IDA’s Post

Tokenized cash will be the first tokenization product to reach MASS adoption status, defined as >$1 trillion market cap. Here is why ⬇ 1️⃣ Demand is growing. From start of 2024 to today, the total market cap for tokenized cash on public blockchain grew 25%+ to $164 billion. The only use case for tokenized cash used to be store of value onchain and payment. This by itself is running at $10 trillion a year. With the launch of various asset management products such as tokenized MMF and tokenized basis trading, onchain capital will have direct access to many of the traditional investment management products and more. Coupled with better efficiency, cash will increasingly likely to stay onchain, instead of being off-ramped. 2️⃣ Demand is global. On the US side: State Street was exploring launching its own tokenized cash product last week following J.P. Morgan and PayPal in the US. On the other side of the globe, regulators and firms have been actively engaging in stablecoin pilots and policy framework, including: - Standard Chartered HK and Hong Kong Telecom are exploring stablecoin issuance - JD.COM's HK Coinlink subsidiary is also exploring the idea. 3️⃣ The regulatory environment is being updated to pave the way for regulatorily compliant mass issuance. Hong Kong Monetary Authority (HKMA) recently published a legislative proposal outlining stablecoin regulation covering: - Capital requirement - Licensing requirement per investor distribution type - Reserve asset eligibility - Audit and reporting requirement - Interest ban - Redemption process McKinsey & Company says tokenized cash is the first tokenization product to reach meaningful adoption, defined as >$100 billion market capitalization. I believe tokenized cash will be the first mass-adopted tokenization product. Tokenized investment products with deep existing liquidity such as MMF will follow. Do you agree? Leave your comments below. ⬇ I write about tokenization and digital asset management. If you want to stay up to date with trends and opportunities, you can: ✅Follow me and repost ✅Join 4,000+ readers at The Crypto Adoption Curve newsletter https://lnkd.in/em5V4k-v ✅Save 40 hrs a week & get exclusive insights by Subscribing at https://lnkd.in/gTxp8uWM #digitalassets #tokenization #financialservices

Proud to be featured in the Stablecoin Standard Standard Gazette’s first edition! If you’re attending TOKEN2049 Singapore, pick up a copy or read it online—some very interesting discussions on page 5 regarding MiCAR’s impact on the euro-backed stablecoin landscape. 🚀 #MiCAR #StablecoinInnovation #EuroStablecoin

Stablecoins are unlocking the Future of On-Chain Capital Markets. While the total market cap of Stablecoins may not have hit the Trillion-dollar mark yet, they are undoubtedly core enablers paving the way for the future of capital markets - a future that is already unfolding before our eyes.   As we transition towards more efficient and transparent on-chain financial systems, the art of managing assets, collateral, market risks, compliance, and emerging on-chain risks remains paramount.   In this week's blog, I highlight 3 pivotal stablecoin trends that are inextricably linked to the tokenization of funds, like Blackrock's $BUIDL token.   Drop your thoughts below:   📍What excites or concerns you the most about the interlinked duo: Stablecoins and Tokenized credit funds? 📍 Who is the surfer? #stablecoins #tokenization #onchainfinance #wealthTech #efiinsights

🚀 Exciting News following TOKEN2049 Singapore! 🚀 Stablecoin Standard has just launched their very first edition of the 'Stablecoin Standard Gazette', and we’re proud to see our own StablR feature prominently in this inaugural issue! 👉 Check out page 5 for some insightful thoughts from our CEO, Gijs op de Weegh, on the future of euro-backed stablecoins under MiCAR regulations. You don’t want to miss this quarterly roundup of the latest stablecoin trends, tailored for policymakers, regulators, and digital assets professionals. 🌐 Subscribe to the Stablecoin Standard Gazette to stay updated: https://lnkd.in/dF6bePhP 🔎 Pro Tip: It's packed with some must-read articles! #StablecoinStandard #MiCAR #EuroStablecoin #Token2049 #StablR #DigitalAssets #StablecoinRegulation

Binance and Circle have entered into a strategic partnership around USDC, with a goal of incorporating the stablecoin into products that can be used locally. Here is how they plan on doing that:

Tokenised assets are set to blow past $4.5 trillion by 2028. They’re growing at an even faster pace than cryptocurrencies. As this shift happens, it's changing the way we think about managing and protecting financial assets. This report looks into the state of tokenisation and how it's transforming asset custody. Here are the key takeaways: 🔶 Custodians are stepping up as important players in managing everything from cryptocurrencies to tokenised securities like NFTs. 🔶The roadblocks for broader adoption are the unclear industry standards and regulatory hurdles. 🔶 The ERC-20 token standard is widely used, but new frameworks like ERC-3643 are emerging to tackle the compliance needs of regualted assets. 🔶 USD stablecoins are leading the way in tokenisation. They offer great potential to cut transaction costs and reduce risks in finance. 🔶 The UK’s Digital Securities Sandbox and the EU’s MiCA Regulation are making tokenisation clearer, but getting everyone to agree global interoperability is still a challenge. 🔶 Custodians will need to expand their services beyond security to include facilitating interoperability, smart contracts, and 24/7 market connectivity. Beyond financial markets, tokenisation will change areas like carbon credit tracking, environmental sustainability, and personalised assets. #fintech #tokenisation #stablecoins

🔎 Stablecoins and MiCA: Industry Uncertainty Grows! As MiCA regulations loom, stablecoin issuers race against time to comply. Key issues include reserve management and obtaining EME licenses. Learn how giants like Circle and Tether.io are navigating these challenges and what this means for the future of digital assets. Louis Tellier 🧑💻

🚀 Hong Kong Paves the Way for Stablecoin Transactions Hong Kong is leading the charge with groundbreaking trials for stablecoin transactions! In collaboration with Flare and Red Date Technology, this initiative allows mainland Chinese residents to purchase stablecoins through anonymous registration. Here's how it's shaping the landscape: 🔒 Anonymous and Compliant: Utilizing China's Real-Name Decentralized Identifier System