisors team cover the following topics:

  • Key retail & institutional themes in the tokenization and real world assets space including:

    • Treasury, private credit, and real estate growth

    • Asset-Backed Securities (ABS) originations and securitizations

    • Investment banking platforms and digital bond placements

    • Global distribution channels & preferential jurisdictions

    • M&A and Investment Activity

  • Secondary Trading Activity (40+ graphs and charts from Security Token Market)

  • M&A and Investments

  • 50+ Service Provider Updates

  • Public and Private Blockchain Developments

This is not financial or investment advice.

TokenizeThis: Highlights and Key Takeaways Report

We’re proud to have put together a free, 3-day event that resulted in shared insights valuable to both our retail and institutional audiences. That said, we recognize 3 days is a lot of content to take in so we did it for you!

Check out our report highlighting the key takeaways from the conference, quotes, and common themes across the panels.

Do you want your company or project in front of the largest, most curated security token audience on the planet?

If interested, please reach out to [email protected] to find out a way we can work together :)

Everything in this newsletter is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this newsletter should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.