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Hannes
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How many tokenisation initiatives do different firms participate in and which firms are most active?
Banks and financial institutions are participating in a growing number of industry initiatives, ranging from stablecoins and tokenised deposits to trading and settlement infrastructure.
However, it's difficult to get a full understanding of activity and overlap across projects. For example, who's participating in multiple stablecoin initiatives?
So I built an interactive network map to explore this visually.
Part of a broader project I've been working on to make institutional blockchain adoption easier to track and understand.
Which industry initiatives should I add next?
Banks and financial institutions are participating in a growing number of industry initiatives, ranging from stablecoins and tokenised deposits to trading and settlement infrastructure.
However, it's difficult to get a full understanding of activity and overlap across projects. For example, who's participating in multiple stablecoin initiatives?
So I built an interactive network map to explore this visually.
Part of a broader project I've been working on to make institutional blockchain adoption easier to track and understand.
Which industry initiatives should I add next?
0:33
So far stocks are growing faster than stablecoins, about 7 months ahead in terms of issuance.
Partly expected given the improvements in surrounding infrastructure and much broader distribution compared to when stablecoins got started.
(Normalised so each series starts at the first month where supply exceeded $100m)
Partly expected given the improvements in surrounding infrastructure and much broader distribution compared to when stablecoins got started.
(Normalised so each series starts at the first month where supply exceeded $100m)
Tokenized stocks have reached $4.63B in market cap
Stablecoins crossed that level in March 2020 and have since grown 64x to $297B
Binance bStocks, Ondo & xStocks account for 81.4% of the tokenized stock market todayView quoted post on X
A few takeaways beyond the headline, as JP Morgan brings their deposit token JPMD to Ethereum, expanding on the earlier Base launch:
1. With more tokenised assets issued on public blockchains, institutions need a way to settle and trade onchain. This requires a cash leg, either in the form of deposit tokens or stablecoins. Deposit tokens balance the safety of traditional bank deposits with (some of) the composability of native onchain money. Best of both worlds without compromising on the standards institutions expect from traditional settlement.
2. The original launch on Base established the public-chain approach, which the Ethereum launch now expands on. While most tokenised deposit initiatives are still on private or shared permissioned chains, JPM shows that public chains also offer a credible option for regulated banks. This points to a broader distribution strategy: making deposit tokens available on the networks its clients already use for other assets and collateral, whether that's private or public blockchains.
3. Ethereum holds the majority of tokenised assets today, but other networks are expanding their share. Expect JPMD to expand to all chains with significant RWA issuance over time (Solana, Canton, etc).
4. The utility of a deposit token ultimately depends on how integrated it becomes with the onchain economy. This is determined by the issuer, which decides who holders can transact with and which applications they can interact with.
1. With more tokenised assets issued on public blockchains, institutions need a way to settle and trade onchain. This requires a cash leg, either in the form of deposit tokens or stablecoins. Deposit tokens balance the safety of traditional bank deposits with (some of) the composability of native onchain money. Best of both worlds without compromising on the standards institutions expect from traditional settlement.
2. The original launch on Base established the public-chain approach, which the Ethereum launch now expands on. While most tokenised deposit initiatives are still on private or shared permissioned chains, JPM shows that public chains also offer a credible option for regulated banks. This points to a broader distribution strategy: making deposit tokens available on the networks its clients already use for other assets and collateral, whether that's private or public blockchains.
3. Ethereum holds the majority of tokenised assets today, but other networks are expanding their share. Expect JPMD to expand to all chains with significant RWA issuance over time (Solana, Canton, etc).
4. The utility of a deposit token ultimately depends on how integrated it becomes with the onchain economy. This is determined by the issuer, which decides who holders can transact with and which applications they can interact with.
