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Goooood Morning, Rainmakers! ☀️

As always, we have two captivating topics for you to dive into:

1️⃣ 💵 Tokenized Commercial Paper: Mercantile Bank International and Prontoblock

2️⃣ 💻 Microsoft Has Entered the Chat: AI Chatbot for Tokenized Assets

Without further ado, it's time to…

Get Liquid 💧

 A MESSAGE FROM STA SUCCESS NETWORK

Are you an issuer, asset manager, tech provider, law firm, or any other stakeholder in tokenization? Then the STA Success Network is for you!

The Success Network is meant to bring you all together to collaborate, stay up to date via STA’s research and weekly insights, premium webinars & events, and more.

Want to start with access to select webinars and the insights emails? Check out the STA Insights plan for JUST $9/month. That’s a coffee and a bagel a month!

Who’s already in?

With over 180 members, the STA Success Network features members ranging from financial professionals to technology experts and active tokenization pioneers. Come join Goldman Sachs, Dalmore Group, Freeport, Coinbase Institutional, Winston & Strawn, RedSwan, and so many more!

💵 Tokenized Commercial Paper: Mercantile Bank International and Prontoblock

Mercantile Bank International (MBI) is partnering with Prontoblock to tokenize the commercial paper market. MBI clients will be able to purchase tokenized paper using Prontoblock’s platform which will also help vet the best instruments to tokenize.

Wait what’s commercial paper?

According to Investopedia, “Commercial paper is an unsecured form of promissory note that pays a fixed rate of interest. It is typically issued by large banks or corporations to cover short-term receivables and meet short-term financial obligations, such as funding for a new project.”

For context, the outstanding US commercial paper was worth over $1.25 trillion at the end of last year and Prontoblock plans to tokenize $1 billion of that by Q2 2024.

So why is MBI interested in this?

This is aligned with MBI’s needs as they consistently have excess liquidity and could benefit from investing in high yield, short term instruments. Commercial paper tends to offer higher rates compared to treasuries but at similar maturities and yes, these tokenized offerings will be available to US investors.

MBI is a new bank, having been chartered only a few years ago in 2019 as an International Financial Entity under the laws of Puerto Rico, but what makes them relevant here is that their charter came with the authority to custody and transmit digital assets, making it one of the first banks in the U.S. with such authority.

Everything in this newsletter is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this newsletter should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.

💻 Microsoft Has Entered the Chat: AI Chatbot for Tokenized Assets

Another artificial intelligence application has surfaced since last week’s coverage on Provenance Blockchain integrating with Anchain AI for on-chain compliance and security.

Now we have Microsoft partnering up with Aptos Labs to build Aptos Assistant, an AI chatbot that provides information about the Aptos blockchain, making it easier for users to onboard into Web3. Additionally, it seeks to assist developers in constructing decentralized apps and smart contracts. Aptos will also operate validator nodes on Microsoft’s cloud platform, Azure.

This news comes just after Coinbase launched their layer 2, Base, with similar goals of making it easier to onboard users and developers to Web3 with the user experience being a top priority. This is going to help grow the Aptos ecosystem along with applications related to asset tokenization, payments, and CBDCs.

For Microsoft, this isn’t the first time they’ve announced blockchain-related efforts. They’ve previously partnered with Axelar, Ankr, and Matter labs for adoption and interoperability.

It’s still too early to tell which blockchain, if any, will dominate so let’s give them a fair shot!

Let’s also remember Franklin Templeton just announced their $300 million tokenized money market, the Franklin Onchain U.S. Government Money Fund (FOBXX), will be expanding to Aptos and two other chains.

💦 What else is Drippin’

Platform Spotlight: RedSwan CRE

The STA Success Network will be hosting a spotlight on RedSwan this Thursday, August 17th at 12pm EST.

RedSwan CRE is your gateway into this revolutionizing trend. Their platform empowers real estate transactions with fractional ownership, privileged access, and unparalleled affordability. It offers 24/7 liquidity trading, bringing a new level of options to real estate investors.

To date, RedSwan CRE continues to lead the market having tokenized over $5 billion in real estate assets while operating under full compliance with FINRA licensing.

This webinar is available to both members of the STA Insights ($9/month) and Professional ($999/month) plans on the STA Success Network.

Fireside Chat: Tokenized Asset Reporting with Ledgible

The STA Success Network will be hosting a fireside chat with Ledgible on Thursday, August 24th at 1pm EST.

Ever wonder how taxes, accounting, and reporting work for digital assets? Well you're in luck! Ledgible will be diving into these topics and how they help issuers through these processes.

Join us for an exciting and much-requested deep dive on August 24th at 1pm EST! In the meantime, check out their page on the Vendor Network.

If you’re interested in access to webinars like these, consider subscribing to the STA Insights plan for ONLY $9/month which also includes their email newsletter twice a week detailing what’s going on in the ecosystem, STA’s commentary on it, and any insights derived from our advisory and research arm.

State of Security Tokens 2023 - Q1 Extended Report

The Security Token Advisors State of Security Tokens 2023 - Q1 Extended report is brought to you by the Provenance Blockchain Foundation!

Our Head of Research and Institutional, Peter Gaffney, dives deep with updates from across the industry, from issuers to platforms to protocols. This piece will detail the macro trends taking shape within the tokenization space as a function of service providers like transfer agents, broker-dealers, alternative trading systems, custodians, and third-parties, as well as issuers, blockchain foundations, asset managers, investment banks, and activity that Security Token Advisors sees on its advisory side

Take a read for analysis on common themes emerging for both primary and secondary markets!

This is not financial or investment advice.

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Everything in this newsletter is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this newsletter should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.