11th November 2023 > > Tokenisation & HK.

tl;dr

Tokenisation, a key driver of global crypto adoption, takes centre stage once more. The rulers of China are long cryptos in size.

Market Snap

Market Wrap

A consistent feature of all bull markets is the strength of altcoins, with the best of that performance saved for the final exuberance before another winter sets in. There are indications that alts are starting to reflect bull market conditions. Take SOL – now up nearly 50% in four days, even in the face of selling by the FTX estate. XRP is up 30% in three weeks. You could point to specific news that justifies these moves, but the point is that the macroclimate for cryptos underpins these kinds of outsized returns, which likely will only get bigger over the next two years.

Long may it continue.

Curious Cryptos’ Commentary – HSBC

HSBC has announced that it will offer a custodial service to institutional investors for cryptos and tokenised assets.

HSBC’s Chief Digital, Data and Innovation Officer, Securities Services Zhu Kuang Lee explains to us that this decision has been driven by clients:

“We’re seeing increasing demand for custody and fund administration of digital assets from asset managers and asset owners, as this market continues to evolve.”

This initiative is in partnership with Metaco, a company bought by Ripple Labs in May, marking yet another collaboration that is helping to propel optimism around XRP, which are targeting the institutional crypto custody market, expected to grow to a size like that of gold by the end of the decade.

Metaco founder and CEO Adrien Treccani echoes the belief held by the CCC, and by Larry Fink, CEO of BlackRock, about the potential for tokenisation to revolutionise the investment world:

“Tokenization of financial and real-world assets is gaining momentum, bringing huge potential to drive significant cost efficiencies and new revenue streams for regulated financial institutions."

The tokenisation revolution is beginning to build, and this revolution cannot happen without cryptos.

Curious Cryptos’ Commentary – Hong Kong

Hong Kong’s ambitious expansion to become one of the world’s premier crypto hubs – with all the attendant tax dollars – continues apace.

Securities and Futures Commission CEO Julia Leung has told Bloomberg that the regulator is now evaluating spot BTC and ETH ETFs. I suspect that her approach is a touch more enthusiastic than that of Gary Gensler. If only he would take note. In contrast Julia takes a very pragmatic, investor-friendly attitude to her job:

“We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”

Again, if only Gensler would take note.

…

With all this crypto-friendly stuff coming out of Hong Kong in the last few months, I can only assume that genocidal President Xi and his murderous henchmen all got very long just before this spate of recent announcements.