👴👵 The Incumbents Are Coming
The boomers are listening to the younger generation on blockchain technology
The security token wave is growing, will you capitalize or sit on the sidelines?
Gooood Morning Rainmakers,
Let's start this week off strong!
Get liquid 🌊
T+2 must go ❌
It has roots back to 1904.
It is the second-largest bank in the US and 8th in the world.
They recently partnered with Paxos to enable same-day trade settlements.
I'm talking about Bank of America.
Bank of America has officially partnered with Paxos Digital to offer same-day trade settlements for their clients upon approval by the SEC as a clearing agency.
Currently, they serve more than 66 million consumers and small business clients around the globe!
So, what does this all mean?
Normally, in the existing financial markets, when you sell a stock, you have to wait at least 2 business days to receive the proceeds of the sale.
I mean I could fly to Japan for dinner and back before I get my money from the sale of a stock.
To me, that is absolutely ludicrous.
We are living in an instant gratification age.
Everything we do or request is expected to happen now in an instantaneous fashion.
If it doesn’t, then it loses all credibility.
This partnership between BofA and Paxos, tells me that the financial markets are moving in the right direction.
It is our hard-earned investment money and if we want it now, why shouldn't we be able to have it now?
Security tokens and blockchain technology already have this ability and I am elated to see a financial incumbent adopt this technology.
Hoping to see more companies alike do the same!
We are going digital 📲
In shocking yet exciting news, the US Federal Reserve has jumped on the Central Bank Digital Currency (CBDC) band wagon.
Let's get basic:
A CBDC or Central Bank Digital Currency, is essentially, a nation's native currency but in digital form on the blockchain.
According to a report published by the Bank for International Settlements, 86% of central banks have been at least researching CBDCs, while about 60% (up from 42% in 2019) have been conducting experiments and 14% are even moving forward into development and pilot programs.
Interestingly enough, the Bahamas is at the cutting edge of this technology.
Their CBDC, Sand Dollar, has been live since October of last year.
The Bahamas is made up of 700+ islands, so banking is very spread out and prone to hurricane disasters every year.
When hurricanes strike, bank branches can take months to rebuild, leaving many without access to funds.
It’s quicker to repair the antennae needed for digital payments, rather than the brick and mortar locations.
Therefore, having a functional CBDC allows the country's economy to keep moving even during turmoil.
In regard to the US, they were a little late to the CBDC party, but they say the person who shows up late to the party is the coolest, right?
Being ‘cool’ here may not be such a great quality, but I think its okay, since we are still years away from this being adopted.
You may be thinking: “Why does a CBDC in the US even matter?”
Let me walk you through an example you might be familiar with.
This past year, the US government paid out three installments of stimulus checks to US citizens to help alleviate the financial hardships of the Covid-19 pandemic.
The total amount distributed to the public was $3,200 per qualifying individual.
With a population of 320 million+, the man power and difficulty to distribute the three different checks, was insurmountable.
On top of that, many US citizens were in desperate need of a stimulus check and were forced to wait several weeks to receieve it.
I would assume the organization in charge of distributing these payments made mistakes, in order to speed up the roll out.
I even heard rumors that people in foreign countries received stimulus checks meant for US citizens.
I'd imagine that the foreigners who received these checks looked something like this:
Now insert CBDCs and all of these payments can be sent instantaneously to every qualifiying individual without error.
With blockchain technology, you can have an immutable database that can automatically verify who qualifies not just for stimulus checks but for anything.
This not only alleviates the US governments time and costs, but allows the end user to receive their payment for immediate use, which was most vital during the pandemic.
This is just one of the many benefits that CBDCs provide:
Reduced time and cost
Track illegal activity easier
Implement monterary policy more efficiently
Everything is going digital, it's inevitable.
What else is making it rain ☔️
Vertalo Closes Series A Round: Vertalo raised $5M from Coinbase, Tezos Foundation, and other top investors!
tZERO partners with EnergyFunders: $25 million of EnergyFunders Yield Fund 1 will be tradable to enable users access to oil and gas projects
Figure Securities Becomes Newest ATS: Figure Technologies subsidiary, Figure Securities, has received SEC approval as an ATS
Fun fact of the week 🤯
There’s only one letter that doesn’t appear in any U.S. state.
Can you guess what it is?
Hint: It's not Z or X.
Reply to this email with what you think the letter is!
If you are right, we will shout you out on our socials 💯
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Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗♀️
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Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.