Welcome to InvestaX’s monthly newsletter. In this edition:

• 1. InvestaX’s new milestones.
• 2. Tokenization market movements worldwide with Tokyo’s tokenization cost subsidy, Hong Kong’s eCNY integration, World Bank’s CHF digital bond issuance, SEC’s first spot $ETH ETF approval, and more. 
• 3. Latest tokenization reports from KPMG & Singapore FinTech Association, Deloitte, Grayscale.
• 4. Trending topics at InvestaX: Webinars on tokenization regulations; Tokenization use cases; Liquidity solutions for tokenized assets.

Let’s explore!

Growing RWA Momentum On InvestaX

1. Our Tokenization SaaS platform received notable upgrades

• Expanded support for popular stablecoins like USDC and USDT on the InvestaX tokenization platform.
• Continuously implementation of Recognized Market Operator (RMO) compliance requirements to ensure legally compliant RWA token issuance and offering.

Sign up on our tokenization platform to explore its full features.

2. Kickstarted May with new SaaS clients

In early May, we onboarded a prominent Thailand-based real estate firm and a renowned Australia-based (ASX publicly listed) technology and investment company specializing in digital assets to join our Tokenization SaaS platform.

3. Tokenization Manila 2024 Event

Our tokenization event series lands the team in the rising blockchain hub, the Philippines! Provided audiences and attendees with first-hand live RWA platform demos and an insightful panel discussion from leading industry experts!

4. InvestaX recognized as Most Innovative in Wealth Management in Singapore 2024 

InvestaX was honored to be invited to apply for the 2024 Global Financial Market Review Awards application and proudly won the category of Most Innovative in Wealth Management in Singapore 2024.

Tokenization Market Spotlight: Market Movements Worldwide

1. Japan's Web3 Surge

• Tokyo subsidizes digital securities issuance costs for startups, offering support of up to five million yen ($31,785) each.
• Panasonic eyes tokenized Yen deposit tool KCJPY for tourism
• MUFG Bank’s subsidiary Progmat to launch a carbon credit marketplace with KlimaDAO

2. Hong Kong Advances eCNY Integration

The Hong Kong Monetary Authority (HKMA) announced an expansion of its role in the pilots for China’s central bank digital currency (CBDC), the eCNY. It announced that Hong Kong residents can top up their eCNY wallets using Hong Kong’s Faster Payment System (FPS).

3. Singapore, Hong Kong S.A.R, and Switzerland lead in facilitating asset tokenization

KPMG’s Regulatory Landscape Analysis for Tokenization reveals that Singapore, Hong Kong S.A.R, and Switzerland lead in the Enabling Environment Rating for asset tokenization.

4. Ethereum’s dominance

Market data signals a strong adoption of the Ethereum network for tokenization.

• As of May 2024, 87% of the value locked in RWA tokens is on Ethereum (The Block)
• Roughly 60% of tokenized treasury products are on Ethereum (Grayscale)
• 6 out of 7 major RWA protocols are on Ethereum (RWA.xyz)

5. World Bank’s CHF Digital Bond Issuance Debut

World Bank partners with Swiss National Bank and SIX Digital Exchange to issue a 7-year CHF 200 million digital bond, using Distributed Ledger Technology (DLT). The bond is listed on both SIX Digital Exchange and the traditional SIX Swiss Exchange

 6. Securitize’s $47M Windfall

Securitize announced on May 1st the completion of their $47 million strategic funding round led by Blackrock. This is a shot in the arm for the entire real-world asset (RWA) tokenization industry, and a clear signal of growing investor confidence in the potential of tokenization to revolutionize capital markets.

7. Opinion: Real-word asset tokens can stabilize DeFi

A recent article on Cointelegraph argues that real-world assets can stabilize DeFi markets. Early use cases show DeFi protocols using these assets for stable collateral, yield products, and more.

8. SEC Approved First Spot $ETH ETF

After months of speculation, the SEC formally approved rule change to allow the creation of ether ETFs on Thursday. And it seems the market is ready for that. Many of the companies that sponsor bitcoin ETFs — including BlackRock, Bitwise and Galaxy Digital — have also started the process of launching an ether fund.

Will this political attitude shift toward crypto spark a wave of optimism in the broader digital asset investment landscape? We’ll see!

Recommended Readings

Are you new to tokenization or looking for reliable, in-depth educational resources? Check out the latest tokenization reports from reputable authors below.

1. The Asset Tokenization C-Suit Playbook 2024 by KPMG and the Singapore Fintech Association (SFA)

KPMG and THE SFA have jointly released The Asset Tokenization C-Suit Playbook 2024, providing valuable insights and guidelines for decision-makers in the field of tokenization. InvestaX’s Co-Founder and General Counsel, S. Alice Chen contributed to the research of the publication.

Read here.

2. Deloitte on Fund Tokenization - Reimagine Venture, Private Equity, and Real Estate Funds

As per Deloitte, tokenization streamlines funds for faster settlement, efficiency and fractionalization. It also mentions that from a regulator’s perspective, tokenization has the potential to reduce information asymmetries and potentially improve the price discovery mechanism.

Read here.

3. Grayscale On Public Blockchains For Tokenization

In a recent report named “Public Blockchain and The Tokenization Revolution”, Grayscale highlights how public blockchain will most likely unlock the benefits of tokenization in the future. 

Key highlights from the Public Blockchain and The Tokenization Revolution report:

• 1. Successful tokenization applications like stablecoins, tokenized Treasuries, and tokenized credit products have primarily been launched on public blockchain infrastructure.
• 2. Although banks have explored PrivateBlockchain infrastructure due to regulatory constraints, asset managers who do not have the same constraints have preferred PublicBlockchains or hybridchains.
• 3. Ethereum blockchain has the best chance of realizing the potential benefits of tokenization in the future.

Read here.

Want Something Quicker To Digest?

Check out trending content topics at InvestaX in May, drawn from our first-hand experience in the tokenization industry since 2018.

1. [Webinar] Navigating Regulations And Legalities In Real-world Assets (RWAs)

Key takeaways from the webinar:

• Regulations for RWA tokens vary based on the tokenization structure,  permissible investors, location, and other factors
• Some countries adapt existing securities laws for digital assets, while others create new regulations to address digital assets.
• Direct tokenization and indirect tokenization hold distinct pros and cons.

Watch the recording here.

2. [Article] Tokenization & Security Token Offering (STO) Use Cases

In our article, we explain the most common tokenized assets:

• Tokenization of real estate
• Tokenization of art
• Tokenization of commodities
• Tokenization of debt
• Tokenization of ESG products
• Tokenization of alternative assets

Read here.

3. [Webinar] Redefining Private Credit and Public Debt in the Digital Age

InvestaX’s CEO and Co-founder Julian Kwan sat down with host Patrick O'Meara, Chairman & CEO of Inveniam, and other esteemed speakers for a thought-provoking conversation exploring

• The intersection of the private credit market and decentralized finance (DeFi)
• Prediction when the large credit funds will enter the DeFi space at scale.

Watch the recording here.

4. [LinkedIn] InvestaX and IX Swap Pioneers Liquidity Solution For Tokenized Assets

While tokenization promises greater transparency, efficiency, and accessibility, a liquid secondary market is crucial for these benefits to fully unfold. This is where our liquidity solution comes in: Licensed secondary marketplaces + AMM/liquidity pools.

Read here.

That’s a wrap! Stay tuned for exciting tokenization market updates