- A new report by Metasphere Labs (CBOE:LABZ), a developer of tokenized assets and open metaverse environments, is detailing two near-term catalysts expected to significantly impact the market for tokenized real-world assets
- Tokenization promises to bring enhanced liquidity, accessibility and transparency to traditional finance
- Read about five related stocks to consider for the digital asset sleeve of your portfolio
A new report by Metasphere Labs (CBOE:LABZ), a developer of tokenized assets and open metaverse environments, is detailing two near-term catalysts expected to significantly impact the market for tokenized real-world assets, which promises to bring enhanced liquidity, accessibility and transparency to traditional finance.
Ether ETFs
The first catalyst concerns the potential for exchange-traded funds (ETFs) tracking the performance of Ether, the cryptocurrency tied to the Ethereum blockchain network. Ethereum is home to some of the most successful projects in the crypto space, many of which tokenize real-world assets, and boasts the second-largest market capitalization in the industry after Bitcoin, clocking in at about C$611 billion as of 10:41 am ET.
The U.S. Securities and Exchange Commission (SEC) on Tuesday requested major exchanges, including the Nasdaq, CBOE, and the NYSE, to refine their applications for listing spot ether ETFs, suggesting a high likelihood of approval over the next few months. Ether was up by as much as 18 per cent on the news.
BlackRock’s tokenized treasury fund
On March 20, BlackRock partnered with Securitize to launch its first tokenized fund on a public blockchain, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). BUIDL allows accredited investors to earn a yield on a portfolio of cash, U.S. Treasury bills and repurchase agreements, while holding assets on-chain, which allows for transparent settlements, multiple custody options, and 24/7/365 transfers between pre-approved investors.
By April 30, BUIDL had become the world’s largest tokenized treasury fund, reaching US$375 million and claiming an almost 30 per cent share of the US$1.3 billion tokenized treasury market, delineating a path forward for decentralized and traditional financial institutions keen to capitalize on tokenized real-world assets.
Which stocks are poised to benefit from tokenization hitting the mainstream?
Investors interested in playing the rise in tokenization should focus on candidates active in digital assets, Web 3.0 and the metaverse, whose projects are directly tied to the issuance, hosting or investment in real-world assets represented through blockchain-based tokens. Here’s a quick survey of five related crypto stocks to get you started:
- Metasphere Labs, whose news release prompted Wednesday’s report, is developing a blockchain-integrated carbon credit registry in partnership with Pure Sky Registry to bring more transparency, security and efficiency to the space. Metasphere stock is up by 777 per cent since February.
- INX Digital Company (CBOE:INXD) offers exposure to regulated trading platforms for digital securities and cryptocurrencies, including the world’s first SEC-registered digital security IPO issued on a blockchain. INX stock has given back more than 90 per cent since 2022.
- Neptune Digital Assets (TSXV:NDA) is engaged in proof-of-stake mining, blockchain nodes, crypto yield farming, and smart contract lending and borrowing, each of which are essential foundations for tokenization’s long-term viability. Neptune Digital stock has added 41.67 per cent year-over-year and more than 200 per cent since 2019, tracking more than 10x revenue growth over the period.
- Wellfield Technologies (TSXV:WFLD) is a fintech company leveraging blockchain technology for consumers and institutions. Its Coinmama platform provides access to the cryptocurrency market and DeFi services for more than 3.8 million registered users across 180 countries, while its Tradewind tokenization platform trades in gold backed by physical metal custodied with the Royal Canadian Mint. The stock has given back 69.57 per cent year-over-year.
- Finally, Banxa Holdings (TSXV:BNXA) is a global crypto infrastructure provider across on- and off-ramps, NFT commerce, smart contracts and token listings. The company grew revenue by 10x from AUD$7.99 million in 2019 to AUD$80.35 million in 2023, rewarding shareholders with a 142.86 per cent return over the period, though the stock has given back 35.24 per cent year-over-year.
New investors to the crypto and blockchain space can also find a full rundown of how to get started in last year’s article, How to invest in cryptocurrency.
About Metasphere Labs
Metasphere is a Vancouver-based company developing solutions for the metaverse, decentralized autonomous organizations, gamification and Web 3.0 with a focus on addressing social challenges related to climate change.
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(Top photo is sourced from Adobe Stock.)