Mass adoption of tokenized assets is on the horizon; fully realized crypto banking; FTX is offering tokenized equities

Newsletter #21: Week of November 29th

Greetings everyone and welcome back to another installment of the RedBlock Newsletter. The good news keeps coming for the team here at RedBlock, as we have just entered into another collaboration with Huochain. For the uninitiated, Huochain is Huobi Group’s enterprise team in China!

A couple of weeks ago, RedBlock received the distinction of being a part of a flagship group of companies to set up operations at the Huochain Digital Economy Industrial Innovation Center. Read the full press release where we talk about the collaboration.

This week, as part of our research series on issuance platforms, we have our report on The Dusk Network live at our research hub!

Alright, now let’s get to the news!

1. Fully realized crypto banking might be on the horizon

Switzerland has been a leader in the fintech industry, so it should come as no surprise that our first story this week surrounds an apparently rather imminent reality there: fully realized crypto banking.

One such bank that has been leading the charge to offer crypto services in Switzerland, Gazprombank, says that it is ready to provide services so that its customers can interact with cryptocurrencies like they would fiat currencies. That is, customers would be able to make banking payments with currencies such as Bitcoin. This could also mean that customers would be able to perform functions such as buying stocks and bonds with cryptocurrency. (Fintech News)

1. As high-profile companies adopt, mass adoption of tokenized assets seems inevitable

Paxos CEO Charles Cascarilla put forth a major vote of confidence this week when he said that the tokenized assets market is going to see mass adoption. Cascarilla and Paxos are certainly in a position to say this, as they recently partnered with PayPal to deploy the much talked about PayPal crypto service.

In particular, Cascarilla said that the tokenization of gold should take off as Paxos’s assets under management in regards to gold passes $1 billion. In fact, he has said that gold “will have to be digitized in order to compete with Bitcoin.” (Cointelegraph)

2. FTX now providing tokenized equities

Hong Kong based crypto derivatives exchange, FTX, alongside Germany based tokenization service provider Digital Assets AG, has rolled out regulatory compliant, tokenized equities. This opens traders up to “more than a dozen in-demand trading equity and crypto pairs, including TSLA/BTC, and AMZN/BTC.”

This is an attractive proposition, as it not only allows traders access to high-quality assets, but it also adds to the legitimacy of crypto and digitized equity trading, given that traders can now engage with well-known companies such as Tesla and Amazon. In an industry as nascent as the digital assets and crypto assets industry, it is up to service providers to lead the market and potential users to see just what advantages our ecosystem and fintech brings to the table, and high-quality tokenized equities are an important move in this direction. (Decrypt)

1. Keyrock receives substantial investment (and expertise) in a recent round of fundraising

Digital asset market maker Keyrock just secured 4.3 million euro in investments from investors this past week. What is notable about this is not just the money and investor confidence that is now present at Keyrock, but also the fact that one of the investing parties, SIX Fintech Ventures, will be helping to guide Keyrock’s development. According to Keyrock’s CEO Kevin de Patoul, “‘“SIX is at the forefront of incumbent exchanges’ forays in digital assets through its flagship project SDX. Their experience and expertise in building successful exchanges will drastically accelerate our development.”’” (Crowdfund Insider)

2. Level01 is showing a lot of promise ahead of its STO

Level01, a DeFi platform that has been making strides since its launch in 2018 with the listing of its utility token on multiple exchanges and its AI development, just announced that it “generated over $10m USD in revenue from token sales from thousands of investors, whilst reporting a $2m Net Profit last financial year.” All this, ahead of its STO. (Wire19)

That does it for this week’s newsletter! Thank you all for reading and see you next week👋

References

Regulatory News

1. “Bitcoin Banking Services Edging Closer to Reality in Switzerland”

Industry Updates

1. “As PayPal integration looms, Paxos CEO sees mass adoption for tokenized assets”

2. “Hong Kong Exchange FTX Launches Regulated Tokenized Equities”

Investment and Financing

1. “Brussels based Keyrock, a Digital Asset Market Maker, Secures €4.3 Million from SIX Fintech Ventures, Others”

2. “Leading DeFi Platform Level01 Secures Millions Ahead of Upcoming STO Listing”

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About RedBlock

RedBlock Inc is a digital investment and fintech firm leveraging blockchain technology for asset digitization and management, from issuance to secondary liquidity. Its global network of capital market participants, including issuers, broker-dealers, secondary exchanges, funds, liquidity providers and custodians, are supported by its end-to-end blockchain-powered asset management platform. RedBlock also manages an investment fund to support companies in its ecosystem that align with its investment thesis. With a growing track record and pipeline, the RedBlock team hails from top tier global investment banks, venture capital firms and blockchain technology companies.

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