The development trend of encrypted assets

Continuing from yesterday's article: If in a country like Argentina, a considerable number of users regard crypto assets as an important asset for ensuring personal economic security, and we infer that the new generation of middle class and wealthy individuals in Argentina will have an extreme demand for investment based on crypto assets, then a new question arises:

Where can investment products based on crypto assets be provided?

In the current global development of crypto assets, the United States, especially its regulatory agencies, is an entity we must pay attention to.

Because in the native crypto ecosystem, to be frank, at least at present, the vast majority of assets or projects probably only offer speculative objects rather than investment objects. Traditional financial markets, such as the US stock market, can provide a large number of high-quality assets with substantial cash flow returns.

Currently, purchasing these assets directly requires a cumbersome account opening process and at least basic banking services, which may pose significant difficulties for such demand groups in Argentina and even more underdeveloped countries.

To enable these groups to quickly and conveniently access these assets, it seems that tokenization is currently the fastest way.

Tokenization involves the collateralization of real assets, and the collateralization of real assets involves strict auditing, which is an important responsibility of regulatory agencies.

Therefore, when regulatory agencies can quickly advance in this area is key to tokenization.

On December 12, there was significant progress in this regard.

On that day, DTCC announced that its subsidiary DTC received a no-action letter from the SEC, allowing it to tokenize a portion of its custodial assets.

DTCC is the most important trading market infrastructure provider in the global financial services industry. It provides central securities custody, settlement, clearing, and asset services through subsidiaries such as DTC (The Depository Trust Company), NSCC (National Securities Clearing Corporation), and FICC (Fixed Income Clearing Corporation).

The vast majority of stock registration, transfer, confirmation, and custody in the US capital markets are operated on DTC.

The SEC's no-action letter indicates that it allows DTC to initiate a pilot program for tokenization of US stocks and ETFs, initially limited to Russell 1000 component stocks, US Treasuries, and mainstream ETFs.

However, in the future, comprehensive tokenization of US stocks will certainly arrive, at which point US stocks will be traded simultaneously in the on-chain world and traditional centralized exchanges.

At that time, the people of Argentina will only need a crypto wallet to achieve a usage scenario that integrates daily payments and financial investments, just like we use WeChat and Alipay today.

However, the scope and targets involved in that application are much broader: theoretically, in one wallet, the people of Argentina can not only use USD stablecoins but also exchange USD stablecoins for EUR or JPY stablecoins at any time, purchase US Treasuries as well as German Treasuries, buy US stocks as well as Japanese stocks, acquire precious metals as well as other non-ferrous metals, and engage in spot trading as well as futures and options trading…

If we continue along this line of thought, the future global competition among crypto companies for the on-chain world should revolve around crypto wallets or new applications that default to integrating crypto wallets.

In the future, crypto wallets are likely to become standard features of the next generation of king applications rather than optional features as they are now.

I am increasingly convinced: it won't be long, at most four years from now, the crypto ecosystem will be unimaginable compared to what we have today.