Megatrend Tokenization

🎣 w3.catch-of-the-week cw27

Vicktoria Klich & Quinn Wilhelm
July 05, 2024

GMGM and welcome to 🎣w3.catch-of-the-week, the Cristiano Ronaldo among Web3 newsletters.

The world outside the blockchain is currently preoccupied with two topics: Euro24 and presidential elections in the USA.

But what if I told you that there is a platform that combines all three things: blockchain, sports and elections - yes, we're talking about Polymarket again 😉.

I can't avoid it, because the number of users and the volume traded is increasing day by day. In June, the platform set a new record volume of over 110 million, driven by almost 30k active monthly users.

Here is Vitalik's opinion on prediction markets like Polymarket:

Prediction markets and Community Notes are becoming the two flagship social epistemic technologies of the 2020s.
Both truth-seeking and democratic, built around open public participation rather than pre-selected elites.
I want to see many more things like this.
— vitalik.eth (@VitalikButerin)
10:55 AM • Jul 2, 2024

📈 Tokenized Securities
👀 Chainlink x Fidelity
🏆 Big Milestones for Cashlink
💡Who’s bringing Newbies Onchain?
☯️ Blockchain x AI Use Cases
🤝 Meet us @EthCC

Tokenization: The Future of Capital Markets

It is no secret that the tokenization of securities is the hot topic for asset managers worldwide. Fueled again and again by Blackrock CEO Larry Fink, who shills it on TV.

The total assets under management (AUM) of all government tokenized securities is now above $1.5 billion. The two largest funds are BUIDL (Blackrock) with $486 million AUM and BENJI (Franklin Templeton) with $357 million AUM.

Tokenized government securities have recorded an increase of 194% in the last 12 months.

A study by zeb Consulting predicts that the market for digital assets will grow massively. The current €240 billion in the EU + Switzerland could become up to €3.7 trillion by 2030.

It is estimated that the market for tokenized securities alone will reach €1.5 trillion by 2030.

Chainlink brings $6.9 Billion Fund Data Onchain

Fidelity International and Sygnum are now using Chainlink to put the Net Asset Value (NAV) data of Fidelity International's $6.9 billion money market fund on the blockchain.

Chainlink makes the NAV data for Fidelity International’s Institutional Liquidity Fund clear and easy to access.

Sygnum, a global digital asset banking group, has tokenized $50 million of Matter Labs’ company treasury reserves. These reserves are kept in Fidelity International’s money market fund and have been issued on the zkSync blockchain, which is part of the Chainlink SCALE program.

“The global reach and efficiency benefits of tokenized funds are far greater than traditional methods and will over time become the way the entire asset management industry operates,” Sergey Nazarov, co-founder of Chainlink, said in an interview.

Two New Milestones for Cashlink

Cashlink is the first company in Germany to receive a license to operate a crypto securities register in accordance with Section 16 of the German Electronic Securities Act (eWpG).

This is an important success that underlines Cashlink's leading role in digital securities and advances the digitalization of the capital markets.

There is another success to celebrate: Cashlink has successfully supported KfW in issuing its first blockchain-based digital bond according to eWpG.

The transaction aroused great interest and was accompanied by DZ BANK AG, Deutsche Bank, LBBW and Bankhaus Metzler. Union Investment was an important anchor investor.

It is becoming increasingly clear how blockchain can be used to increase efficiency in capital market processes.

Exciting times lie ahead for Michael Duttlinger and the entire Cashlink team as well as the financial sector in Germany!

The Grand Onchain Debate

Bringing the next billion people onchain - A mission shared by many, but who is really doing it? 🫠

Whether it's Solana, who recently attempted it via Blinks, or Coinbase via their smart wallets; almost every Web3 company is making it their mission to bring users “onchain”.

However, most products/services are aimed at a tech-savy target group. The “off-chain people” usually have completely different problems. As a result, few have made a breakthrough so far.

The problem should be clear, but what solutions are currently being worked on?

Blockchain Links, which I introduced last week, is a promising solution.

Pudgy Penguin toys too, precisely because they are physical, cheap and cute 🥺. In addition, they offer added value that conventional toys do not.

They are available from $6 in Walmart stores and also on Amazon.

👉 Stores where the Web2 target group spends time.

But why should soft toys be the key to the Onchain Adoption?

The trick is that there is a QR code on the penguins. This gives the customer access to a digital penguin. A wallet is automatically created during the process. The cool thing is that the customer doesn't notice it immediately.

As result over 70k new wallets have been created since the launch in May 2023.

A win-win situation: the penguin owner can play with their penguin in a digital world. Luca Netz and his team create potential new onchain users. Additional purchases such as clothing for the digital penguin can generate additional sales.

Acquisition of Frame

Last week, parent company Igloo Inc. announced that it was acquiring Frame. The goal is to build the layer 2 for consumer apps.

In this podcast, CEO Luca Netz explains why he considers it necessary to build a Layer2 himself instead of building on an existing one.

Even if it feels a bit like that, history has revealed one thing to us: Never underestimate Luca Netz.

Food for Thought: Thesis of Base

Here's a thesis on why it will be Coinbase's Layer2 (Base) that gets people onchain.

How do you feel about this? Tell us who brings/will bring new people onchain and how.

Yin & Yang of Web3: Blockchain & AI

One of the most discussed use cases on Web3 is the synergy between blockchain and AI. But where are we right now and why is nobody talking about it?

If we look at the price development of AI-related coins, we can see that they are overperforming. According to the latest Graysacle report, this interest will continue.

Grayscale describes four use cases for the combination of both technologies:

AI Development Using Decentralized GPU Marketplaces: AI can be developed using shared computer power from a decentralized network, making it cheaper and more accessible.
Zero-Knowledge Proofs for AI Verification: We can use special cryptographic techniques to prove that an AI's results are correct and based on the right data, without revealing the data itself.
Crypto Payments for AI Automation: Cryptocurrencies can be used to automate payments and interactions with AI systems smoothly and efficiently.
AI-Generated Content in Crypto Gaming: AI can create content for crypto games, and virtual characters or items can be made as NFTs

Artificial Superintelligence Alliance (ASI) token merger

Three projects are joining forces to drive forward decentralized developments in the AI sector. More specifically, Singularity Net, Ocean Protocol and Fetch.ai are currently merging their tokens into $ASI (Artificial Super Intelligence).

“Our mission with this merger is to combine our platforms to ensure ethical and transparent AI that facilitates direct interactions between developers and users to bypass the traditional gatekeepers of centralized authorities.” - Humayun Sheikh, Fetch.ai CEO & Founder

The merger started on July 1st. $AGIX and $OCEAN tokens will be converted into $FET. Subsequently, $FET becomes $ASI.

If you have these tokens on a CEX (Centralized Exchange), the transformation will take place automatically. If not, you will have to make the transition yourself.

If you want to stay informed about the latest developments, I recommend that you follow the X account.

We will be in Brussels during @EthCC 🇧🇪
Reach out to us if you are:
🏋🏽 a Web3 startup founder
💸 an investor looking to invest in the crypto space
✨ a staking provider or someone really interested in staking their assets under compliance
— w3.fund (@w3_fund)
8:30 AM • Jul 3, 2024