How Giants like Amazon, Goldman Sachs, and Siemens are Shaking Up the Financial Universe With Tokenization

Greetings, tokenization, and finance enthusiasts alike! I’m once again burning the midnight oil to educate myself and you on the ever-evolving Tokenization field. Today, I will be your trusty guide through the thrilling maze of digitization, tokenization, and everything in between.

I’ve packed it with all the latest buzz from the world of security tokens. Buckle up, because we're about to journey through a landscape where traditional finance and cutting-edge technology engage in a spectacular tango. Whether it's Amazon stitching digital identities into your jeans, Goldman Sachs trading the pinstriped suit for a crypto-powered cape, or Siemens swapping industrial machinery for blockchain bonds, we've got it all covered. So, let's dive right in!

?? TOP SECURITY TOKENS ??

Happy Wednesday!

The security token market cap is?$16,838,331,877 up nearly $700 million from last week with the top 5 security tokens still firmly in place Enegra Group, Boss Info AG, Millennium Sapphire, TZero and Farmy AG.

?? NEED TO KNOW ??

Amazon, Goldman Sachs, and Siemens Dive into Blockchain Asset Bounties

?? Amazon (NASDAQ:AMZN) is ready to give your denims a digital identity with NFTs tied to real-world assets - it's a new kind of "jean-ealogy", pushing the envelope of virtual and real interplay.

?? Goldman Sachs (NYSE:GS) enters the crypto space with a tokenization platform on the Canton blockchain - this old-school bank's digital ascension makes one wonder if Wall Street will soon turn into Blockchain Boulevard.

?? Siemens AG (OTC:SIEGY) jumps into the digital bond market with a 60 million euro bond on Polygon - from industrial machinery to blockchain bonds, Siemens proves it's not afraid to swap lederhosen for smart contracts.

?? Tokenized versions of publicly traded securities have reached a market capitalization of $200M, a milestone achieved due to the launch of numerous tokenized securities projects in the past year. Read more about this exciting development here

?INVESTMENT OPPORTUNITIES?

Yield Crowd

?? What is YieldCrowd?

Buckle up, folks. It's time to talk about YieldCrowd - a company that's trying to disrupt the static world of real estate investing. They're not just buying and selling buildings; they're using the Stellar blockchain to tokenize their $50 million real estate portfolio. Basically, they're taking a sledgehammer to the wall between traditional finance and the digital realm 1

?? 1. What is the Yield and Potential Return?

YieldCrowd isn't just trying to impress with tech jargon; they're putting their money where their mouth is with a fixed-income security token named 'YIELD'. This token promises to distribute a nearly 9% APR payment via USDC. In other words, it's not just about tokenizing assets; it's about creating real, tangible returns for investors.

?? 2. Details of Investing

The details? You've got to be willing to shell out a minimum of $25,000 to join this party. It's not a playground for the small fish. They're also opening the gates to U.S. accredited and international investors, navigating the regulatory labyrinth with Regulation D and Regulation S exemptions respectively.

?? 3. Positives

Let's talk about the upsides, and trust me, there are a few. YieldCrowd isn't just marrying old-school real estate with cutting-edge blockchain; they're transforming the industry. They're not just tokenizing assets; they're making them tradable on the secondary market. This means investors aren't just buying into a static investment. They're getting a token they can trade, sell, or hold as they see fit. It's about creating efficiencies, democratizing access, and breaking down the traditional barriers to entry in an industry that's been gatekept for far too long

? 4. Negatives

But let's not break out the champagne just yet. Like any investment, this one comes with risks. Market volatility, fluctuating property values, and ever-changing regulations could all play spoiler to this party. And while tokenization might improve liquidity, cashing out could still be a challenge. Plus, their entire operation hinges on the security and stability of the Stellar blockchain - any issues there could have serious repercussions.

?? 5. On a scale of 1 -5 (5 being highest) how good is this opportunity?

On a scale of 1 to 5, I'd give YieldCrowd a 3.5. They're playing in an interesting space and they have a lot of potential. But the potential is just that - potential. It needs to be realized and that comes with its own set of challenges and risks. As always, you should consult with a financial advisor before making any investment decisions.

??TOKENIZED ASSETS SPOTLIGHT ??

How Tokenization and Blockchain are Transforming Europe's Sixth-Largest Bank

1. Tokenization of Bank Deposits: The sixth largest bank in Europe, Societe Generale, is tokenizing its bank deposits. This process involves recording fiat investments within their digital system, which allows for real-time tracking and efficient management of assets. The tokenized assets can be redeemed for physical currency by customers. This innovative use of technology is expected to revolutionize capital markets by enabling unprecedented levels of automation 1
2. Benefits of Tokenization: Tokenization not only creates a more efficient and transparent system for managing deposits but also enhances liquidity while reducing costs. Moreover, it automates previously manual processes, which can improve efficiency, reduce error risks, and increase profitability. This is particularly advantageous in low-liquidity environments. In addition, the bank has used its success in tokenizing bonds and debt vehicles—a crucial asset class for banks—to surpass market expectations in Q4 2022, indicating a strong momentum for the year

Via @KyleSonlin

?? TOKENIZATION EDUCATION ??

What is a Distributed Ledger Technology and how is it being used in the Tokenization of assets world?

Welcome to the wild west of finance - the land of Distributed Ledger Technology (DLT) (Note: similar to Blockchain but the database is distributed as well). Here, we're not just throwing around buzzwords; we're seeing real, tangible progress with about 85% of Global Financial Markets Association (GFMA) members putting DLT to work. But what does this mean for you? Let's break it down:

• DLT is being explored and deployed in areas with clear financial opportunities for efficiency gains and innovation. Think real estate assets, bonds, private debt, over-the-counter derivatives, and repos. We're seeing a real appetite for change in these areas, with DLT acting as the catalyst to shake up these somewhat opaque and complex market structures.
• However, don't expect DLT to be the magic bullet for all asset classes. The BIS Bulletin tells us that DLT's adoption will happen on a continuum, with the biggest benefits seen where tokenization is most challenging. So, the juicy, high-volume markets like public equities might not see as much of a shakeup. After all, you don't need to fix what ain't broken.

In short, DLT is making waves in the financial world, but it's not a one-size-fits-all solution. Just like a surfer picking the right wave, DLT's success hinges on targeting the right markets and asset classes. Stay tuned, because this is just the beginning.

source: A new report from the Global Financial Markets Association (GFMA).

?? MARKET INSIGHTS AND TRENDS ??

?? Commercial Office is in Trouble but there’s Hope

• Commercial real estate prices in the U.S. have declined for the first time since 2011, with office buildings and multifamily residences leading this less than 1% decrease.
• Predictions suggest a drop of up to 40% from the peak in commercial real estate prices, requiring renegotiations of over 50% of $2.9T in commercial mortgages in the next two years.
• The Federal Reserve has ramped up monitoring and expanded examination procedures for banks with significant commercial real estate loan risks, as commercial loan delinquencies and defaults are on the rise.
• J.P Morgan?estimates?$189B of the $549B CMBS in commercial real estate is exposed to office. It predicted around 21% of CMBS outstanding office loans to default leading to a loss severity assumption of 41% and forward cumulative losses of 8.6%. If occupancy decreases by 20 and 30 points, the default rate is expected to reach 28% and 35%.?

My Take: These declines in commercial real estate prices present an opportunity for tokenization. By tokenizing real estate, we're breaking down barriers and opening the door to global investors, and let's be real, there's a ton of money sitting on the sidelines itching for a chance to invest in office real estate. Why? Well, as the structure of office spaces evolves towards mixed-use properties, there's potential for significant returns. So, in my book, tokenization isn't just a buzzword; it's the future of the real estate industry. After all, in a world of disruption, those who adapt win the game.

??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.

But that's not all - Mark has also been recognized as a top influencer by Forbes Magazine, named a social media keynote speaker by Inc Magazine, and ranked among the Huffington Post's Top 50 Most Social CEOs. He's even got his own YouTube channel, Cryptonized!, where he shares insights on the hottest crypto trends.

As a globally recognized thought leader on cryptocurrency and ecommerce, Mark has written for Forbes and interviewed hundreds of CXOs from Global 3000 companies. His expertise and experience make him a sought-after speaker and writer, and you can keep up with his latest insights by following him on Twitter at https://twitter.com/#!/markfidelman