JPM Coin vs. Tetraguard: The Future of Finance is Tokenized, But Who Will Lead the Charge?
Tokenized Insider Volume 66
Here's your sneak peek of what you'll learn today:
📈 Trending: JP Morgan’s JPM coin is hitting $1 billion a day
🛠️ Deep Dive: A comprehensive look at Tetraguard and its investment potential 🤥 FTX Saga: For My Next Trick, “I’ll make $10 billion disappear”
📰 News: Ledger's game-changing move into Tokenization as a Service
🚀 Technology: The significance of Ledger's partnerships and what it means for the future of tokenization
🔒 NEED TO KNOW 🔒
1. JP Morgan's JPM Coin Hits $1 Billion in Daily Transactions
• JP Morgan's JPM Coin is now processing $1 billion in transactions daily, according to Takis Georgakopoulos, who spoke to Bloomberg.
• The blockchain-based payment solution was initially launched in 2019 and is mainly used by large institutions and corporations like Siemens treasury for global, 24/7 money transfers.
Blockchain Platforms and Expansion
• JP Morgan also operates a blockchain intraday repo platform and a tokenized collateral management network. These platforms likely contribute to a significant portion of JPM Coin transactions.
• Initially, JPM Coin was designed for dollar payments but expanded to include euros in June. Further expansion is planned, including a soft launch with Bahrain’s ABC Bank for payments between Bahrain and multiple countries.
Retail Version in the Pipeline
• While the focus has been on wholesale and B2B blockchain solutions, Georgakopoulos hinted at the development of a more retail-oriented version of the digital deposit tokens.
Technical Aspects
• JPM Coin operates as a blockchain-based bank account where funds are moved into a separate account and tokenized. The process is reversed on the receiving end.
• JP Morgan categorizes digital payment solutions into three types: an internal ledger, a shared ledger, and a universal ledger. JPM Coin falls under the internal ledger category.
Partnerships and Future Projects
• JP Morgan co-founded Partior, an interbank network for multi-currency payments, along with DBS Bank, Temasek, and Standard Chartered.
• The bank is also involved in deposit token trials on public blockchains as part of a Monetary Authority of Singapore project.
Will it Help?
• The $1 billion daily transaction volume indicates strong institutional adoption and could pave the way for broader blockchain acceptance in the financial sector.
Will it Not?
• While the numbers are impressive, the real test will be the platform's ability to scale and adapt to diverse financial ecosystems, including retail applications.
In summary, JP Morgan's JPM Coin is making waves in the blockchain-based payment solutions space, with a daily transaction volume of $1 billion. The bank is not only focusing on institutional clients but is also eyeing the retail sector for future expansion. However, the platform's success will ultimately depend on its scalability and adaptability.
2. The FTX Saga: A Cautionary Tale Fueling the Rise of Asset-Backed Tokenization
This courtroom drama is exactly why tokenization tied to real-world assets is becoming the new crypto gold standard. When your digital tokens are as nebulous as a puff of smoke, it's far too easy for things to go up in flames, leaving investors burned and CEOs facing the music in court.
Sam Bankman-Fried, the FTX founder who's more comfortable in a T-shirt than a courtroom, took the stand to defend himself against fraud charges. In a plot twist worthy of a Hollywood drama, he blamed his former CEO and ex-girlfriend, Caroline Ellison, for the company's downfall while admitting to "mistakes" but not fraud.
The guy's facing decades in prison if convicted, yet he's as calm as a Zen master, insisting he didn't pilfer billions but was just an "aloof CEO" who trusted too much. Ah, the perils of scaling too fast and forgetting that risk management isn't just a buzzword—it's a lifeline.
⚡ INVESTMENT OPPORTUNITIES ⚡
ChainLink ($LINK)
What It Is: Chainlink's native token, LINK, has been on a tear, hitting a 17-month high with a 43% surge over the past month, largely due to the growing interest in tokenizing real-world assets.
Why It May or May Not Be a Good Investment: Look, if you're keen on riding the tokenization wave, LINK is your surfboard. It's the oracle network that's bridging the real world to the blockchain. But let's not get carried away; the crypto market is as stable as a house of cards. Investors cashing in could trigger a price correction, so keep your eyes peeled.
Polymesh ($POLYX)
What It Is: Polymesh is a permissioned layer-1 blockchain for security tokens, offering smart-contract-based compliance and MERCAT-enabled asset issuance.
Why It May or May Not Be a Good Investment: If you're looking for a blockchain that's got its compliance game on point, Polymesh is your guy. But remember, it's a permissioned blockchain, which could limit its adoption and scalability.
Centrifuge ($CFG)
What It Is: Centrifuge brings debt products like invoices and real estate on-chain via liquidity pools and has seen a 199% YoY growth in TVL.
Why It May or May Not Be a Good Investment: Debt products on the blockchain? That's like Wall Street meeting Silicon Valley. But tread carefully; it's backed by Coinbase Ventures, which could be a double-edged sword given regulatory scrutiny.
Synthetix ($SNX)
What It Is: Synthetix supports derivatives like spots, futures, and options via synthetic assets built on Optimism and Ethereum.
Why It May or May Not Be a Good Investment: If you're into derivatives but hate the hassle of holding assets, Synthetix is your playground. But, it's built on Optimism and Ethereum, so gas fees could eat into your profits.
Landshare ($LAND)
What It Is: Landshare allows investment in tokenized real estate assets directly on the Binance Smart Chain.
Why It May or May Not Be a Good Investment: Real estate on the blockchain for as low as $50? That's democratizing investment. But it's on the Binance Smart Chain, so keep an eye on regulatory developments.
Maple Finance ($MPL)
What It Is: Maple Finance connects accredited investors to lending opportunities for their digital assets.
Why It May or May Not Be a Good Investment: If you're looking to put your digital assets to work, Maple Finance is your matchmaker. But remember, it's for accredited investors, so it's not a party for everyone.
Realio Network ($RIO)
What It Is: Realio allows digital securities and crypto asset issuance, investment, and management.
Why It May or May Not Be a Good Investment: It's a one-stop-shop for digital securities and crypto assets. But it's still a young platform, so you're essentially betting on its future.
Domani Protocol ($DEXTF)
What It Is: Domani Protocol is an asset management protocol offering mutual fund-like funds that are tradable like ETFs.
Why It May or May Not Be a Good Investment: Think of it as the Robinhood for crypto assets. But it operates independently from Oracle feeds, so there's a bit of a wild card element here.
Alliance Block ($NXRA)
What It Is: Alliance Block bridges traditional and decentralized finance, providing infrastructure and tools for integration.
Why It May or May Not Be a Good Investment: If you're looking to straddle the line between traditional and decentralized finance, this is your bridge. But it's a new platform, so it's like dating someone you met online; you never really know until you meet.
Tetraguard ($TETRA)
What It Is: TETRA is a DeFi basket of heavy-hitting cryptocurrencies like wrapped Bitcoin, wrapped PAX Gold, Ethereum, and its own Quadron token, all bundled together on the Ethereum blockchain.
Why Invest or Not: Listen, if you're tired of the rollercoaster ride of holding individual cryptos, TETRA offers a diversified portfolio in one neat package, plus it pays you in transaction fees and staked ETH. But remember, it's still crypto; the market is volatile and the tech is new, so don't bet the farm until you've done your homework.
The Quadron Token ($QUAD)
What It Is: TETRA is a DeFi basket of heavy-hitting cryptocurrencies like wrapped Bitcoin, wrapped PAX Gold, Ethereum, and its own Quadron token, all bundled together on the Ethereum blockchain.
Why Invest or Not: Listen, if you're tired of the rollercoaster ride of holding individual cryptos, TETRA offers a diversified portfolio in one neat package, plus it pays you in transaction fees and staked ETH. But remember, it's still crypto; the market is volatile and the tech is new, so don't bet the farm until you've done your homework.
🦄 COMMUNITY SPOTLIGHT 🦄
3. Ledger To Enable Tokenization As A Service, Partners With Bitbond, Tokeny, More
Summary: Ledger, a company primarily known for its hardware digital wallets, is expanding its horizons by offering tokenization services through its enterprise division. The company aims to simplify the complexities of asset tokenization by partnering with other tokenization firms like Bitbond, Tokeny, and Eniblock, as well as collaborating with Deloitte.
Ledger identifies challenges such as smart contract development, security concerns, inefficient token lifecycle management, and technological entry barriers, and aims to assist financial firms in overcoming these hurdles.
My take:
Unlocking Institutional Opportunities: Ledger is no longer just a digital wallet; it's becoming a one-stop-shop for asset tokenization. This is a monumental shift that could redefine how we view Ledger in the blockchain space.
The Future of Tokenization: Partnering with Bitbond and Tokeny isn't just a business move; it's a strategic play to dominate the tokenization market. Keep an eye on this; it could be the next big thing in asset management.
Challenges and Solutions: Ledger isn't shying away from the complexities of tokenization; they're tackling them head-on. This kind of problem-solving mentality is what sets industry leaders apart from the rest.
This is a pivotal moment for Ledger and the entire tokenization industry. If they pull this off, we could be looking at the future of asset management right here.
🎯AUTHOR BIO 🎯
Meet Mark Fidelman, the tech-savvy founder of SmartBlocks.Agency, who has been making waves in the world of crypto and ecommerce for over two decades. 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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