Your First Captivating Topic of the Week

🇮🇹 Intesa Sanpaolo Issues Commercial Paper on D7

As the European Central Bank (ECB) trials wrap up next month we came across a new issuance for it, this time using the TIPS Hashlink protocol from the Bank of Italy (more on this in a sec). Italy’s largest bank, Intesa Sanpaolo, has issued €10 million in commercial paper using Clearstream’s D7 platform as we’ve seen multiple bonds do especially these last couple of months.

What does this mean and what is this TIPS Hashlink thing?

Great question! D7 is the tokenization platform provided by Deutsche Börse’s Clearstream which takes care of issuance, coupons, transfers, etc. That said, the cash leg part of this transaction is off-chain using the TIPS payment system (main instant payment solution in Europe) which is made possible thanks to the Hashlink connection.

In this case, Intesa Sanpaolo was both the issuer and the investor (which happens a lot on the tokenized fixed income side among institutions)

Why does this sound familiar?

Intesa Sanpaolo was also involved a few months ago in Italy’s Cassa Depositi e Prestiti (CDP)’s €25 million tokenized bond as underwriter and sole investor. This bond, CDP25M as we labeled it, leveraged BlockInvest’s issuance platform while also using TIPS Hashlink on the payment leg. CDP25M was issued on Polygon and received the following ratings: A-2 by S&P, F-2 by Fitch and S-2 by Scope.

It’s no secret that Germany leads the way in institutional bond issuances which is why their version of TIPS Hashlink, Bundesbank Trigger solution on the TARGET2 payment system, is a dominant one in the ECB trials. We look forward to the results either next month or early 2025.

This is not financial advice.

Upcoming Webinar

Join us tomorrow for a session with serial entrepreneur and intrapreneur Rob Gonda from Amsterdam Group on how to use AI in marketing and PR for your digital assets.

We'll be exploring

• How issuers can leverage AI to identify and reach potential investors

• How AI is affecting marketing and PR strategies via automated content creation and in-depth audience research

• Navigating AI challenges and more

Rob will be sharing insights from his endeavors and previous experiences, including being the first Chief Digital and Data Officer at McDonald's.

A Message From Vinovest

The Rising Demand for Whiskey: A Smart Investor’s Choice

Why are 250,000 Vinovest customers investing in whiskey?

In a word - consumption.

Global alcohol consumption is on the rise, with projections hitting new peaks by 2028. Whiskey, in particular, is experiencing significant growth, with the number of US craft distilleries quadrupling in the past decade. Younger generations are moving from beer to cocktails, boosting whiskey's popularity.

That’s not all.

Whiskey's tangible nature, market resilience, and Vinovest’s strategic approach make whiskey a smart addition to any diversified portfolio.

Schedule a call with a Vinovest advisor to learn more.

Your Second Captivating Topic of the Week

🌴 New Market Update Report: October 2024

It’s a new month meaning there’s a new report! STM is proud to release our October 2024 RWA Securities Market Update where analyze tokenized assets’ secondary market activity and benchmark against the CoinDesk 20 Index (CD20). Of course, we analyze the whole market and segment by asset class, just for you!

Here’s a sneak peak!

Market Highlights

In October, trading activity declined a significant amount, -42.13% at 147 tokens, compared to 254 tokens in September 2024. Additionally, the overall trading volume showed a decrease of -27.07% from $4,180,650 in September to $3,048,764 in October.

On the other hand, the market cap increased by 8.70% over the month, rising from $42,480,343,597 on October 1st to $46,175,429,297 by the close of the month.

CoinDesk 20 Index Benchmark

A hypothetical, equally-weighted security token bundle of all STM-tracked RWAs showed decent growth, outperforming the CoinDesk 20 by 1.74%. This is a turn of events from September where the CD20 was up 13.12% on the month vs. security tokens’ 1.06%. 

This growth for security tokens comes at a great time to continue riding momentum going into November, where we expect there to be even bigger growth post-election. That said, although the basket grew, there is some concern around the decrease in volume in October which will be touched on, by asset class. 

A Special Thank You to CoinDesk Indices:

The CoinDesk 20 Index benchmarks for this report are generated from data supplied by CoinDesk Indices. We’d like to thank Kim Greenberg, Teun Lucas, and the CoinDesk Indices team for their collaboration.

This is not financial advice.

Companies of the Week

Herwig’s Pick: Brickken

Kyle’s Pick: Global Dollar Network

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! 

TokenizeThis 2025

Security Token Market’s annual industry conference will be back next year and moving from Miami to the heart of finance in the big apple. Featuring keynotes, speakers, panels, and demos, TokenizeThis aims to be the largest premiere event dedicated to real world assets exclusively.

This year’s edition of TokenizeThis featured incredible speakers like Carlos Domingo, CEO of Securitize, Ex-SEC Commissioner Troy Paredes, and Anthony Bassili, the head of tokenization at Coinbase, alongside many other speakers from the likes of JPM Onyx-turned-Kinexys, DTCC, Franklin Templeton, Northern Trust, RealT, Propy, Maple, Avalanche, Stellar, Solana, Polygon, and many others. Tickets and the speaker line up will be announced later this year so be sure that you’re signed up for the waitlist on summit.stm.co.

Reports

(NEW) RWA Securities Market Update: October 2024

We're excited to release the October 2024 edition of our RWA Securities Market Update report, which features benchmarks against the CoinDesk 20 Index (CD20)! In this month’s market report, we have meticulously tracked 680 security tokens spanning across 35 marketplaces and 10 blockchains.

Sections include:

• Key Takeaways

• Quantitative Highlights

• Asset Class Breakdown

• On-Chain Liquidity Products

• Platform Spotlight: Hashnote

• 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.