Today’s edition

• 1) What we’re writing: Tokenization for beginners

• 2) What we’re reading: A deep dive on the same topic

• 3) What we’re trying: We’re buying stablecoins

• 4) Message from our sponsor: The Rundown AI

Let’s get started! 🤓

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Your must-read

What we’re writing

Tokenization has been a bit of a buzzword for some time. Now it seems to be gaining traction though. So what is that exactly?

In short, it's a process that brings traditional financial instruments into the digital age. It makes them more accessible, tradable, and efficient.

Sounds interesting? Then you can find out more in our short guide for beginners.

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Have a look

What we’re reading

While we were looking for some good background on tokenization, we found an interesting report issued by the OECD. It provides a great summary of the current state of tokenized financial assets.

More importantly though, there are lots of discussions about the future. What are the potential benefits? Which obstacles are in the way of more adoption?

It’s a pretty long report – but it’s worth a read. Tokenization could offer a lot of benefits to individual investors as well as to businesses across all industries.

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Your turn

What we’re trying

Last week, we covered stablecoins. They are cryptocurrencies but at the same time, they are designed to reflect the value of another asset. One example is USDC which is issued by a company called Circle. In short, one USDC should always be equal to one (real) US dollar.

How is that possible? It’s quite simple: stablecoins have to be backed by something. In the case of USDC, that’s mostly US government debt. For every USDC issued, Circle holds an equal amount of assets as reserves.

Stablecoins are therefore an example for additional utility when a financial asset is tokenized. Some crypto exchanges even offer interest payments when you hold USDC there – pretty similar to a savings account.

You can do a lot more with stablecoins but let’s start here. Coinbase is a good example for a crypto exchange where you can buy USDC – and they have a very good academy on their website to find out more.

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