Franklin Templeton and Grant Cardone Predict a Seismic Shift
Insights into the significant changes expected in the financial industry as it integrates blockchain and smart contract technologies.
🔒 NEED TO KNOW 🔒
In the fascinating world of crypto and blockchain, 2023 has been a roller coaster, but 2024 looks even more promising. Imagine blockchain as a digital jigsaw puzzle, where each piece represents an asset. Right now, we've only got a tiny fraction of the puzzle pieces on the table.
But initiatives like Project Diamond are like adding more and more pieces, showing us a clearer picture of the future financial landscape. Chainlink's bold move to enhance its tokenization services is like adding some vibrant colors to this puzzle, making it more attractive and valuable.
While I couldn't get my hands on all the insights, the general vibe is clear: 2024 is about expanding the puzzle, adding more pieces, colors, and details. We're not just playing with digital currencies anymore; we're reshaping the entire financial picture. For my savvy investors, this is like being at the forefront of a financial renaissance, a once-in-a-lifetime opportunity to be part of a revolution that's just picking up pace. Get ready, because the puzzle of the future is coming together, and it's more exciting than ever
Project Diamond Launches Smart Contract Platform: Project Diamond, by Coinbase Asset Management, bridges the gap in blockchain infrastructure for global assets, showcasing a debt instrument on an Ethereum layer-2 blockchain to improve efficiency in the global cryptoeconomy.
DeFi Evolution in 2024:
The UK and EU are advancing DeFi and tokenization through regulatory sandboxes like the UK's FMI and the EU's DLT pilot regime, allowing for experimentation within a regulated framework. These initiatives aim to integrate Distributed Ledger Technology (DLT) into financial markets, with the UK's approach offering broader participation and more flexible legislation adjustments compared to the EU's.
The success of large-scale tokenization, predicted to impact $5 trillion in assets, depends on proper regulatory support and network interoperability. Efforts like the UK's fund tokenization blueprint and international collaborations are vital steps toward enabling a more secure, efficient, and democratized digital economy.
Chainlink's Optimistic Projections for 2024: Chainlink plans to enhance its asset tokenization services and its Cross Chain Interoperability Protocol in 2024, potentially increasing its market value and boosting its real-world asset tokenization drive.
American Banker - Crypto Developments in 2024:
2024 in blockchain and crypto is set to be transformative, with key players like Project Diamond and Chainlink enhancing tokenization and interoperability, despite the industry's regulatory battles and the resilience of Bitcoin indicating a shift from speculative trading to practical utility.
The regulatory landscape remains a significant battleground, particularly between the SEC and CFTC, but the increasing interest in tokenization by major institutions and ongoing developments suggest a promising future for more efficient and innovative financial systems.
Perspectives for 2024 - Real-World Assets Tokenization:
The Real World Assets (RWA) sector is anticipated to continue its growth in 2024, with a focus on diversifying stablecoin offerings and expanding tokenized assets like intellectual property and carbon credits, despite challenges in competing with established players like USDC and USDT.
Regulatory landscapes are evolving to accommodate this growth, with a shift toward prioritizing the needs of capital providers and an expected increase in institutional engagement and digital bond issuance within the tokenization space.
🏙 REAL ESTATE 🏙
6. Real Estate Tokenization by the Numbers
💹 Blockchain-based lending reached $582 million in 2023, a 128% increase from the previous year.
💸 The average annual percentage rate (APR) for blockchain credit is 9.65%, competitive with traditional bank loans.
🏦 Total value of blockchain-based loans has hit $4.5 billion, with an average loan size around $2.5 million.
📈 Ethereum-based Centrifuge leads the market, holding over 43% share with $255 million in loans.
💰 Stablecoins such as USDT, USDC, and DAI are the preferred currencies for blockchain lending.
🌐 The blockchain loan sector is diverse, including consumer, automotive, fintech, real estate, and more.
🔎 Despite growth, blockchain-based loans represent just 0.3% of the traditional private credit market.
🏢 Morgan Stanley is actively seeking commercial real estate deals, employing varied investment strategies.
📉 U.S. apartment rents saw the largest decline since February 2020, with a 2.1% drop year over year in November.
🏙️ Nearly 50% of North American companies plan to enforce a 5-day office workweek in 2024, as office usage trends upward.
7. Grant Cardone’s Prediction on Real Estate for 2024 and 2025
Grant Cardone predicts that in 2024, rents will generally flatten in most cities except for high-demand areas like San Francisco, Los Angeles, New York, Miami, and parts of Denver, while cities like Austin, Nashville, Dallas, and Houston may see a decrease due to being overbuilt.
He anticipates that national average rents for a two-bedroom apartment will double from the current rate of just under $1,900 within the next 10 years, due to a current shortage of about 400,000 units and new construction not fully meeting demand. Cardone suggests that the years 2024 and 2025 will be opportune times for investing in real estate, with expectations of rent spikes between 2026 and 2027, potentially increasing by 10 to 15% annually, leading to a doubling of current rent prices.
8. My Take on Real Estate Today
As a seasoned connoisseur of the high-stakes commercial real estate chessboard, I've watched with keen interest as tokenization transforms properties into king-like pieces, moving with unprecedented agility across a board governed by blockchain's unyielding rules. My Investor compatriots, imagine each stately building not as a singular fortress, but as a collection of golden bricks, each brick a token you can trade, own, and profit from, as easily as sipping vintage Bordeaux on your private terrace.
Below, learn more about the SEC's perspective on tokenized real estate assets and discover how Chateaushi is revolutionizing historic real estate restoration.
9. Will Your Next Real Estate Investment Be on the Blockchain? Then Read this:
The SEC has labeled at least 68 cryptocurrencies as securities, including well-known tokens like SOL, ADA, and MATIC. The market for tokenized assets could reach a valuation of $10 trillion in the near term, as reported by 21.co.
Blocksquare offers a real estate tokenization protocol that allows for the creation of 'PropToken' smart contracts representing specific properties, which can potentially integrate with the DeFi market through the Oceanpoint.fi platform.
10. Invest in Real Estate Tokens and Own a Piece of the Past!
Brittany Kaiser, co-founder of Chateaushi, is utilizing security token offerings (STOs) to fund the restoration of distressed, historic real estate.
Chateaushi's innovative approach allows investors to receive either dividend-bearing private equity or security tokens, providing tangible benefits and exclusive club membership.
The company's first project involves the tokenization of a grade-one listed national landmark in France, merging cultural preservation with advanced blockchain technology.
💰 DEALS 💰
let's get right into Tokenized Deals and why these particular deals are so buzzworthy:
11. Spirits Capital Corporation's $35 Million Tier 2 Reg A Capital Raise
Democratizing Investment in Premium Spirits: Spirits Capital Corporation, through its capital raise on the tZERO platform, is breaking new ground by offering a unique investment opportunity in premium American whiskey. What's crucial here is the pathway it opens for investors to capitalize on the growth in value as the whiskey matures—typically a play out of reach for the average investor. This isn't just about whiskey; it's about innovating investment opportunities and making them accessible. Read more about the Spirits Capital Corporation launch.
Technological Integration and Strategic Partnerships: The move by Spirits Capital Corporation to collaborate with tZERO is compelling because of tZERO's technological prowess and its partnership with ICE. This isn't just a financial move; it's a technological leap. The integration across tZERO’s platform means that investments are not only secured but are made through a transparent and efficient system. This is a big deal in the world of finance, where transparency and efficiency are often in short supply. Discover more about the technology and partnership.
And over in the world of crypto and tokenization:
12. Shiba Inu's Strategic Partnerships and Tokenization Initiatives
Tokenization of Real World Assets: Shiba Inu’s partnership with D3 Global and the focus of Chainlink on real-world asset tokenization in 2024 is a massive stride in the cryptocurrency domain. It's not just about another cryptocurrency; it's about expanding the utility of blockchain technology to tangible, everyday assets. This could revolutionize how we perceive and interact with assets like real estate, art, and more. Learn more about Shiba Inu's partnerships.
Innovation with Pullix Token: Pullix is gaining traction with its presale tokens, and for good reason. It's promising a hybrid of centralized and decentralized finance, which could be a game-changer for accessibility in financial markets. The fact that they're also focusing on low fees and fast processing with the DeFi swap feature shows a commitment to user-friendly financial solutions. Token buy-backs and burns are strategies that could potentially increase PLX token value and scarcity, making it an attractive option for investors. Get the scoop on Pullix presale.
🧭 TECHNOLOGY SPOTLIGHT 🧭
13. Ethereum Embraces ERC-3643: A New Dawn for Tokenization
Ethereum's new ERC-3643 standard is set to revolutionize how real-world assets are tokenized, aiming to enhance security, compliance, and market accessibility.
With a potential $10 trillion market by 2030, this move could significantly boost liquidity and transparency in trading everything from real estate to intellectual property.
You can read more about it here.
14. Stobox: The Rocket of Real-World Asset Tokenization
Stobox's Meteoric Rise: The Stobox token (STBU) skyrocketed with a 5000% gain in 2023, highlighting the explosive potential of tokenizing real-world assets (RWA) and the growing investor interest in compliant crypto tokens.
Innovation at the Forefront: As a blockchain solutions provider, Stobox is making waves by creating innovative products for the issuance, management, and trading of compliant crypto tokens, showcasing the future potential of RWA tokenization.
15. Franklin Templeton: Tokenization Markets' 24/7 Blueprint: A Glimpse into Future Trading
The finance industry is witnessing a seismic shift as traditional institutions begin piloting innovative crypto technologies like blockchains and smart contracts, potentially redefining market operations for the first time in 50 years.
The integration of blockchain technology could significantly streamline and secure financial transactions, offering around-the-clock trading and immediate settlement, a stark contrast to the multi-day processes of the current system.
🎯AUTHOR BIO 🎯
Meet Mark Fidelman, the tech-savvy founder of SmartBlocks.Agency, who is making waves in the world of Tradfi using tokenization as his battering ram. With a background in technology sales, marketing, and customer experience, Mark has been instrumental in driving growth for organizations such as NFT leader WAX.io.
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