Cointime

Cointime

Leveraging the Power of Decentralized Technology: Why On-Chain Finance is Inevitable

Major financial institutions are embracing blockchain to transform capital markets, boosting liquidity, cutting costs, and enhancing market integrity. This brief explores the opportunities driving this shift and essential technical factors for success.

Tokenized Assets

Illiquid assets can grow from 16x to 17x from today’s levels (BCG, 2022).

Tokenized assets are digital tokens stored on-chain (on a blockchain) that represent physical and traditional financial assets, such as commodities, currencies, and bonds. They can deepen liquidity, reduce counterparty risks, and make opaque processes more transparent. 

Early adopters can take advantage of a multi-hundred-trillion-dollar opportunity:

  • $867T of value in traditional markets poised for disruption by tokenization (World Economic Forum, 2021)
  • 80x expected growth rate of tokenization in private markets by 2030 (Citi, 2023)
  • 97% of institutional investors agree that “tokenization will revolutionize asset management” (BNY Mellon and Celent, 2022)

Seamless Interoperability for Global Liquidity

Blockchain interoperability refers to the capability of blockchain networks to communicate with each other, sending and receiving instructions, data, and tokenized assets. Because on-chain markets are inherently isolated, seamless and secure interoperability is essential for a thriving blockchain-based global financial system.

The industry needs an interoperability standard: 

  • 100+ blockchains have been built, with varying technical attributes to support specific uses (Goldman Sachs, 2021)
  • 77% of institutional investors want access to staking pools for enhanced yield on crypto assets (BNY Mellon and Celent, 2022)
  • 72% of global institutional investors indicated a preference for working with an integrated provider for all digital asset needs (J.P. Morgan and Celent, 2022)

Financial Equity NFT: The Pivotal Paradigm in On-Chain Finance

Utility NFTs are a broad class of NFTs with specific practical applications. Just like any other NFT, they are typically created with smart contracts and are unique. They also share the same properties of immutability, transparency, and security.

Unlike regular NFTs, however, the core focus of utility NFTs is the equity, rewards or real-world applications, they offer NFT holders. Financial Equity NFT represents a pivotal paradigm in the application of Utility NFTs within the realm of on-chain finance. They ingeniously utilize technological solutions to bridge the trust gap between communities and institutions. This innovation fosters genuine decentralization and trustlessness in capital aggregation, management, and profit distribution. It opens doors for traditional capital and high-net-worth individuals to venture into the Web3 space. AlphaXLabs is an institution at the forefront of harnessing equity-based NFTs as a technical tool to offer online management services for community capital.

AlphaXLabs has adopted an innovative, community-driven, and market-oriented organizational structure, connecting experienced community networks and capital from Europe, the United States, and Asia through financial equity NFTs. It operates as a community fund with a sharp focus on cutting-edge AI and Web3 technologies. The profits generated by the fund will be distributed among its NFT holders, collaborative channel partners, and protocol revenue creators, with NFT holders receiving a minimum of 50% of the total returns. It will initiate the development of its foundational community with an initial batch of 3,000 financial equity NFTs. These community members will be admitted through an invitation-only membership system. The first round of invitations will encompass prominent figures in the Web3 and AI sectors, including leading investment firms, exchanges, media outlets, data service providers, project teams, and key opinion leaders (KOLs). Following that, invitations will be extended to industry researchers, developers, and traditional high-net-worth individuals with a solid understanding of Web3 and the AI industry.

As part of its commitment to streamlining asset management for community members, AlphaXLabs' products are meticulously crafted for user-friendliness and will seamlessly integrate MPC and AA technologies. Furthermore, the Dapp (Decentralized Application) will be easily accessible through an H5 interface on users' desktops. This strategic approach aims to reduce adoption barriers for Web2 users. The official product launch is scheduled for mid-October. Additional information can be found on its official Twitter account, https://twitter.com/AlphaX_Labs.

The future of finance isn't just decentralized; it's user-centric. It's about empowering individuals and reshaping the financial narrative.

Comments

All Comments

Recommended for you

  • AirBit Club Co-Founder Sentenced to 12 Years in Prison for $100 Million Cryptocurrency Pyramid Scheme

    The co-founder of AirBit Club, a cryptocurrency pyramid scheme that defrauded investors of over $100 million, has been sentenced to 12 years in prison for his involvement in the scheme. He pleaded guilty to wire fraud conspiracy charges in March and was sentenced in September. The scheme purported to be involved in crypto mining, but instead, the co-founder used victims' money to line his own pockets through a complex laundering scheme. The convicted fraudster was ordered to pay a forfeiture of $65 million and to forfeit other items, including 3,800 Bitcoins worth $100 million. Other defendants in the case have also pleaded guilty and are awaiting sentencing verdicts.

  • US SEC Delays Approval for Bitcoin Spot ETF Applications Again

    The US Securities and Exchange Commission (SEC) has once again postponed the approval of several Bitcoin spot ETF applications, including GlobalX's and Ark/21Shares'. The SEC has set a final deadline of January 10, 2024, to either approve or deny Ark's application. This delay comes after a group of congressmen sent a letter to SEC chair Gary Gensler demanding an end to discrimination against spot Bitcoin exchange-traded products. The delay may have dashed hopes of a spot ETF being approved by the end of the year, according to Bloomberg ETF analyst James Seyffart.

  • People familiar with the matter: The U.S. Department of Justice has been investigating Binance for a year, and Binance and CZ may be subject to criminal charges and billions of dollars in fines

    According to sources cited by The Wall Street Journal, the US Department of Justice has conducted a year-long investigation that could result in criminal charges and billions of dollars in fines for Binance and CZ. Binance also faces a lawsuit from the US Securities and Exchange Commission, accusing Binance and CZ of illegally operating and misusing customer funds in the United States. The company has admitted to past mistakes but says customer funds are safe and is committed to compliance. A Binance spokesperson said, "We work tirelessly not only to learn from our mistakes but also to invest in teams and systems that ensure user protection." Binance.US's activities in the United States have largely disappeared. Its CEO, general counsel, and chief risk officer have all recently resigned. According to sources, Binance and the Department of Justice have been discussing for months whether CZ should step down.

  • The Chairman of the U.S. SEC will testify tomorrow at the House Financial Services Committee’s hearing on SEC oversight issues

    On September 26th, it was announced that Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC), will testify on SEC oversight issues at a hearing of the US House Financial Services Committee on September 27th at 22:00 Beijing time. According to a committee memorandum, the hearing will examine regulatory developments, rulemaking, and activities at the SEC during a period since October 5th, 2021, including the issuance of Staff Accounting Bulletin No. 121 on March 24th, 2022, which requires reporting entities engaged in digital asset custody activities to record the corresponding assets as liabilities, and the proposal to amend the definition of "exchange" on March 18th, 2022, to expand SEC authority over digital asset trading platforms.

  • The second fund of venture capital company P1 Ventures has raised US$25 million and plans to focus on financial technology and other fields.

    Venture capital firm P1 Ventures announced that its second fund has completed a first round of fundraising of $25 million. The new funds will focus on investing in financial technology, SaaS, artificial intelligence and other fields. P1 Ventures has previously invested in several Web3 startups, including leading a $2 million pre-seed round of financing for encrypted payment company Kotani, and participating in a $3 million seed round of financing for NFT sports and entertainment platform Eksab.

  • Hong Kong Monetary Authority: It is expected that the mBridge CBDC project will gradually transition to commercialization

    On September 26th, Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority, gave a keynote speech at the 2023 Shanghai Securities Market Forum, where he provided detailed information about mBridge. The platform is a joint development project between Thailand, China's Hong Kong, the United Arab Emirates and the International Clearing Bank. The mBridge project is a digital platform developed by central banks from different countries, aimed at using blockchain technology for cross-border payments. Some people believe that it has the potential to challenge the traditional globally-based payment system that relies on the US dollar. It is expected that more central banks will join and expand the scope of the project. Yue said, "We look forward to more central banks joining this open platform, and soon we will launch what we call the minimum viable product to pave the way for mBridge's gradual commercialization. Recent pilot tests have shown that central bank digital currency (CBDC) platforms can accelerate cross-border payments while reducing costs and increasing transparency."

  • Encrypted blockchain project Fhenix received $7 million in financing, led by Multicoin Capital

    Fhenix, a confidential blockchain driven by fully homomorphic encryption (FHE), announced the completion of a $7 million seed round of financing led by Multicoin Capital and Collider Ventures, with participation from Node Capital, Bankless, HackVC, TaneLabs, and Metaplanet. These funds will be used to introduce the Fhenix network to the public testnet in early next year and support the development of ecosystem applications.

  • Ruan Guoheng, Deputy Chief Executive of the Hong Kong Monetary Authority, responded to the JPEX incident: "Don't just focus on what happened in the past two weeks."

    Recent JPEX incident has attracted attention throughout Hong Kong. Ruan Guoheng, Deputy Chief Executive of the Hong Kong Monetary Authority, emphasized at the Hong Kong Bankers Summit that the Authority hopes to promote Hong Kong as a financial technology center and embrace the opportunities brought by the virtual asset field. The Authority is studying Distributed Ledger Technology (DLT) and tokenization technology, which will fundamentally change the transaction methods of financial institutions and capital markets. He believes that DLT and tokenization have the potential to improve the stability and efficiency of transactions, and believes that related technologies will change economic activities in the next five years. "Don't just focus on what happened in the past two weeks."

  • The Taiwan Financial Supervisory Commission officially released the "Guiding Principles for the Management of Virtual Asset Platforms and Trading Businesses"

    On September 26th, according to official website news, the Financial Supervisory Commission of Taiwan has officially released the "Guidelines for the Management of Virtual Asset Platform and Trading Business (VASP)", with the following key points:

  • ChainStar ·

    ChainStar SaaS: Unlocking the New Era of Digital Asset Trading Platforms

    With the boom in the Web3 financial industry, the trading volume of innovative derivatives is continuing to grow. What are the significant challenges in this highly competitive market?

    ChainStar SaaS: Unlocking the New Era of Digital Asset Trading Platforms

Daily Must-Read

Popular Activities

Cointime will Host TimeStamp Summit in Singapore on September 11th

Cointime will Host TimeStamp Summit in Singapore on September 11th

September 10 - September 11
Singapore

Popular Tags

Cointime
Insight
Features
RSS
Company