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Posted

https://www.coindesk.com/business/2024/07/12/makerdaos-1b-tokenized-treasury-investment-plan-draws-interest-from-blackrocks-buidl-ondo-superstate/

 

MakerDAO looking to put $1-2 billion of its $5 billion reserves in tokenized Treasury products. 

 

I'm not sure I follow all of the benefits of tokenization of traditional asset classes just yet - which are basically already digital ledgers with no physical records trading - but we'll see. 

 

It'll be interesting to see how far the government allows this to go - like what happens if Russia buys a ton of MakerDAO's USD stable coin as a reserve asset - how do we apply sanctions to tokens backed by treasuries or the stavlecoin itself? 

Posted
6 hours ago, TwoCitiesCapital said:

MakerDAO looking to put $1-2 billion of its $5 billion reserves in tokenized Treasury products. 

 

Its really an indication that the MakerDAO ecosystem is under stress.

 

Any CB with a CBDC could do this tomorrow (China); the CB simply creates a new ledger for every treasury issued, and thereafter processes the security the same way as it is already doing with its CBDC. Full transparency (to the CB) over the securities life from birth to death.

 

Trying to do this via a stable-coin is an attempt to money launder, via a treasury purchase out of the market. Gives an idea as to the nature of MakerDAO's ecosystem, and its magnitude. MakerDAO is a Chinese entity

 

SD  

 

  

Posted

My god, Blackrock’ chieftain, Larry Fink, has been Red-pilled !
 

This is the Establishment. 
 

Can’t wait for him to start making personal memes and podcasts.

 

But i bet you never see Blackrock making a directional bet. He just wants to be the pipeline for whatever the market is buying and selling.
 

And maybe the good PR of it will help offset his ESG PR “issues”.  

Posted

If I'm Dimon or Fink that would be really tough being the boss for so long only to have to suck up to Trump as Treasury Secretary. I guess getting the immediate options vest and the tax deferred treatment of going into government service might soften the blow but it's not like these guys are hurting for cash. Guess it's the old saying that everyone has a price.

Posted

Would allow Fink to ensure his BTC swan song successful like nothing else.

 

He'd be a historic figure if solves the debt crisis and stabilizes the dollar.

 

And makes Blackrock indispensable.

Posted

Tether is one of the largest holders of US Treasury bonds, currently ranking as the 22nd largest holder, surpassing countries like Australia, Spain, and Mexico.

 

Tether has also been increasing its Bitcoin holdings as collateral for its stablecoin, USDT, which operates on the Ethereum blockchain as a smart contract.Proof of Work has unique characteristics, and Bitcoin, especially, has the largest network among PoW infrastructures. It is neutral and global, and its scarcity ensures value in transferring data through cyberspace. Despite its opcode limitations preventing Turing complete scripts, Bitcoin is an ideal asset linked to physical energy, serving as a reserve and collateral.

 

Collateralizing currency with a hard asset is both inevitable and cyclical.

 

Bitcoin, being a digital native asset, is the best candidate for this role.

 

The USD is already collateralized by Bitcoin.

Posted
59 minutes ago, Dave86ch said:

Tether is one of the largest holders of US Treasury bonds, currently ranking as the 22nd largest holder, surpassing countries like Australia, Spain, and Mexico.

 

Tether has also been increasing its Bitcoin holdings as collateral for its stablecoin, USDT, which operates on the Ethereum blockchain as a smart contract.Proof of Work has unique characteristics, and Bitcoin, especially, has the largest network among PoW infrastructures. It is neutral and global, and its scarcity ensures value in transferring data through cyberspace. Despite its opcode limitations preventing Turing complete scripts, Bitcoin is an ideal asset linked to physical energy, serving as a reserve and collateral.

 

Collateralizing currency with a hard asset is both inevitable and cyclical.

 

Bitcoin, being a digital native asset, is the best candidate for this role.

 

The USD is already collateralized by Bitcoin.


As Tether increases its Bitcoin holdings and the U.S. dollar eventually devalues, what happens to the value of Tether wrt the USD? Does it become untethered? Does it start trading as a proxy for the BTC it holds instead?

Posted (edited)
3 hours ago, rkbabang said:


As Tether increases its Bitcoin holdings and the U.S. dollar eventually devalues, what happens to the value of Tether wrt the USD? Does it become untethered? Does it start trading as a proxy for the BTC it holds instead?

 

Unless if the Tether are convertible into BTC, which I don't think will happen, they won't.

 

But I can see where they may trade at a slight premium to other stable coins as a result of hard-asset backing and hope. 

 

Realistically, what this means is that Tether will be able to issue more and more TUSD against the surplus capital as BTC rises as a % of underlying assets as well as up their salaries/bonuses paid out of the return on that Treasury. 

Edited by TwoCitiesCapital
Posted
20 hours ago, rkbabang said:


As Tether increases its Bitcoin holdings and the U.S. dollar eventually devalues, what happens to the value of Tether wrt the USD? Does it become untethered? Does it start trading as a proxy for the BTC it holds instead?

No idea, but more broadly, the path is already on track to a series of currencies backed by Bitcoin as hard money. Most people repeat the same mantra against Bitcoin and don't realize that many things have already happened but are somewhat hidden by a fog curtain.

Posted

It would seem that BTC has been making its way into many an institutional IPS, and that we're finally moving towards a more widespread commercial implementation of a version of BTC protocol. Winners and losers, largely a function of their ability to successfully manage change. 

 

SD

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