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Your First Captivating Topic of the Week

⛏️ Institutional Security Tokens are Coming to Solana: Libre

Solana has been historically known as a popular chain for NFTs but has started transitioning into real world assets (RWAs) recently. Some examples include DigiCask for tokenized whiskey casks, Drift and Ondo partnering for RWAs to be used as collateral on Solana, and earlier this month we saw oil rights via Elmnts. However we haven’t seen many institutions until now.

Libre is a tokenization joint venture between Brevan Howard and Nomura’s Laser Digital. This past week we saw them bring access to not 1, not 2, but 3 institutional funds on Solana in one go! These include:

• Hamilton Lane SCOPE Fund

• Brevan Howard Master Fund

• BlackRock ICS Money Market Fund

These 3 have seen ~$20M ahead of the public launch and we expect to see that grow via Libre’s coalition along with outside interest.

So why Solana?
Great question, let’s see what Libre’s CEO has to say about that.

We’ve seen Hamilton Lane make a share class only accessible via security token, however it’s unclear if the other two are feeder funds. I bring this up as there has been confusion in past news articles, claiming an institutional fund has been tokenized when the issuer tokenized their own shares of it. STM will try to find out more!

Regardless this access is good for the industry as feeder funds allow for lower investment minimums, more liquidity options, and one day probably have utility such as being used as collateral as we’ve seen with other products.

It’s also refreshing to see alternative funds be tokenized as there have been an influx of money market funds (not to say we don’t love them too). For example, the Hamilton Lane SCOPE fund offers around 9% returns (with of course more risk).

This is not financial advice.

A Message from the TokenizeThis Workshop Tour

The TokenizeThis Workshop is going on tour across the US!

Do you or someone you know have assets you’d like to tokenize? Not sure how to do so?
In order to take advantage of this new burgeoning technology, one must understand beyond the technicals and learn about the market, the new procedures, and the best practices to follow. This workshop is for you!

Composed of 5 sessions, the TokenizeThis Workshop is a full day masterclass focuses on an industry overview, the tokenization lifecycle, and liquidity strategies to name a few. Interested in joining us? Use WD15 for 15% off!

Your Second Captivating Topic of the Week

🤝 Superstate’s Crypto Carry Fund (USCC)

Superstate has done well with their Short Duration US Government Securities Fund (USTB). It currently has ~$93M in AUM since their announcement in February and has been used as collateral on prime brokerage FalconX, adding utility to the asset.

Now Superstate is back with a new fund, their Crypto Carry Fund (USCC). Instead of investing in treasuries like their first fund, the USCC will offer exposure to the crypto “cash-and-carry” trade. This means they will be leveraging the differences in price between spot and futures markets for BTC and ETH. As the press release explains it,

This is an interesting use case for tokenization as it embraces on-chain markets and represents your exposure to it via security token (non-tokenized option available too). Furthermore, aside from the basis-trading returns, Superstate plans to also stake the long leg of Ethereum where they can generate additional yield. This once again embraces blockchain technology within the investment opportunity.

Some highlights of the Fund:

• Lower Fees: Unlike traditional hedge funds that charge high management and performance fees, USCC charges a flat management fee of only 0.75%.

• High Transparency: USCC provides daily NAV calculations by a third-party calculation agent, providing daily transparency, unlike hedge funds that typically report monthly or quarterly.

• Flexible Liquidity: USCC offers daily liquidity, unlike hedge funds that typically offer 30-day or quarterly redemptions.

The USCC fund already has $11.93M in AUM and shows their holdings directly on their website, which are expected to be updated on a weekly basis.

This is not financial advice.

Companies of the Week

Herwig’s Pick: Libre

Kyle’s Pick: Coinbase Asset Management

Find out why and more every Friday live at 1pm EST on LinkedIn or X/ Twitter. Past episodes available on Youtube or your favorite podcast platform! 

Reports

(NEW) 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.

(NEW) RWA Securities Market Update: June 2024

We're excited to release the June 2024 edition of our RWA Securities Market Update report, which now features benchmarks against the CoinDesk 20 Index (CD20)! In this month’s market report, we have meticulously tracked over 600 security tokens spanning across 35 marketplaces and 10 blockchains.

Sections include:

• Key Takeaways

• Quantitative Highlights

• Asset Class Breakdown

• On-Chain Liquidity Products

• Platform Spotlight

• 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.