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Tokenized Securities [On-chain T-bills/ETFs] are going strong with over $220 Million Market Cap - almost all in the last 4-5 months!🔥
What's going on in the space - why it's booming, how it works, and what's ahead? 🧵⇩
What's going on in the space - why it's booming, how it works, and what's ahead? 🧵⇩
What are Tokenized Securities?
Think of them as USDC but for publicly traded instruments or 'Real World Assets' like T-Bills, ETFs, or Stocks instead of US Dollars as the underlying asset.
On-chain 'representation' and 'ownership' of Off-chain securities!
Think of them as USDC but for publicly traded instruments or 'Real World Assets' like T-Bills, ETFs, or Stocks instead of US Dollars as the underlying asset.
On-chain 'representation' and 'ownership' of Off-chain securities!
Why it's booming?
- DeFi yields are pretty low in a bear market
- Huge on-chain treasury capital needs yield (Directly investing in TradFi is tedious)
- Tokenized T-bills offer investing via USDC into low-risk assets (more efficient funds flow for on-chain treasuries).
- DeFi yields are pretty low in a bear market
- Huge on-chain treasury capital needs yield (Directly investing in TradFi is tedious)
- Tokenized T-bills offer investing via USDC into low-risk assets (more efficient funds flow for on-chain treasuries).
Major players and their Marketcap:
- Ondo [$138.7 Million]
- Matrixdock [$72.2 Million]
- Backed [$5.3 Million]
- OpenEden [$4.9 Million]
- Franklin Templeton [$2 Million]
With many more launching soon!
- Ondo [$138.7 Million]
- Matrixdock [$72.2 Million]
- Backed [$5.3 Million]
- OpenEden [$4.9 Million]
- Franklin Templeton [$2 Million]
With many more launching soon!
On which chains are these tokenized assets issued?
A whopping [> 96%] on Ethereum, why?
- Highest capital Ecosystem by huge margins
- Low-frequency transactions make it economically feasible despite high gas fees & poor UX.
Polygon & Gnosis chain comes next, but still very low.
A whopping [> 96%] on Ethereum, why?
- Highest capital Ecosystem by huge margins
- Low-frequency transactions make it economically feasible despite high gas fees & poor UX.
Polygon & Gnosis chain comes next, but still very low.
How does it work?
KYC’d Investors → Invest USDC → sent to Coinbase (Off-ramp'd) → to USD → Wire'd to → Clear Street (Custodian & prime brokerage) → Investment Manager purchases/sales NASDAQ listed BlackRock iShares ETFs -> Token sent to KYC'd address
[Ondo's fund flow]⬆️
KYC’d Investors → Invest USDC → sent to Coinbase (Off-ramp'd) → to USD → Wire'd to → Clear Street (Custodian & prime brokerage) → Investment Manager purchases/sales NASDAQ listed BlackRock iShares ETFs -> Token sent to KYC'd address
[Ondo's fund flow]⬆️
What's ahead?
While it's still less efficient than TradFi counterparts and it's just serving as a gateway for on-chain capital and crypto-native investors (not solving much of problems)
It still has a high potential to disrupt a Trillion dollar market.
While it's still less efficient than TradFi counterparts and it's just serving as a gateway for on-chain capital and crypto-native investors (not solving much of problems)
It still has a high potential to disrupt a Trillion dollar market.
It's essential to attract non-crypto users via:
- More instruments requiring high frequency in L2s like Arbitrum or L1s like Solana
- Leveraging programmability & 24/7 infrastructure to issue these real-world securities natively (Vision: On-chain NASDAQ)
Your Views?🤔
- More instruments requiring high frequency in L2s like Arbitrum or L1s like Solana
- Leveraging programmability & 24/7 infrastructure to issue these real-world securities natively (Vision: On-chain NASDAQ)
Your Views?🤔
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