15th May 2024 > > Tokenisation.

tl;dr

Tokenisation is going to be a big thing.

Market Snap

Market Wrap

I read that the Chinese government is planning on buying up all those unsold homes, effectively bailing out a raft of insolvent construction companies, with the added advantage of helping to repair commercial banks’ balance sheets. This is a novel form of QE and will get political incumbents in the West devising plans to follow suit.

I need hardly point out what a terrible idea this is. Removing jeopardy from stock and bond investors ossifies the entrepreneurial spirit, making a lifetime of employment by the government – with reduced hours, no chance of being fired, and a big, fat pension – a more attractive option than any others out there.

Curious Cryptos’ Commentary - Vanguard

Vanguard, having got rid of its anti-crypto CEO, has appointed Samil Ramji in his place. Samil was head of BlackRock’s ETF business and took personal charge of the launch of spot BTC ETFs. I look forward to the screeching sound of Vanguard’s impending U-turn.

Curious Cryptos’ Commentary – Hahahahaha

Hahahahaha

Hahahahaha

Hahahahaha

Hahahahaha

Curious Cryptos’ Commentary – Project Guardian

Project Guardian is the Monetary Authority of Singapore’s test for the implementation of asset tokenisation, a revolution that will herald the democratisation of the investment world.

Deutsche Bank, a heavyweight in the banking division, has announced it has joined Project Guardian. Anand Rengarajan, head of securities services for Asia Pacific and the Middle East alongside his day job of Global Head of Sales, explains why he wants to be involved:

"Contributing to Project Guardian will bolster our efforts to help shape the new frontier of asset servicing, and strongly position us to contribute to industry progress, and not only anticipate our clients’ needs but exceed their expectations."

This concept of responding to client needs is becoming ever harder to discern, certainly outside the private sector, and also seemingly for many industries within the private sector, a failure of corporate culture encouraged by QE.

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What will be cheering about projects like this – and note that J.P. Morgan is heavily involved – is that all the participants will understand that public blockchains are so superior to private ones. Client demand will ensure public blockchains become the industry standard.

In a report by J.P. Morgan, this need to democratise the investment world is laid bare:

“Alternative investments (“alts”), such as private equity, private credit, real estate, and infrastructure, can offer attractive risk-adjusted returns as well as portfolio diversification benefits, generally in exchange for less liquidity. As a result, some of the world’s most sophisticated institutional investors allocate a significant portion of their assets to these investments. Demand from individual investors for alternative investments continues to grow, but adoption lags that of public and traditional investments. Key challenges stem from the less liquid nature of the underlying assets, limited access and a lack of investor and advisor education.”

If you want a more in-depth understanding of tokenisation, powered by the crypto revolution, you could do worse than start right here:

https://www.jpmorgan.com/onyx/documents/portfolio-management-powered-by-tokenization.pdf