RedBlock Newsletter: From the Gaming Industry to Treasury Bonds, Asset Tokenization is Taking On A Bigger Role
RedBlock Newsletter #2: Week Ending July 17th, 2020
Welcome to the RedBlock newsletter, where we break down the week’s biggest news in the world of digital investment and fintech.
This week, it’s everything tokenization and digital assets, so without further ado…
Tokenization’s Potential in the Gaming Industry
A recent article published by cointelegraph.com highlighted the potential for major facets of the gaming industry to be completely tokenized. That means anything from in-game items to entire esports teams and development studios are prime candidates for fractional ownership and a more direct line of access between fans and/or individual investors and gaming entities. This not only changes how fans can interact with and gain access to, say, their favorite esports teams, but it also means a shift from traditional fundraising rounds when it comes to game developers and publishers. This prospect, like most prospects with tokenization, gives us a view into a world where holding equity can mean vastly different and exciting things.
News from our partners at SEBA
SEBA, a Swiss cryptocurrency bank, will allow its clients to invest in tokenized assets “that represent real tradable assets like treasury bonds or foreign exchange contracts on the open-source blockchain platform Corda.” This news comes as a result of their partnership with Digital Asset Shared Ledger.
In SEBA’s case, it is allowing clients to make use of a custodial wallet. This will allow tokenized securities to be distributed to investor networks, which means more tokenized assets will be in circulation among large capital market participants. This in of itself can bode well for accelerated market adoption.
Institutional Investors Are Investing Record Amounts in Digital assets
Institutional adoption of digital assets is also on the rise, as digital asset manager Grayscale Investments reported a record $905.8 million invested in digital assets in its second quarter of 2020. This amount is nearly double what it was in Grayscale’s first quarter. Not only are institutional investors committing more resources to products like its Bitcoin Trust and Ethereum Trust, as well as diversifying portfolios across numerous alternative cryptocurrencies, large amounts of new investors are entering into business with Grayscale, representing 57% of their investors. It is important not to understate the importance of new capital market players when it comes to talking about market adoption, because it tells of how the digitization of assets can deliver on an oft-cited promise of democratization in the world of investing and equity.
…And What About Personal Use of Digital Assets?
PayPal, the payments company with more than 300 million users, has said that it is looking into offering cryptocurrency trading services. It is important to note that this announcement is in conjunction with an ongoing effort by the European Union to establish a framework around cryptocurrency assets. The implications of this are huge; once this framework is set and PayPal can offer these services, the digital assets space will be able to see a large-scale adoption among individuals across the European Union.
- The gaming world presents an opportunity for tokenization to allow for a lot more accessibility to anything from equity in developer studios and their intellectual property to in-game items.
- Our partner, SEBA, is now letting its clients invest in tokenized assets.
- Institutional investors are investing in digital assets more than ever; more and more smaller investors investing in digital assets as well.
- Mass adoption of digital asset use on an individual scale is getting closer to being a reality with PayPal’s announcement that it is developing cryptocurrency services.
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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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