Finding the next major narrative of the bull markets isn’t something you need an expert to do. All it takes is perking up those ears and listening to what is going on during the bear. Which isn’t easy for many, as they lose their passion for crypto during the Downtime and their attention fades. But luckily we always have our ears open and ready for information and news and we love to relay that information to you. What’s the next big wave in crypto? Find out in about ten minutes, because it’s time for Chico Crypto!!In the past, I’ve been pretty spot on with calling the narratives of crypto. In 2017 it was ICOs, in 2020 it was DeFi, in 2021 it was NFTs…the only one I missed was meme coins and that is because I’m looking for real use cryptos…not just quick pump and dumps, Which a majority of meme coins were and are…. Although the next big narrative is as REAL as it gets. This is Real World Asset tokenization, RWAs…. This is pretty dang obvious, when you hear what the real world powerhouses are doing and saying, like Larry Fink CEO of the financial powerhouse giant BlackrockNext gen markets include the tokenization of the RWA, financial securities… So who exactly is the leader in this space? Who has been tokenizing stocks, bonds, and other investment contracts?? Well, like I showed earlier this week, Blackrock is tokenizing money market Funds in combination with JP Morgan and their blockchain Onyx. Onyx is a private permissioned fork of Ethereum..it’s not public blockchain tokenization, although eventually there will be a bridge that connects to the world of public Ethereum DeFi…So who else? Are there any players in this space tokenizing on a public blockchain and using DeFi?? Actually yes there is…have you ever heard of Franklin Templeton? Well they are a global investment firm that, as of 2021 had over 1.5 trillion dollars worth Of assets under their management…aka they manage assets worth more than the entire crypto ecosystem which is around 1.3 trillion today. And Franklin Templeton is diving into the public world of tokenization. All the way back in 2019, over 4 years ago, The firm announced they were going to tokenize a government money market fund on Stellar!! So what is the status of this? Did it ever launch & has it been a success?? Well as we can see, it took about a year and half for it to get launched, The first token movements for the fund happened in April of 2021… From rwa.xyz which tracks the performance and liquidity of RWA assets, we can see at the beginning of this year, the fund had just over 100 million in tokenized government treasuries on Stellar….and was one of 3 players, Dominating the space. Throughout this year, as the narrative has grown, more players have entered, but Stellar and Franklin are still dominating. The fund AUM has grown to over 323 million, tripling in just 3 months, and they control just under 50 percent of this market…But is Stellar the only player partnering with Franklin Templeton?? Are there any other crypto projects helping the investment giant in their path of tokenization?? Actually yes, Franklin has decided to bet on Ethereum too, specifically a certain Ethereum layer two. Earlier this year, in April it was Announced that they would be expanding the money market fund to the Polygon blockchain Although if we check out RWA.xyz we can see the performance on Polygon hasn’t seen fireworks yet…in 7 months, there has only been just over 2 million dollars worth of tokenized shares on the Ethereum layer 2…Although Polygon isn’t the only Ethereum Layer 2 in the RWA space…tokenizing financial securities like government treasuries…there is another BIG player in the space…as we can see, the second largest player behind Franklin and Stellar, is Ondo with over 158 million in short term US government bonds tokenized…and this has exloded as well this year, Going from under 1 million AUM at the beginning of the year to the 158 million today And as we can see, this is tokenized on Ethereum’s layer 1…although if we look further down the list, we can see, Ondo is also tokenzing these bonds on Polygon and that has better AUM than Franklin Templeton’s product on the chain with them… Speaking of Ondo, we need to talk about the possibility of an airdrop, since the protocol as we speak doesn’t have a governance token…and airdrops are HOT right now due to the success of the Celistia, $TIA airdrop which has already racked up an impressive 341 million dollar marketcap… Why do I think Ondo will be doing an airdrop?? Well going to their documentation, they have an ONDO token explainer within it and say “ONDO is the governance token for Flux Finance and The Ondo DAO. The Ondo team believes that setting the token distribution should be an iterative effort in collaboration with the community. With this in mind, the majority of tokens will be held by the Ondo DAO itself. The team and community can experiment with multiple Distribution mechanisms (e.g. sales, airdrops, liquidity mining) as decided by DAO governance.” They mention airdrop within their docs…it’s highly possible the DAO votes to reward users of their products, the institutional ones and the retail DeFi ones through the product Flux… And if you didn’t know, Coingecko already has a preview of the token…to me, It looks like this could be coming at anytime Although my friends… RWAs aren’t limited to financial securities, investment contracts like stocks or government bonds. RWAs extend way beyond this….including the sector of real world loans… Who is the leader in this space? Utilizing DeFi to expand liquidity in the private credit market??Well checking out rwa.xyz’s section on this sector, we can see the protocol with the most total loans is Maple Finance, with over 1.78 billion, then TrueFi with over 1.73 billion, and then Centrifuge with over 471 million. And something seems to be bubbling with the leader…Maple Finance, as we can see In the past month, Maple is the leader in this space, issuing over 31 million in new loans… Well, just yesterday…Maple announced that they added support for their protocol for Coinbase’s basechain… On the surface that doesn’t look like much, just a normal expansion across Chains…but you need to read between the lines to understand the importance… As we can see, Anthony Bassili tweeted this about their launch “Welcome to Basechain Maple Finance. Onchain financial markets for institution are here. Time to scale.” Who is Anthony?? Well from his Linked’n we can see he is “Head of Allocators, Cap Intro, & Tokenization at Coinbase Institutional” Why would the head of institutional tokenization be tweeting about this? Well in my opinion there is something going on between the 2 behind the scenes…and something BIG is coming… In my opinion, Maple is a buy….remember, the protocol has facilitated over 1.7 billion in Loans, and looking at its market cap, it’s just 53 million. Going back to RWA.xyz, we can see as of right now, there is over 133 million in Total Loans active. The TVL is 2x it’s marketcap… Well viewers, don’t sleep on RWAs and don’t sleep on the one’s mentioned and Don’t sleep on the possible ONDO airdrop. RWAs are no doubt the narrative of the next bull cycle. So let’s get REAL. Cheers I’ll see you next time!
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