Private Equity: The Unexpected Hero of Crypto Tokenization! 🚀

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Ah, welcome, dear reader, to the morning briefing of US Crypto News—your daily dose of the most riveting developments in the world of crypto, where fortunes are made and lost faster than a sneeze in a crowded theater.

Pour yourself a cup of coffee, or perhaps something stronger, for the next chapter of crypto tokenization is upon us, and it may not be the tale you anticipated. While stablecoins have been the loudest guests at this party, a more subtle transformation is brewing as institutions cast their gaze upon the more complex and illiquid assets—like private equity and commodities—as the true harbingers of future on-chain prosperity. Who knew? 🤔

Crypto News of the Day: Private Equity and Commodities to Lead Tokenization, Standard Chartered Says

Standard Chartered, that venerable institution, has proclaimed private equity and illiquid commodities as the golden geese for the next wave of crypto tokenization. Yes, you heard it right! 🥚

They admit that the realm of real-world asset (RWA) tokenization has been a stablecoin affair thus far, with digital assets tethered to the USD or other fiat currencies. But alas, they urge the industry to look beyond these stable companions and tackle the regulatory hurdles that have stifled the adoption of non-stablecoin RWAs. A noble quest, indeed!

“Growth in non-stablecoin RWA tokenization has lagged significantly. At $23 billion, this market is currently only around 10% the size of the stablecoin market,” lamented Geoff Kendrick, Head of Digital Asset Research at Standard Chartered. A true tragedy! 🎭

While stablecoins have been the valiant knights in shining armor, Kendrick posits that the more intricate and traditionally illiquid asset classes are the next frontiers to conquer. He cites private equity and commodities as the new champions of efficiency, provided the stars align just right.

“Non-stablecoin RWA tokenization has lagged stablecoin growth for a number of reasons—regulatory uncertainty and a focus on the wrong areas being amongst them. However, I think that as regulatory clarity emerges and if tokenizers focus on the right areas, where being on-chain adds value, then growth will come,” Kendrick added, with a glimmer of hope in his eye.

Drawing from the recent triumphs in tokenized private credit, Kendrick envisions a similar success story unfolding in the less-liquid markets. Who would have thought? 📈

“Lessons from the success of tokenized private credit tell me that the next successes will come from private equity and otherwise illiquid commodities,” he declared, as if he were predicting the weather.

In line with the wisdom gleaned thus far, Kendrick anticipates that private equity and liquid off-chain commodities will be the next growth areas for non-stablecoin tokenization. A thrilling prospect, indeed!

Regulatory Clarity Remains Key to Unlocking Non-Stablecoin Tokenization

However, Kendrick emphasizes that regulatory reform is the key to unlocking the full potential of non-stablecoin tokenization. Without it, we are but ships lost at sea. 🚢

While some jurisdictions, such as Singapore, Switzerland, the EU, and Jersey, are making strides, he warns that the broader regulatory landscape resembles a jigsaw puzzle with missing pieces, particularly around Know Your Customer (KYC) compliance. A real conundrum!

“To unlock growth potential, we believe tokenization efforts need to focus on on-chain assets that are cheaper and/or more liquid than their off-chain equivalents, with shorter settlement times, as borne out by early success in the private credit space, or that solve an on-chain need, as in the case of tokenized T-bills,” Kendrick advised, sounding rather sage.

This aligns with a recent US Crypto News publication, which highlighted stablecoin issuers using T-bills (treasury bills) to buy Bitcoin for free. A clever ruse! 💰

He added that some tokenization projects have floundered because they focused on assets that were already functioning efficiently off-chain. A classic case of putting the cart before the horse!

“Some current tokenization efforts, for example, for already liquid off-chain products like gold and US equities, have struggled because the on-chain asset does not add value in these ways,” Kendrick explained, shaking his head in disbelief.

As institutional interest in digital assets matures, Standard Chartered’s analysis offers a strategic lens through which traditional finance (TradFi) can assess long-term opportunities in tokenization, grounded in utility rather than mere hype. A refreshing change!

With regulatory momentum and targeted innovation, non-stablecoins are making strides in RWA markets, which could be poised for a breakout phase in the next cycle. Hold onto your hats! 🎩

Chart of the Day

This chart illustrates the significant growth of real-world assets (RWA) on-chain from January 2021 to January 2025. It also highlights contributions from private credit, commodities, stocks, and other asset categories. A sight to behold!

Byte-Sized Alpha

Crypto Equities Pre-Market Overview

CompanyAt the Close of June 19Pre-Market Overview
Strategy (MSTR)$369.03$372.50 (+0.94%)
Coinbase Global (COIN)$295.29$305.65 (+3.51%)
Galaxy Digital Holdings (GLXY)$26.65$26.79 (+0.53%)
MARA Holdings (MARA)$14.49$14.72 (+1.59%)
Riot Platforms (RIOT)$9.94$10.13 (+1.91%)
Core Scientific (CORZ)$11.90$12.12 (+1.85%)

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2025-06-20 17:34