
@banamlasi
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🇺🇸 general counsel @PlumeNetwork. posiwid. uber 4.9. ex @secgov @cftc @uniswap @chainalysis @ihsmarkit (nka @spglobal). personal views.
Washington, DC
Joined April 2011
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I used to do oil market surveillance at CFTC. Under §8 of the CEA, Congress has authority to obtain the trading records, trader identities, and related data from CFTC.
Great analysis from @cryptoreine. Agree the limited opportunity from the Innovation Exemption is for those in the regulatory perimeter that are invested in digital infra.
"Brokers that already run crypto or digital asset affiliates can stand up a separated TSV-facing business fastest, and they'll capture the retail opportunity first once rules loosen."
There are few good options for the Tech Dem donor class when it comes to supporting non-corpo-libertarian or non-luddite causes.
NEWS: @JayCarney told me that his new boss, Democratic megadonor and venture capitalist @RonConway, regrets his previous donation to the AI industry Super PAC Leading the Future.
Salman Banaei retweeted
Chris Yin, Co-Founder and CEO of Plume, says most dollars today just sit around doing nothing, but that changes once everything from equities to tokenized sneakers is on chain and run by machines.
@Plumenetwork @chriseyin
Salman Banaei retweeted
Who would you rather lend money to, France or NVDA? Their credit default swaps are trading at roughly the same level.
zerohedge.com/the-market-ear…
Among the biggest beneficiaries of tokenization will be private market securities.
It’s great to see the SEC proposing merit-based private market access in the US. This will be a huge step forward.
For too long, only the richest people have had access to the private markets. Retail has been missing out.
And over the last few years, companies have been incentivized to stay private longer (so retail has been missing out even more at best, or become exit liquidity at worst).
Tokenization could free up tens of billions of dollars in capital tied up in assets used as collateral across the global financial system, Nasdaq CEO Adena Friedman said.
Tokenizing assets such as Treasurys, equities and money market funds, along with the flow of money, could make collateral "very fluid," Friedman told CNBC at TOKEN2049 in Singapore.
Find out how tokenization can drive the shift towards fully 24/7 markets: cnb.cx/4hQeCyO
Salman Banaei retweeted
Trump Admin hires private equity guy at DOD. Months later, guy's former employer gets a $281 million *no bid* contract to consult for him. Pro Publica is running circles around every other news outlet when it comes to chronicling the obscene level of corruption going on right now
Salman Banaei retweeted
Barron’s, which might be *the* tradfi publication, is running a cover story on tokenization…
Some quotes:
“Crypto technology is moving from the fringes toward the center of finance, whether or not legislators approve.”
“This is a watershed moment.”
“I would hope that Wall Street as Wall Street still exists, but it will have to do business differently.”
“The goal of tokenized equity is to move the markets to an always-on economy.”
“Tokenization will represent the biggest upgrade to our financial system since we moved from paper to electronic trading.”
If you still can’t see that financial markets are heading toward full tokenization, not sure what to tell you at this point.
via @joelight
Salman Banaei retweeted
I’ve spent the last fifteen years moving lending from paper to digital to blockchain. SoFi proved borrowers didn’t need banks. Figure proved capital markets don’t need the middleman: roughly $2B a month (and growing) of real world assets now originate, finance, settle - and soon securitize - on a public blockchain. Lower transactional costs, better capital markets and better financing vs TradFi. And not mirrored on chain. Born there. Every other asset class will follow the same path: equities, funds, eventually anything with a cash flow. The horse has left the barn. The next decade of capital markets gets built by the people who already operate this way.
love all the bullish news around the tokenization of stocks, but I won't pretend as if "fragmentation" is not a problem.
the sincere truth is that we will keep getting more and more stock tokens onchain. The issuance of stock tokens played a pivotal role in their growth, so I won't also pretend as if we didn't want it.
but what is the fix? I will list three of them.
- give tokens one shared legal base.
- label what each token really is.
- and route trades across tokens of the same kind.
here is a full picture of the problem.
a tokenized stock is a token that follows a real share and many companies now issue them. most are issued without the company behind the stock being involved.
take Nvidia as an example, it has tokens from 15 issuers and on 19 blockchains, yet five of those versions hold 87% of the money. the remaining hold almost nothing.
the main thing is that the tokens are not the same thing. a ticker can mean five different kinds of claim. It could be;
> a price bet with no share sitting behind it aka synthetics.
> a company outside the US (offshore) says it holds the shares, and you trust that company. for example, ondo, coinbase, xStocks, bstocks....
> a US broker holds the share for you and passes on dividends, and votes where the share has them. securitize and dinari's tokens are this kind.
> a digital copy at the clearing house. It has the same ID number as the real share. coming later thi month per @The_DTCC.
> and lastly, the share itself where the company puts its own register onchain. securitize's $SECZ is the perfect example.
splitting a stock into many tokens is cheap while buyers and sellers can easily swap between them. it becomes costly when they cannot and here are some things that suffer.
- a lender has to accept, price and check each token on its own, so no big pool of collateral forms. Only $247.8M is locked as collateral against tokenized stocks, which is small next to the billions of tokens out there.
- liquidity gets cut into slices. Apple tokenized stock has $35.9M of tokens spread over 11 issuers, about $3.3M each on average.
- wild prices especially on weekends when the trad market is closed.
- votes and rights.
how the fixes mentioned above helps the problem.
> share a legal base by making tokenized stocks use the same ID at the central securities depository.
using separate IDs make the stocks siloed. Liquidity, trading volume and all are split. If they start to share the same ID, they connect to the traditional market and allow for seamless interaction. this fixes split liquidity, enables frictionless cross-market arbitrage and it streamlines corporate actions.
> a simple public tag also helps the investors tbh.
I have noticed that a lot of issuers just use vague terms in their announcement post and it doesn't exactly clarify anything.
There should be a tag to your tokens that tells simply if it is a real share claim, a wrapped claim, or just a price copy? Buyers and lenders should not have to read legal documents to find out.
> route trades across versions of the same kind. once tokens are the same kind of claim, a trading app can pool them which makes buyer sees one deep market instead of many thin ones.
on the part of very small collaterals backed to tokenized stocks, it's understandable that lenders are mindful before they give out their collaterals. If these assets were pooled, they can be more confident to do so against seeing a very thin market cap.
all of these are my own opinion.
thank you.
the tokenized stocks landscape changes really fast.
here is how it looks right now.
- wrapped claims (@Ondo, @coinbase, @bstocksfinance, and @xStocksFi).
- broker entitlements (@Securitize, @DinariGlobal, @Backpack).
- DTC entitlements (coming soon by @The_DTCC)
- issuer sponsored (@Securitize, @SuperstateInc).
Salman Banaei retweeted
Credit where it is due: @The_DTCC has submitted a proposal to the SEC to modernize its Direct Registration System. DRS is the rail that moves shares between “street name” at the DTC and direct registration in an issuer’s transfer agent's books. This will provide a faster (I was told by DTCC today that it will be intraday) and cheaper on-ramp for shares from a brokerage account into a tokenized share via the TA's books, so it matters. An API-based, auditable flow with an automatic Deliver Order lowers the friction of converting between street name and on-chain registration. You can read more here and submit your comments to the SEC (we will probably do it)
sec.gov/files/rules/sro/dtc/…
6/ Innovation Exemption market structure features are a questionable mix: circuit breakers required, but NBBO oracles not. That makes it unattractive for regulated onramps (broker-dealers).
Agree with @IMFNews : tokenization delivers only if the rules stay technology-neutral while regulators update their rules to reflect new realities and settlement is anchored in safe money.
Tokenized assets have grown rapidly, reaching roughly $65b. Yet they remain tiny compared with traditional capital markets’ $300t in assets. Our new GFSR explores the policy and market conditions needed for tokenization to scale safely: imf.org/en/blogs/articles/20…























