The cryptocurrency market has turned slightly bullish with Bitcoin (BTC) inching towards $30,000. While preparing this report, Bitcoin was trading at $28,394, up 4.40% in the past 24 hours. Ethereum (ETH) had gained 2.10% to trade at $1,595. XRP was trading at $0.4949, reflecting a gain of 1.60% in the same period.
Major cryptocurrencies, which have gained ground in the past 24 hours, are Bitcoin Cash (BCH, $228.46, 5.10%), ChainLink (LINK – $7.51, 0.80%), VeChain (VET, $0.0167, 1.10%), Shiba Inu (SHIB, $0.00000711, 1.70%), EOS (EOS – $0.5557, 0.40%), IOTA (IOTA – $0.1512, 4.30%), Binance Coin (BNB – $214.57, 2%), Avalanche (Avax- $9.32, 0.10%), Cardano (ADA, $0.2506, 1%), Polkadot (DOT, $3.75, 0.1%), and Solana (SOL, $24.07, 9.10%).
Government Level Initiatives
Israel Land Authority Explores Blockchain for Tokenized Real Estate Exchange
The Israel Land Authority (RAMI) has invited bids from blockchain consultants. The tender indicates that RAMI’s goal is far beyond the creation of a digital land registry. It intends to create an exchange for buying and selling tokenized real estate.
The blueprint includes:
- Registering assets and administering licenses, transactions, and rental contracts using smart contracts.
- Tokenization of real estate: buying, selling, rental, investment, and distribution of gains.
- Establishment of an exchange for trading tokens and getting royalties.
Tokenized real estate is considerably different from real estate investment trusts (REITs), which generally include a portfolio of properties. On the contrary, tokenization targets individual properties, commercial spaces, or residential apartment blocks.
One of the main advantages of tokenization is fractionalization. Any individual can invest a small amount and get fractional ownership of an asset. Likewise, large investors can enhance an asset’s liquidity.
Private Sector Initiatives
La Française Group Partners with Allfunds Blockchain to Enhance Global Fund Distribution
Allfunds Blockchain has collaborated with boutique asset manager La Française Group, which has €45 billion in assets under management. Together, they intend to minimize the expenses incurred for the distribution of funds across the world to their aggregated investors. By running a node on the Allfunds Blockchain network, La Française can obtain and execute orders without any third-party involvement. The node is expected to become commercially active in the first quarter of next year.
The shared ledger ensures better transparency in the distribution process by participants and eventually slashes expenses. Furthermore, it offers more precise cut-off times and improves reporting.
This is not the first time La Française has been involved in blockchain initiatives. The firm is a participant in IZNES, the UCITS fund marketplace powered by blockchain. IZNES initially concentrated on France and has since extended its operations to other European countries. The firm has €8 billion in assets on its registry.
South Korean Securities Firms Unite to Standardize Digital Securities
South Korea-headquartered securities companies, Shinhan Investment and Securities, KB Securities, and NH Investment and Securities, have formed an association for digital securities. Each of those firms has separately started working on securities tokens.
Through the partnership, the entities intend to minimize expenses and achieve economies of scale to lure more issuers for security token offerings (STOs). Furthermore, by using a common distributed ledger, they intend to minimize fragmentation. In certain jurisdictions, several digital securities platforms have established silos without interoperability features.
If more securities firms join the association, it will improve the benefits. The three firms aim to establish an industry standard. It can be noted that Korean firms’ focus is on web3 asset tokenization aimed at retail investors instead of institution-level issuers.
UBS Asset Management Tokenizes Money Market Fund on Ethereum Blockchain
UBS Asset Management has successfully completed the trial issue of a tokenized money market fund on the Ethereum public blockchain. It is one of the controlled trials under Project Guardian, run by the Monetary Authority of Singapore (MAS).
One of the major benefits of tokenizing funds is better liquidity through a wider reach. Additionally, fund distribution costs are reduced, while tokenization enables even small investors to participate. Earlier, only high-network individuals and institutions could take part in such funds.
To begin with, UBS Asset Management processed fund subscriptions and redemptions of the tokenized fund in the form of a smart contract. It intends to sign up more partners and study other investment plans in additional live trials. UBS utilized its own Tokenize platform for the trial.
The fund has been modeled as a variable capital company, which resembles the new Singapore corporate structure aimed at the asset management sector.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
