THE AMERICAN CRYPTO RENAISSANCE

In just one week, the Trump admin turned Washington from crypto's biggest critic into its fiercest champion, planting an American flag at the frontier of financial innovation.

Here's what happened and why we are BULLISH on tokenization: Until recently, crypto operated in a regulatory grey zone. No one knew whether a token was a security, a commodity, or something entirely different.

The industry asked for new frameworks, but the Biden admin's reluctance + Congressional gridlock prevented any progress.

🌐 Last Week in Tokenization: May 31, 2024

Welcome to our newsletter! Every week we summarize the most important stories in tokenization. Sign up below.

From House hearing on RWAs to a new tokenization report from the DTCC...let's explore this week's top stories 🧵👇 1 ) Distribution: How Top RWA Issuers Are Differentiating Themselves From the Rest 🔝

There has been a plethora of RWA issuances recently.

The top products are differentiating themselves with aggressive distribution strategies.

Announcing Tokenized Treasuries Analytics! 🏦

Today we're excited to publish the most detailed treasuries dashboard along with an industry-first research report by @jackchong_jc

We cover the legal, financial, and technical nuances of 10+ products for asset allocators 🧵 👇 Most public attention is on the speculative nature of crypto tokens.

Little is known that the underlying technology of blockchain is now used for custody, trading, and settling more than $600M worth of US Treasuries.

() https://t.co/LHe6F8QE1Bapp.rwa.xyz/treasuries

1/ Introducing the RWA Directory!

As the narrative for on-chain real-world assets grows, so does the number of teams working in the space

The Directory is the one place where you can browse, search, and contact every RWA-focused team

More info and link below 👇 2/ Check it out here 👉 app.rwa.xyz/directory

Or keep reading for more info on the attributes we included for each company 👇

1/ Introducing @rwa_xyz - Analytics on real-world assets.

In order for DeFi to fulfill its original mission of building a transparent, efficient financial system, real-world assets must be brought on-chain.

🧵 on RWAs and how we help investors allocate to them: 2/ With token rewards and ponzinomic yields drying up, investors need new, truly sustainable sources of on-chain returns.

RWAs are the answer. They offer diversified and often superior real yields compared to mainstream DeFi lending and LP'ing.

1/ Since the start of November, uncollateralized DeFi lending has drawn down over 60%

From $450M to $177M (and still decreasing...)

Here's a breakdown protocol by protocol 🧵 2/ @ClearpoolFin took the brunt of the credit crunch, with over 90% of loan value having been called back

From $81M to $6M, though now slightly recovered to $14M

According to the team, it's a feature--not a bug--that lenders can remove capital so quickly

1/ Alameda previously borrowed hundreds of millions of $ from DeFi

Now they are facing a liquidity crunch (or worse), putting their unsecured creditors at risk

Here's what their DeFi debt obligations are now 🧵 2/ $7.28M from their @TrueFiDAO pool

They successfully made interest payments a week ago, but the principal comes due in less than 50 days

First sign of trouble will be missed payments due Nov 20