Ultimate Resource On Tokenized Deposits, U.S. Treasuries And Other RWA’s (Real-world Assets)

JPMorgan Is Exploring Blockchain-Based Deposit Token For Payments, Settlements. Ultimate Resource On Tokenized Deposits, U.S. Treasuries And Other RWA’s (Real-world Assets)

Ultimate Resource On Tokenized Deposits

* If Approved By Regulators, Token Could Speed Up Transactions

* Effort Would Mark Expansion Of JPMorgan’s Blockchain Push

Ultimate Resource On Stablecoins

Ultimate Resource On Central Bank Digital Currencies (#GotBitcoin)

How DeFi Goes Mainstream In 2022: Focus On Usability

JPMorgan Chase & Co. is in the early stages of exploring a blockchain-based digital deposit token for speeding up cross-border payments and settlement, according to a person familiar with the work.

The US’s biggest bank by assets has developed most of the underlying infrastructure needed to run the new form of payment, but wouldn’t create the token unless the project is approved by US regulators, according to the person, who asked not to be named because the matter is private.

The bank may launch the product for use by corporate clients less than a year after it receives a go-ahead, the person said.

Deposit tokens are transferable digital coins that represent a deposit claim against a commercial bank. Essentially, they are a digital version of the deposits that customers hold in their accounts.

Because transactions using these coins are processed on blockchain rails, settlement is instantaneous, and proponents of the novel form of money suggest they may make transactions cheaper as well.

“Deposit tokens bring plenty of potential benefits, but we also appreciate that regulators would want to be thoughtful and diligent before any new product gets developed and used,” a JPMorgan spokesperson said in a statement. “Should that appetite develop, our blockchain infrastructure would be able to support the launch of deposit tokens relatively quickly.”

The bank has already piloted issuing deposit tokens in a single transaction last year as a part of the Monetary Authority of Singapore’s Project Guardian and highlighted the potential of this form of money in a recent study.

The move would mark an expansion of JPMorgan’s blockchain efforts, which have been at the forefront of Wall Street’s attempt to use crypto’s underlying technology to simplify some of the cumbersome processes in banking.

While the industry has been experimenting for almost a decade, overall it has yet to reap any large benefits from the technology. That has driven some skeptics to question blockchain’s actual utility in finance.

Beyond JPM Coin

JPMorgan has developed several applications using blockchain. The bank runs a system called JPM Coin, which was announced in 2019 and allows some JPMorgan corporate clients to move dollars and euros from their various accounts within the financial institution.

The bank said in June that it had used the system to process about $300 billion of transactions since its launch. By comparison, JPMorgan moves $10 trillion in US dollar transactions overall on a daily basis.

The deposit token would function differently from JPM Coin, as it could be used to easily send money to clients of another bank, the person familiar with the work said. It is also well-suited for settlement of trades of tokenized securities, or financial instruments issued on a blockchain.

Similar to JPM Coin, its infrastructure would connect to the bank’s existing compliance systems so that transactions can go through know-your-customer, anti-fraud and other necessary checks and be part of the company’s regulatory reporting.

The deposit token would likely first be denominated in US dollars, but could later become available in other fiat currencies, if greenlighted by relevant regulators, a person familiar with the potential process said.

It would not be intended to be used for purchases of cryptocurrencies, or as a replacement for so-called stablecoins like Tether’s USDT. Stablecoins, which are supposed to keep their 1:1 value to hard currency, are used by traders to go in and out of the crypto market or to switch digital-asset between exchanges.

Deposit tokens are designed to be used within the traditional financial system, for payments, settlements and similar functions.

“We believe deposit tokens will become a widely used form of money within the digital asset ecosystem, just as commercial bank money in the form of bank deposits makes up over 90% of circulating money today,” JPMorgan said in the recent study.

Updated: 7-23-2023

More Tokenized Treasuries Arrive On Polygon As Digital Bond Market Expands

Ondo’s OUSG token, one of the largest on-chain tokenized Treasury products, has accrued $134 million of assets under management on Ethereum.

Ondo Finance, which already offers tokenized U.S. Treasuries on the Ethereum blockchain, expanded the product to the Polygon network.

The company has issued its OUSG token, a tokenized version of BlackRock’s short-term U.S. government bond exchange-traded fund (ETF), natively on Polygon as part of a “strategic alliance,” according to a press release Thursday.

The firm also plans to bring its upcoming yield-generating stablecoin alternative, which is a tokenized money market fund called OMMF, as well as the Ondo-developed decentralized lending marketplace Flux Finance – pending governance approval – to Polygon, Ondo President and Chief Operating Officer Justin Schmidt said in an interview.

The development comes as demand for tokenized versions of traditional financial instruments such as U.S. Treasuries is growing among investors, as bond yields have surpassed rates in decentralized finance (DeFi) lending markets.

Wealth management firm Bernstein forecast that tokenization of real-world assets (RWAs) could grow to $5 trillion in market value in the next five years.

Tokenized Treasuries has grown to a $600 million market, with Ondo Finance’s OUSG token claiming a significant share of $140 million since its inception in January.

Flux Finance, developed by Ondo’s team and governed by a decentralized autonomous organization (DAO) through community votes, lets investors take out loans by pledging OUSG as collateral. It has $44 million of total value locked on the platform, according to DefiLlama.

Ondo’s move follows asset management giant Franklin Templeton, which made its tokenized Franklin OnChain U.S. Government Money Fund (FOBXX) available on Polygon after releasing it on Stellar in 2021.

Polygon is a layer-2 scaling network of Ethereum that allows users to transact more cheaply and faster than on the mainnet, which is prone to clogging during times of high blockchain activity, while still relying on Ethereum’s security.

“Ondo Finance building on Polygon is a crucial step toward bridging the gap between DeFi and institutional-grade finance,” said Colin Butler, global head of institutional capital at Polygon Labs.

Updated: 8-29-2023

Tokenized U.S. Treasuries Arrive To XDC Network As Digital Bond Market Grows

The market for tokenized U.S. Treasuries has grown nearly sixfold to $622 million this year, as real-world assets on blockchains keep expanding.

* USTY Tokens, Accessible On Tradeteq’s Platform And Issued On XDC Network, Represent Shares In A U.S. Treasury Bond ETF.

* Tokenization Of Real-World Assets Such As Government Bonds Could Grow To A $5 Trillion Market, Experts Say.

Tradeteq, a U.K-based private debt and real-world asset marketplace, on Tuesday rolled out a tokenized U.S. Treasury offering on the layer 1 blockchain XDC Network, the firm said.

The U.S. Treasury Yield (USTY) tokens represent blockchain-based versions of shares in a U.S. Treasury bond exchange-traded fund (ETF), and are accessible for professional investors on Tradeteq’s Yieldteq platform.

Tokenization service provider Securitize onboards buyers, tracks share ownership and manages dividend payouts.

The new offering comes as tokenization has become one of the hottest trends in the battered-down digital asset industry. A Bank of America report said that the tokenization of real-world assets (RWAs) – creating blockchain-based tokens of traditional financial assets such as government bonds or private equity – could transform the financial infrastructure, while Bernstein forecasted it could grow a 5 trillion market in the next five years.

Demand for tokenized Treasuries has grown nearly sixfold to $622 million this year, according to rwa.xyz. Crypto firms and investment funds seek these products to enjoy higher government bond rates, while yields in crypto lending have plunged amid massive deleveraging during the bear market.

XDC joins a fierce competition between blockchains to be the premier venue for tokenized assets. Stellar and Ethereum are the leading markets for tokenized Treasuries, but other networks are also making headway with RWA adoption.

JPMorgan executed trades with tokenized versions of the Japanese yen and the Singapore dollar using the Polygon (MATIC) network, while Securitize issued equity tokens of a real estate investment trust on the Avalanche (AVAX) blockchain.

Updated: 9-18-2023

Citigroup Debuts Token Service In Latest Foray Into Digital Assets

* New Offering Turns Customer Deposits Into Digital Tokens

* Pilot Program Focuses On Trade Finance, Cash Management

Citigroup Inc. debuted a token service that’s part of a broader push to offer digital assets to institutional clients.

The product — known as Citi Token Services — will transform customers’ deposits into digital tokens that can be sent instantly anywhere in the world, according to a statement Monday. The service is housed in the firm’s treasury and trade solutions division, which has so far focused on using it to improve cash-management and trade-finance capabilities.

“The development of Citi Token Services is part of our journey to deliver real-time, always-on, next generation transaction banking services to our institutional clients,” Shahmir Khaliq, global head of the company’s services division, said in the statement.

The move is the latest by an established banking giant to offer so-called “tokenized deposits,” or transferable digital coins that represent a claim against banks. Crucially, though, these tokens are processed on blockchain rails, meaning settlement is instantaneous.

For Citigroup’s new offering, the company will rely on a private blockchain owned and managed by the bank, according to the statement. Clients won’t need to set up their own digital wallet and will instead be able to access the service through the bank’s existing systems.

Fed Test

Citigroup is taking aim at the problem of moving money across borders, which can sometimes take days because of the myriad systems banks and governments use and differing work hours and bank holidays across the globe.

The new offering comes on the heels of Citigroup’s participation, along with a unit of the Federal Reserve Bank of New York and global banks, in a months-long test of a Regulated Liability Network, which allowed banks to simulate issuing digital money representing their customers’ own funds before settling through central bank reserves on a distributed ledger.

That test proved to the Fed that these so-called digital dollars have the ability to improve wholesale payments, and that the use of the ledger didn’t alter the legal treatment of the deposits.

“Frictions related to cutoff times and gaps in the service window will be reduced,” Ryan Rugg, global head of digital assets at Citigroup’s treasury and trade solutions division, said in the statement.

“Our solutions within the Citi network are complemented by inclusive and open industry collaboration on initiatives like the Regulated Liability Network.”

JPMorgan Chase & Co. is in the early stages of exploring a blockchain-based digital deposit token for speeding up cross-border payments and settlement, Bloomberg News reported earlier this month.

The company has developed most of the underlying infrastructure needed for the tokens, but wouldn’t create them unless the project is approved by regulators.

Shipping In Focus

By focusing some of its initial efforts on trade finance, Citigroup will be bringing digital offerings to an industry long dogged by paper processes and manual procedures.

The shipping business, for instance, relies heavily on letters of credit from banks so container carriers don’t have to carry large sums of cash to pay suppliers, like the companies that provide them with fuel or provisions.

Instead, when a carrier refuels, the shipping company hands that fuel provider a letter of credit from Citigroup. The fuel provider then takes that to Citigroup and asks to be paid.

With smart contracts, which automatically execute a contract when prearranged terms and conditions are met, that transaction could be processed much faster, with no stacks of paper floating around.

Citigroup has already tested the new service with a canal authority and A.P. Moller-Maersk A/S, one of the world’s largest ocean-cargo companies. The pilot showed the bank could instantly transfer the tokenized deposits to suppliers based on smart contracts.

“We are pleased to have collaborated with Citi in the successful test pilots for the guarantee solution using digitized tokens and smart contracts,” Marie-Laure Martin, regional treasury manager for the Americas at Maersk, said in the statement. “The innovative solution has promising applications for trade finance.”

Citi Token Services Will Provide Payments, Liquidity To Institutional Customers

The new blockchain-based service will use tokenized deposits for trading and liquidity services after two pilots.

Citigroup has introduced Citi Token Services, a private, permissioned blockchain that offers cross-border payments, liquidity and automated trade finance solutions to institutional clients. The new services “will integrate tokenized deposits and smart contracts into Citi’s global network,” according to a statement.

Citi Treasury and Trade Solutions (TTS), which has banking licenses in over 90 countries, has completed two pilots of the service.

It worked with Danish shipping company Maersk and an unnamed canal authority on a program that made instant payments to service providers via smart contracts, reducing transaction processing times from days to minutes. The service replaces bank guarantees and letters of credit, the statement said.

A second pilot enabled clients to transfer liquidity between Citi branches around the clock, reducing “frictions related to cut off times and gaps in the service window,” TTS global head of digital assets Ryan Rugg said. He continued:

“Our solutions within the Citi network are complemented by inclusive and open industry collaboration on initiatives like the Regulated Liability Network.”

Regulated Liability Network (RLN) technology was introduced in November 2022. Citi was among the large financial institutions that participated in a proof-of-concept headed by the Federal Reserve Bank of New York that concluded in July.

RLN infrastructure places assets and liabilities on the same ledger to provide atomic settlement. It is one of a few “unified ledger” proposals that have emerged in recent months. The new Citi service uses deposit tokens, which are tokenized commercial bank money.

In light of the Citi Token Services announcement, don’t forget they’re building a separate protocol to sidestep #Bitcoin, called Regulated Liability Network. From the RLN website: pic.twitter.com/2dUYJX4zK0

— Cameron Otsuka (@CameronOtsuka) September 18, 2023

JPMorgan is also reportedly exploring the use of deposit tokens. That technology was pioneered in Project Guardian, launched in May 2022 by the Monetary Authority of Singapore, in which JPMorgan participated.

Updated: 9-29-2023

OpenTrade Unveils Tokenized U.S. Treasuries Offering As Tokenization Race Gains Steam

The tokenized Treasuries market has grown sixfold this year to $668 million, according to one data provider.

Blockchain-based lending and yield platform OpenTrade has rolled out Friday a tokenized U.S. Treasury bill pool, the company said.

The offering is accessible to individual accredited investors, regulated institutions, companies, funds and decentralized autonomous organizations, according to the firm’s press release.

Third-party distributors can also integrate OpenTrade’s pool and power their own white-labeled yield offering.

OpenTrade’s initial distribution partners, direct lenders and liquidity providers include Enigma Securities, WOO X, Resonate, Kyber Network and Sino Global Capital. UK-based structured finance firm Five Sigma provides support for off-chain operations.

The offering comes as placing traditional financial instruments such as government bonds, private equity or credit to blockchain – often referred to tokenization of real-world assets (RWA) – has become one of the hottest trends in crypto, with big banks exploring ways to leverage blockchain technology.

U.S. Treasuries are considered as a gateway for tokenization efforts given their high yield and low-risk status. The tokenized treasuries market has grown sixfold this year to $668 million, with asset management firm Franklin Templeton being the biggest player, according to data by rwa.xyz.

OpenTrade’s tokenized Treasuries pool was developed using Circle’s Perimeter Protocol, an open-source codebase for on-chain credit facilitation, and is powered by the USDC stablecoin.

Following the U.S. Treasury pool, OpenTrade has plans to introduce a variety of on-chain yield products including investment-grade commercial paper and supply chain financing, founders Dave Sutter and Jeff Handler told CoinDesk in an interview earlier this week.

The opportunity for trade financing using blockchain rails is particularly attractive, they explained, as there’s a $2.5 trillion unmet financing demand from market participants, according to a report by the Asian Development Bank.

OpenTrade raised $1.5 million in venture capital funding earlier this year from Sino Global Capital, Circle Ventures, Kronos Research, Kyber Ventures, Outlier Ventures and Polygon Ventures.

Updated: 10-1-2023

Tokenization Is “Securitization Done On Steroids” — Franklin Templeton CEO

At CNBC’s Delivering Alpha event, Jenny Johnson discussed how digital assets disrupt securitization and the financial markets.

Securitization, a practice with over 50 years of history, is undergoing a dramatic transformation, believes Jenny Johnson, CEO of Franklin Templeton, one of the world’s largest asset managers.

During CNBC’s Delivering Alpha event, Johnson said tokenization — the process of converting asset ownership rights into digital tokens on a blockchain — is akin to “securitization done on steroids,” a term often used to describe something that exceeds expectations.

Johnson’s remarks were part of an analysis of the future of alternative investment vehicles. The executive noted that available capital and technology disruption have attracted more companies and CEOs to invest in “things for the future,” like blockchain technology. Johnson said:

“One is it allows a payment mechanism. Number two, it allows smart contracts to be programmed into the token. And three, because it’s a general ledger, it has a source of truth. So whoever has that token, all rights in that token are granted to that person.”

Johnson used Rihanna as an example to illustrate her point of view. In February, the singer released one of her popular songs as a nonfungible token (NFT), allowing holders to partially earn royalties on streaming. “My favorite example is Rihanna,” she commented about the NFT collection launched just before the Super Bowl.

“I know she’s just testing the market in these 300 NFTs […]. Well, why can she do that? She can do it because when Spotify plays a Rihanna song, it can capture the smart contract, execute and say: ‘I owe royalties here so nobody has to be involved in it.‘ And it can take the fractional payment and go to Frank, a big Rihanna fan.”

Athletes Can Also Benefit From Tokenization, According To Johnson:

“Think [about] athletes are going to sign a big contract. They’ll say to their fans ‘I’m going to sell off tokens worth 10% of my future revenue stream.‘ I’m going to sell 100,000 tokens and boom, the fans are probably going to pay a premium for it.

So it will be a way and if you think about it, it’s just securitization done on steroids.”

1/ The Future is Tokenized Culture

Franklin Templeton’s Jenny Johnson nails it at CNBC ‘Delivering Alpha’.

– Tokenization = Securitization on Steroids

– Tokenization of Cultural IP via NFT Royalty Streams.

Rhianna is creating modern era ‘Bowie Bonds’ for fans that can… pic.twitter.com/Vrfqyne7SM

— Ram Ahluwalia, higher for longer crypto CFA (@ramahluwalia) September 30, 2023

Johnson has been with Franklin Templeton for over 30 years and currently sits at the top of the company’s executive leadership as president and CEO. Franklin, a $1.5 trillion asset manager with offices worldwide, is one of the companies waiting for regulatory approval in the United States for a spot Bitcoin exchange-traded fund.

Updated: 10-3-2023

12 Crypto Experts’ Tips For Companies Working With Tokenized Assets

As the idea of tokenizing assets continues to gain momentum, companies must keep regulatory compliance in mind.

For many consumers, dealing with certain industries — including finance and real estate — is a frustrating experience due to the vast amount of paperwork and red tape that comes with carrying out a transaction. Not surprisingly, the crypto industry has a tech-forward solution: tokenization.

By representing real-world assets such as real estate, art, stocks and bonds — essentially, anything — as tokens on a blockchain, transactional parties can more easily trade, transfer and manage assets.

The percentage of tokens owned by an individual represents their percentage stake in the underlying asset.

It’s a simple enough solution — but as is often the case in the crypto industry, the complication comes with regulatory compliance. In the United States in particular, there is still little clarity around the tokenization of RWAs, and regulations are likely to emerge and evolve in coming years.

Below, 12 members of Cointelegraph Innovation Circle share their tips for companies currently offering, or contemplating offering, an asset tokenization service.

Choose The Right Assets To Tokenize

The key lies in choosing the right assets to tokenize. For example, understanding the main differences between physical assets — such as art, real estate and so on — and rights — shares, bonds and so on — is paramount.

Ventures engaged in this challenge should consider duties concerning public offerings of their tokenized assets and the contractual architecture linking a token to the tokenized asset. – Sheraz Ahmed, STORM Partners

Continually Monitor Regulatory Updates

Companies should ensure clear disclosures, implement rigorous Anti-Money Laundering and Know Your Customer measures, emphasize data security and privacy, and proactively engage with regulators.

It is crucial for businesses to continually monitor regulatory updates, maintain adaptability and seek guidance from legal professionals who specialize in tokenized assets to maintain compliance and reduce potential risks. – Irina Litchfield, Lumeria

Know That Tokenized Assets May Be Classified As Securities

As companies explore asset tokenization, they must keep regulatory compliance at the forefront. Specifically, they need to understand that tokenized assets, depending on their nature, may be classified as securities by regulatory bodies like the Securities and Exchange Commission.

Thus, they should ensure proper registration, disclosure and compliance with securities laws to avoid legal repercussions. – Tomer Warschauer Nuni, Kryptomon

Don’t Forego Spot Asset Audits

Whether it’s a paper certificate, blockchain digital token or nonfungible token that tracks a real-world asset like a house, car, expensive watch, painting or supply chain item, there is still no replacement at the moment for a spot asset audit.

Remember that an RWA token is just a claim of ownership. If the actual item is no longer with the seller or custodian, then you have a problem. – Zain Jaffer, Zain Ventures

Remember “Temporal Compliance”

Tokenized asset enterprises should remember “temporal compliance.” This entails following current regulations and anticipating future ones. Token regulation is changing, therefore enterprises need adaptable compliance solutions.

It’s like playing 4D chess with regulatory bodies — anticipating movements while keeping an eye on the present. – Arvin Khamseh, SOLDOUT

NFTs

Incorporate A Flexible Design

This digital frontier is new, and so is its legal landscape. When tokenizing assets, remember this: Regulatory compliance isn’t an afterthought, it’s your trusted guidepost. Embrace it from the inception. Incorporate a flexible design that can adapt to evolving laws and norms.

Preemptive regulatory foresight will keep you from stumbling on compliance rocks while you cruise the tokenization tide. – Erki Koldits, OÜ Popspot

Integrate Multiparty Computation

For companies tokenizing assets, integrating multiparty computation can be a forward-thinking approach to regulatory compliance. MPC allows for secure data processing while keeping the data decentralized and private.

As regulations evolve, focusing on advanced data security methods like MPC could position a tokenized asset favorably in terms of compliance and investor trust. – Tiago Serôdio, Partisia Blockchain

Ensure Asset Authenticity

Similar to the art world, crypto should adopt the rigorous establishment of provenance to ensure an asset authentically corresponds to its stated origin. If digital representations are said to equal those of real-world significance, they should be held to the same standard.

This will help ensure bad actors face steep barriers when attempting to circulate fraudulent assets and insulate the value of this nascent class. – Oleksandr Lutskevych, CEX.IO

Say “No” To Custody

RWAs are now becoming a trend. We need to ensure that we say “no” to custody. Any custodial solution (including ERC-regulated compliance specs that enforce authorized whitelist or counterparty checks) should be avoided at all costs.

There are ways to solve legal issues, ensure secondary sales are carried out between known entities, and primary issuances are regulated — all without custody. – Jagdeep Sidhu, Syscoin Foundation

Ensure Smart Contracts Are Up To Date

Companies should ensure their smart contracts for asset tokenization include accurate and up-to-date regulatory requirements, such as ownership restrictions or investor qualifications.

For example, a real estate tokenization platform must program the smart contract to restrict property ownership to accredited investors only, maintaining compliance without manual oversight. – Vinita Rathi, Systango

Be Diligent About White-Labeled Products

The tokenization of RWAs is becoming an attractive bridge between emerging blockchain technology and traditional finance, so there should be increased diligence around white-labeled products.

Nothing is truly “one size fits all,” and that’s increasingly true in the world of tokenized assets, which encounter unique obstacles such as digital clones, tokens, fractional ownership and more. – Megan Nyvold, BingX

Know The Difference Between Security Tokens And Utility Tokens

Prioritize regulatory compliance. Companies need to understand the difference between security tokens versus utility tokens, as well as the specific regulations in the jurisdictions where they operate.

Establish processes to monitor ongoing compliance, and expect regulatory requirements to change over time. To be safe, engage a legal team with expertise in securities and blockchain law. – Anthony Georgiades, Pastel Network

Updated: 10-6-2023

Tokenized U.S. Treasuries Arrive On Coinbase’s Base With Backed’s RWA Token Issuance

The market for tokenized U.S. Treasuries has grown sixfold this year to $666 million, according to a real-world asset data provider.

Switzerland-based tokenization firm Backed Finance has expanded its tokenized short-term U.S. Treasury offering to crypto exchange Coinbase’s Base blockchain, the firm said Friday in a press release.

The issuance marks the first real-world asset token issued on the Base network, which also hosts the popular social tokenization platform Friend.Tech.

Issued under the Swiss tokenized securities law, Backed’s bIB01 crypto token is a blockchain-based version of BlackRock’s short-term U.S. Treasuries exchange-traded fund (ETF) that offers a 5.25% annual yield to investors.

The offering is available to qualified investors and licensed distributors who passed the firm’s know-your-customer (KYC) and anti-money laundering (AML) checks. U.S. investors and entities are restricted from buying the token.

Tokenization of real-world assets (RWAs) – an umbrella term for wrapping traditional financial instruments such as government bonds, private equity or credit in a token form and placing them on blockchains – has become one of the hottest trends in crypto this year.

The market for tokenized assets could mushroom to $16 trillion by 2030, according to a Boston Consulting Group report.

U.S. Treasuries are considered a gateway for tokenization efforts, as many digital asset investors, fund managers, crypto firms and decentralized autonomous organizations (DAOs) seek these products for their high yield and low-risk status.

The tokenized treasuries market has grown sixfold this year to $666 million, with asset management firm Franklin Templeton being the biggest player, according to rwa.xyz data.

Backed explained the expansion that Base offers a “low-cost, developer-friendly way to build on-chain,” adding that while its code is interoperable with Ethereum, transaction fees are “ten times cheaper.”

Updated: 10-7-2023

This Platform Lets Anyone Launch And Manage Tokenized Funds — Here‘s How

After a year of high-profile bankruptcies involving some of crypto’s best-known brands, this cross-chain operating system is putting power back into the hands of everyday users.

A cross-chain operating system says it allows anyone to launch and manage tokenized fund, strategy, or financial product.

Velvet Capital aims to democratize asset management by enabling on-chain DeFi portfolios, with a number of high-profile protocols already on board.

Crypto is a thrilling, innovative industry that’s shaping up to have a profound impact in the decades to come — but of course, it’s had quite a few knocks in recent years.

With high-profile collapses of FTX and Celsius badly bruising confidence in the sector over the past year, with some consumers losing their life savings as contagion spread.

As damaging as these bankruptcies have been, passionate entrepreneurs who care about the ecosystem are now taking it upon themselves to learn lessons from the downfall of people like Bankman-Fried and Mashinsky, making the space safer for everyone.

A key tenet in this campaign is reducing counterparty risk and putting power back into the hands of everyday crypto enthusiasts, who shouldn’t have to worry about withdrawals suddenly being suspended.

Inevitably, there are a few hurdles that need to be overcome before this becomes a reality. One of them surrounds delivering a seamless and frictionless experience — eliminating the pain points that DeFi investors are confronted with every day: complexity, security concerns, high gas fees, user interface difficulties.

The other involves catering to a broad range of crypto believers — and ensuring that newcomers are served just as well as seasoned traders who have been in the industry for years.

Now, a dedicated cross-chain operating system says it’s opening its arms to everyone and demystifying DeFi by ensuring all of its users can cultivate their own portfolios with a few clicks.

‘Ready To Use Or Create Your Own’

This new, democratized approach is being pioneered by Velvet Capital, which is driven by a desire to offer diversification to the masses.

With Velvet, users are given an easy to use interface and the choice to either access ready-to-use DeFi portfolios created by Asset Managers and Crypto Natives, or create their own.

Given the catastrophic implosions during the bear market, Velvet Capital stresses that portfolio’s created on the platform are noncustodial — meaning it doesn’t hold any user assets. To beef up security further, audits are also completed on a regular basis.

Choice is an important thing. Some investors prefer to let the best fund managers and algorithms do all the hard work on their behalf, others prefer to take a hands-on investing approach.

In the past, establishing a portfolio that spans a plethora of DeFi protocols would involve endless wallet integrations that add painful delays when multiple transactions need to be executed quickly.

Velvet Capital is integrated with PancakeSwap, 1inch, Ox, Paraswap, Alpaca Finance, and others to optimize investors’ capital efficiency and yield in one place.

Michael Hage, Vice President of Business Development, said:

“Building Velvet Capital is exciting because it’s the first professional grade DeFi asset management OS that’s open to all investors and will allow anyone to create and manage on-chain portfolios in a non-custodial way.”

Version 1 of Velvet Capital launched in November 2022 and allowed users to invest in ready made crypto indexes and yield farming portfolios— the next gen version 2 is set to go live soon and will deliver a professional-grade experience that’ll make it simple and easy to trade on-chain.

At the core of this platform is an ambition of unlocking access to a diverse range of crypto assets — without the limitations of a single chain. User experience is another priority, with performance across multiple timeframes broken down in an easy-to-understand interface.

Funds can be distributed directly via a native Web3 app and can use the Velvet Capital API to execute logic on-chain through Velvets infrastructure.

In the crypto space, choice and quality have never mattered more. Velvet Capital is now rising to the occasion — all while enabling the institutional adoption of DeFi.

Updated: 10-8-2023

How Tokenization Is Benefiting Game Developers And Players Alike

Crowdfunding has been a popular option for game developers looking to launch projects — but as the market gets saturated, tokenization is becoming a compelling alternative.

Tokenization platform Brickken is holding a competition for indie developers — allowing them to raise capital, attract a new audience of engaged players and accelerate their projects.

For years, crowdfunding has been the go-to for game builders looking to make a splash and secure investment for their big idea, and it continues to enjoy significant demand within the game industry.

Statistics from Kickstarter reveal that gaming is still the most popular category for crowdfunding campaigns. A total of 80,163 projects have launched after securing $2.27 billion in investment.

Ultimate Resource On Tokenized Deposits, U.S. Treasuries And Other RWA's (Real-world Assets)

But gaining traction and achieving milestones has gotten more complicated as the market reaches saturation — with even the most promising titles struggling to stand head and shoulders above the competition.

This is where tokenization comes into play and turns gamers into stakeholders.

The Benefits Of Tokenization

Before tokenization, a significant barrier to entry for potential investors in emerging gaming projects was the minimum investment required. To make matters worse, those who contributed might not receive much incentive in return.

Tokenization transforms all of this — by automating and token-gating these processes. It opens the door to fractional ownership, meaning gamers on all budgets can take a stake in the projects they’re passionate about.

Developers also have an opportunity to give backers a seat at the table — allowing them to vote on key milestones that’ll alter the course of the project in the months and years to come.

Communication channels can be walled off to those who have made a contribution too, enabling them to tap into exclusive perks and content.

Moreover, tokenization is a marketing powerhouse for both players and game developers. Players become stakeholders, motivated to promote and engage with their favorite games actively, and tokenized assets further fuel their involvement.

For developers, it’s a community-building tool that incentivizes player engagement. The result is a more inclusive, efficient, and engaging ecosystem that benefits both developers and gamers alike.

As Felix Tejland, chief marketing officer at tokenization solution provider Brickken, points out, crowdfunding has played a pivotal role in bringing our most beloved games to market.

“Asset tokenization is the evolution of that, introducing a participatory aspect in which the early adopters can be properly incentivized to boost awareness and help in marketing the game.”

Unlocking The Future

Now, the Brickken Gaming Awards have launched — allowing budding developers to showcase their creations in exchange for the chance to supercharge their ideas like never before.

Successful applicants have the potential to win free tokenization and a marketing package worth $10,000.

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The project says this can give imaginative games massive exposure and sponsorship opportunities, all while cultivating contacts with fellow developers and enthusiasts.

After filling out a participation form, applicants who advance to further rounds will be tasked with pitching their game in a live broadcast — paving the way to a final where prizes will be awarded.

Ever since smartphones challenged the dominance of game consoles, there’s been a golden opportunity for cutting-edge titles to make a huge impact — and reach emerging economies that were once out of reach.

Brickken now believes that tokenization could take fundraising and audience engagement to the next level.

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