Your First Captivating Topic of the Week

🤝 Lynq’s Yield-Bearing Settlement Network

Clearly institutions are doubling down on tokenization now through investments, their own tokenized assets, and of course their own infrastructure. This has been happening for years but it’s now more prevalent than ever.

There’s something that’s still up in the air and that’s settlement. T+2 is the norm meaning when an asset trades it takes 2 days for the full transaction to go through and reflect the new owner of the asset. In a world where RWAs are being tokenized and transacted at T+0, this won’t hold up hence why there’s now emphasis on building near-instant settlement solutions.

We’ve seen it done with cash and cash equivalents like Broadridge’s repo network but what if you could settle securities transactions while still earning yield? That’s what Arca Labs, Tassat, and tZERO are doing with their new Lynq network!

How does it work?

I though you’d never ask! 😉 Essentially participants in this network will be able to invest into the Arca Institutional U.S. Treasury Fund ($TFND) on Avalanche which as the name suggests, earns yield. These TFND units can be used to settle transactions instantly on Lynq.

Who’s involved?

• Treasury Fund Advisor & Operator: Arca Labs

• Technology Provider: Tassat

• Special Purpose Broker-Dealer and Digital Asset Security Custodian: tZERO

• Treasury Management and Qualified Cash Custodian: U.S. Bank

• Launch Partners: B2C2, Galaxy, Wintermute

This is set to go live this quarter and I’m curious to see how fast these launch partners will onboard more counterparties to transact with & reach critical mass.

As Ben Strack says in his article around this,

This is not financial advice.

TokenizeThis 2025

TokenizeThis was held at The Glasshouse in New York City last week where industry leaders, finance professionals, and crypto enthusiasts focused on RWAs all came together to talk tokenization. Over 3 days we covered topics ranging from interoperability, tokenized stocks, and DeFi for RWAs to institutional infrastructure, onchain identity, payment rails & settlement, and more!

Did you miss the conference or want to relive it?

Keep an eye on STM TV where we’ll be uploading all panels, keynotes, and interviews in the coming days! Here’s one of them featuring Securitize COO Michael Sonnenshein in a fireside chat with our CEO Herwig Konings.

Your Second Captivating Topic of the Week

⛓️Onchain Promissory Notes via BIS Innovation Hub

Along similar lines, promissory notes are an archaic IOU instrument that still transacts analog today. The Bank of International Settlement (BIS) is now exploring how to streamline this using tokenization, in partnership with Swiss National Bank (SNB) and the World Bank.

Streamline? What goes into it?
Imagine having a Ministry of Finance issuing a promissory note on paper (literally paper) to a development bank (like the World Bank) which is then physically held at a vault. Now add in the fact that records have to synced on both sides separately.

That’s NOT efficient by any means and tokenization is here to make this a whole lot faster and cheaper, not to mention reduce room for human error. According to Ledger Insights, the IMF-supervised proof of concept essentially tokenized promissory notes, and found the following results:

• Blockchain eliminates the need for reconciling separately, it’s the source of truth

• Wet signatures are now multi-party signatures, reducing time from weeks to seconds

• Privacy preservation through Canton Network

• Independence per party on activities related to the notes

We expect this to get promoted to an in-production offering soon given how fast institutions are now embracing tokenization and the proof they just experienced with this POC.

What’s could the next step be? This POC focuses on the issuance of the promissory note and admin when payments are made. Will those payments also be onchain AKA use a stablecoin? What about yield-bearing like a yieldcoin? We’re going to keep an eye and report back!

This is not financial advice.

Companies of the Week

Company of the Week - Herwig: DTCC
Company of the Week - Kyle: Nonco

Find out why and more every Friday live around 12pm EST on LinkedIn or X/ Twitter. Past episodes available on Youtube or your favorite podcast platform! 

RWA Foundation

Have you joined the RWA Foundation yet? 

Incubated by Security Token Market, the Real World Assets (RWA) Foundation is a crypto native organization dedicated to bridging crypto natives and tokenized assets. The leading brands in the tokenization and RWA industry contribute support in order for the RWA Foundation to develop educational resources, media, events, grant programs, and crypto-focused initiatives to carry out its mission.

If you weren’t at TokenizeThis, you might have missed the announcement with STM.co, Solana, and Orca. Check out the highly-anticipated launch trailer of the Wally DAO:

Follow on X, join the Telegram, and stay updated on all things about the Foundation, RWA Industry, our upcoming DAO launch, and a whole lot more. TRUNKS UP 🐘 !

Reports

(NEW) RWA Tokenization: Key Trends and 2025 Market Outlook

Keep an eye out tomorrow for a new report we contributed to: RWA Tokenization: Key Trends and 2025 Market Outlook. Led by Brickken, this report brings multiple parties together in diving into tokenization, with STM.co supporting with both data and some of the written sections.

What’s Inside?

✅ A Breakdown of Tokenization and Related Benefits
✅ Key advantages for issuers, investors, and institutions
✅ How the market is evolving and trends shaping adoption in 2025
✅ What’s next? Expert insights on regulation, DeFi integration, institutional involvement, and market growth

STM’s RWA Market Prediction for 2030

Security Token Market (STM.Co) is proud to release a thorough report on our prediction on the tokenized real world asset market growth. This report explores the variety of opportunities within each asset class to capture value on-chain.

Tokenization can be applied to just about any object and asset type. Art, carbon credits, life insurance, and other sub $5 trillion asset classes weren’t even considered in estimates.

In order for STM to derive its 2030 market predictions, the following asset classes were evaluated: currency, M2/M3, real estate, commodities, public equities, private companies and funds, bonds, credit and lending markets.

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.