Market Analysis Report (31 Mar 2023)

CryptoCompare, the FCA-authorised benchmark administrator and leading provider of real-time digital asset data, market insights and indices, is proud to announce the expansion of its data and index services under a new brand, CCData. 

Investment bank Citi predicts that the tokenization of real-world assets will become the next significant use case in the crypto industry, with the market potentially reaching $4-5 trillion by 2030.

Blocknox, a subsidiary of Boerse Stuttgart Digital, has received a crypto custodian license from Germany's financial regulator, BaFin. This approval enables Boerse Stuttgart, Germany's second-largest stock exchange, to offer institutional investors services for trading cryptocurrencies, as well as custody. 

The UK Treasury and Home Office have published a three-year Economic Crime Plan aimed at tightening regulations on crypto money launderers. The government's plan is to robustly regulate cryptoasset activities to protect consumers, grow the economy, and make the UK an attractive destination for cryptoasset innovation.

Top stories in the Crypto Roundup today:

• CryptoCompare Launches CCData, Expanding Data, Indices, and Research Solutions
• Citi says trillions in assets could be tokenized by 2030
• Stuttgart Stock Exchange Secures BaFin License for Digital Asset Custody
• UK Unveils Strategy to Tackle Crypto Crime

CryptoCompare Launches CCData, Expanding Data, Indices, and Research Solutions

CryptoCompare, the FCA-authorised benchmark administrator and leading provider of real-time digital asset data, market insights and indices, is proud to announce the expansion of its data and index services under a new brand, CCData. 

CCData will focus on the advancement of data, research and index solutions to empower financial institutions and accelerate the adoption of digital assets. CryptoCompare will maintain its role as the retail arm of the business. You can explore CCData’s new website and data offering here.

“Our new brand, CCData, is a natural evolution that represents our focus on data integrity and innovation. We are excited to share our new brand as we continue to further accelerate the adoption of digital assets through our institutional-grade data solutions, indices, market insights, and the flagship London event, CCDAS,” said Charles Hayter, CEO and Co-Founder of CCData. 

Newsletter subscribers will be unaffected by the change and will continue to receive our daily newsletter and updates as usual. Going forward, CCData will also offer a weekly, data-driven newsletter which you can subscribe to here. 

You can read the full announcement below.

Citi Says Trillions in Assets Could Be Tokenized by 2030

Investment bank Citi predicts that the tokenization of real-world assets will become the next significant use case in the crypto industry, with the market potentially reaching $4-5 trillion by 2030.

In its March report, "Money, Tokens and Games," Citi estimates that of the total tokenized assets, $1.9 trillion will be debt, $1.5 trillion from real estate, $0.7 trillion from private equity and venture capital, and between $0.5-1 trillion from securities.

The bank's research indicates that private equity and venture capital funds will likely be the most tokenized asset class, accounting for 10% of the total addressable market. Real estate is expected to follow at 7.5%. Citi believes that private equity markets will experience faster adoption rates due to their liquidity, transparency, and fractionalization advantages.

Citi maintains that blockchain tokenization will surpass traditional financial infrastructure because of its technological superiority and ability to provide more investment opportunities in private markets. However, the bank acknowledges current drawbacks, such as the lack of a legal and regulatory framework, infrastructure challenges, and the need for widely accepted interoperability standards. 

Stuttgart Stock Exchange Secures BaFin License for Digital Asset Custody

Blocknox, a subsidiary of Boerse Stuttgart Digital, has received a crypto custodian license from Germany's financial regulator, BaFin. This approval enables Boerse Stuttgart, Germany's second-largest stock exchange, to offer institutional investors services for trading cryptocurrencies, as well as custody.

The exchange anticipates that banks, brokers, asset managers, and family offices will utilize these offerings. According to Matthias Voelkel, CEO of Boerse Stuttgart, the BaFin licensing will allow the exchange to provide a fully regulated "one-stop shop" in Germany for brokerage, trading, and custody of digital assets.

Boerse Stuttgart has been exploring crypto services for some time, having launched the Bison crypto trading app in 2018, which reported a trading volume of over $2.4 billion in 2021.

UK Unveils Strategy to Tackle Crypto Crime

The UK Treasury and Home Office have published a three-year Economic Crime Plan aimed at tightening regulations on crypto money launderers and kleptocrats. The government's plan is to robustly regulate cryptoasset activities to protect consumers, grow the economy, and make the UK an attractive destination for cryptoasset innovation.

The Financial Conduct Authority (FCA) is already collaborating with international counterparts to exchange information as criminals are expected to increasingly use less-regulated crypto exchanges and services.

The plan's goals include reducing fraud, money laundering, recovering criminal assets, combatting kleptocracy, and minimizing sanctions evasion. The Treasury, Home Office, trade body CryptoUK, the Crown Prosecution Service, and HMRC will be responsible for overseeing these objectives.

The National Crime Agency (NCA) found that in 2021, illicit cryptoasset transactions linked to the UK likely equated to at least £1.24 billion ($1.5 billion), or about 1% of the total transaction value. This plan follows the NCA's establishment of a "crypto cell" to focus on digital assets.

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