GuShiio.com Author: Alex Xu
Narrative background
Just a few days ago, both CEO Brian Armstrong and CFO Alesia Haas of Coinbase said they were considering tokenizing Coinbase shares in order to trade US stocks on the Base blockchain.
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In this innovative and boring encryption cycle with PVP as the main line, we finally see the dawn of something interesting.
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If it goes smoothly, US stocks will become the third largest category of RWA assets after stable currencies (USDT, USDC) and treasury bonds (Buidl). If the regulatory and compliance framework is clear and provide sufficient freedom for US stock tokens, US stock tokenized assets should be expected to exceed the current size of national debt tokens in the short term, because they provide high volatility and speculation that encrypted users prefer.
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Business logic
Compared with the narratives such as Crypto AI agent and desci (decentralized scientific research) in this cycle, the value proposition of US stocks on the chain is clear, and the needs of both supply and demand are clear, specifically:
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The value proposition of US stock chain is similar to that of other Defi products, which is reflected in the greater free market and superior composability:
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1. Expand the size of the trading market: provide a 24-hour, borderless, unlicensed trading venue for US stock trading, which is currently not available on Nasdaq and the New York Stock Exchange (although NASDAQ is already applying for 24-hour trading, it is expected to take until the second half of 26 years)
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two。 Superior combinability: by combining with other existing Defi infrastructure, US stock assets can be used as collateral, margin, index building and fund products, giving rise to many currently unimaginable games.
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The needs of both supply and demand are also clear:
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Supply side (US stock listed companies): through the borderless blockchain platform to reach potential investors from all over the world and get more potential buyers.
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Demand side (investors): many investors who were unable to trade US stocks directly for various reasons can directly allocate and speculate US stock assets through the block chain.
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In fact, the idea of US stock listing has been tried before. For example, Coinbase tried to list its shares by issuing securities tokens (representing its stock $COIN) as early as 2020, but it was shelved because of regulatory hurdles in the US SEC.
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In the last round of Defi boom, we also saw US stock composite assets in Terra’s Mirror, Ethernet Square’s Synthetix and other products, but then also gradually declined because of the regulatory deterrence of SEC.
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Even earlier, the securitized token issuance project Polymath, which was founded and financed in 2017, promoted the concept of STO (Security Token Offering), that is, enterprises issued tokens representing securities rights through blockchain technology, and investors obtained similar rights (such as dividends, voting rights) to traditional financial instruments such as stocks and bonds, which once received a lot of attention in the market at that time.
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Now, the main driving force for the revival of the STO concept and the feasibility of the US stock market chain comes from the substantive attitude shift of the SEC after the transition, from strong regulatory rivalry in the past to innovation support within the compliance framework.
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Within reach, STO may be one of the few encrypted business narratives in this cycle with great influence, reasonable business logic and high ceiling.
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Related subject matter
From the background and logic of the narrative, we can sort out the objects related to the encryption secondary market.
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In fact, there are not many STO concept projects that have issued money and launched the root Zhengmiao red of the big institute.
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The one with the highest correlation may be Polymath, which was established in the 17 years mentioned above and first educated on the concept of STO in the encryption industry, and later launched the Polymesh block chain, a public license block chain built for compliance assets (such as securities tokens), with built-in identity authentication, compliance check, privacy protection, governance, real-time settlement and other functions.
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Polymesh tokens have been online currency an, tokens named Polyx, the current MC and FDV are 100 million +, the market capitalization is not high.
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In addition, although RWA concept projects such as Ondo mainly focused on the issuance of tokenized assets in the field of treasury bonds in the past, their products can also be adjusted according to compliance regulations to serve the stock monetization scenario. And Ondo is very close to the Trump family, and may get more explicit or covert convenience, even the platform of Trump family members (although the marginal impact of similar actions is getting weaker and weaker).
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Chainlink has previously done a lot of work in connecting many traditional financial institutions and blockchain, and as a mainstream prophecy solution and securities monetization service provider, in theory will also benefit from this.
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Risks to be paid attention to
The reason why the title of this article uses & ldquo; but not published & rdquo; to describe this wave of STO narrative is that there is still a lot of uncertainty about whether it can rise to power. Although judging from the measures taken by the new SEC team (withdrawing a large number of encryption lawsuits), its attitude towards STO also tends to be relaxed, but when a clear compliance framework will be put in place to guide STO is still unknown and needs to be closely watched, which determines the speed at which companies such as Coinbase can follow and move forward.
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The most recent observation event was the first round table held by the SEC encryption working Group on the 21st of this month. The round table itself is designed to provide a clear regulatory framework. The theme of this first meeting is & ldquo; defines Securities status: history and Future path & one of the agenda of rdquo;, meeting is compliance path design.
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What is more noteworthy is that one of the keynote speakers comes from the rising protagonist of this STO narrative & mdash;—Coinbase—— ‘s chief legal officer Paul Grewal.
If the STO-related compliance framework is slow and the waiting time is too long, the current narrative momentum may be delayed or even annihilated.
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