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š Tokenized Diamonds: Expobankās Offering
š¦ HSBC Updates: Custody and Tokenized Gold
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Goooood Morning, Rainmakers! āļø
As always, we have two captivating topics for you to dive into:
1ļøā£ š Tokenized Diamonds: Expobankās Offering
2ļøā£ š¦ HSBC Updates: Custody and Tokenized Gold
Without further ado, it's time toā¦
Get Liquid š§
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š Tokenized Diamonds: Expobankās Offering
Weāve seen quite a few interesting tokenized offerings from whiskey and rum to The Pearl to bitcoin mining. And now we have diamonds!
Financial institution Expobank claims to have issued the first tokenized diamond offering in Russia. Each token, locally known as a Digital Financial Asset (DFA), represents 1/5,000th of a diamond, creating a much lower minimum investment amount for people to be able to participate.
What are the terms?
Letās dive in.
A 3-carat diamond has a value of 9M rubles ($97,500 USD). Divided into 5,000 pieces gives us $19.50/token which are only available to qualified investors up until December 27, 2023.
The repayment date is in November 26, 2026, calculated by a series of methods:
Plan A: a designated calculator on a diamond-rating website based on size, purity, shape, fluorescence and other attributes.
Plan B: a diamond price index will be used instead which is also set to launch this month on the Moscow Exchange.
Plan C: if neither option is available, investors will receive a fixed 12% premium on their investment.
This of course is not investment advice. That being, itās an interesting asset class to explore which may fit into individual investorsā portfolios. More so if it becomes tradable given the granularity of each tokenās size.
This news comes just a month after Moscow Exchange announced plans to issue real estate digital assets in 2024. Although security tokens have been allowed in Russia since 2021, itās only as of late that weāre hearing news with new offerings and updates/announcements including:
Sberbank opening its DFA platform to retail investors
Moscow Exchange receiving the first license for DFA secondary markets
Their National Settlement Depository (CSD) becoming a licensed DFA issuer
Weāll be keeping an eye on the Russian market as more tokenization news develops. Stay tuned!
š¦ HSBC Updates: Custody and Tokenized Gold
HSBC has been announcing quite a few headlines lately and I wanted to summarize some of them with you considering they range from offerings to infrastructure.
Starting with an offering, HSBC is now joining WisdomTree Prime (WisdomTreeās app), Sberbank and Mitsui in the tokenized commodities space with their announcement of tokenized gold. HSBC tokenized physical gold stored in their London Vault which can trade on their FX and precious metal platform, HSBC Evolve.
In addition to demand for native digital assets, we are seeing appetite for tokenisation solutions that can maintain a link to specific real-world use cases, such as goldā
Speaking of John OāNeill, he also spearheads their HSBC Orion issuance platform which just announced will start offering custody via Rippleās Metaco. This custody service is meant for institutional clients and only supports tokenized securities, not crypto, issued on third-party platforms. The bank will start offering this service in 2024, completing its digital asset offering for institutional clients.
Metaco is excited to be working with HSBC as it continues to explore the applications of DLT in asset creation and custody. Custody infrastructure such as Metacoās Harmonize, which integrates with financial institutionsā existing systems, will be critical to how issuers and investors interact, as capital markets and assets in general continue to be represented on distributed ledgers.
This is something we explored on the āCustody of Digital Assetsā panel at TokenizeThis - the fact that seamless, low-cost integrations to existing infrastructure will be the key towards all financial institutions getting onboard with tokenization. While some pieces can be created in-house, others can be integrated if they meet that institutionās level of sophistication. Why is this important? The more in common institutions have, the higher the probability of having interoperable systems rather than everyone siloing off into their own ecosystems.
And last but not least: The Abu Dhabi Securities Exchange (ADX) plans to list HSBC Orion-issued tokenized bonds for secondary market trading. This institutional-level news helps put the UAE into a more blockchain-forward and financial spotlight, building on the momentum they have going from past recent announcements such as the tokenization of The Pearl.
We covered the ADX news in this weekās episode of the Security Token Show which also features some special guests, check it out at 10am EST live streamed on our LinkedIn and Twitter, with the recording also available on YouTube!
š¦ What else is Drippinā
The NEW Security Token Show
Have you watched the Security Token Show this week? Youāll notice a new format! Weāre going digital, enabling us to include more team members with different perspectives, new segments, and after much demandā¦ Special guests!
Thatās right! If you have an announcement or update for your tokenization platform, offering, or other please reach out to me at [email protected].
Want to provide commentary on any given weekās news? Keep an eye out, I may reach out to you. Topics will be posted on the STA Success Network where members will have priority placement so make sure to join if you arenāt a member already!
State of Security Tokens 2023 - Q2 Report
The Security Token Advisors State of Security Tokens 2023 - Q2 report is brought to you by Coinbase!
Our Head of Research and Institutional, Peter Gaffney, dives deep with updates from across the industry, from issuers to platforms to protocols.
This edition covers:
Key institutional tokenization initiatives
Digital tailwinds in Private Equity, Private Credit, and Commercial Real Estate
Secondary Trading Activity
M&A and Investments
40+ Service Provider Updates
Public and Private Blockchain Developments
Take a read for analysis on common themes emerging for both primary and secondary markets!
This is not financial or investment advice.
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