Phoenix, a new decentralized exchange (DEX) called Phoenix, has launched on the Solana mainnet with the goal of bringing on-chain price discovery to crypto assets, beginning with Solana's native token SOL. The team behind Phoenix aims to create a world where financial transactions happen on-chain and sees Solana as the ideal platform due to its scalability and protocol design capabilities. They believe that existing DEXs, such as Uniswap, are limited in terms of market mechanisms and are not competitive with traditional finance. Despite some challenges, the team is optimistic about the future of Solana-native assets in the tokenized asset space.
Tokenization of real-world assets on the blockchain is rapidly gaining momentum, offering benefits such as transaction speed, liquidity, cost-savings, and round-the-clock access, with experts predicting it to become a $16 trillion industry by 2030. Over 70% of financial leaders expect to use tokenization in their businesses, with potential impacts on asset trading, real estate transactions, derivatives, and carbon markets. Tokenization unlocks liquidity, enhances security and data protection, reduces transaction costs, and enables programmability and automation, making it a key driver of digital asset adoption and a fundamental shift in business operations.
Venture capital firm Vessel Capital has launched a $55 million fund to invest in Web3 infrastructure and applications, aiming to assist early-stage crypto founders in launching and growing their projects by providing guidance and advice. The fund's resources will be deployed over a five-year period, and the team's experience as startup founders will enable them to better understand entrepreneurs' needs.
Borroe Finance is gaining traction in the crypto community with its innovative approach to financing, combining NFTs with AI technology to provide a new way for businesses to access funding in the Web3 space. Its presale of the $ROE token has garnered attention and offers a promising opportunity in the evolving crypto market.
Web3 technologies, such as DeFi and NFTs, are paving the way for the tokenization of real-world assets, which could unlock a new Golden Age in blockchain and traditional finance.
Despite a decrease in venture capital investments in June, new crypto projects are still attracting funding, including Orbital's $6.4 million raise for expanding blockchain payment infrastructure, unshETH's $3.3 million seed round for decentralized finance solutions, ZTX's $13 million funding for Web3 infrastructure development, Stroom Network's $3.5 million raise for Bitcoin staking, and Fxhash's $5 million funding for its digital art platform.
The Tokenized Asset Coalition, consisting of industry leaders such as Coinbase and Circle, aims to promote the tokenization of traditional financial assets on a blockchain to bring the "next trillion dollars of assets" on-chain through education, advocacy, and fostering adoption of public blockchains and decentralized finance.
The Tokenized Asset Coalition (TAC) has been formed by seven leaders in decentralized finance (DeFi) to work towards the adoption of public blockchains, asset tokenization, and institutional DeFi, with the aim of creating a unified financial system on the blockchain.
Ant Group, the Chinese fintech giant, has launched its own large language model (LLM) and a new Web3 brand as it expands its presence in the financial sector, with the LLM being used to upgrade its consumer-facing intelligent financial assistant and develop applications for finance practitioners, while the Web3 brand targets Hong Kong and overseas markets. Ant's move into the LLM arena highlights the competition among China's Big Tech companies to develop innovative AI services, and the company also aims to provide blockchain application development services through its new Web3 brand.
Tokenization of real-world assets has the potential to become a $16 trillion industry, providing solutions to issues such as financial inclusion and agricultural insurance in developing countries, according to industry experts at Swiss Web3 Fest.
Arca, a crypto fund, has achieved a significant milestone by managing outside capital in its liquid hedge fund for five years, highlighting the challenges and lessons learned in the industry.
Crypto is poised to create a new investable asset class globally and will revolutionize the internet, requiring new business models, metrics, and research structures, as well as a framework to analyze value flows within the tech stack, particularly in relation to Ethereum's layer 2 solutions.
Crypto asset manager CoinShares plans to establish a hedge fund unit for qualified US investors in order to provide institutional investors with actively managed exposure to digital assets outside of Europe due to the changing macro environment marked by interest rates and inflation.
Blockchain Capital closes two new funds with $580 million to be invested in crypto gaming and decentralized finance projects, while venture capital firms SkyBridge Capital, Atlas Merchant Capital, and Vector Capital are among the final bidders to acquire SVB Capital, the venture arm of Silicon Valley Bank. Additionally, Nomura launches a new Bitcoin fund, and Citi Token Services provides payments and liquidity through its private blockchain. Hut 8 also receives final approval for its merger with US Bitcoin.
Despite the prevalence of private blockchains in the banking sector, the co-founder of Chainlink predicts that public blockchain protocols will ultimately become the biggest market for banks' tokenized real-world assets, as they offer diversified collateral and attractive yields. However, financial institutions in the US may proceed with caution due to regulatory uncertainty. On the other hand, European and Asian banks are progressing in this area, with companies such as Citi and JPMorgan exploring tokenization on public blockchains like Ethereum. Franklin Templeton has also embraced public blockchains, recognizing their cost efficiency and rate of innovation. Interoperability and cross-border liquidity are key considerations for banks as they adopt tokenization and explore ways to move assets across chains.
Blockchain technology is breathing new life into traditional assets as big finance firms invest in token trading and investment platforms, with more than a third of institutional investors in the U.S. and almost two-thirds of high-net-worth investors planning to invest in tokenized assets this year or next.
Tokenization, the process of linking assets to crypto tokens on a blockchain, is gaining prominence and attracting attention from regulators and financial firms as it offers investors access to previously inaccessible markets, improved liquidity, and greater efficiency, although it also introduces potential financial stability concerns and risks of transmitting shocks between crypto and traditional financial markets.
