🍨BlackRock’s $21B Tokenization Tsunami

Oh look, it's that time of the month again! The Geral is back, because you obviously can't get enough of our unique takes on the onchain world. We know you’ve been anxiously refreshing your inbox, counting the minutes until you could get another dose of our cutting-edge commentary and totally unbiased opinions. Well, your wait is over. Here is what we got for you this time:

Coverage:

• Blackrock dives into RWA

• K-POP Meets Web3

• Honk Kong’s Ambitious Onchain Plans

• A Grants Program for ReFi Enthusiasts

BlackRock and Real-World Assets: The New Financial Frontier

It's 2024 and we have another trend blending traditional finance with blockchain. This time, it's Real-World Assets (RWA), and guess who's leading the charge? None other than BlackRock, because who else would you trust with such innovations? After their objectively successful Bitcoin ETF launch, BlackRock is now managing a whopping $21 billion in BTC volume. But why stop there? They've decided to dip their toes into tokenizing just about everything: bonds, stocks, real estate, cultural assets— basically if it can be traded, it's getting tokenized. The goal? Democratize investment opportunities with promises of increased liquidity, proof of ownership, and transparency. Because, you know, we all believed the traditional finance world was totally inaccessible before this.

The grand vision here is that "all tradable assets will be tokenized." Bold, right? But not so far-fetched, especially when big players are seeking safe entry points into the digital asset realm. Sounds like ETFs were just the appetizer; now it's time for the main course—bringing every type of asset on-chain with robust new products.

Enter the BUIDL fund, or officially, the BlackRock USD Institutional Digital Liquidity Fund. With a name like that, you know it's serious. This fund represents BlackRock’s plunge into tokenized assets on a public blockchain. Partnering with Securitize, and leveraging the Ethereum network, BUIDL invests in cash, short-term debt securities, and U.S. Treasury bonds. So far, only 14 holders have jumped on this bandwagon, but there are 462 million tokens in circulation, each valued at about $1. Quick math: that's a $462 million fund. Impressive for a week's work, especially since it drew in $240 million in deposits almost immediately, with a chunk of that from Ondo Finance.

But wait, there's more! Circle has added new smart contract functionality to this mix, providing an "off-ramp" for BUIDL investors. This means they can exit their positions quickly and receive USDC—a stablecoin pegged to the US dollar—anytime, 24/7. Because we know degens often want to cash out at 3 AM, right? Anyway, do you think BlackRock will be successful in this blockchain journey? Hard to see how they won’t…

K-pop Meets Web3: Because Fan Obsession Needs a Digital Upgrade

K-pop fans are famous for their undying devotion to their favorite idols, and now, that obsession is driving an entertainment market expected to hit a whopping $20 billion in event-related revenue by 2031. Enter Justin Kim, the head of Ava Labs’ Korean operation, who’s decided it’s high time to drag K-pop’s legions of fans into the web3 world. According to Kim, some K-pop girl groups and boy groups are launching with web3 features.

Ava Labs, the masterminds behind Avalanche (the layer 1 blockchain network with a cool $681 million in deposits, according to DefiLlama), is on a mission to convert K-pop stans into web3 fans. Kim’s list of projects includes everything from collectible NFTs to DAO-based fan voting, aiming to blend K-pop mania with blockchain technology. South Korea’s obsession with crypto is no secret—one in every eight residents uses cryptocurrency exchanges. But Kim believes it’s the nation’s old-line industrial conglomerates that hold the key to Web3 expansion. That’s where SK Group enters. South Korea’s third-largest company, with $119 billion in annual revenue, started working with Ava Labs last year to offer NFT ticketing for K-pop concerts. Because, apparently, semiconductors and K-pop concerts are a match made in heaven.

“I think retail adoption should happen with bigger companies because they already have locked-in users,” Kim said. “The problem with smaller Web3 teams is that they need to look for users.” So, basically, go big or go home. Remember when NFTs were the hottest thing since fidget spinners? Well, according to one analyst, NFTs will only make a comeback when traders feel rich again. In the meantime, Ava Labs is banking on Web3’s potential to revolutionize the K-pop industry. One major issue is the lack of financial transparency, with companies often taking all the benefits while the boy groups and girl groups get next to nothing. Using NFTs and crypto for K-pop merchandise will allow groups to track exactly how much money they’re making from their fans. “You can see how many people bought it. There’s no way a company can get around this,” Kim said. Because nothing screams fairness like blockchain to be very honest.

So, K-pop fans, prepare yourselves for a future in which your idols involve blockchain, NFTs, and DAOs. Exciting?

Hong Kong’s Web3 Ambitions

Hong Kong is at it again, trying to cement its position as the world's next Web3 hub. Legislative Council member Johnny NG Kit-Chong has made it clear: they want to hear from industry players worldwide on the future direction of Web3 and digital assets. Yes, because nothing says "we have a plan" like seeking opinions from literally everyone. The Legislative Council has even established a Subcommittee on Web3 and Virtual Asset Development. So, what exactly is Hong Kong looking for? The proposal, once studied, summarized, and submitted to the government, aims to shape the policy and regulatory landscape of Hong Kong. The goal? To become a global hub for Web3 innovation. Ambitious, right?

The council is keen on feedback regarding several critical aspects of Web3 policy development. They want to balance technical, legal, and regulatory frameworks to create a cohesive environment for Web3 growth, all while ensuring robust and clear regulations. Because obviously, that's never gone wrong before... They're also looking to enhance international cooperation, solidifying Hong Kong’s position as a globally connected web3 hub. This involves exploring how artificial intelligence and Web3 technology can converge to improve AI regulation. Because if you're going to dream, why not dream big?

Back in July 2023, Hong Kong's government formed a task force with 15 industry participants and 11 key government officials to oversee Web3 development. Their focus was to ethically promote Web3 growth. Because ethics and crypto have always gone hand in hand, right?😀Interestingly, the number of crypto exchanges seeking operational licenses in Hong Kong is decreasing. In May, IBTCEX and QuanXLab withdrew their applications, initially filed in February 2024. Maybe they got lost in all the new regulations?

So, here we are. Hong Kong is throwing its hat into the Web3 ring, gathering global opinions to shape its policy. Will it work? Who knows. But one thing's certain: they’re talking a big game.

🚨 Grants Alerts

One of the freshest additions to your favorite newsletter is back, sliding into your inbox like a DM from your crush. Here are the top grant opportunities you need to know about in the next few weeks if you're a Web3 builder:

• Arbitrum in Refi Grant Program is live on CharmVerse!

• Polygon Community Grants just launched on CharmVerse!

• Uniswap Hook Incubator applications close on June 28th!

So, if you're looking to turbocharge your onchain project with some serious funding, these opportunities are where it’s at. For more info and to keep track of all the action, check out this space’s reference grants tracker right here: tiny.charmverse.io/grants-tracker

Cool Stuff Seen on CharmVerse 👀

If you're passionate about regenerative finance and looking for an exciting opportunity, we've got just the thing for you, powered by CharmVerse, of course.

The ReFi in Arbitrum Grants Program is here to attract and onboard new builders into the Arbitrum ecosystem. This program leverages the transformative potential of ReFi communities, aligning financial mechanisms towards regeneration instead of extraction or exploitation. We're talking about projects that make a real impact, like sequestering verifiable carbon credits, regenerative farming, and microloan initiatives—all while achieving positive financial outcomes.

Ready to make a difference and build something awesome? Apply here.

Memes of the month🔥

Here we are again, sharing the easiest-to-enjoy memes seen on the internet in the past few weeks.

Starting with a summary of this week’s situation:

We thought financial institutions could save us…

Times changed in the last 10 years. That’s the least we can say.

Finally, if you could have one superpower, what would it be?

That’s a wrap for The Geral #28! See you in two weeks for another deep dive into the world of Web3 communities.