Private Market News - 1/19/24

This week’s highlights: Tokenization is all anyone can talk about, Securitize joins the Tokenized Asset Coalition, how private credit became a Wall Street darling, and a deep dive into secondaries in private equity.

Key Highlights

• The narrative of imminent Fed rate cuts continues to be challenged by robust data, with recent inflation and retail sales data all exceeding expectations. The 10Y Treasury yield rebounded this week and is trading around 4.15% as of Jan 18.
• Data on inflows into spot bitcoin ETFs since the SEC's landmark approval on Jan 10 remains incomplete. However, net inflows appear to have reached the $1bn mark after three days of trading, while daily trading volumes for the ETFs has crossed $11bn. The price of BTC has been giving up some of its recent gains, in part on profit-taking, and has fallen below $41k as of Jan 18.?
• In another sign of broad interest in private credit, private lending entities are starting to go public in a BDC (business development company) structure. The pipeline includes entities backed by Blue Owl Capital and 摩根士丹利 .

What Are Secondaries in Private Equity?

In our new article, we explore the fascinating world of secondaries in private equity. As this industry continues to grow, we break down the secondaries market, types of PE secondaries, and more.

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Sources: Securitize

Tokenized Asset Coalition Unveils State of Tokenization Report; Announces 15 New Members, Including Securitize

The Tokenized Asset Coalition (TAC), founded by AAVE companies, Base, Centrifuge , Circle , Coinbase , Credix , Goldfinch and RWA.xyz , released their first State of Tokenization Report and welcomed 15 new members into its ranks, including Securitize. We’re very proud to be part of this exciting group and can’t wait to see what the future will bring.?

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Sources: Businesswire , Tokenized Asset Coalition

How Private Credit Became One of the Hottest Investments on Wall Street

Private credit has grown from just $250 billion in 2010 to about $1.5 trillion today, with projections saying it could reach $2.7 trillion by 2027. See how private credit has become a Wall Street favorite in this video from CNBC.?

Watch

Sources: CNBC

Moody's says adoption of tokenized funds signals 'untapped market potential'

Global financial services company Moody's Corporation says that the efficiency of investing in assets like government bonds is increasing due to the growing adoption of blockchain-based tokenized funds and that in order to tap this market potential, fund managers will require more technological expertise. See what else they uncovered in their new report.?

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Sources: The Block , James Hunt

How Tokenized Assets Can Replace Money

With the increased interest in tokenizing assets, it’s not unreasonable to assume that one day we’ll be using them to purchase items like cars and homes instead of relying on cash. This article lays out how that could work, as well as some challenges that may come up. Do you think this is where the future of money is heading?

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Sources: CoinDesk , Marcelo Prates