STM Market Report: March 2024
March 2024 has been a remarkable month for the tokenized securities space with the launch of BlackRock’s BUIDL fund via Securitize, increased volumes across all asset classes, and RealT’s capital raise leveraging the Swiss DLT Act to name a few catalysts.
With more assets coming onto the blockchain there’s also more data to track. As such, the STM Team has proudly launched STM Charts this month to help visualize insights and trends as seen above. More on STM Charts in the New Tokens and Announcements section.
We encourage you to experiment with them and give us feedback whether for the existing dashboard or new graphs you’d like to see!
- Jason Barraza, Caleigh Crossman, and the STM Team
Key Takeaways
Summary of Data
In this month’s market report, we have meticulously tracked over 532 security tokens spanning across 12 marketplaces and 10 blockchains. We actively track key United States Alternative Trading Systems (ATS), including INX ONE, tZERO, and Securitize Markets. In addition, our monitoring extends to international marketplaces, such as Aktionariat, BigONE, Bitfinex Securities, ERX, Levinswap, StellarX, and more.
Market Highlights
222 tokens experienced trading activity in March, down -34.12% from February 2024’s 337 tokens. However, the overall volume for March greatly increased by 133.24% to $12,685,358 compared to $5,438,815 last month.
Throughout the month, the market cap also increased, starting at $32,566,289,215 on March 1st and ending at $33,003,758,11 by the close of the month.
Quantitative Highlights
Market Cap
- Total Security Token Market Cap: $33,046,190,111 (1.55% MoM)
- International (Non-US) Market Cap: $32,380,779,873 (0.58% MoM)
- US Market Cap: $665,410,238 (91.78% MoM)
Volume
- Total Security Token Market Volume: $12,685,358 (133.88% MoM)
- International (Non-US) Volume: $11,298,196 (149.43% MoM)
- US Volume: $1,387,162 (55.13% MoM)
Tokens Tracked
- Number of Tokens Tracked: 532 tokens
- Number of Tokens with March Trading Activity: 222 (-34.12% MoM)
Asset Class Breakdown
Asset-Backed Securities
- Market Cap: $7,738,308,964 (5.34% MoM)
- Volume: $585,286 (37.84% MoM)
Insights: Asset-backed security (ABS) tokens experienced a modest increase in market cap, while the volume saw a decent uptick. This market cap surge can be attributed to the inclusion of a new Redwood Trust LiquidFi Securitization (SEMT), along with the introduction of HAG Token. Currently, our tracking consists of 23 ABS including INX Token, Republic Note, Blockstream Mining Note (BMN), HAG Token, and 16 Redwood Trust Liquid Mortgage Securitizations.
On March 14th, 2024, Hashrate Asset Group’s (HAG) Token went live on INX ONE. HAG is a security token focusing on Bitcoin mining and designed to provide monthly WBTC distributions. HAG is a distribution-paying digital asset backed by real-world assets, with each HAG aiming to maintain a peg to 1 terahash per second of Bitcoin mining hash power. Since entering the secondary market, HAG’s market cap has increased by 5.71% over the course of the month, rising from $3,089,520 to $3,266,064. The first net yield WBTC distribution occurred on 3/7/2024.
The most recent SEMT securitization, valued at $388.3 million on March 16th, 2024, propelled the market cap of these securitizations to $5,810,700,000.
Pooled Investment Fund Interests
- Market Cap: $440,676,742 (191.98% MoM)
- Volume: $86,660 (45.02% MoM)
Insights: Pooled investment fund interest tokens saw a substantial increase in market cap due to BlackRock’s BUIDL fund along with significant growth in volume. More on $BUIDL in the New Tokens and Announcements section. Our tracking pool consists of 22 pooled investment fund interest tokens including 13 WisdomTree digital funds, RealUnit Schweiz AG, SPiCE VC, Science, Protos, Blockchain Capital, 22X Fund, EnergyFunders Yield Fund I, and the BlackRock USD Institutional Digital Liquidity Fund.
WisdomTree’s digital funds have been growing in assets under management (AUM) over the past quarter. Up until recently they were only available to 40 states, however March 2024 may have added New York to the list as WisdomTree has been granted a charter from the New York State Department of Financial Services (DFS) to operate as a limited purpose trust company under the New York Banking Law. This charter will allow the company to “perform fiduciary custody of digital assets, including digital wallet services, to issue and exchange DFS-approved stablecoins and manage stablecoin reserves under the newly formed entity, WisdomTree Digital Trust Company, LLC.”
For retail investors this means they will be able to invest in the WisdomTree Gold Token and the WisdomTree Dollar Token among other offerings via the WisdomTree Prime app. WisdomTree Prime is available in the Apple App Store and Google Play. STM will be monitoring for increased activity in the coming months.
Real Estate
- Market Cap: $202,310,429 (-12.97% MoM)
- Volume: $271,033 (151.12% MoM)
Insights: Real estate tokens have demonstrated a decrease in market cap, however trading volume has significantly grown compared to last month. A significant portion of these changes can be attributed to activity on March 20th, 2024 where we saw 32,286 ASPD sold, approximately $96,858 worth.
This large-volume day for Aspen Coin dropped the market cap by around $10M for the day to $52,105,167, making it a challenge to come back to the beginning of the month’s $65,826,194 market cap.
While the data team at STM mainly focuses on secondary markets, the team also keeps an eye on primary markets for interesting offerings and for what could start trading in the future. This month we’d like to highlight the Tuscany National Real Estate Token offering by Park Street Development & Buena Vista Hospitality Group via tZERO. This token secures a stake in the Tuscany National Resort & Club — an exciting property in Cortona, Italy set to open Fall 2024.
We held a webinar on March 27th via Security Token Prime with Scott and Courtney Brown from the Tuscany National Token team. Watch below to learn more and explore the offering here.
Equity
- Market Cap: $17,162,245,718 (-0.85% MoM)
- Volume: $11,742,380 (142.29% MoM)
Insights: Equity security tokens experienced a large increase in volume from February, yet the market cap remained stable. Enegra Group Token ($EGX) dominates the equity market with an average market cap exceeding $17 billion this month.
We’ve noticed an increase in questioning around EGX given its size in comparison to the market, however the STM Team has done its due diligence and has verified the legitimacy of Enegra’s assets via Enegra’s financial statements for 2019, 2020, and 2021 audited by Crowe and the Offtake Agreement between Enegra and the 16 coal mines across Indonesia whose offtake is owned by Enegra, executed in 2019.
Pointing to another notable token this month, the largest volume was seen by Vidby AG via Aktionariat on March 28th. This token experienced 5,074,126.94 CHF in volume which is equivalent to just over $5.6M. Vidby develops and markets technologies for new language interfaces and the automated translation of videos. According to their projections, Vidby will reach break-even this year. They need investments for the further development of the technology platform and for the development of new markets and applications.
Institutional Debt
- Market Cap: $7,502,648,258 (0.00% MoM)
- Volume: Currently Not Available
Insights: While this asset class didn’t see new issuances this month, we’d like to highlight a new onboard from Q4 2023 — a €3Billion bond by Deutsche Börse. Linklaters advised Deutsche Börse on the successful issuance of corporate bonds in three tranches.
These are the first corporate bonds placed with institutional investors that are represented by central register securities in accordance with the German Electronic Securities Act (eWpG). Clearstream Banking AG, Frankfurt, is the registrar and uses its own digital platform D7 for this purpose.
All 3 tranches are viewable on STM.Co under the Tokenized Debt table. This issuance helped put Germany on the tokenized debt map.
Platform Spotlights
Securitize
Although secondary trading has been at a halt at Securitize they’ve been making headlines on the primary side through their work with institutional issuers such as KKR, Hamilton Lane, and most recently BlackRock.
The BlackRock USD Institutional Digital Liquidity ($BUIDL) Fund will provide qualified investors with the opportunity to earn U.S. dollar yields. Through the tokenization of the Fund, BUIDL will offer instantaneous and transparent settlement, and allowing for transfers across platforms. BNY Mellon will enable interoperability for the Fund between digital and traditional markets.
We’ve already seen growth in subscriptions since launching in mid-March, including Ondo Finance’s popular OUSG reallocating a substantial portion of its assets into BUIDL.
As noted in a blog post by STM CEO Herwig Konings:
“…there is a race to build the ultimate pair for settlement. Most brokerage accounts already force you to settle into money market funds today, sans blockchain. Naturally, a similar vehicle will become the go-to solution for settling tokenized transactions. Therefore, Larry wants BUIDL to do exactly that for all of tokenized capital markets. BlackRock has chosen Securitize as their tokenization partner and integrated with every major custody provider out there. All the right moves to knock this opportunity out of the park.”
RealT
RealT has been a leading example of tokenized real estate with over 300 properties on chain worth over $100M in sales. In addition to access to US real estate for non-US investors, they’ve also enabled liquidity using DeFi including collateralized loans via Aave.
One of the most impressive assets RealT has is their community as evidenced by consistently filling offering within days if not hours. Building on this momentum and leveraging a Swiss framework, Remy Jacobson and his team were able to host a $5M offering representing equity in RealT for their non-US investors, $3M of which filled in the first 10 minutes!
As described in our What’s Drippin’ newsletter, RealT only made this offering available to non-US investors which under this framework can freely transfer their equity tokens amongst other individuals, DeFi applications (dApps), and more. That being said, KYC would then be required to interact with RealT such as receiving dividends.
Follow this token’s activity on STM.Co!
On-Chain Treasury Products
In March 2024, the cumulative market cap for On-chain Treasuries reached $1,027,073,309, reflecting a modest 49.46% growth from February 2024.
The rise in market cap from February to March can be primarily attributed to the launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) by Securitize. As of March 31, 2024, BUIDL boasted a market cap of $274,807,253. Additionally, the introduction of the OpenTrade Fixed-Term U.S. Treasury Bill Vaults (TBV) contributed to this increase, with a market cap of $3,105,183.
Superstate, which experienced the highest growth among protocols month over month, launched the Superstate Short Duration US Government Securities Fund on Ethereum in January. This fund focuses on current income, liquidity, and stability of principal aligned with the federal funds rate and is represented by the ERC-20 token USTB. Commencing on January 3, 2024, the fund witnessed exceptional growth, with its market cap growing to $82,513,172 by March 31, 2024. This marked an impressive 258.05% increase from February 29, 2024, surpassing the growth of all other protocols during that period.
New Tokens and Announcements
RealT Tokens
Other Onboarded Tokens for March 2024
STM Charts
We’re excited to introduce STM Charts, our latest feature designed to offer valuable insights into market dynamics and trends. With STM Charts, we aim to provide users with powerful data visualization tools, empowering them to make well-informed decisions and gain a deeper understanding of the tokenization landscape. From tracking market trends to analyzing asset breakdowns, our charts provide a comprehensive view of the tokenization industry. By leveraging the power of data visualization, we invite you to explore and uncover actionable insights, helping you navigate the evolving market landscape with confidence.
About Caleigh Crossman, Data Operations Lead
Caleigh Crossman is STM’s Data Operations Lead where she spearheads the tracking and analysis of over 500 security tokens, offering valuable insights for market sentiment and comprehensive analyses. Her initiation into web3 began with pivotal contributions to the technical development of a RegA+ offering platform. This hands-on experience equipped her with a deep understanding of both technology and the regulatory landscape in tokenized securities. Beyond data management, Caleigh crafts detailed analyses, providing nuanced perspectives on market trends. Her technical expertise and industry insight contribute significantly to STM’s mission of innovation and transparency in the tokenized securities space.
About Jason Barraza, COO
Jason Barraza is the COO at Security Token Market, overseeing STM operations and future initiatives aimed at enhancing data transparency and media coverage within the tokenized securities space. During his time on Wall Street, Jason served at Bank of America’s wealth management division, exposing him to the challenges of the current archaic system. Prior to that, Jason’s professional journey was characterized by a diverse background in consulting and entrepreneurship. Notably, he evaluated over 100 businesses across multiple industries, identifying potential avenues for change and improvement. In addition to day-to-day operations, Jason writes the What’s Drippin’ newsletter and plays a key role in spearheading Security Token Market’s flagship event, the TokenizeThis conference.
About Herwig Konings, Partner, Founder & CEO
Herwig Konings is a veteran and pioneer in the industry due to his background in equity crowdfunding. In 2013, he founded compliance software firm InvestReady which provides accreditation software and other tools to issuers, investment banks, Fortune 500’s, tokenization platforms, and brokerages/ marketplaces. He also served as the Managing Director of the Miami Venture Capital Association from 2016 to 2018 and has been awarded the Miami Technology Leader of the Year award by the Greater Miami Chamber of Commerce in 2015. He frequently speaks at various Universities, for corporate clients, and has taught the Florida BAR CLE blockchain course. Herwig co-authored Blockchain Explained: Your Ultimate Guide to the Tokenization of Finance, an Amazon Bestseller in the Business Law Reference category.
Please be aware that anything stated, mentioned, referenced, linked, or covered in this publication is neither financial nor legal advice. The Security Token Advisors and Security Token Market teams may own or consider owning one or more of the cryptocurrencies, security tokens, stocks, ETFs, and other financial investments included in this report.
Please do your own research on any financial and legal decisions, and consider consulting a financial advisor and/or attorney before making any decisions or choices that may be reflected in this publication.
