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- 🌊 The institutional wave is here
🌊 The institutional wave is here
88% of institutions are exploring digital assets, blockchain, DLT!
Jonah Schulman
November 07, 2022
PRESENTED BY:
Gooood morning, Rainmakers! ☀️
As always, I have two captivating topics for you to dive into:
1️⃣ 🌊 The institutional wave is here: In the last few weeks, several massive institutions have jumped on the tokenization train!
2️⃣ Prometheum ATS: A new ATS is ready to take on the world, but with not what you would expect.
Without further ado, it's time to…
Get liquid 💧
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🌊 The institutional wave is here
There was a time when people doubted cryptocurrencies, NFTs, and anything associated with blockchain.
What the vast majority of the population doesn't realize is that the technology underpinning all of these amazing subsets of blockchain is the real value-add.
And that's what institutions have come to discover and implement, especially in the past few weeks.
In fact, according to a survey conducted by Citi, they found that 88% of institutions are exploring digital assets, blockchain, DLT!
Half of those who surveyed were actively engaged in implementing this, which is a tremendous sign.
It didn't state how many participants were involved, or who specifically, but it clearly points out that there's a clear benefit of blockchain for financial incumbents to implement.
One of the most agreed-upon benefits was reducing the time it takes for securities settlement from T+2 to T+1 and eventually T+0 and many believe even instant settlement is possible within 10 years.
It gets better...
On top of this survey, here are some of the top institutional headlines from this past week:
- JPM, DBS & SBI Digital Asset execute live trade using DeFi, tokenized deposits & verifiable credentials on the Polygon blockchain!
- HSBC to launch blockchain bond tokenization platform after strong demand from clients!
Institutions don't like blockchain, they like the cost-savings and efficiencies that blockchain enables, and clearly, the incumbents are all-in right now.
Things are starting to get really exciting in our space!
📊 Prometheum ATS
The New York-based cryptocurrency exchange has launched an alternative trading system for digital assets that are SEC-registered and offers five cryptocurrencies to trade.
Everyone, please give a warm welcome to Prometheum's subsidiary, Prometheum Ember ATS (PEATS), as they just received FINRA approval to operate an ATS (ATS is a marketplace) for security tokens!
They've been around for a while but appeared to have finally received the final approval to operate a live-trading ATS!
Of course, there is competition in this industry, but at the end of the day, it's a team effort to drive adoption and we welcome more companies to enter the space.
For those of you who are unfamiliar let's break down who Prometheum is:
Prometheum is an end-to-end security token solution based in New York City comprised of these business verticals:
Capital Raising: PEATS is a registered broker-dealer enabling capital raising.
Trading: Due to their ATS receiving approval to operate an ATS for security tokens, they can list security tokens that are accessible to the public.
Custody: They have partnered with the federally chartered bank and digital asset custodian, Anchorage Digital, for their security token custodian needs.
The most interesting part to me about Prometheum is they are treating cryptocurrencies almost like they are securities before they are actually deemed securities.
For example, the first available to-trade assets are Flow, Filecoin, The Graph, Compound, and Celo, which are in fact cryptocurrencies.
I find this fascinating, yet not surprising at all.
I think the play here to set themselves apart from the rest is they are anticipating a large crackdown on cryptocurrencies, so when/if that happens Prometheum is already fully-equipped.
It's something I've been thinking about for a while now, but it's even more interesting for an ATS to just jump the gun and allow the trading of these cryptos on their ATS.
It's still very early, but I like the creativity that Prometheum is putting forth.
Congratulations to the team, can't wait to see more assets trading!
💦 What else is Drippin’
Everything in this report 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 market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.
Disclosures:
• No money or other consideration is being solicited, and if sent in response, will not be accepted;
• No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through the platform of an intermediary (funding portal or broker-dealer); and
• A person’s indication of interest includes no obligation or commitment of any kind.