SoSo Daily Oct 25 | Tokenized Treasuries to Challenge but Not Fully Replace Stablecoins, Says JPMorgan

According to sosovalue, the price of $BTC is 66,944 USD, a decrease of 1.2% from yesterday. The market cap of $BTC is 1.32 trillion USD, accounting for 55.1% of the total market cap; $BTC's 24-hour trading volume is 36.72 billion USD, making up 36.1% of the total trading volume.
The price of $ETH is 2,492.8 USD, down 1.28% from yesterday; the market cap of $ETH is 300.12 billion USD, representing 12.5% of the total market cap; $ETH's 24-hour trading volume is 17.73 billion USD, comprising 17.4% of the total trading volume.
The combined market capitalization of $BTC and $ETH accounts for 67.6% of the total cryptocurrency market cap, and their combined trading volumes constitute 53.5% of the total trading volume.

After reviewing the overall crypto market situation, let's shift our focus to the top 5 token gainers of the day:
As of 17:50 UTC0 time, according to sosovalue, the top five token gainers are:
Top 1 gainer is MOO DENG. As of 17:50 today, its market cap is 225.67M, with a coin price of 0.22796 USD, witnessing a 24-hour increase of 189%.
The second is ShapeShift FOX. As of 17:50 today, its market cap is 36.81M, with a coin price of 0.059150 USD, witnessing a 24-hour increase of 60.8%.
The third is WeSendit. As of 17:50 today, its market cap is 4.22M, with a coin price of 0.0095180 USD, showing a 24-hour increase of 49.3%.
In fourth place is Open Exchange Token. As of 17:50 today, its market cap is 45.26M, its coin price is 0.0080420 USD, with a 24-hour rise of 35.7%.
In fifth place is Moonwell. As of 17:50 today, its market cap is 232.57M, its coin price is 0.080280 USD, increasing by 26% over the last 24 hours.


Moving on, let's take a look at the sector performance in the crypto market.
According to sosovalue, out of 16 sectors, all 16 are down. Notably, AI, Meme, and RWA sectors are worth mentioning.
AI sector has fallen -4.18% relative to the UTC 0 time, led by declines in gtai (-7.7%), dsla (-7.62%), and arkm (-7.33%).
Meme sector has decreased -4.7% relative to UTC 0, with GOAT (-15.6%), GUMMY (-14.5%), and BOME (-13.4%) leading the drop.
RWA sector has fallen -4.92%, with gfi (-8.6%), ondo (-6.79%), and PROPC (-6.34%) leading the decline.

Let's go through the Crypto news worth paying attention today according to sosovalue:
The first is:Tokenized U.S. Treasuries are gaining traction as a yield alternative to stablecoins, but they are unlikely to fully replace stablecoins, according to JPMorgan analysts. While this is still significantly smaller than the $180 billion stablecoin market, it highlights potential challenges to stablecoins' dominance but also indicates that tokenized Treasuries could only partially replace stablecoins. Major stablecoin issuers like Tether (USDT) and Circle (USDC) do not share reserve yields with their users, a practice that could not only decrease their revenues but also categorize stablecoins as securities, the analysts said. Such a classification would subject them to stringent regulatory oversight, which could limit their use as collateral in the crypto market, the analysts noted. While stablecoin users have sought various strategies to earn yield, including lending, these methods come with risks and often require handing over control of assets, the analysts said. In contrast, tokenized Treasuries provide yield without the associated risks of complex trading or lending strategies, allowing users to maintain custody of their funds, they added. But regulatory hurdles remain a challenge for tokenized Treasuries. Classified under securities law, these offerings are restricted to accredited investors, which limits broader market adoption, the analysts said. For instance, BlackRock's tokenized money-market fund BUIDL requires a minimum investment of $5 million, substantially narrowing the pool of investors due to compliance constraints tied to 'Regulation D,' they noted. Despite these regulatory challenges, tokenized Treasuries are poised for further growth and may partly replace traditional stablecoins as collateral in areas like crypto derivative trading. A recent report that BlackRock's BUIDL could be used as collateral on various crypto exchanges highlights the potential demand for tokenized Treasuries, the analysts said. Additionally, tokenized Treasuries could replace non-yield-bearing stablecoins in decentralized autonomous organization (DAO) treasuries, liquidity pools and idle cash held by crypto venture funds, the analysts said. Over time, it's possible that tokenized Treasuries could replace most of this idle cash currently held in stablecoins. However, estimating how much idle cash there is can be difficult, and it's unlikely to be a large part of the stablecoin market, the analysts said. As a result, 'tokenized treasuries would eventually replace only a fraction of the stablecoin universe (unless regulations change dramatically in the future),' according to the analysts. Currently, stablecoins have a significant advantage in terms of liquidity. With their market cap nearing $180 billion, stablecoins facilitate low transaction costs even for large trades, enabling seamless trading. Conversely, tokenized Treasuries, still in their nascent stage, have lower liquidity, the analysts said. 'This liquidity disadvantage could potentially be lessened over time as tokenized treasuries gain further traction in the future. But, as mentioned above, a full replacement of stablecoins seems unlikely given tokenized treasuries’ regulatory disadvantage (ie by being classified as securities tokenized treasuries are subjected to more restrictions that stablecoins, thus hindering their seamless use as a source of collateral in the crypto ecosystem),' the analysts concluded.
Next news:An address holding 50 $BTC was activated after being dormant for 14.3 years, with a value of approximately 3.39 million USD.
Next news:According to Foresight News, Etherscan has released an update document introducing Etherscan API V2, stating that the V2 update aims to unify EVM data across more than 50 chains and is currently in the testing phase.
Next news:Binance will launch U-based SAFE perpetual contracts on October 25 at 20:35, with a maximum leverage of 75 times.
Next news:The Dutch tax authority is seeking feedback on a draft bill that would require crypto firms to collect and report user data to the tax agency. The proposed bill aims to enhance transparency regarding crypto ownership and is part of the Eighth Directive on Administrative Cooperation. The public consultation on the draft bill will run until November 21, and the authorities plan to submit it to the House of Representatives in the second quarter of 2025.
Next news:Ripple Labs has submitted a Form C filing as part of its ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). The filing outlines the grounds on which Ripple challenges the previous ruling from the Southern District of New York court. Ripple is appealing the district court's application of the Howey test to XRP transfers and the court's consideration of Ripple's lack of fair notice. The company also seeks to reassess the criteria for classifying a transaction as an investment contract and the scope of the SEC's injunction against Ripple. Ripple's Chief Legal Officer, Stuart Alderoty, expressed confidence in the appeal process. The SEC has accused Ripple of raising $1.3 billion through the sale of XRP, which it considers an unregistered security.
Next news:OKX will launch spot trading for Simon's Cat (CAT), with CAT/USDT spot trading opening today at 19:00.
Next news:Binance has announced the relaunch of the Binance Connect service, which is designed as a fiat-to-cryptocurrency channel to support Web3 projects, allowing users to trade cryptocurrencies directly from their existing Binance accounts through DeFi wallets like Trust Wallet. Binance Connect supports over 100 fiat currencies, 300 cryptocurrencies, and 300 payment methods.
Next news:Matrixport stated that the sustained demand for Bitcoin and gold is driven by two major macro trends: the efforts of central banks to break free from dependence on the US dollar and the rapid rise in sovereign debt levels. Investors should consider holding both of these assets, as they have performed well this year and may continue to benefit from the aforementioned macroeconomic changes. In 2024, gold rose by 31%, while Bitcoin increased by 59%, outperforming traditional assets.
Next news:According to @ai_9684xtpa's monitoring, after the stolen funds from the U.S. government were transferred to an address starting with 0x348, some stablecoins were exchanged for 2,709 $ETH (worth approximately 6.08 million USD). The exchanged $ETH has been distributed to Binance and two new addresses, and the hacker's wallet currently still holds AUSDC worth 13.20 million USD.

Okay that's all for today. Thank you for tuning in, and we hope you found it helpful. Visit sosovalue.com, our one-stop financial research platform for crypto investors, to stay abreast of the latest market trends and key information. Until next time, goodbye.