MORRISMORRIS

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

Stablecoins on high-performance blockchain rails offer fundamental improvements to the exchange of money, allowing for the transfer of dollars at velocities and costs unrivaled by legacy rails. These improvements can pull forward economic activity and retain surplus between transacting parties, making economies more prosperous. As onchain stablecoin yields offer a premium to the risk free rate, there is an incentive for further inflows and a growing stablecoin supply. Tether holds dominant market share and exhibits supernormal margins and profits. These margins are opportunities for other competitors, which should attract new entrants in the stablecoin issuer market, and pending legislation with the GENIUS act provides the regulatory guidance and framework to do so.