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Yasuda on Tokenization

保田氏がトークン化について語る

November 18th 2024

🔢 Digital Capital Markets - A Practical Snapshot

Operating tokenized funds through Frictionless Markets has demonstrated transformative efficiency in fund administration compared to traditional methods. Here's a summary of the advantages:

  • Speed: It takes just 3 minutes to execute daily distributions across all funds, including BlackRock Money Market Funds and Bitcoin for Business strategies.

  • Cost-Effectiveness: Operations, including daily distributions, atomic settlements in stablecoins or deposit tokens, redemptions, and secondary token swaps, cost approximately $50 USD per month using the Avalanche network.

  • Accuracy: Automated Delivery versus Payment (DvP) and atomic settlements in multiple currencies are error-free, eliminating the need for manual reconciliations typical in traditional fund administration.

  • Availability: Frictionless Markets operates 24/7/365, a significant advantage over banks, which are typically available only 24% of the year.

These operational efficiencies showcase the qualitative and quantitative leap in fund management enabled by tokenization and blockchain technology through Frictionless Markets.

To learn more about true digital fund administration and its game-changing capabilities contact us

UK Government Announces Digital Gilt Pilot, Signaling Major Shift in Capital Markets

  • On November 16, 2024, UK Chancellor Rachel Reeves unveiled plans to launch a pilot program for issuing digital gilts using blockchain technology, marking a significant step towards modernizing the country's £2.5 trillion gilt market. The announcement, made during the Chancellor's Mansion House speech, highlights the government's commitment to embracing emerging digital finance trends. The pilot, set to begin within the next two years, aims to leverage distributed ledger technology (DLT) to create tokenized government bonds, potentially enhancing liquidity, improving collateral mobility, and increasing transactional efficiency in the UK's capital markets

  • This initiative aligns with the UK's broader digital strategy, including the recently launched Digital Securities Sandbox, and is seen as crucial for maintaining the UK's competitiveness in the global financial landscape. Experts suggest that blockchain-based gilts could offer significant benefits, such as enabling intraday repurchase agreements (repos) and potentially mitigating crises like the 2022 gilt crisis by providing real-time collateral mobility. The UK Finance trade body, in collaboration with EY, has drafted a digital gilt roadmap outlining potential implementation approaches, from a multi-staged evolution to a more rapid "Big Bang" path. However, the implementation faces challenges, including selecting the right technology, addressing regulatory standards, and ensuring sufficient liquidity in the market

Ondo Finance and PayPal USD Forge Alliance to Boost RWA Tokenization

  • Ondo Finance has announced a groundbreaking partnership with PayPal USD (PYUSD) set to launch in the coming weeks. This collaboration will enable instant conversions between Ondo's Short-Term US Government Treasuries (OUSG) and PYUSD, allowing users to mint OUSG with PYUSD and redeem OUSG for PYUSD around the clock. The move is expected to significantly enhance the redemption liquidity of OUSG while expanding PYUSD's utility as a liquidity source for real-world assets.

  • PayPal's PYUSD stablecoin offers users a seamless way to convert their traditional USD balances into digital tokens directly within their PayPal accounts. The potential integration with tokenized Money Market Funds (MMF) could create a streamlined path from fiat USD to tokenized MMF investments through PYUSD as an intermediary, which would substantially enhance the user experience by simplifying what has traditionally been a more complex process. However, a key operational consideration remains unresolved: the availability of PYUSD-to-tokenized MMF conversions during non-traditional trading hours and weekends. This timing question is particularly relevant since one of the fundamental advantages of blockchain technology is its 24/7 operation, yet traditional MMFs typically operate within standard market hours.

Tether Unveils Hadron: A Revolutionary Platform for Global Asset Tokenization

  • Tether, the world's largest stablecoin provider, has launched Hadron, a groundbreaking asset tokenization platform designed to simplify the process of creating blockchain tokens for a wide range of physical and digital assets. The platform supports the tokenization of various asset classes, including stocks, bonds, real estate, commodities, stablecoins, and even loyalty points. Hadron aims to cater to a diverse user base, from individual investors and startups to large financial institutions and governments, offering a user-friendly interface combined with robust security features and compliance tools such as KYC, AML, and risk management procedures.

  • Hadron's launch positions Tether at the forefront of the rapidly growing real-world asset (RWA) tokenization market, currently valued at over $6.5 billion. The platform supports multiple blockchain systems, including Ethereum, Binance Smart Chain, and Bitcoin Layer 2 solutions like Liquid by Blockstream, with plans to add more networks in the future. By leveraging Tether's existing technology, which secures $125 billion in assets, Hadron aims to make asset tokenization more accessible, secure, and scalable. This move aligns with Tether's broader strategy of expanding into energy and commodity-backed blockchain tokens, as evidenced by their recent ventures into oil trading and proposals for commodity-backed tokens

Societe Generale-FORGE to Launch Euro Stablecoin EURCV on XRP Ledger, Expanding Multi-Chain Strategy

  • On November 14, 2024, Societe Generale-FORGE (SG-FORGE), the digital assets subsidiary of French banking giant Societe Generale, announced plans to deploy its euro-pegged stablecoin, EURCV, on the XRP Ledger (XRPL) in 2025. This move marks a significant expansion of SG-FORGE's multi-chain strategy, following previous deployments on Ethereum in 2023 and announced plans for Solana. The EURCV stablecoin is designed to comply with the EU's Markets in Crypto-Assets (MiCA) regulatory standards, ensuring transparency, consumer protection, and market integrity.

  • SG-FORGE cited the XRP Ledger's low-cost, high-speed infrastructure and optimization for cross-border payments as key factors in their decision. The company will utilize Ripple Custody services (formerly Metaco) for issuance and secure management of the stablecoin within the XRP ecosystem. This expansion aims to increase EURCV's adoption and utility, particularly in cross-border transactions, while benefiting from XRPL's scalability and efficiency. The move also highlights the growing trend of MiCA-compliant stablecoins in the blockchain world, as financial institutions seek to establish a presence in the digital asset space while adhering to regulatory frameworks.

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