Should States Issue Their Own Stablecoins? - Security Token Show: Episode 297

Speaker A: Foreign. Uh,

Speaker B: What's going on, everybody? Happy Friday. It's Stablecoin Summer. I'm coining it here, Kyle. That's what's going on. Uh, it's time for the security token show, everybody. We've got the latest and greatest real world asset tokenization news. And if you've been following along, it's been going gangbusters. It's no slow summer. RWA summer, Stablecoin summer, whatever you want to call it. Good times over here in RWA land, isn't it? Kyle, how are you doing this week, my friend?

Speaker A: I am great, Herwig. August. We are in the throes of summer, which typically was always historically a slow time of the year. But there's no stop at the RWA chain, my brother. Let's get right into the show.

Speaker B: No, there isn't. We've got quite the show lined up, so. I agree. Let's get into the market movements and cover the biggest headlines. Kyle, this first one that we're going to launch off with this week is a bit of a doozy, I know. Uh, even just bringing it up slightly in our, our briefing before starting the show, we were already going off on the rails. It's a hot topic. It's the title of this show. Should states, we're talking of course, about United States, American states here, should they be issuing their own stable coins? Because guess what, Wyoming is the first to officially say, you know, this is his history here, that they are the first to issue a stable coin. This is the state they actually had put together in 2023, a stable coin commission to explore this. And now the Frontier frnt US dollar, uh, backed stable coin, of course, I believe 2% over collateralized, uh, is now available or being rolled out. Uh, and again, marking the first ever stable coin to be issued by a state. So if you thought it was crazy that we are going to have a stable coin from Amazon, Walmart, from Metamask and everyone else that's announcing one in the current foray. Now it looks like states are getting into the game. Wow. Kyle, what's your initial reaction?

Speaker A: Well, Herwig, you know, we really, we spent a long time talking about this, uh, behind the scenes. I feel pretty strongly in my gut at least. And again, I, I, I like to have strong opinions loosely held. So theoretically, you know, I could change. And I love the adoption point. Right. I think that this is an exciting technological endeavor and it's cool to see that the government is embracing these things. And I am generally kind of a states rights kind of guy, but One of the things that I think that the federal government really should preside over is currency of transaction within the country. And so I don't totally love the idea, um, to put it in a politically correct way of a state launching their own currency. Uh, I just feel like as a private issuer or a private company, having transactional systems within your. Within your platform or whatever makes sense. And X, Y and z is wonderful. PayPal or Visa or MasterCard or a bank or whoever. When you start to have states doing it, I just feel like it starts to kind of break apart some of the cohesion of interstate commerce. And I think that's one of the biggest, biggest strengths of the US Economy is that each one of these states kind of all operates almost like the European Union, right? In terms of everybody's on the same currency, we have the same rules, we kind of. We don't necessarily mess with that too much. And in a world where everything is getting extremely politicized, I don't think it's good for the country's cohesion to have individual states having separate currencies, which then opens the door to one day having, you know, additional taxes or conversion costs between different currencies for different citizens of the United States, all that kind of stuff. Not saying that we're going that direction or that this is happening today, but again, what happens if you have a Democratic state like California and a heavily Republican state like wherever, Florida, and they say, well, look, you know, we're not accepting, you know, California dollars in Florida, or we're not accepting, you know, you know, New York dollars in Texas or whatever. It. Like, that just feels really odd to me. Um, and so on the gut, I don't love this. Um, but I think that the technological development of it in and of itself, I think is a really cool thing.

Speaker B: I got a similar reaction. You know, it's awesome to see. Uh, this is. Again, who would have had it on their bingo card that, you know, a state would successfully issue a stablecoin in 2025. Um, I don't know. I don't think there are too many people that were really bullish on that officially happening. And they've done it in great execution, it even looks like. Right. Kyle, I got a great sort of name for it. It's. They've deployed it not with just one chain or built their own chain or doing a private network. They're on, um, Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon and Solana. Like, Talk about just saying, okay, we're going to work with all the best and big chains to roll out here. Um, and it's now state backed. So I completely agree with all your opinions. I mean, it's kind of confusing to me to have 50 different stable coins issued by, you know, states, uh, to have to play with or use in certain situations. That's certainly interesting and also does create some interesting market mechanics. And that's where I want to lean into, which is like the sort of state versus private component. Right. Historically in the United States, we don't see too much action with the government competing in sort of financial technology or even other sectors. Right. So the idea that now there is a stable coin that's issued by a state that may have a leg up against, you know, private stable coins is interesting how that might end up playing out and how that's competitive to the market. Um, and again, this is just, I think sort of unprecedented. Unprecedented. And I want to see how this all, all plays out. Is it going to lead to more states? Is this going to lead to other corporations that are issuing stable coins to be upset? Uh, are they going to somehow try to work with it? Uh, you know, a lot of questions that are coming out more so than I have answers of. Um, yay, great. This is a, uh, state issue stable coin that's going to do X, Y and Z. Right. So as much as I agree with you, I kind of applaud the effort. I'm left scratching my head wondering, uh, if this is actually a good thing and I'll end it on this guy. Like, you know, I thought everybody was pretty anti cbdc. Uh, you know, I, I could see, I tend to play devil's advocate. I see a lot of different, uh, ways that this can be done potentially correctly. But it seems like this would be one of those very first steps.

Speaker A: Right?

Speaker B: You got like, now you've got a stable coin issued, uh, from a state. This is like a light version of that. And I feel like nobody's crying foul here, uh, about, about this. Um, so, yeah, ah,

Speaker A: about anti CBD fees. Like again, what happens like a state has a currency the federal government doesn't like. There's a lot of like weird potential clashing points here that I just like, don't just, just feel like it. We're heading down that direction.

Speaker B: Yeah, well, it's. The genie's out of the bottle now, it looks like Kyle. So we're gonna follow along for sure. And if you have questions, of course in the audience, make sure you leave a comment. You know, we want to keep this discourse going, but we are gonna move on, um, because I think we could spend a whole hour going down that rabbit hole of what this truly means and know, maybe we should do that, uh, if people want to hear that. But for now, I want to talk about the Mooch. Anthony Scaramucci, legendary, uh, you know, uh, hedge fund manager with SkyBridge Capital. Little, little brief stint even with the Trump campaign back in the day, uh, with the Trump admin, uh, and, you know, a huge bull on Blockchain. Uh, he's been very active in the space for a long time and now he's again putting his money where his mouth is, if you will, by tokenizing two of his fonts from SkyBridge Capital. $300 million worth of them, um, doing it through Tokeny, actually, which is now, uh, acquired by Apex, as we previously reported. So there are new platforms called the Apex groups as digital 3.0 platform. Um, and they've selected Avalanche in this case. Uh, so, you know, they probably have a Skybridge L1 or there's a tokeny L1, as they would say on Avalanche, that's powering these tokenizations now. Uh, and it's pretty cool to see a sort of legend from Wall street as well, right? Uh, say, hey, we're, we're using tokenization. It's about time. We saw Kathy Wood from Arc, uh, earlier this year, say she might tokenize some of her funds. Uh, right. So this is a great trend, in my opinion, to see going off. Uh, Anthony Scaramucci is one of the best people to kind of help lead it off, given his reputation and credibility, uh, and what he's been doing in the space. So great, uh, partners involved. Kyle, I got to say, this is just this, this headline gets me real excited, uh, about the future of the space.

Speaker A: I totally agree. Shout out to Avalanche. They, they just continue to drive this, this institutional adoption with a lot of these fund products. And it does kind of feel like the dam is beginning to break for them. You know, with kkr, with, with all these different funds now with the Skybridge and Apollo and um, you know, at some point they're, they're going to start just using these portals because it's easier because they've already started to, uh, bring on products and purchasing other products and they're already going to have funds in the treasury that are on chain and it's just going to be easier, more efficient, more cost effective and these things are going to start moving. And I think that Avalanche is absolutely a blockchain and a platform to watch over the coming, you know, it might take again take some time to drive this type of adoption. But I wouldn't be shocked if over the long term you just, you know, somebody that doesn't follow the space very, very deeply is going to hear like some stat like you know, oh, you know, $5 trillion worth of originations happen on Avalanche last year. And it may happen kind of under the surface just because it's all institutional capital moving from one place to another and just deployments continue to happen and, and uh, and it's all powered by

Speaker B: Avalanche seeming like a very institutional heavy enterprise heavy chain succeeding.

Speaker A: Right.

Speaker B: Excelling in the RWA space. Uh, and that's why my focus is actually also on the issuer here on SkyBridge Capital. Right because you see how folks like Apollo with their ACRED fund are really leveraging even defi, right with their listing on Kamino for example, so that you can loop it there. Uh, I think that's really cool versus say oh, I'm just going to use this as a mechanism to raise capital or to you know, manage my investors in a different way as a, as a better way, you know, from a cap table management perspective. I really hope we see some announcements down the road here where it's like hey, these funds are going to be listed here or available on this ecosystem or utilizing tokenization in this way, uh, and maybe even a defi or a retail composable way. Who knows? May not be in the cards but I'll certainly be looking out for, for that uh, myself moving uh, on Kyle, uh, on the real estate side of things, pretty big announcement from RE Tokens. From RE Tokens, uh, that I think is big news. We saw uh, a couple of weeks ago on Nobody Oasis Pro Markets. Right. We saw in the early days of tokenization, uh, of security tokens. In the early days of RWAs there was a litany of, of firms applying for broker dealer, uh, licenses in order to be able to have the regulatory infrastructure right to be able to power a marketplace or a broker dealer, an investment bank. Um, and in this case I feel like it's been a while since we've seen sort of a new one be awarded.

Speaker A: Right?

Speaker B: I don't know about you, maybe I'm misstepping here or we missed something. But it's nice to see that in 2025 also more of these licenses are now starting to be awarded because RE Tokens is the latest to, to now have both a secondary trading license as well as a full FINRA marketplace license, uh, uh, a broker dealer license. So this is really exciting. Um, another broker dealer that's specifically focused on real estate I think is awesome. Uh, because we've seen this asset class continue to get traction and attention and we know there's a great use case here for it. Um, but everybody kind of seems to agnostically support real estate in other ways and now we're seeing another marketplace like this that's focused on real estate specifically here in the United States. That's a big deal. Um, I think that uh, uh, we're going to see a lot here from Tyler Vincent and team, uh, from RE Tokens. In my opinion Kyle, that now they've got this equipped. They've already have token tokenization engine live. They've been tokenizing assets as we know. I think they're the first to do a church which I think is pretty cool. An ongoing raise. Uh, and they're working with poly mesh. They're using the poly mesh one of the OG RWA chain. So uh, and I believe with um, uh, some other top tier custodians. I don't want to miss, miss, miss ah, ah speak here but I gotta say very exciting Kyle that Re uh Tokens is now gonna what I imagine really uh, you know, gear up the same way we've seen other ecosystems or tokenization platforms in know scale up once they get this licensing.

Speaker A: Yeah, I think it's an interesting model to be a focused ATS secondary marketplace specifically for real estate. We have a lot of examples of successful real estate crowdfunding portals, whether it's Yield street, whether it's, it's any of those types of guys. And of course the, the tokenized real estate game which has kind of just always been an interesting use case. And I'm sure there's a lot of players in the space that are also not incredibly crypto native but are still interested in getting involved in, in this opportunity. And I don't think that that to date I can really think of. You know there was the, you know there was a real estate decentralized platform that we saw come out uh, a few years ago. But a fully branded real estate alternative trading system for tokenized assets I think is fascinating. And I uh, really wish them the best of luck because this is where I think ATS will see some success is by focusing on particular verticals so that, that way they can, they can really concentrate the liquidity, they can concentrate the investor base. They don't have to be just kind of sourcing different deals from all over the place and find new investors for each new deal that they Work on. They can really target specific classes of, uh, investor, which is what these assets need for liquidity.

Speaker B: Yeah, no, that's a strong testament. So looks like we're both, uh, happy about this news as well. Good job, Ari Token. And hopefully this is also a sign that more of these licenses are going to be awarded soon as well, which I, I do love. More competitors entering this space just to try to bring more liquidity, uh, and you know, more support into the space. So moving on, we have another heavyweight making a big tokenization move, talking about none other than S P. You know, S P Global on their rating side has already rated some products we've already seen on there index side. That's their Dow Joan indices, S P dji that they did a deal with Centrifuge to, to basically tokenize, uh, the s and P500. But now it looks like they're getting into the game themselves directly with Rumor, uh, confirming that they've been talking about potentially tokenizing the s and P500, the Dow Jones Industrial Average, and talking to multiple big blockchains and defi protocols about it. Uh, so that's really exciting, uh, news, uh, because of course this is yet again traditional finance embracing, uh, you know, this new operating system of tokenization. That's really what we're talking about. And the fact that earlier, uh, last year BlackRock kind of paved the way for asset managers. Uh, now, uh, even with banks sort of starting to say, hey, we're starting to look at this now, you've got one of the big, uh, ratings companies, one of the big, uh, index companies also saying, hey, we're getting into this, uh, in a big way. So I think that's awesome, Kyle. This is just once again, uh, validation and proof, uh, that Wall street is 100% headed in this direction.

Speaker A: Absolutely right. I love your perspective here. I think that was well thought out and well communicated. Um, so I just got to retweet what you just said there her way.

Speaker B: Yeah, well then we can easily move on to that transition about Centrifuge there because they're not done.

Speaker A: Uh, that's right.

Speaker B: Currently tokenizing the SB 500 themselves as well with their DRWA platform, which is what they're pushing lately. Right. The D5 conversions into using RWAs, it's absolutely awesome. They announced their DE RWA, uh, ecosystem and infrastructure. Uh, so I'm sure they're talking to lots of issuers right now. But as we know, they teamed up with Janice Henderson, uh, for their animal product, uh, a little while back. And so it's no surprise here that the first product here, I believe, uh, is now live on base, um, using their aerodrome decks. Uh, so, you know, lots of people can access this. Uh, that's Janice Henderson loan obligations that are rated AAA rated. Um, it's called the D, E, J triple A, uh, product, fun product that's now live, defy compatible. Huge in my opinion. This is what we've been talking about. It's now happening. So good on centrifuge here, good on Janice Henderson, and excited to see more of this. Kyle, your take?

Speaker A: Yeah, I think this is, this is the type of product where, you know, there's a lot of treasury vehicles. Um, and I guess that that term has really taken on a life of its own because there's so many different definitions. But there's a lot of crypto companies that have big balance sheets which we traditionally would refer to as their, their crypto treasury or whatever. And those companies have been sold a lot of the Biddle Fund and of these money market funds, basically saying, look, you know, you're sitting on hundreds of millions or billions of dollars of crypto assets. Don't take the volatility risk of just keeping that in Bitcoin or eth, and don't take the, you know, don't just have it sitting in stables. It's going to earn you nothing. Buy biddle or buy one of these funds that's going to get you 3% or 4% per year on a billion dollars. Still 40 million bucks, right. So that then you can use to run your operations of your business, do X, Y or Z without touching the principal. And so my gut is that especially because of how active animoy, for example, has been in the treasury fund space, um, and how active centrifuge has been in supporting that, that these types of products are actually going to be targeting the same type of clientele, the same client base that's buying into the treasury products, the money market fund products. Janice Henderson is now going to say, look, we can get you an extra, you know, 150 basis points on, you know, our product. And so that's tens of millions of dollars a year for you, uh, in additional capital, working capital and profit that you wouldn't get in the Biddle fund. And so if you're, or whichever fund that they were using as a comparable. And so I think that that from my perspective is probably the angle here of trying to slowly creep up the yield ladder, um, or the risk ladder of uh, yield performing assets to try to generate more interest there, um, and as we've talked about her wig, it seems like this is how liquidity is going to get built in this industry. Starting with low risk yield products, then starting to expand up that risk curve to generate more yield. And then obviously there becomes a point where you either decide to go into pretty low rated corporate credit or you then make the jump into equities and things like that. Maybe starting with the public markets as we're seeing with so many of these public market, uh, assets that are getting tokenized, starting to build wealth management portfolios and getting into commodities exposure and getting into all these things. Uh, so I think it all stems from we're watching liquidity being built in this industry in real time and it's pretty exciting.

Speaker B: Very well, very well put, Kyle. Uh, and absolutely right. I think this is exactly one of those signals that we're going to start seeing potentially. You know, I guess we'll see, you know, based on the activity here. But I think we are going to see folks say, hey, I want to, you know, start to look beyond Treasuries, uh, and products like this are going to fill that gap. Um, so, uh, very cool stuff. We got one more big announcement, one more market movement because this change just kind of shifted, showed up on our radar. Uh, you know, they are an agnostic chain. So they were really on the RWA radar. Yet Epic Chain that's active in over 150 countries according to this article. Um, they are now with Ripple, uh, actually now an L2 on, on XRP, if I'm reading this right, uh, gonna be focusing on RWAS as well, Kyle. So great news in partnership with Fannable, um, they're going to be getting into the tokenization game. Um, so yet another sign both here from the XRP perspective that you know, as we've been saying, like Ripple is going to come back hard to try to go for the RWA throne. That's why it wasn't surprising to me about their attempt to buy Circle, uh, earlier this year before they IPO'd, because that would be one of those ways to compete in the stablecoin game, which they know we know they have one. But now they've been very, getting very heavy to get people to tokenize assets on their XRPL ledger. Um, and I guess they've teamed up with Epic Chain here, uh, as a, as an endorsement I guess, to, to focus on this fannable platform. Kyle.

Speaker A: Yeah, no, I mean Epic Chain is uh, they're building some cool things in the RWA space. We've talked with them On a variety of occasions on commodities, tokenization, on collectibles, tokenization, on music and IP rights and things like that. Previously they were Ethernity and so if anybody's heard of Etherity they've rebranded here into Epic Chain and relaunched their platform working here with Ripple as uh, it looks like Ripple is an investor as well in the platform and uh, and Fannable really focusing there on, on uh, on collectible products and things like that which is certainly a huge market in the traditional space. I don't know it quite as well um, from a financial and economics perspective and but uh, I love to support Miami based companies and uh, Epic Chain is doing some really cool stuff and they've certainly done a really good job of driving press, driving awareness and building hype for the RWA space which is something that I think the industry needs because we do have a lot of tradfi people that don't always do the best in terms of marketing, branding and making uh, things sexy. So for that reason I think that uh, yeah they're doing some good stuff there.

Speaker B: Yeah and this isn't uh, just like all brand new Fannable is live and active revenue generating so this makes a lot of sense. They're not getting into the tokenization game here using the Epic Chain uh, and it's not exclusive to that.

Speaker A: Right.

Speaker B: The article does here mention that bonds and uh, other real world asset applications are welcomed right onto the Epic Chain platform here. So man what, what a time to be alive in the RWA space. The crazy part is those are only just the biggest headlines and you may argue that there were even bigger or other argument, you know, other headlines that you thought were big. So we're going to get to the rest of them in just a moment. But first some RWA foundation updates. We started the RWA foundation to bring together the leading RWA infrastructure right across the chains. The tokenization engines and marketplaces, the issuers themselves, the defi protocols and even the ratings uh, and oracles and other sort of critical infrastructure in between. And the reason for that is because we felt like we needed to create a community for uh, crypto natives to educate them on RWAs, RWAs to help onboard them into this ecosystem to focus on the intersection of defi and tokenization. And uh, we've got a lot of cool initiatives planned but we've been working hard with our members, over 30 of them, uh, that we've been announced last November and I'm excited to say that last week we have added 14 new members to our organization. Uh so on Our mission to help connect the world's people to RWAs. I'm excited to say that we've brought on Solana Foundation, Orca, RWA World, Plume, AgriDex, Pre Stocks, Baxes Global Settlement Network, Decentral, Ori, BitBond, ARI tokens, accredit token and Polybit. Uh, folks are all over the world, uh, and across all different spectrums of RWAs. Uh, and so we're very proud to now have over 40 members helping us on our mission here. If you've been following along or if you're following us on Twitter @RWA foundation underscore or on our Telegram group, you'll have heard about the RWA Pod. It's our first initiative that we're going to be releasing details to you next week. Uh, but quick alpha for you here is that you're actually going to be able to earn RWA project tokens from staking crypto. That's right. We're here to take crypto yield and turn it into rwa. So if you've got usdc, Ethereum, Arbitrum or Sonic, and we'll be adding more chains later, you'll be able to stake and earn Wally for the first time ever as well as other RWA project token. So look out for the RWA pod details soon. Tap in, follow us. Uh, but with that, that's the latest update. Let's get back to more industry news. Kyle, man, it has been no slow summer when it comes to RWA news. Not a break, not a single week. Uh, and wow, it's another week like that here. So as per usual, if it's cool with you, I'm just gonna load up into starting off with some RWA token announcements, right? New offerings, new updates, tokenization platforms and then we'll get your take. All right, so uh, with that, uh, the first thing I want to announce, uh, is actually DBS is tokenizing structured notes on Ethereum, uh, expanding to non bank clients. Okay, so DBS typically being very institutional now through AddX or AddX, uh, Digi FT and Hydra X, uh, they're going to be expanding investor access non bank clients as they say. Very exciting to see typically, or I guess typically institutionally structured products now making their way, uh, outwards through tokenization. Bitget is doing some innovation here, uh, issuing RWA index perpetuals with tokenized stocks. I think leading up to 10x leverage on US tokenized stocks. Pretty crazy stuff. And speaking of tokenized stocks, uh, Swarm, who's been in the game for quite some time, they're actually Expanding to multi uh, chain interoperability there to Hedera as well. So they're introducing tokenized stocks to the Hedera ecosystem. SBI is uh, actually tokenizing Japanese equity so rolling out maybe next year or 2027 7. Actually the stock markets in Japan will be on chain thanks to investment bank sbi. Uh and Balmore, uh, the whiskey company is now tokenizing whiskey bottles on Avalanche. Another win for Avalanche. So really cool to see more use cases like spirits uh and the like like whiskeys also be used because there is a big market for this asset class even if it isn't as big as Treasuries or commodities or stock. So Kyle, what are your take on any of these, these uh, updates? Anything stand out to you?

Speaker A: Well look, I think we've seen the uh, the whiskey effort happen before. I think it's pretty cool. It's, it's a fun initiative. Um, it's definitely one of those more consumer style of products. But we also have seen Suntory and some other large whiskey companies getting involved in the web3 space and so pretty uh, cool too see uh, liquor companies getting involved in this space. It's one of the more profitable verticals in, in the public markets as well. And you know a lot of these are interesting. The, the, the Bitget perp thing is really uh, caught my eye and we went into the, the platform to try to check it out and it does look like it's kyc. So I'm in the US I'm not going to be able to, to really get involved here. But uh, but you can do 10x leverage on US stocks which is bonkers. Um and this is just kind of a bigger trend how everything is just becoming a speculative game. Um where now stock market is the same thing. We now have prediction markets coming out on all these things from, from Robin Hood and Kalshi and Poly, uh, market and everything. Um, so I think that's a cool one and certainly can be a really game changing opportunity for somebody that takes a 10x long into an asset that, that ends up having an absolute ripper of the day and uh, and doing well for themselves. But uh, but I'm just not sure you know that they have this index style of product and this is kind of what we've discussed in the past Herwig where they are essentially using a basket of uh, third party custodians that hold the stock and then the index supposedly will rebalance that portfolio of suppliers of the stock. So let's say it's Tesla. There may be Four different providers of Tesla stock for their total float. Um, and presumably they're having an internal style of control in order to determine if any of those four providers are delinquent or risk or whatever. They're also going to be trying to add more. Um, but this does present, as we've talked about a thousand times now, a level of risk in where these assets are being custodied and making sure that you actually own the underlying shares. Right? If you're 10x long on Tesla, it rips and then you go to redeem those profits or vice versa. If you're 10x short and somebody hasn't been shorting the stock and, and now we can't locate the shares and blah, blah. We have seen this before. You've seen this play out in the public markets. We've seen it be played out in FDFTX markets of them doing tokenized stocks. We've seen this in every different way blowing up. And so I'm not here to say that Bitget is doing that at all. I'm just saying that those are risk factors that I don't think the average consumer or the average trader is considering when they are making these decisions to deploy their capital. And this is where you get a lot of regulators that are uncertain, unhappy about some of these things. Not necessarily because they're trying to pop the bubble or ruin the fun, but if we don't know how to evaluate this risk and if we don't know how to hold these underlying issuers accountable for what they're promising, then it gets

Speaker B: a little bit hairy.

Speaker A: And so, um, not to pick on Bitget here, uh, because it's happening all across the board with all the mirrored shares, the private equities, everybody wants to bring equities on chain, um, but if you don't actually own the underlying, you get GameStop style of, of frenzy like we saw from 2021. And I don't think that anybody actually wants that in the economy. Um, unless you're one of those guys that, that goes 10x long on GameStop

Speaker B: right before it pops for, you know, for, you know, I think those are, it's well set, right? It's like, you know, at the end of the day, some bad apples can ruin the rest of it, uh, at the RWA space. And for anyone who's curious, I believe they're operating out of the Seychelles. Um, so it's like, okay, you know, I hope they're doing everything right. And we're not saying they're doing anything wrong, per se. But I see what you're saying there and uh, it could lead to some slippery slopes. Let's say that if this isn't controlled or regulated potentially properly, it absolutely could, could cause damage to real.

Speaker A: Take profit. Take profit. If you succeed, if you're doing well, like don't, don't hesitate to take some chips off the table. So

Speaker B: anyway, uh, lots of good stuff, Lots of good stuff there. It just goes to show you the opportunities within the RWA markets. Right? The actual tokenized assets themselves now they're popping off. There's going to be opportunities left and right. There's going to be options everywhere. Um, and that leads into some more of these announcements. Kyle Valyrium Partners tapping Zig Chain. It's the first time I'm hearing of Zig Chain. Okay. Uh, partnering with Digi Shares uh, for VLRM markets. Okay. This is an mou. Um, so we're gonna see this hopefully uh, lead to some kind of a couple ah, offerings here, uh, tapping into this marketplace. But this is those inner workings of a partnership, right, that's going to continue to lay the foundation. And it looks like Digi Shares continues to be a popular choice as sort of an engine powering a lot of these types of marketplace. I know they just launched that, that Rex, that real estate Exchange as well. That's not kind of like, I think defy orientated. Um, but now they're going to tap Zig Chain. It looks like Digi Shares will obviously have to integrate Zig Chain for this to work. Um, soft, uh, making a big announcement, teaming up with another uh, blockchain haven one, uh, in this case, uh, for RWAs, uh, uh, called the fast launch Pad. Okay, I'm reading here. It's, it's actually they want to bring it down from six months to two weeks to tokenize. Kyle, that's crazy. We know it usually takes about three to six months to accelerate things to two weeks is possible. And it looks like they've assembled quite a bit of money here. $75 million which does only come up to I think form 25k here in grants or some number like that. But it does give issuers who are tokenizing incentive to come to this launch pad, maybe get a grant and get to market fast. So that's an interesting strategy. Um, and uh, speaking of, I do want to mention an offering from Real Estate Exchange next here, which is uh, the Legacy in Miami. Very cool project. Uh, well, depends on how you want to look at it. Kyle, you may have walked by it. I've seen it quite a bit uh, for when I was actually in that neighborhood in Miami World center where they're building the Legacy and it has been in standstill construction despite a lot of other towers around it moving up. Uh, so I'm excited to hopefully see this get some action again and not only that for it to be saved by crowdfunding. Uh, this is thanks to Fraxion. Fraxion is helping power this play with the legacy of using Realestate Exchange and uh, Stellar Development Foundation. It's worth mentioning they've invested in Archax, uh, which is a big deal. Archax is one of the leading UK and now expanding beyond uh, platforms uh, and licensed marketplaces for tokenization that are working with Aberdeen and a bunch of other big uh, name issuers. So very cool to see and a big, big testament to Stellar makes sense. That's going to be one of the ways these blockchains get an edge in RWA platforms by investing in them, not just giving them grants to support their chain. Two more here Kyle. Uh, on the institutional side the FIS is looking to add tokenized deposits and stablecoins, uh, and exploring that. And then finally Digi FT has announced a 25 million dollar funding round uh led by SBI Holdings. And we know Digi FT tends to be very instrumental institutional, uh, RWA infrastructure focus. So uh, another heavyweight to keep uh an eye on there I think. DGFT now with a fresh war chest to go after this market. So many, so many great pieces of news there Kyle. Which one you want to pick apart?

Speaker A: Well it's interesting I, I, the, I want to shout out Zoth and Haven one I mean two weeks to, to bring a tokenized asset issuer to market I think is really really great. And, and perhaps there's there's some compliance things you need to layer in there or perhaps there are some other things that add some time but at least reducing the friction in, you know, allowing an issuer to wrap their head around this and again start soliciting investor intros and interest and feedback from their M market from their target consumer is a really core component here. And this is how we can build some of that early interest and start to validate and justify the fees and costs associated with bringing a product to market is at least getting feedback and reception from your communities, from your client base and things like that. So I really like what they're doing. These guys have been working hard on a lot of this stuff and raised some money. Um, so that's very exciting. And uh, the RTX guys Just continue to thrive. I mean, we talked quite a bit about, about centrifuge earlier, and we've got Archax still, still fighting the good fight. Um, they're doing some really cool stuff and, and uh, and stellar. Being involved here makes a lot of sense. They've made a big push in the RWA space and uh, and have been very supportive of the industry. So I think that's a, a natural partnership. That's, uh, that's pretty exciting finally. Man. 25 million for Digi FT is tremendous. I, I love supporting funding rounds and, and in our industry, you know, we need more great players that are getting the capital that they need to build their opportunities to build their business and to drive this industry forward. SBI is a huge name, uh, to have on the cap table.

Speaker B: Yeah, no, a huge name for sure. A lot of great comments there. I'm surprised you were more bullish on the legacy tokenization. I for one want to see every building in Miami tokenized. The one behind me, the one next to it over there, the one I'm in right now. The one you're in right now, Kyle. I want to see them all. Be an option for me to buy scan a QR code walking by. This looks great. Let me check out the details on this. But anyway, uh, that's the future we're headed towards. Uh, we got to finish up our show, don't we, Kyle? With one way that I can only way we can think of. Right.

Speaker A: The best part of the week. Yeah.

Speaker B: By picking our company of the week. Let's do it.

Speaker A: Ah, feels good to be here. Herway,

Speaker B: we, we made it through the show, but I gotta say, uh, it's getting harder and harder and harder. Feels like more and more pressure every single week on, um, which company, uh, to choose for company of the Week. Man, I don't know about you.

Speaker A: It is, it's. It's a competitive process. There's so many companies reach out to us every week asking Kyle Herwig, please, please pick us for company of the week. This is a game changer for our token price, for our investors, for our community to be recognized on the illustrious security token show would be an honor and an award amongst others. Please take these billions of dollars in, in, uh, sponsorship opportunities. And you know what we say, Herwig? We say no. We are committed, dedicated to the game. Our morals and ethics are above all else. We care only for the most important impactful companies driving the industry forward, doing cool things and catching our eye in one way or another. And so for that reason the illustrious serenity, the branding and awareness. The, the opportunity of winning the Company of the week is still one of the most prideful moments in tokenization. Some say up there with Oscars, Grammys, Tonys, the Midas list, Forbes 30 under 30, any um, you know, even the, you know the, the economics Nobel Prize is, is the Company of the week her week. And so with that I want you to kick it off with your choice for Company of the Week.

Speaker B: Well, for anyone who is still interested in listening after all that, I promise you we do get some of those messages but many. But I will say these are. Kyle is right. We are completely uh, opinionated. Our choice is not compromised in any way way. Uh, it's whoever, whoever we decide, um, you know, that we think is the best winner. So that's why I am so interested Kyle, out of this week. So many cool initiatives, so many new token offerings, so many great companies launching or blockchains launching. Who could possibly be your winner Kyle?

Speaker A: Well, my winner this week is a Miami based company who is doing some awesome stuff. I wanted to shout out Fannable and the Epic Chain team for driving the RWA space forward. They, they just announced the, the partnership with XRP and the launch of that platform and their layer two with Epic Chain which is their, their rebrand which has been really successful and then Fannable which is the app that they're doing for all kinds of collectibles and different products and as well as they have all types of applications in their suite of services for RWAs, whether that's intellectual property, whether that's other types of RWAs and investment products. We've talked commodities with them quite a bit and so I just think that they're doing cool stuff. They've been driving the industry forward. They're taking a slightly different approach with kind of the uh, public awareness and marketing side. They've done partnerships with Mr. Beast and all kinds of other influencers throughout the course of their platform platform. Um, and I think that that just brings a different component to the industry. Maybe bringing some retail, some consumer products. I know they've done some really successful pre sales and sold out of a lot of their different products. So they're doing well from a sales and liquidity perspective on some of their products that they're selling. So they've had success, they're doing it in a novel way and uh, and they're so close to home. So for those reasons Herwig, I think they're going to be my company of the week this week.

Speaker B: Phenomenal reasons Kyle. Phenomenal reasons, absolutely. Uh, love the fact that, you know, you got that local touch. Love even more that this isn't a concept company. This is, uh, an active company with a lot of success behind it already. Also, uh, want to point out that sort of through the epic chain relationship, that they're kind of using an L2 on ripple that could have some powerful strategic advantages, uh, that I'm sure they're taking into account. Uh, given their relationship there, I think they count them as investors. So a lot of testaments here. Uh, and I love that use case. So that's an absolutely fantastic choice.

Speaker A: Yeah. Something different, something fun. And how about you, Herwig? Uh, who's your choice this week?

Speaker B: Well, you know, a lot of the times people might call me boring because I do tend to go. I have to honor what I think does make the biggest impact in many cases, because I see our choices here every week as part of the chronological history here of the RWA space. You know, each week, the winner that we chose really was that week's impact in the space, you know, So I think it's a big deal who we choose. And, uh, this week I want to give it to Avalanche, uh, not just because of what they've done this week, but also what they've been doing all this time to get here. I, uh, have to give a full disclosure here, Kyle. As we know, um, Blizzard, their VC army, uh, is one of our investors in stm. But overall, uh, this is, again, personally opinion because I love the fact that they managed to get not one, but two awesome issuers to Tokenize this week. And this is off the heels of a lot of other major news we gave Companies of the Week. I, uh, gave a Company of the Week awards, I believe, Balcony Dow, back when they tokenized the Bergen county, uh, titles, uh, in New Jersey on Avalanche. We had heard earlier that the California DMV was tokenizing car titles on Avalanche.

Speaker A: Right.

Speaker B: And now you've got, uh, one of the most vocal names in both crypto and Wall street combined, kind of out of Anthony Scaramucci. Right. With SkyBridge Capital, tokenizing a pretty large sum of funds to get started and just the beginning, I'm sure. But then also Balmore out of, uh, Scotland. Yeah, you know, like, that's pretty cool stuff. That's a 1779, uh, founded year company. Uh, that's a very old company, um, that they have now convinced to directly tokenize, you know, onto the Avalanche chain. So I think that's another kind of testament to, you know, what Avalanche has been able to accomplish with their sort of enterprise, uh, L1 custom, L1, you know, sort of infrastructure blockchain. So Kyle, for all those reasons, Avalanche is my company of the week.

Speaker A: We're gonna have to go to the liquor store and grab a bottle of uh, Balmore just to uh, to try it out, see how it uh, see how it tastes now that it's newly tokenized. You know, it just has a different flavor profile to it that you just don't get from any of their competitors.

Speaker B: So. No, absolutely. That's uh, that's an interesting one. We got to give a shout out to one of our new founding members of the RWA foundation backs us, which you could take that Balmore bottle and actually put it on Solana through them, tap into a marketplace. So I will say I'm just like I was calling out on seeing what utility and usage is going to come out of Skybridge uh, for their funds. It's also going to be interesting to see how Balmor leverages the on chain capabilities. Right. What are they actually going to do with this now? Or is this uh, similar to kind of like what we're seeing with some of these other moves on Avalanche? A little bit more, again enterprise, a little bit more recordkeeping focused, a little bit more, you know, marginal improved efficiencies versus hey, we're going to go to defi and tokenize assets, right? There's a couple different ways you can approach this. So that's why we're here for you. That's why we have the show to keep you up to date every week. So if you do enjoy the show, give us a like. Share it. Subscribe, subscribe if you haven't already. And uh, make sure you're following Kyle and I to keep up throughout the week so you don't have to wait till the next Friday as we get close to episode 300. Kyle, absolutely love it. More than six years of work. Any closing thoughts about uh, on Global Settlement or on the show this week from you?

Speaker A: Well, we're uh, we're getting ready to kick off our Asia tour starting in September. So I will be in Bali for the Polka Dot event and then I'll be in uh, in uh, Tokyo to meet with the Japan Security Token association before we go to Seoul for KBW and Token 2049 in Singapore. So if anybody's in region or wants to meet up or hang out, hit me up and uh, let's, let's do some business.

Speaker B: Ah, I uh, love it. I love it. I love it. The annual tour to Asia has begun once again for three years in a

Speaker A: row for me, which is just funny how that works.

Speaker B: Pretty crazy stuff, but we'll see. We'll get the show done for you as we always do right now. So with that everybody, thanks for watching, have an amazing weekend and happy tokenizing.

Speaker A: Mhm. Sam.