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Your First Captivating Topic of the Week

🤝 State Street Pushes for Tokenization

State is a global financial services company and they’re not new to the tokenization space. However, they’ve recently become more loud about their efforts and are looking to push the industry forward. Specifically, they’re looking to tokenize money market funds and bonds to improve collateral mobility.

This is one of the biggest pieces of adoption we’ve seen from an institutional perspective as operational efficiencies and second order effects are what they’re focusing on. Putting these assets onchain makes life easier for the firm by reducing manual reconciliation, settlement times, potential human error, and more.

Speaking of settlement, they’ve been participating in different consortiums for “digital cash” and are partnering with Fnality for settlement options while exploring stablecoins and tokenized deposits.

What’s in it for the end investor?

Tokenized bonds should experience more liquidity than their traditional counterparts and money market funds tend to be a great way to manage one’s treasury. Imagine parking money onchain, generating yield, and use those tokenized shares for posting margin, trading out a portion for liquidity, or other use cases.

Custody, on the other hand, is a more complex endeavor due to remaining uncertainty from SAB 121. How will they solve for that? Just last month we saw a partnership announced with Taurus out of Switzerland for their tokenization and custody services. With these partnerships in mind and the explosive growth of tokenized liquidity products, I expect State Street to be operational by next year.

This is not financial advice.

A Message From INX

Your Second Captivating Topic of the Week

📊 STM’s Month Market Update: September 2024

It’s almost time to release the RWA Securities Market Update: September 2024 report! A huge thank you to our sponsor, INX, for making this possible!

As loyal What’s Drippin’ subscribers we figured why not give you a sneak peak?

A hypothetical security token bundle of all STM-tracked RWAs did not perform as well as it did last month (3.03%), with just a 1.06% growth compared to the CoinDesk 20 which bounced back significantly from last month’s -14.45%. Security tokens at the end of the day are that… securities.

Quantitative Highlights

Market Cap

• Total Security Token Market Cap: $41,961,430,766 (2.12% MoM)

• International (Non-US) Market Cap:  $41,164,204,262 (2.19% MoM)

• US Market Cap: $797,226,504 (-1.38% MoM)

Volume

• Total Security Token Market Volume: $4,181,065 (20.82% MoM)

• International (Non-US) Volume: $3,248,433 (10.29% MoM)

• US Volume: $932,632 (81.05% MoM)

Tokens Tracked

• Number of Tokens Tracked: 649 tokens (2.69% MoM)

• Number of Tokens with September Trading Activity: 254 tokens (14.41% MoM)

To gain a comprehensive understanding of how each asset class performed in relation to the CoinDesk 20 Index, we invite you to explore the latest detailed report. This report, which is set to be released later today, will provide in-depth analysis and insights into the state of the market, outperforming tokens, and more!

This is not financial advice.

Companies of the Week

Herwig’s Pick: Swift

Kyle’s Pick: Black Salmon

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! 

Reports

RWA Securities Market Update: September 2024

We're excited to release the September 2024 edition of our RWA Securities Market Update report later today, which features benchmarks against the CoinDesk 20 Index (CD20)! In this month’s market report, we have meticulously tracked 649 security tokens spanning across 35 marketplaces and 10 blockchains.

Sections include:

• Key Takeaways

• Quantitative Highlights

• Asset Class Breakdown

• On-Chain Liquidity Products

• Platform Spotlight: INX

• 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.