Tag:

Debt

State Street, J.P. Morgan Complete $100M Tokenized Debt Deal

by admin August 21, 2025

State Street, a Boston-based custody bank with $49 trillion in assets under its watch, is pushing deeper into digital assets by joining JPMorgan’s blockchain-based tokenized asset platform Digital Debt Service as the first third-party custodian.

The first transaction State Street anchored was a $100 million tokenized commercial paper issuance by the Oversea-Chinese Banking Corporation (OCBC), a Singapore-based banking group, according to a Thursday press release.

State Street Investment Management, the bank’s asset management arm, purchased the debt. J.P. Morgan Securities acted as placement agent.

The move comes as traditional finance heavyweights and global banks are getting increasingly involved in tokenization of financial instruments, or real-world assets (RWA), placing bonds, funds and credit on blockchain rails. The process promises operational benefits such as increased efficiency, faster and around-the-clock settlements and lower administrative costs.

The tokenized asset market could grow could balloon in the next few years, though projections vary from McKinsey’s $2 trillion by 2030 to Ripple and BCG’s almost $19 trillion by 2033.

By joining JPMorgan’s blockchain platform, State Street can now offer clients custody of tokenized debt securities without changing its traditional servicing model.

In this particular case, State Street manages client holdings in a digital wallet directly connected to JPMorgan’s system, eliminating manual steps in settlement and recordkeeping. The infrastructure supports delivery-versus-payment settlement, with the option for same-day (T+0) settlement, and automates corporate actions such as interest payments and redemptions through smart contracts.

“This launch reflects a meaningful step forward in our digital strategy — where we manage a digital wallet on-chain and lay the groundwork for interoperability across blockchain networks,” Donna Milrod, State Street’s chief product officer, said in a statement.

The bank pursued initiatives to tokenize a bond and a money market fund, Milrod said in October. The firm also selected Switzerland-based Taurus as a tokenization partner.

Read more: DBS Launches Tokenized Structured Notes on Ethereum, Expanding Investor Access

Source link

August 21, 2025 0 comments

GameFi Guides

Stablecoins May Help Cut U.S. Debt, Says Treasury Sec. Bessent

by admin June 18, 2025

U.S. Treasury Secretary Scott Bessent recently said that stablecoins could play a big role in reducing the national debt. In a recent post on X, he said as the stablecoin market grows, possibly reaching $3.7 trillion by 2030, it will drive more demand for U.S. Treasury bonds.

Scott Bessent says Stablecoins May Help Cut U.S. Debt, Source: X

These bonds are used to back most stablecoins, meaning companies that issue stablecoins need to buy them. This extra demand for government bonds could lower borrowing costs for the U.S. government.

In simple terms, the government would pay less interest when it borrows money. Over time, this could help reduce the national debt and bring more people from around the world into the U.S. dollar-based digital economy. Bessent called it a “win-win-win” for the private sector, the Treasury, and consumers.

That scenario becomes more likely with the passage of the GENIUS Act—a new law designed to create clear and safe rules for stablecoins to grow. On June 12, the U.S. Senate made a historic move by voting 68–30 in favor of the GENIUS Act.

As per the recent report of Citi,stablecoins could grow as big as $3.7 trillion by 2030 if things go well, with a safer guess of $1.6 trillion. Treasury Secretary Scott Bessent also said U.S. stablecoins could cross $2 trillion by 2028 if laws like the GENIUS Act are passed to help them grow in the U.S. and around the world. Right now, the total stablecoin market sits around $255 billion, led by Tether and USDC.

Also Read: Arthur Hayes Warns New Stablecoin IPOs Are Just ‘Hot Potatoes’

Source link

June 18, 2025 0 comments

Trader makes $17M by betting against James Wynn's high-risk strategy

GameFi Guides

Coinbase warns of forced crypto sales due to rising debt

by admin June 14, 2025

Coinbase is raising red flags about the financial health of publicly traded crypto vehicles, cautioning that debt-related obligations could soon force some firms to liquidate their crypto holdings.

In a report from Coinbase, the firm emphasized concerns around refinancing risks and loan-to-value ratios, but said most large firms still have options to avoid liquidation.

“The risk of forced selling pressure arises because many of these PTCVs have issued convertible bonds to raise cheap money to buy various crypto assets,” the report read.

The report continued to say that if crypto prices fall and companies can’t refinance their debts, they may be forced to sell their crypto holdings, triggering broader market liquidations.

Coinbase highlighted that while loan-to-value ratios are manageable, the ability to refinance is crucial, and capital structures in private transit capital vehicles are inconsistent and hard to monitor.

Optimism due to corporate accumulation

Despite these risks, Coinbase remains cautiously optimistic, especially as corporate accumulation of crypto assets continues. The firm sees room for growth in the second half of 2025, as more traditional companies take interest in on-balance sheet crypto strategies.

On the regulatory front, Coinbase anticipates that 2H25 will be transformative for the U.S. digital asset industry. A shift away from “regulation by enforcement” under the previous administration has created momentum for new legislation.

The STABLE and GENIUS Acts—pending in the Senate—could be reconciled into a single bill and signed by President Trump before the August 4 Congressional recess. These bills would introduce consumer protections, reserve rules, and AML compliance requirements for stablecoin issuers.

Coinbase also flagged the potential impact of the Digital Asset Market Clarity Act, which aims to define the regulatory roles of the SEC and CFTC. If passed, the bill could establish a dual framework for distinguishing between “digital commodities” and “investment contract assets.”

Meanwhile, the SEC is reviewing about 80 ETF applications, including multi-asset index funds, staking-enabled products, and single-name altcoin ETFs. Decisions on several proposals are expected between July and October.

Coinbase concluded that while forced selling and yield risks persist, Bitcoin (BTC) remains well-positioned and only select altcoins may outperform based on project-specific fundamentals.

Source link

June 14, 2025 0 comments

NFT Gaming

Strong Uptake at 10-Year U.S. Debt Sale Counters Demand Concerns, 30-Year Sale May Provide More Evidence

by admin June 12, 2025

Wednesday’s auction of 10-year U.S. Treasury notes undermined the narrative that investors are moving away from U.S. government debt, the bedrock of global finance, and pouring money instead into bitcoin

and gold.

Thursday’s sale of $22 billion of 30-year bonds may provide further clues to investor confidence in the fiscal policies of U.S. President Donald Trump since he initiated the global trade war in early April and help signal whether the notes are losing their shine as the premier fixed-income instrument backed by the deepest liquidity and low credit risk.

At the June 11 auction, demand for the $39 billion of 10-year notes, which offered a yield of 4.421%, outstripped supply by more than 2.5 times, according to Exante Data, and the primary dealer takedown was reportedly just 9%, the fourth-lowest on record. That’s a sign investors did most of the heavy buying. Primary dealers are the institutions authorized by the central bank to trade government bonds, and the takedown refers to the amount of newly issued debt they absorb themselves.

Worsening debt situation

As of June, the U.S. total gross national debt is over $36 trillion, more than 120% of the country’s gross domestic product (GDP).

The deficit, or the excess of government expenditure over revenue, was $1.8 trillion in 2024. The figure is expected to increase by $2.4 trillion in the coming years due to Trump’s tax cut plans. As of now, the U.S. pays $1 trillion as the cost of servicing the debt.

The new issuance, therefore, is more likely to exacerbate the problem and has several analysts pointing to bitcoin and gold as a hedge against the fiscal crisis.

Source link

June 12, 2025 0 comments

NFT Gaming

Former DOGE Head Elon Musk Blasts U.S. Spending Bill as Debt Nears $37T

by admin June 5, 2025

The world’s richest man took aim at President Donald Trump’s proposed spending package, calling the One Big Beautiful Bill Act a fiscal disaster.

Teslo CEO Elon Musk, the former head of the Department of Government Efficiency, left the department as the legislation moved through Congress, warning it marks the largest increase in the debt ceiling in U.S. history.

“This spending bill contains the largest increase in the debt ceiling in US history! It is the Debt Slavery Bill,” Musk, who ranks No. 1 on Bloomberg’s Billionaires Index, posted on X on Wednesday. “I think a bill can be big or it could be beautiful. I don’t know if it could be both.”

The 1,100-page bill, approved by the House on May 22, must now negotiate the Senate. It pairs $1.2 trillion in cuts to Medicaid and food assistance with permanent tax breaks and $150 billion in new defense and border security funding. The Congressional Budget Office estimates it will add $2.4 trillion to the deficit over the next decade, with some forecasts pointing higher.

The timing is striking: U.S. national debt is already nearing $37 trillion, a historic high that has amplified concerns among fiscal conservatives and tech leaders alike. The White House is pushing for Senate passage before July 4.

Source link

June 5, 2025 0 comments

Xrp Is The Solution Rising Us Debt Black Swan Capitalist (1)

Crypto Trends

XRP is the Solution to Rising US Debt: Black Swan Capitalist

by admin June 4, 2025

As the US debt continues to grow at an alarming rate, reaching $36 trillion, some experts are looking for innovative ways to stabilize the financial system. Versan Aljarrah, the founder of Black Swan Capitalist, believes XRP could be the answer.

In the recent post on X, he suggests that the current debt-based system needs a fresh foundation, “you need a new anchor” to reset it without causing global financial panic.

If you want to reset a debt-based system without triggering global panic, you need a new anchor. And gold, repriced and tokenized, is that anchor.

The Treasury can tokenize debt with RLUSD peg it to gold and use #XRP to bridge it globally. pic.twitter.com/xzvymglLYQ

— Versan | Black Swan Capitalist (@VersanAljarrah) June 4, 2025

According to him, tokenizing gold and linking it with Ripple’s RLUSD stablecoin can provide this anchor. By tying debt to a gold-backed digital currency and utilizing XRP as a global bridge for transactions, governments would be able to control debt better and more transparently.

For context, the United States has $36.2 trillion in its national debt, which represents 122% of the country’s annual economic output or gross domestic product (GDP). This amount is growing by about $1 trillion every three months.

The rising debt situation could lead to higher taxes and interest rates, making life more expensive for average Americans. Hence, people are resorting to crypto for a hedge against such a crisis, with XRP, RLUSD, and Bitcoin (BTC) stealing the spotlight.

Meanwhile, it’s worth noting that real-world asset (RWA) tokenization is a rapidly growing market. According to RWA.xyz’s figures, the on-chain value has increased by 10.49% in just the last 30 days to $22.11 billion. The overall value, including stablecoins, is $30 billion. There are 189 issuers and over 100,000 asset holders on the platform. The value of stablecoins alone is an astounding $232.08 billion.

Underpinning this vision, Ripple’s RLUSD stablecoin has just been approved by the Dubai Financial Services Authority (DFSA), enabling it to be used in the Dubai International Financial Centre.

Also Read: Ripple’s XRP Ledger Enrolls Major Upgrade for RLUSD, Memecoins

Source link

June 4, 2025 0 comments

GameFi Guides

Musk’s $5 Trillion Debt Warning Seen as BTC Endorsement

by admin June 4, 2025

Centibillionaire Elon Musk has stepped up his criticism of the massive tax-and-spending package pushed by the Republicans.

In his latest social media post, he warned that the bill would increase the debt ceiling by a whopping $5 trillion.

Musk has urged Republican Senators to “kill” the bill, which he previously slammed as a “disgusting abomination.”

US Debt Crisis Could Make Bitcoin the World’s Reserve Currency: Coinbase CEO

by admin June 4, 2025

In brief

Coinbase CEO Brian Armstrong warned that if Congress fails to address the $37 trillion U.S. debt, Bitcoin could replace the dollar as the global reserve currency.
Lawmakers and analysts say mounting deficits and money printing are eroding trust in the dollar, pushing states like New Hampshire and Arizona to start stockpiling Bitcoin.
Experts, including six Nobel economists, warn the Trump-backed “big, beautiful bill” could worsen inequality and debt, while Elon Musk slammed it as a “disgusting abomination.”

Coinbase CEO Brian Armstrong warned that Bitcoin might “take over” as the world’s next reserve currency if Congress doesn’t act quickly to tackle its mounting $37 trillion in debt.

“I love Bitcoin, but a strong America is also super important for the world,” Armstrong tweeted on Tuesday. “We need to get our finances under control.”

Armstrong’s concerns over the debt crisis came as House Republicans passed the Trump-backed “big, beautiful bill” in May that extends tax cuts, boosts military spending, and cuts Medicaid, food aid, and clean energy.

The fiscal strain is fueling interest in Bitcoin, which was born out of the 2008 financial crisis, due to its fixed supply and inflation-resistant design. It’s an asset that’s become increasingly appealing to institutional investors and state governments.

“When it comes to stockpiling Bitcoin, U.S. states aren’t just racing against each other,” New Hampshire Rep. Keith Ammon told Decrypt last month. “They’re competing against a federal government that will be forced to print money to deal with its debt.”

Ammon said the federal government’s approach threatens the long-term value of the dollar and that Bitcoin could help protect state finances from further erosion.

Six Nobel Prize-winning economists, including Paul Krugman and Joseph Stiglitz, wrote in a June letter that the bill’s structural design would increase inequality and drive public debt by over $3 trillion, even more if its provisions become permanent.

Tesla CEO and former D.O.G.E head Elon Musk also criticized the measure on Tuesday, calling it a “massive, outrageous, pork-filled Congressional spending bill” and a “disgusting abomination.”

It will massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America citizens with crushingly unsustainable debt https://t.co/dHCj3pprJO

— Elon Musk (@elonmusk) June 3, 2025

The Senate’s next move on the bill could have more significant consequences than just fiscal. Critics argue that it may ultimately accelerate growing efforts to de-dollarize the global economy.

“Nobody is facing reality in the U.S.,” Komodo Platform CTO Kadan Stadelmann told Decrypt. “That’s where Bitcoin comes in, and a big part of the reason why Satoshi Nakamoto created it in 2008.”

Bitcoin “stands in opposition to fiat currency,” Stadelmann added, who said traditional currencies, like the U.S. dollar, only add to the “hundreds of billions of dollars” in debt each year.

Linking the national debt to rising crypto demand, Stadelmann said Bitcoin was designed to resist this very scenario, calling it “a safe haven away from the inflationary monetary system, which has apparently run its course.”

“The debt could lead to a collapse of the dollar, which will lead people pouring into Bitcoin and could result in a supply crunch,” he noted.

Edited by Sebastian Sinclair

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Source link

June 4, 2025 0 comments

GameFi Guides

Why this Bitcoin-Friendly Lawmaker Carries a US Debt Clock in His Pocket

by admin May 29, 2025

In brief

New Hampshire Rep. Keith Ammon (R) is a Bitcoin-friendly politician.
He thinks Bitcoin could shield the Granite State from inflation.
U.S. debt has reached unsustainable levels, he says.

When it comes to stockpiling Bitcoin, U.S. states aren’t just racing against each other, according to New Hampshire Rep. Keith Ammon (R). He believes that they are also competing against the federal government, which will be forced to print money to limit the impact of ballooning U.S. debt.

In an interview with Decrypt, Ammon said that states should be closely tracking the amount of money that the federal government has borrowed to keep Washington humming. On Thursday, that sum totalled roughly $37 trillion, according to the U.S. Debt Clock.

Ammon carries a small device in his pocket displaying that metric, which updates by the millisecond, growing by the thousands.

“The state is tied to this debt because we are tied to the U.S. dollar,” he said. “The only way out of this debt is for the federal government to print more money [and] devalue the currency, so that this debt isn’t worth as much over time. That’s what every government does.”

Earlier this month, New Hampshire became the first U.S. state to sign a bill into law enabling it to start accumulating Bitcoin. A day later, Arizona passed a similar initiative. Texas could also be on the precipice of establishing its own strategic Bitcoin reserve, yet several states have rejected Bitcoin-related bills since the White House began moving in that direction.

“That’s a big state,” Ammon, who first became a member of the New Hampshire House of Representatives in 2014. “I just think it would snowball from there.”

Ammon is among lawmakers that increasingly view the U.S. debt levels as unsustainable. Republican Florida Sen. Rick Scott recently opposed U.S. President Donalds Trump’s Big, Beautiful Bill this week, namely because it does not do enough to reign in massive deficits.

Ammon proposed his Bitcoin bill as a way to shield the Granite State from a constant decline in the dollar’s purchasing power. Fiscal policy is largely a national issue, but Ammon has seen the impact of poor management firsthand, down to the county level.

“Every budget is blown out because the purchasing power of the U.S. dollar has eroded 25% in the last four years,” he said. “If a state is going to survive, it’s got to figure out how to navigate that.”

That doesn’t mean New Hampshire is going all in on Bitcoin with its pension plans and trusts. Ammon’s bill empowers the state’s treasurer, charged with overseeing revenue and finances, to allocate a small percentage of resources to Bitcoin that’s constantly rebalanced. Taking on too much risk could affect the state’s overall credit rating, he added.

“If you go off like Yosemite Sam, putting everything into Bitcoin, that rating is going to drop, and then your cost to borrow money is going to go way up,” he said. “You want to have a little bit of risk, but not so much.”

Edited by James Rubin

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Source link

May 29, 2025 0 comments