Market Update & Industry News - Week ending 12 July 2024

🔷 Global investment firm, Goldman Sachs, announced it would launch three tokenisation projects by the end of the year. The global head of digital assets stated that they intend to expand into the tokenisation of real-world assets (RWA) such as money market funds and real estate holdings using private or public blockchains focusing on the United States and Europe.

Appold view: This continues the banks' active development of its tokenisation infrastructure, including the GS DAP platform, which had previously facilitated a €100m digital bond issuance using the Daml smart contract language.

🔷 US Exchange, Cboe Global Markets, filed a request with the U.S. Securities and Exchange Commission (SEC) to list the VanEck and 21Shares Solana Exchange Traded Funds (ETFs). Once the SEC acknowledges receipt of the 19b-4 filings, the regulator has a 240-day window to approve or deny the products.

Appold view: It's unclear what Institutional demand for the product will be at this stage. But as one of the larger protocols, it has certainly raised the prospect for other tokens from alternative blockchains to follow suit.

🔷 The Governor of the Banca d'Italia stated that they would soon release comprehensive guidelines on implementing the new European Union Markets in Crypto Assets Regulation (MiCA). The Governor announced his intention to preserve the regular function of the payment system, with a view that only Electric Money Tokens (EMTs) linked to fiat currencies fully assume the role of payment, maintaining public trust.

Appold view: While the guidelines are part of a broader EU regulatory effort, the Banca d'Italia focus on preserving the regular function of the payment system and maintaining public trust, which could also suggest a protective stance towards its own market.

🔷 The US SEC dropped its investigation into Paxos Trust Company, the issuer of the Binance USD stablecoin (BUSD). The SEC alleged that BUSD functioned like an investment contract, Paxos argued that BUSD is a stablecoin backed by the USD and is not a security

Appold view: While the SEC’s decision to cease its investigation into Paxos over BUSD is a welcome development for the company and its supporters, the market remains cautious, given the broader regulatory scrutiny that continues to loom over the industry.

#Marketwatch #Blockchain #Investments