Token Archives - Fintech News

Tokenization and real-world assets take center stage

Horacio — Thu, 07 Mar 2024 08:42:33 +0000

Blue-chip institutions including Goldman Sachs and J.P. Morgan are trialing digital asset offerings, seeking cost savings and efficiencies.

The asset tokenization and real-world asset (RWA) space caught the eye of retail and institutional capital investors in 2023 for its favorable blend of professionally-managed products and digital asset mechanics. Having advised 40-plus clients on tokenization strategies and issuances to date,we see the following key themes emerging in these markets in Q3 2023.

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Blockchain Savings and Bottom-Line Improvements

For investors entering this space, the greatest efficiencies will come through end-to-end digital systems – meaning an on-chain lifecycle. That means savings in dollars or manual labor time relative to traditional processes. For example:

Goldman Sachs Digital Asset Platform (GS DAP) achieved 15 basis points in savings for its €100M digital bond issuance, resulting in €150K of added return passed onto Union Investment as the sole buyer.
J.P. Morgan’s Onyx Digital Assets (ODA) is projecting $20 million in savings on an expected $1 trillion in tokenized repo volume by the end of 2023.
Broadridge’s Distributed Ledger Repo (DLR) is saving sell-side clients like Societe Generale $1 million per 100,000 repo transactions.
Equilend launched 1Source as a distributed ledger-based securities lending solution to save the securities lending industry an estimated $100 million in collective costs.
Structured finance servicing platform Intain reports 100 basis points in savings by reducing SME loan lifecycle fees from 150 bps to 50 bps through Hyperledger and Avalanche blockchain solutions.
Vanguard is leveraging R3’s Corda through Grow Inc. to achieve straight-through processing saving 100 hours a week in labor.
Liquid Mortgage has reduced Mortgage-Backed Securities (MBS) reporting from 55 days to 30 minutes on the Stellar blockchain.

Money Markets and Treasuries as the Low-Hanging Fruit

Asset managers and issuers are familiarizing themselves with tokenization workflows by trialing money market and treasury products. These tokenized assets generate a yield that can be passed on to clients, fully on-chain.

While alternative product strategies, like Hamilton Lane’s digitally-native private equity share classes, are in the works, money markets yield ~5% annually in low risk segments. This asset class accumulated almost $700 million in on-chain capital by the end of Q3 2023, up almost 520% YTD.

Tokenized Product Distribution through Institutional Client Bases

One of the weak points in the tokenization industry to date is actual product distribution and capital syndication. Institutions are beginning to move beyond just tokenizing assets for operational uses and savings (repo, collateral management) and are now placing tokenized products with their own client bases as buyers.

Citi is one name leading the charge here, offering digital corporate bonds through Singapore’s BondbloX to its Southeast Asia private banking and wealth management clients. UBS built upon its previous $400+ million digital bond issue to high-net-worth clients with an Ethereum-based money market fund, also in Singapore.

As blue-chips like JP Morgan and Goldman Sachs continue to develop their digital suites, expect their private banking, wealth & asset management, and alternatives teams to act as distribution channels unlocking serious capital that retail broker-dealers struggle to access.

Link: https://www.coindesk.com/business/2023/11/22/tokenization-and-real-world-assets-take-center-stage/?utm_source=pocket_saves

Source: https://www.coindesk.com

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Token utility will determine success of Web3 gaming companies

Horacio — Wed, 06 Mar 2024 19:39:32 +0000

Web3 gaming has come a long way since CryptoKitties exploded onto the scene and almost crippled Ethereum back in 2017. And yet for all the advances in scalability and gameplay since that first major bull run, most native crypto game tokens still lack utility, their value deriving purely from market speculation.

This is something gaming firms must tackle to make the most of opportunities in today’s bull cycle.

Web3 Games Need Greater Token Utility

Precious few games, web3 or otherwise, have stood the test of time, a consequence of gamer fatigue, the constant conveyor belt of new releases, and the failure of developers to keep concepts fresh.

Single-game tokens that have no utility beyond one release, therefore, face an uphill battle for relevance, their popularity (and that of the game) oscillating according to the whims of traders/players and the ability of devs to deliver value.

What is the solution to this lack of sustainability? In simple terms, increased utility. Gaming tokens must be imbued with greater powers, sufficient to ensure their health even if the buzz generated by a single-hit game dies down. This can mean that they do more within a game, but also that they do more outside of it.

Imagine, for example, that a series of games were released under the Marvel Cinematic Universe (MCU) franchise, and its corresponding $CMU token could be used by players in Captain America, Iron Man, The Avengers, Black Panther, Spider-Man, Ant-Man and Black Widow. Even if one or two of these games bombed, the token would maintain its worth due to the success of the other titles and the value conferred by its multitudinous use cases.

A decline in the fortunes of game tokens more generally, meanwhile, would not dent the popularity of the MCU gaming world itself, ensuring continued interest in the utility token.

The web3 gaming landscape does not have its own version of the Marvel Cinematic Universe, of course. But the idea of a multi-utility ‘studio token’ is certainly coming to the fore.

The antithesis of the unsustainable, volatile and sometimes useless game token, examples of which aren’t difficult to find, studio tokens have practical applications beyond the confines of a single game, making them more equipped to store long-term value.

Studio Tokens in the Wild

Perhaps the best example of a studio token is $OAS, the native token of eco-friendly gaming blockchain Oasys. The $OAS token plays a vital role in the ecosystem: gas fees are denominated in it, game developers must deposit $OAS when creating their own Verse (a Layer-2 blockchain anchored to the Oasys mainnet or Hub Layer), and micropayments in all Oasys-based games are paid in $OAS.

As well as functioning as the core currency of the Oasys ecosystem, $OAS also grants holders governance powers as the platform transitions into a DAO, meaning they can have a say on key proposals and treasury allocations. Moreover, $OAS tokens generate staking rewards as an incentive for long-term holding and ecosystem support.

$OAS, it should be said, isn’t the only token in the Oasys ecosystem. Individual Verses can have their own, and some will undoubtedly prove more successful than others. These assets (vFT/vNFTs) can only be minted and used on Verse-Layers, though. While there are interoperable tokens that can also be minted on the Hub-Layer and used throughout the Verse-Layer (oFT/oNFTs), they have less utility than $OAS.

The $OAS token has been climbing in value since last October and its price recently hit an all-time high (ATH) amid a number of major developments. These included partnerships with leading South Korean video game giants Kakao Games and Com2uS, as well as Pacific Meta, a company that delivers marketing services to web3 ventures in the Japanese and East Asian markets. Indeed, Oasys’ focus on Asia nourishes confidence in the project more generally given the size of the market in gaming terms.

Azarus is another example of a web3 platform that follows the studio token approach. A browser extension that enables users to play games during livestreams and spend their winnings in its integrated store, Azarus’ token, AzaCoin ($AZA), is not tied to the fortunes of any one game.

AzaCoin holders also get various perks, such as the ability to vote on-stream, stake, receive early access to livestreams and make governance decisions. Brands, meanwhile, can drop $AZA directly to viewers as a reward, sponsor games to gain visibility, and earn the token by listing items (such as NFTs) in the marketplace.

With a recent report suggesting the blockchain gaming market could be worth $614 billion by the end of the decade, projects like Oasys and Azarus favoring a multi-utility token model seem to be in a better position than publishers who pin all their hopes on that one moonshot game. While the market will continue attracting degens hellbent on finding said moonshot token, the stability of studio tokens ensure their success regardless of market conditions.

Link: https://www.analyticsinsight.net/token-utility-will-determine-success-of-web3-gaming-companies-in-cryptos-latest-bull-cycle/?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

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We’re thinking about tokenization all wrong

Horacio — Wed, 06 Mar 2024 08:40:10 +0000

If we don’t standardize tokenization, we risk merely recreating the old system

By RALF KUBLI

Ever wanted to invest in stocks like you invest in crypto? Asset tokenization is already making that a reality.

No more physical certificates, no more middlemen. Just a few clicks, and you’re a shareholder. This is the promise of tokenization, giving us new ways to transact, store and distribute wealth.

Bank of China International (BOCI) recently became the first Chinese financial institution to launch a tokenized security — issuing 200 million yuan in fully digital structured notes. This is a significant step in bridging traditional securities and crypto. And this, it appears, is a mere taste of what’s to come.

The tokenization market is poised to explode in the coming years. According to financial giants like Citi and research firms like Bernstein, the market could be worth up to $5 trillion by 2030.

But many institutions are still failing to grasp its full potential. Yes, you can digitize certain assets and put them on the blockchain. And yes, this may yield some boost in efficiency. But that’s not enough.

Tokenization should be more than just creating digital twins of real-world assets. It also needs to be more about capturing and standardizing all financial aspects of these assets — from their intrinsic value to their potential risks.

Current practices often neglect these dimensions, resulting in incomplete digital representations that fail to leverage the full potential of blockchain technology.

The pitfalls of current tokenization models

Current failures in tokenization are more a result of a lack of innovation than a lack of potential. Most platforms only digitize the underlying asset, but they neglect to include liabilities or cash flows associated with those assets.

In this context, cash flows describe the payment obligations of the parties: In other words, the expected inflows and outflows of money generated from the asset, like periodic payments from a bond or rents from a tokenized property. Liabilities, meanwhile, refer to any obligations or potential risks tied to the asset, such as debts or other obligations that could impact the asset’s value.

Despite their importance, these key aspects are often overlooked. As a result, you get an asset-backed token on a blockchain — but the terms and conditions are often attached as a PDF.

This requires human intervention to calculate cash flows, which is a major concern as it allows errors and discrepancies to creep in. A similar lack of transparency and verifiability around cash flows was one of the primary triggers of the 2008 banking crisis.

To avoid another such crisis, we must ensure liabilities and cash flows related to underlying assets are tokenized, machine-readable and machine-executable, not just the assets themselves.

Existing standards are critical to a tokenized future

The typical tokenized financial product today is essentially a digital representation of a document — a contract turned into a token. The true innovation, however, is in developing “Smart Financial Contracts,” which signifies an interplay between a well-established standardization framework and blockchain technology.

To start, implementing open banking standards which allow banks to share their data in a secure, standardized way would make it easier to track liabilities and cash flow across different institutions.

By applying these standards to Smart Financial Contracts, we can ensure that details of the tokenized financial asset and all financial obligations are machine-readable and executable.

Using such smart financial contracts will lead to higher information quality and transparency. Due to their machine-readable and executable nature, they can also lead to greater efficiency in price discovery, analysis, trading and securitization. As a result, company-wide risk management also becomes simpler and more effective.

Given that the entire system would be transparent and machine-auditable, systemic risk management becomes a realistic possibility. This makes it easy to stress test for different market scenarios, offering a clear view of potential vulnerabilities and helping us prevent future financial crises.

Smart financial contracts go beyond simply being technologically innovative. They are about designing a more secure, stable and efficient financial asset tokenization ecosystem where all stakeholders can transact with confidence.

With blockchain-based financial infrastructure, most of the management or transfer of these tokenized instruments can be done automatically on-chain. This reduces the need for human oversight and the risk of fraud or error.

The ACTUS (Algorithmic Contract Types Unified Standards) is a grouping of open standards to represent financial contracts. ACTUS is already helping standardize tokenization for smart financial contracts. Banks, regulators, accountants and tech firms can use the framework to analyze and report on financial stability and define terminology, algorithms and data models used to describe cash flow patterns.

Designed to represent a wide range of financial instruments, ACTUS improves regulatory reporting across all sectors and streamlines financial operations at the enterprise level. It serves as a foundation not only for traditional finance instruments, but also for the growth and adoption of DeFi by building new products based on a widely accepted financial structure. When built into blockchain-based smart contracts, ACTUS could enable a mutually beneficial relationship between distributed ledger technology (DLT) and tokenization.

The primary objective of ACTUS in standardizing tokenization is to provide an algorithmic representation of financial agreements, cash flows and the current and future states of risk factors (market risk, counterparty risk, and behavioral risk) that’s intelligent, machine-readable and machine-executable.

With a standardized language and taxonomy in place, smart financial contracts can be easily incorporated into existing banking and financial infrastructure. This taxonomy needs to define the terms, conditions and parameters of each financial smart contract type and cover a wide range of financial instruments; This can ensure consistency and interoperability in the tokenized ecosystem.

The promise of blockchain technology

Blockchain is undoubtedly a game-changer and the most disruptive innovation in finance since the advent of computers in the banks in the 1960s. But innovation in payments is not the same as innovation in finance, and that’s where the potential of this groundbreaking technology lies.

Blockchain could redefine finance, making it transparent, efficient and low-cost. Funds could be verified without custodians, and cash flows could be demonstrated without audits. The logic of the financial contract can be embedded in the token making pricing discovery far more efficient.

SME lending could also be streamlined if we conducted proper due diligence — shifting the focus from paperwork to knowing the borrower. With securitization, credit was made accessible to more businesses.

But tokenization must be standardized, with the cash flow logic embedded in a machine-readable and machine-executable way. Otherwise, we’re just replicating the old system. After all, blockchain isn’t just about making payments easier — it’s about transforming finance as a whole.

Link: https://blockworks.co/news/tokenization-standards-finance-crypto?utm_source=pocket_saves

Source: https://blockworks.co

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Web3 Tokens you can’t miss in 2024: Arbitrum , Scorpion Casino and Celestia

Horacio — Tue, 05 Mar 2024 08:14:43 +0000

Is Web3 more than just a buzzword in the cryptocurrency realm?

The changing perception is evident as leading cryptocurrencies integrate Web3 functionalities, garnering substantial attention and growth. Notably, Arbitrum and Celestia, two of the most distinguished coins in the Web3 sphere, have seen their values escalate swiftly, underscoring the growing interest and potential of Web3 technologies.

In parallel, Scorpion Casino (SCORP), an innovative online crypto betting platform, is quickly becoming a focal point of excitement within the industry. With a successful presale that has already amassed $4 million, Scorpion Casino is poised to become the next big name in the merging worlds of Web3 and online gambling.

Arbitrum Seems Bullish Says Crypto Analysts

In less than two years since its launch, the Arbitrum network has significantly impacted the web3 sector, attracting major Ethereum-based web3 projects like Uniswap, GMX, Balancer, and Hyperliquid.

Arbitrum’s smart contracts are nearing an all-time high in ETH holdings, highlighting the network’s growing trust among users. People are bridging to Arbitrum for lower transaction costs, access to Arbitrum-exclusive protocols, or to explore its tech capabilities.

Scorpion Casino’s Presale Smashes Records

Scorpion Casino is making waves as an innovative online gambling platform that integrates cutting-edge blockchain technology to offer a seamless, global gambling experience. Licensed by the Curacao eGaming Authority, it demonstrates a commitment to transparency and integrity in its operations.

This Web3 project has passed rigorous security evaluations by Solidproof, underlining its dedication to maintaining a secure, safe, and reliable gambling environment. A standout aspect of Scorpion Casino’s transparency is the public availability of its smart contract and audit, allowing anyone to verify the platform’s legitimacy and scrutinize its operations.

Should You Buy SCORP in 2024?

The SCORP token, central to the casino’s ecosystem, facilitates gaming activities and serves as a reward mechanism. Staking SCORP tokens offers users a chance for passive income through daily rewards and annual yields as the casino’s user base grows. Moreover, a strategic buyback plan is in place, with 20% of profits used to repurchase SCORP tokens, half of which are then burned to reduce the circulating supply.

The presale of SCORP has already attracted significant interest, raising over 4 million and hitting 97.09% of its goal with more than 8,000 contributors. With the presale price set at $0.029 per SCORP, compared to the listing price of $0.05, it presents a lucrative opportunity for early investors.

Celestia Returned 680% In 90 Days

Celestia (TIA) has demonstrated steady growth in the cryptocurrency market, with its price increasing by approximately 680% in the past 90 days, reaching $19.52. This rise represents a significant improvement from its lowest point last year. Currently, it maintains a stable market capitalization exceeding $3.4 billion.

The platform has experienced notable increases in transactions and data usage, accompanied by an uptick in block size to 734k. The number of TIA accounts has also risen to over 899k, with more than 76k transactions recorded in the last 24 hours, indicating growing user engagement.

Final Byte

In the realm of Web3 tokens, Scorpion Casino (SCORP) emerges as a leading contender, blending blockchain technology with online gambling. With a successful presale raising over $4 million, SCORP promises transparency and integrity. Security evaluations and public smart contract availability bolster confidence among investors. SCORP holders stand to benefit from passive income opportunities through staking rewards and buyback plans, making Scorpion Casino an attractive investment in the evolving crypto market.

Link: https://www.analyticsinsight.net/web3-tokens-you-cant-miss-in-2024-arbitrum-arb-scorpion-casino-scorp-and-celestia-tia/?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

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How Tokenized assets can replace money

Horacio — Mon, 29 Jan 2024 14:06:05 +0000

And why universal payments using fractionized assets is unlikely to happen soon, says Marcelo Prates.

By Marcelo Prates

In a world where tokenization becomes mainstream, with a wide variety of assets digitally represented on blockchains, these tokenized assets will replace money for everyday payments. That’s the intriguing argument recently made onForbes by David Birch, a veteran British expert on digital identity and money.

Instead of selling your mutual fund shares to get dollars that can then be used to buy a car, you could just transfer some of the shares to the dealership over a blockchain. You’d have the car, and the dealership would have tokenized shares that could be kept invested or transferred to the carmaker to pay for replenishing the inventory.

The greater the number of tokenized assets, the easier it gets to use them directly for payments without first cashing them out into bank deposits, CBDCs, or stablecoins, reducing transaction costs. If any asset can be tokenized, fractioned, and then seamlessly transferred on blockchains, you could always use your tokens for payment, no matter what your tokens represent — from securities or Bored Apes to houses or airline tickets.

The general acceptance of tokens rests on the assumption that someone down the network will be willing to take the tokenized asset you hold, making all exchanges possible. Supercomputers and AI would help speed up trades by instantly determining the value of each token and matching counterparties.

But, obstacles

In a system like that, digital money would only add friction and potentially become useless. Or would it? Although fascinating, this reality faces at least two significant hurdles before it can come to pass.

First, the number of transactions could quickly overwhelm even the most efficient blockchain. TheU.S. payments system alone processes almost 550 million retail transactions daily using money, in the form of dollars, as a vehicle. This number would increase multiple times if payments were made not with a common vehicle, like dollars or other sovereign currency, but with tokenized assets that could be traded globally.

Today, a car can be purchased with one payment transaction, with dollars flowing from the buyer’s bank account to the seller’s bank account. In a tokenized system, I could instead pay for a car mixing some tokenized securities with some bitcoin and tokenized fractions of a warehouse I own with ten other people. In this case, three payment transactions would have to happen to complete a single purchase, one for each type of tokenized asset used.

Things would get even more complex if my tokenized assets existed in different blockchains or if sellers didn’t already have her own addresses or wallets in all these blockchains to receive the tokens offered in payment.Interoperability between blockchains is possible but usually comes with additional costs and risks. Tokens tend to bemore easily stolen or lost when a bridge or protocol has to be used to move them from one blockchain to another.

The second hurdle for tokenized assets to replace money is legal. Beyond its traditional functions (notably as agenerally accepted medium of exchange), money today also serves as a checkpoint for compliance requirements. In most jurisdictions, the prevention of money laundering and terrorism financing has been delegated to institutions that help people and companies move money around.

Financial institutions play a primary role in this effort. They must know their clients, identify transactions’ beneficiaries, develop risk-based tools to prevent suspicious or illicit transactions, and promptly alert the authorities if anything looks amiss. And all these actions are performed when money moves from or to the accounts held by their customers. It’s a legal and regulatory strategy that relies on the flow of money and the institutions that facilitate it to be implemented.

If, then, money is displaced by tokenized assets in everyday payments, the strategy loses its central operational point and its gatekeepers. Without a common asset that flows through specific institutions, regulators would struggle to gather the information they need and enforce the related rules. If anyone can use and even mix different tokenized assets to make payments over the blockchain, who would be responsible for flagging or blocking suspicious transactions? Every seller out there?

Blockchain forensics and automated supervisory tools could help regulators follow transactions in real time. But the capacity to suspend or block suspicious transactions amid billions, if not trillions, of payments happening daily across jurisdictions seems unattainable, especially for transactions on truly decentralized blockchains, not managed or controlled by identified parties.

As crypto enthusiasts have already realized, replacing fiat money isn’t a simple task. Be it for practical or legal reasons, sovereign money still reigns supreme for everyday payments despite the many alternatives that exist today. Tokenization, even if widespread, won’t change this reality anytime soon.

Link: https://www.coindesk.com/consensus-magazine/2024/01/17/how-tokenized-assets-can-replace-money/?utm_source=pocket_saves

Source: https://www.coindesk.com

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Davos debate: should Tokenization follow the ‘same activity, same rules’ approach?

Horacio — Sun, 21 Jan 2024 04:25:51 +0000

After several years of being the next-big-thing, next year will be when tokenization of real-world assets really takes off, says Colin Butler, Global Head of Institutional Capital at Polygon Labs.

By Colin Butler

Everyone from TradFi leaders to the crypto cognoscenti predicts that the tokenization opportunity runs to the tens of trillions. While we’ve already seen some compelling use cases, these are a drop in the ocean compared to the flood of digitized assets that could move on-chain in the next few years.

When will today’s trickle of tokenization turn into a torrent? And what is holding it back

This October, Forbes published a deep dive into the issue under the provocative headline “Why Tokenization is Failing.” The author, director of digital assets research, Steven Ehrlich, provides a litany of failed or underwhelming digitization projects and concludes that the issue hindering adoption isn’t technology, but trust.

I beg to differ.

The last year, however, has seen incredible progress towards overcoming these issues. While it’s easy to showcase the projects that didn’t deliver, the true story of tokenization in 2023 is about the groundwork being laid that will enable the next wave of tangible on-chain results, driven by the might of major financial players entering the market.

Private Equity Funds And Credit Are Leading The Charge

Speak to anyone intimately acquainted with the tokenization ecosystem, and they’ll tell you that 2024 is full of immense promise. For starters, we see intense interest from private equity funds looking to develop new tokenization vehicles for their investors, even further, putting these ideas into production with haste.

This trend is set to continue into the New Year as TradFi titans, including Hamilton Lane and JP Morgan, develop tokenized funds. Inevitably, we’ll soon see the development of even more structured instruments, including assets built from new revenue sources such as private credit – the logical next step for financial products that are inherently digital and relatively easy to migrate on-chain.

The Inevitable Expansion Into Other Assets

These instruments are just the start, though. The next generation of tokenized assets will include offerings like bonds and equities. In time, real-world assets such as art and automobiles, commodities, and fine wines will be traded on-chain. In fact, it’s already happening, with use cases including fractional ownership of classic artworks.

Tokenized real estate, in particular, could be a significant boon for the market, which has traditionally been complex and slow-moving. Now, not only will these markets become digitally native, but they will also benefit from things like fractional ownership and near-instant settlement.

This stands to make investing more accessible and bring new liquidity into sclerotic markets. Entirely new generations of investors will begin to tap into the possibilities of tokenization and breathe new life into legacy markets. With new institutions and assets will come new payment rails, as well as the requirement for industry-wide standards that make all of these products and markets interoperable.

Not only will this demonstrate the power and utility of tokenization, but it will also foster the trust that Forbes correctly identifies as the key driver of demand. In 2024, we can have every confidence that the flow of new tokenization will turn from a drip-drip into a deluge, marking the most profound revolution in financial affairs for centuries.

Link: https://www.coindesk.com/business/2023/11/29/2024-will-be-the-year-tokenization-truly-finally-begins/

Source: https://www.coindesk.com

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BlackRock apuesta por la tokenización de activos: “Es la revolución de los mercados financieros”

Horacio — Fri, 19 Jan 2024 13:14:13 +0000

El iShares Bitcoin Trust (IBIT) de BlackRock fue uno de los varios productos de este tipo que hizo su debut bursátil en Estados Unidos el jueves, después de que la Comisión del Mercado de Valores aprobara los fondos.

El Presidente y CEO de BlackRock, la gestora de activos más grande del mundo, reafirmó su fe en el potencial de las criptomonedas tras la aprobación de los fondos cotizados (ETF) de Bitcoin (BTC) al contado y cree que la tokenización será el “segundo paso en la revolución tecnológica de los mercados financieros”.

El iShares Bitcoin Trust (IBIT) de BlackRock fue uno de los varios productos de este tipo que hizo su debut bursátil en Estados Unidos el jueves, después de que la Comisión del Mercado de Valores aprobara los fondos.

La gestora presentó la solicitud para crear este producto el pasado mes de junio, iniciando así una ola de entusiasmo en el mercado que se tradujo en subidas que llevaron al rey de los criptoactivos por encima de los u$s40.000. El historial de la compañía con la SEC, así como su tamaño y reputación, empujaron a los inversores a creer en que la aprobación no solo era posible, sino que el bitcoin podría replicar el efecto del oro y multiplicar por 4 su valor en los próximos años.

Qué opina BlackRock sobre las criptomonedas

Fink también dijo que no veía la criptodivisa como una moneda, sino como una clase de activos, refiriéndose específicamente al bitcoin como “una clase de activos que te protege” frente a los temores de riesgo geopolítico. “No es diferente de lo que representó el oro durante miles de años. A diferencia del oro, estamos casi en el techo de la cantidad de bitcoin que se puede crear”, señaló en una entrevista concedida a CNBC.

La expectativa por los ETF de Ethereum

De igual modo, los inversores también se han mostrado entusiasmados con una potencial aprobación de los ETF al contado de ethereum (ETH), el cual se comportó mucho mejor que el bitcoin en los últimos días. BlackRock también ha solicitado crear un fondo cotizado de este token y fue su entrada en este activo el que provocó una reacción en ETH tras varios meses bastante flojos.

“Veo valor en tener un ETF de ETH. Como dije, estos son solo peldaños iniciales hacia la tokenización”, reconoció Fink. De igual modo, el CEO de BlackRock ha afirmado que “tenemos la tecnología para tokenizar hoy” una amplia serie de activos y ha asegurado que el valor de esta tecnología es incalculable. “Si tuvieras un valor tokenizado, en el momento en que compras o vendes un instrumento, se sabe que está en un libro mayor que se crea todo junto. Esto elimina toda corrupción, teniendo un sistema tokenizado”, ha añadido.

El entusiasmo de Fink contrasta con la reacción inicial del mercado, ya que el bitcoin cayó tras rozar los u$s49.000 la semana pasada. Según los expertos, puede haberse dado el temido escenario de “comprar los rumores y vender los hechos” y el criptoactivo rey podría atravesar ahora un período de consolidación, incluso de mayores caídas, antes de volver a ver subas destacadas.

Link: https://www.ambito.com/finanzas/blackrock-apuesta-la-tokenizacion-activos-es-la-revolucion-los-mercados-financieros-n5922450?utm_source=pocket_saves

Source: https://www.ambito.com

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A beginner’s guide to AI Tokens

Horacio — Wed, 17 Jan 2024 11:59:12 +0000

AI tokens will play an integral role in the adoption of machine learning models in the blockchain industry.

Artificial intelligence (AI) is transforming many industries, and the crypto space is no exception. With this convergence of blockchain and AI, we’re seeing the rise of unique digital assets; AI crypto tokens.

In this beginner’s guide to AI tokens, we will explain what they are, how they work, and list some of the most prominent AI cryptocurrencies in the market

Understanding AI Crypto Tokens

AI tokens are cryptocurrencies that support AI-based projects, applications, and services within the blockchain ecosystem.

AI tokens play three pivotal roles; the first is facilitating transactions. They are the medium of exchange within AI-powered platforms. With them, users can pay for services, access data, and participate in the platform’s activities.

Additionally, they are crucial in enabling protocol governance. Some of these tokens confer governance rights to their holders, empowering holders to participate in decision-making processes shaping the development and direction of the AI project or platform.

Finally, they incentivize users to contribute towards the growth of the AI protocol/project. These may receive rewards in tokens for contributing data, providing computational resources, or developing AI applications.

How Do AI Tokens Work?

AI crypto tokens typically work in the following ways:

Token creation: Projects create tokens on a blockchain platform, often using standards like Ethereum’s ERC-20 or BNB Smart Chain’s BEP-20.
Creation of smart contracts: These self-executing contracts define how tokens are used in AI-related services.
Token issuance: The project behind the AI crypto token typically issues it during its token sale or genesis block.
Token utilization: Users get to acquire the tokens through exchanges, staking, or participating in the platform’s ecosystem. They then use them to access services, pay fees, and participate in governance.
Integration with AI Platforms: The project links the tokens with platforms offering AI services. Holders can use them to access ML models, data analysis, or other AI functionalities.
Decentralization: Many AI token projects aim for decentralization. This distributed form of governance gives token holders a say in key decision-making processes.
Incentives: Some projects use tokens to incentivize those who contribute resources, like computing power or data, to the network.

Specifics can vary widely depending on the project. Each AI token system is designed with its own rules and purposes.

Top 5 AI Tokens

The crypto AI landscape is rapidly evolving, and many projects are coming up to address various aspects of the space. Here are the top five leading AI tokens measured by market capitalization.

Injective (INJ)

The Injective Chain is a layer-2 decentralized exchange and derivatives trading platform powered by the INJ token. It enables advanced trading tools like margins/leverage, using AI for optimized order execution, strategy testing, and predictive analytics. At the time of writing, INJ was the biggest AI token with a market cap of $1.418B.

The Graph (GRT)

The Graph (GRT) is an indexing protocol for organizing blockchain data, allowing for its easy querying for AI analytics. GRT is the second-largest AI token by market cap ($1.379B at the time of writing) and coordinates the decentralized network of nodes (Indexers). These earn the rights to index and serve application data by staking their GRT.

Render (RNDR)

Render Token enables a decentralized GPU cloud computing network for high-demand AI/ML training/rendering tasks. Users stake and lock up RNDR for access to GPUs. The project rewards Render Farm suppliers in RNDR for leasing out graphics horsepower capacity. RNDR has a market cap of $1.22B at the time of writing.

Theta Token (THETA)

The Theta token (THETA) powers the Theta decentralized video delivery network and is the fourth largest AI and big data token, with a market cap of $960M at the time of writing. It aims to provide improved video streaming quality and reduced costs through AI and ML innovations. Users and relay nodes earn THETA for sharing bandwidth resources.

Oasis Network (ROSE)

The Oasis Network uses a token-incentivized architecture to enable privacy-preserving AI computations on blockchain. ROSE tokens, which have a market cap of $567M at the time of writing, coordinate the network of nodes, providing secure computing via technologies like Intel SGX, differential privacy, and federated learning.

Final Words

As blockchain platforms aim for large-scale adoption, AI innovations will be critical for unlocking new capabilities and efficiencies. Specialized AI tokens help coordinate the incentives and collaboration necessary for advancing AI in a decentralized context. These have strong potential as the tokenization of ML processes grows on-chain.

Link: https://www.coindesk.com/learn/2024/01/11/a-beginners-guide-to-ai-tokens/?utm_source=pocket_saves

Source: https://www.coindesk.com

The post A beginner’s guide to AI Tokens appeared first on Fintech News.

Top 10 AI & Big Data Tokens by market capitalization

Horacio — Tue, 19 Dec 2023 22:13:51 +0000

By Meghmala

This article explores the top 10 tokens at the forefront of the AI and big data sector

The intersection of artificial intelligence (AI) and big data has given rise to a dynamic ecosystem within the cryptocurrency space. In this article, we delve into the top 10 tokens leading the charge in the AI and big data sector, examining their recent performances, market capitalizations, and key statistics.

1. Internet Computer (ICP)

Price: $10.23

Market Cap: $4,616,867,199

Internet Computer (ICP) stands out as a heavyweight in the AI and big data token space. With a market capitalization exceeding $4.6 billion, ICP has garnered attention for its ambitious goal of redefining the internet by creating a decentralized computing platform.

2. Injective (INJ)

Price: $38.43

Market Cap: $3,220,416,092

Injective (INJ) has positioned itself as a leader with a market capitalization of over $3.2 billion. Operating as a decentralized exchange protocol, INJ facilitates the creation and trading of various financial products, including AI and big data assets.

3. Render (RNDR)

Price: $4.37

Market Cap: $1,624,973,988

Render (RNDR) focuses on decentralized cloud computing and rendering services. With a market capitalization of over $1.6 billion, RNDR plays a crucial role in enabling efficient and cost-effective processing for AI and big data applications.

4. The Graph (GRT)

Price: $0.1616

Market Cap: $1,512,941,717

The Graph (GRT) operates a decentralized protocol for indexing and querying data from blockchain networks. Despite its modest price, GRT boasts a market capitalization exceeding $1.5 billion, highlighting its significance in the AI and big data sector.

5. Theta Network (THETA)

Price: $1.01

Market Cap: $1,013,159,559

Theta Network (THETA) has gained prominence by addressing the challenges of video streaming through decentralized solutions. With a market capitalization surpassing $1 billion, THETA has become a key player in optimizing data delivery for AI applications.

6. Fetch.ai (FET)

Price: $0.7129

Market Cap: $591,152,985

Fetch.ai (FET) focuses on autonomous economic agents that facilitate AI-driven solutions. With a market capitalization exceeding $590 million, FET plays a pivotal role in the evolution of decentralized AI networks.

7. Oasis Network (ROSE)

Price: $0.08814

Market Cap: $591,740,711

Oasis Network (ROSE) emphasizes privacy and scalability in its blockchain infrastructure. With a market capitalization of over $590 million, ROSE is making strides in providing a secure and scalable platform for AI and big data applications.

8. Akash Network (AKT)

Price: $2.30

Market Cap: $517,426,192

Akash Network (AKT) positions itself as the “world’s first decentralized and open-source cloud.” With a market capitalization exceeding $500 million, AKT contributes to the decentralized infrastructure required for AI and big data processing.

9. SingularityNET (AGIX)

Price: $0.3199

Market Cap: $399,778,827

SingularityNET (AGIX) focuses on creating a decentralized AI network for various applications. With a market capitalization surpassing $390 million, AGIX is gaining recognition for its innovative approach to democratizing AI.

10. Ocean Protocol (OCEAN)

Price: $0.5146

Market Cap: $292,470,692

Ocean Protocol (OCEAN) facilitates the sharing and monetization of data. With a market capitalization exceeding $290 million, OCEAN is a key player in the data economy, providing a decentralized marketplace for AI and big data assets.

Link: https://www.analyticsinsight.net/top-10-ai-big-data-tokens-by-market-capitalization/?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

The post Top 10 AI & Big Data Tokens by market capitalization appeared first on Fintech News.

Asset tokenization is shaping up to be Crypto’s theme of the year

Horacio — Mon, 27 Nov 2023 13:55:57 +0000

Goldman Sachs, Hamilton Lane and Siemens are among institutions choosing to represent real-world assets as digital tokens on a blockchain

By SHALINI NAGARAJAN

Blockchain is rapidly becoming a game changer for financial institutions as an increasing number of legacy firms are sinking their teeth into digital assets.

Tokenization, the process of imbuing ownership and other rights onto a blockchain-powered asset, is happening fast across several blockchain ecosystems. So far in 2023, more than five corporations are utilizing the process to expand efficiencies of various transactions.

Why are they doing this? The current traditional model for buying, selling and trading company shares is somewhat archaic, according to Bob Ras, co-founder of XRP protocol Sologenic.

Legacy methods involve restrictions that preclude trading of assets: limited market hours and slow settlement times. And the cost of continuing to rely on these traditional rails can become excessive, Ras said.

“Imagine creating a digital representation of Tesla or Microsoft stock – tokenizing them – and enabling them to be traded 24/7 on-chain while even allowing investors to trade a fraction of the tokenized stock,” Ras told Blockworks.

“Moreover, the costs would be a fraction of what they are now because, instead of relying on the whims of trusted third parties, you have an underlying blockchain that can immediately foster audibility and transparency.”

He forecasts that the value of tokenized assets could grow to be in the trillions of dollars over the following decades.

Here are some names that recently announced asset tokenization projects:

Goldman Sachs launches GS DAP

In January, Goldman Sachs announced its Digital Asset Platform (DAP) went live. The platform is built using a private (permissioned) blockchain stack known as Canton, built by Digital Asset.

Goldman Sachs will use it to enable issuance, registration, settlement and custody of digital assets. The European Investment Bank (EIB) was the first institution to collaborate with the platform for its first digital bond.

The EIB has already issued its second euro-denominated digital bond on a private blockchain in collaboration with Goldman Sachs.

Hamilton Lane tokenizes investment products in the US

Global investment manager Hamilton Lane announced that some products would be tokenized via the Polygon blockchain. Through a partnership with digital asset securities firm Securitize, Hamilton Lane’s flagship direct equity fund will be available to certain US investors through new tokenized feeder funds, providing exposure to direct equities, private credit and secondary transactions.

These will be managed by Securitize’s digital asset management arm, Securities Capital. Minimum investment is set at $20,000.

Hong Kong issues tokenized green bond

Hong Kong’s government said in February it had successfully issued its first tokenized green bond worth some $100 million under its Green Bond programme. Green bonds are meant to finance environment-friendly or climate-focused projects.

The Central Moneymarkets Unit used Goldman Sachs’ tokenisation protocol GS DAP for the issuance, and the bond was underwritten by four banks priced at a 4.05% yield.

Siemens issues €60M digital bond on Polygon

German manufacturing giant Seimens issued its first digital bond on Polygon, which has a one-year maturity. Although the bond was issued on-chain, proceeds from investors were collected via traditional banking channels. Siemens spotlighted its efforts, saying the move away from paper toward blockchain would make transactions faster and more efficient.

Swarm launches fully-backed asset tokens on Polygon

DeFi infrastructure firm Swarm Markets launched tradable, DeFi-compatible stocks and bonds on Polygon this month. These tokenized securities would bring Apple and Tesla stocks, and two US Treasury bond ETFs to DeFi, however they won’t be available to US investors.

There is no minimum investment and the products are marketed to both retail and institutional investors. More stocks and other assets are expected to be added to the offering.

The tokenization of assets is still underappreciated by many market observers, as they might be focused primarily on the tokens themselves, according to Daniela Barbosa, executive director of Hyperledger Foundation.

“But tokenizing a wide variety of assets – from equities and index funds to real estate and carbon credits – offers huge potential in terms of not only enhancing transparency, auditability and efficiency, but also access to people who otherwise might not be able to tap into traditional markets,” Barbosa told Blockworks.

“Zooming out, if done at scale, these kinds of transactions are poised to make markets far more efficient.”

Link: https://blockworks.co/news/2023-year-of-asset-tokenization?utm_source=pocket_saves

Source: https://blockworks.co

The post Asset tokenization is shaping up to be Crypto’s theme of the year appeared first on Fintech News.

Token Archives - Fintech News

Tokenization and real-world assets take center stage

Goldman Sachs Digital Asset Platform (GS DAP) achieved 15 basis points in savings for its €100M digital bond issuance, resulting in €150K of added return passed onto Union Investment as the sole buyer.

J.P. Morgan’s Onyx Digital Assets (ODA) is projecting $20 million in savings on an expected $1 trillion in tokenized repo volume by the end of 2023.

Broadridge’s Distributed Ledger Repo (DLR) is saving sell-side clients like Societe Generale $1 million per 100,000 repo transactions.

Equilend launched 1Source as a distributed ledger-based securities lending solution to save the securities lending industry an estimated $100 million in collective costs.

Structured finance servicing platform Intain reports 100 basis points in savings by reducing SME loan lifecycle fees from 150 bps to 50 bps through Hyperledger and Avalanche blockchain solutions.

Vanguard is leveraging R3’s Corda through Grow Inc. to achieve straight-through processing saving 100 hours a week in labor.

Liquid Mortgage has reduced Mortgage-Backed Securities (MBS) reporting from 55 days to 30 minutes on the Stellar blockchain.

Money Markets and Treasuries as the Low-Hanging Fruit

Asset managers and issuers are familiarizing themselves with tokenization workflows by trialing money market and treasury products. These tokenized assets generate a yield that can be passed on to clients, fully on-chain.

While alternative product strategies, like Hamilton Lane’s digitally-native private equity share classes, are in the works, money markets yield ~5% annually in low risk segments. This asset class accumulated almost $700 million in on-chain capital by the end of Q3 2023, up almost 520% YTD.

Tokenized Product Distribution through Institutional Client Bases

As blue-chips like JP Morgan and Goldman Sachs continue to develop their digital suites, expect their private banking, wealth & asset management, and alternatives teams to act as distribution channels unlocking serious capital that retail broker-dealers struggle to access.

Token utility will determine success of Web3 gaming companies

This is something gaming firms must tackle to make the most of opportunities in today’s bull cycle.

Web3 Games Need Greater Token Utility

Precious few games, web3 or otherwise, have stood the test of time, a consequence of gamer fatigue, the constant conveyor belt of new releases, and the failure of developers to keep concepts fresh.

Single-game tokens that have no utility beyond one release, therefore, face an uphill battle for relevance, their popularity (and that of the game) oscillating according to the whims of traders/players and the ability of devs to deliver value.

A decline in the fortunes of game tokens more generally, meanwhile, would not dent the popularity of the MCU gaming world itself, ensuring continued interest in the utility token.

The web3 gaming landscape does not have its own version of the Marvel Cinematic Universe, of course. But the idea of a multi-utility ‘studio token’ is certainly coming to the fore.

The antithesis of the unsustainable, volatile and sometimes useless game token, examples of which aren’t difficult to find, studio tokens have practical applications beyond the confines of a single game, making them more equipped to store long-term value.

Studio Tokens in the Wild

Azarus is another example of a web3 platform that follows the studio token approach. A browser extension that enables users to play games during livestreams and spend their winnings in its integrated store, Azarus’ token, AzaCoin ($AZA), is not tied to the fortunes of any one game.

We’re thinking about tokenization all wrong

If we don’t standardize tokenization, we risk merely recreating the old system

No more physical certificates, no more middlemen. Just a few clicks, and you’re a shareholder. This is the promise of tokenization, giving us new ways to transact, store and distribute wealth.

The tokenization market is poised to explode in the coming years. According to financial giants like Citi and research firms like Bernstein, the market could be worth up to $5 trillion by 2030.

But many institutions are still failing to grasp its full potential. Yes, you can digitize certain assets and put them on the blockchain. And yes, this may yield some boost in efficiency. But that’s not enough.

Tokenization should be more than just creating digital twins of real-world assets. It also needs to be more about capturing and standardizing all financial aspects of these assets — from their intrinsic value to their potential risks.

Current practices often neglect these dimensions, resulting in incomplete digital representations that fail to leverage the full potential of blockchain technology.

The pitfalls of current tokenization models

Current failures in tokenization are more a result of a lack of innovation than a lack of potential. Most platforms only digitize the underlying asset, but they neglect to include liabilities or cash flows associated with those assets.

Despite their importance, these key aspects are often overlooked. As a result, you get an asset-backed token on a blockchain — but the terms and conditions are often attached as a PDF.

This requires human intervention to calculate cash flows, which is a major concern as it allows errors and discrepancies to creep in. A similar lack of transparency and verifiability around cash flows was one of the primary triggers of the 2008 banking crisis.

To avoid another such crisis, we must ensure liabilities and cash flows related to underlying assets are tokenized, machine-readable and machine-executable, not just the assets themselves.

Existing standards are critical to a tokenized future

To start, implementing open banking standards which allow banks to share their data in a secure, standardized way would make it easier to track liabilities and cash flow across different institutions.

By applying these standards to Smart Financial Contracts, we can ensure that details of the tokenized financial asset and all financial obligations are machine-readable and executable.

Given that the entire system would be transparent and machine-auditable, systemic risk management becomes a realistic possibility. This makes it easy to stress test for different market scenarios, offering a clear view of potential vulnerabilities and helping us prevent future financial crises.

Smart financial contracts go beyond simply being technologically innovative. They are about designing a more secure, stable and efficient financial asset tokenization ecosystem where all stakeholders can transact with confidence.

With blockchain-based financial infrastructure, most of the management or transfer of these tokenized instruments can be done automatically on-chain. This reduces the need for human oversight and the risk of fraud or error.

The promise of blockchain technology

Blockchain is undoubtedly a game-changer and the most disruptive innovation in finance since the advent of computers in the banks in the 1960s. But innovation in payments is not the same as innovation in finance, and that’s where the potential of this groundbreaking technology lies.

Blockchain could redefine finance, making it transparent, efficient and low-cost. Funds could be verified without custodians, and cash flows could be demonstrated without audits. The logic of the financial contract can be embedded in the token making pricing discovery far more efficient.

SME lending could also be streamlined if we conducted proper due diligence — shifting the focus from paperwork to knowing the borrower. With securitization, credit was made accessible to more businesses.

But tokenization must be standardized, with the cash flow logic embedded in a machine-readable and machine-executable way. Otherwise, we’re just replicating the old system. After all, blockchain isn’t just about making payments easier — it’s about transforming finance as a whole.

Web3 Tokens you can’t miss in 2024: Arbitrum , Scorpion Casino and Celestia

Is Web3 more than just a buzzword in the cryptocurrency realm?

Arbitrum Seems Bullish Says Crypto Analysts

In less than two years since its launch, the Arbitrum network has significantly impacted the web3 sector, attracting major Ethereum-based web3 projects like Uniswap, GMX, Balancer, and Hyperliquid.

Arbitrum’s smart contracts are nearing an all-time high in ETH holdings, highlighting the network’s growing trust among users. People are bridging to Arbitrum for lower transaction costs, access to Arbitrum-exclusive protocols, or to explore its tech capabilities.

Scorpion Casino’s Presale Smashes Records

Scorpion Casino is making waves as an innovative online gambling platform that integrates cutting-edge blockchain technology to offer a seamless, global gambling experience. Licensed by the Curacao eGaming Authority, it demonstrates a commitment to transparency and integrity in its operations.

Should You Buy SCORP in 2024?

The presale of SCORP has already attracted significant interest, raising over 4 million and hitting 97.09% of its goal with more than 8,000 contributors. With the presale price set at $0.029 per SCORP, compared to the listing price of $0.05, it presents a lucrative opportunity for early investors.

Celestia Returned 680% In 90 Days

The platform has experienced notable increases in transactions and data usage, accompanied by an uptick in block size to 734k. The number of TIA accounts has also risen to over 899k, with more than 76k transactions recorded in the last 24 hours, indicating growing user engagement.

Final Byte

How Tokenized assets can replace money

The general acceptance of tokens rests on the assumption that someone down the network will be willing to take the tokenized asset you hold, making all exchanges possible. Supercomputers and AI would help speed up trades by instantly determining the value of each token and matching counterparties.

But, obstacles

In a system like that, digital money would only add friction and potentially become useless. Or would it? Although fascinating, this reality faces at least two significant hurdles before it can come to pass.

Davos debate: should Tokenization follow the ‘same activity, same rules’ approach?

Private Equity Funds And Credit Are Leading The Charge

The Inevitable Expansion Into Other Assets

BlackRock apuesta por la tokenización de activos: “Es la revolución de los mercados financieros”

Criptomonedas: los ETF no logran seducir a los inversores y Bitcoin cae hasta los u$s42.000

Un gigante de las criptomonedas lanzó sus perspectivas y tendencias para el mercado, ¿qué dijo?

Qué opina BlackRock sobre las criptomonedas

La expectativa por los ETF de Ethereum

A beginner’s guide to AI Tokens

AI tokens will play an integral role in the adoption of machine learning models in the blockchain industry.

Artificial intelligence (AI) is transforming many industries, and the crypto space is no exception. With this convergence of blockchain and AI, we’re seeing the rise of unique digital assets; AI crypto tokens.

In this beginner’s guide to AI tokens, we will explain what they are, how they work, and list some of the most prominent AI cryptocurrencies in the market

Understanding AI Crypto Tokens

AI tokens are cryptocurrencies that support AI-based projects, applications, and services within the blockchain ecosystem.

Finally, they incentivize users to contribute towards the growth of the AI protocol/project. These may receive rewards in tokens for contributing data, providing computational resources, or developing AI applications.

How Do AI Tokens Work?

AI crypto tokens typically work in the following ways: