Edge Capital Management

Issuers Get a Veto Over Tokenised Stocks

• Nine companies including Broadcom, Verizon and UnitedHealth objected to tokens of their shares trading on the OKX-ICE venue, which blocks each token under the SEC's new exemption 

• Nasdaq opted out of having its own shares tokenised, saying the venue does not show best prices in real time 

Our view

The SEC's framework gives every listed company 30 days to say no, and nine already have. That turns tokenised US stocks into a consent market: the shares that trade onchain will be the ones whose issuers want them there. The $3.8B of stock tokens trading today sit offshore, with no shareholder rights, which is exactly what the issuers are objecting to.

🔗 Full article: edgecapital.xyz/insights/weekl…

#Tokenization #CapitalMarkets #MarketStructure #DigitalAssets

NOT INVESTMENT ADVICE. This is NOT an offer to sell any securities and does NOT constitute a solicitation of an offer to purchase any securities.

• Kraken's parent Payward agreed to buy Lithuania's Saldo Bank, an ECB-licensed lender with €197M of assets and deposits in four European countries

• Polygon Labs completed its purchase of Coinme, a US-regulated payments provider, so it can convert between crypto and bank money itself

Our view
The deal that matters this week is not a funding round but a bank purchase. Crypto firms want to hold client money legally, and buying a licence is faster than applying for one. What has to be true next is that the ECB approves a crypto exchange as a bank owner, which it has not yet done.

🔗 Full article: edgecapital.xyz/insights/weekl…

#DigitalAssets #CryptoInfrastructure #Banking #CapitalMarkets

NOT INVESTMENT ADVICE. This is NOT an offer to sell any securities and does NOT constitute a solicitation of an offer to purchase any securities.

Hyperliquid Turns Idle USDC Into Revenue

• Hyperliquid received its first $14.6M of USDC reserve yield for HYPE buybacks, about $177M a year, with Coinbase and Circle each staking 500,000 HYPE behind the deal

• USDC on Hyperliquid stands at $7.55B, more than on Solana, and the venue handled $203B of $616B in onchain perpetuals volume over 30 days

• Bloomberg Terminal added 24/7 Hyperliquid prices, and Brevan Howard moved its prime brokerage to Ripple Prime, which connected to Hyperliquid as its first onchain venue

Our view

Hyperliquid is now paid twice on the same dollars, once when they trade and once while they sit, and the second stream depends on float and interest rates rather than volatility. That makes its buyback the most mechanical in the sector and explains why terminals, prime brokers and macro funds are plugging in.

🔗 Full article: edgecapitalmgmt.medium.com/weekly-market-…

#EdgeCapital #Hyperliquid #DeFi #Stablecoins #DigitalAssets

NOT INVESTMENT ADVICE. This is NOT an offer to sell any securities and does NOT constitute a solicitation of an offer to purchase any securities.

Why Investors Are Seeking Bitcoin-Denominated Yield

For investors who think in Bitcoin, returns measured in BTC matter. Explore the rationale behind seeking Bitcoin-denominated yield with Edge Capital Investment Management.

#Bitcoin #BitcoinYield #DigitalAssets #InvestmentManagement #EdgeCapital

Rating Agencies Arrive in DeFi

• Moody's rated Sky Protocol B3, citing about $90M of equity against $10B of assets, and set equity above 2.5% of assets as the bar for an upgrade

• S&P launched a scorecard for DeFi lending vaults, a market that grew from $1.5B to $10B in two years, grading credit quality, liquidity mismatch, curator, chain, protocol and governance

• GSR committed $100M of its own capital to new Aave-based vaults so allocators sit alongside it

Our view

Onchain credit is acquiring the language institutions already use: a counterparty rating for the issuer, a scorecard for the vault and a sponsor with skin in the game. In our view this decides which products a risk committee can approve, and it will sort the $10B of vault deposits into those that can be graded and those that cannot. The protocols that raise capital buffers and publish audited numbers are the ones institutions will hold.

🔗 Full article: edgecapitalmgmt.medium.com/weekly-market-…

#DeFi #DigitalAssets #OnchainCredit #InstitutionalFinance

NOT INVESTMENT ADVICE. This is NOT an offer to sell any securities and does NOT constitute a solicitation of an offer to purchase any securities.