Dear Tiamonds Community,
On March 28th, 2024, we had our second Twitter Space AMA of the year to engage with the community. Head of Tiamonds Steven Gaertner. Tyler Sherwin and Ray Buckton from RWA World and Riko Crypto, influencer and host were all present in this Twitter space. In this live session, our esteemed speakers taked about the need of tokenization and its potential, our objectives, upcoming launches, and more. We really appreciate the warm conversation with the community and would like to share the summary of our Twitter Space.
Riko Crypto, Moderator
Hey, everyone, welcome to Time on Twitter space.Nice to see so many people joining us today.We have really great guests with us today to discuss the next $10 trillion market tokenization. And of course, I’ll be our guest today and moderator also, my name is Riko crypto.
I’m a crypto youtuber and also host of LCX weekly YouTube show called LCX Insights, where we talk about the topic, of course, tokenization. But, of course, enough about me.
Let’s start the show by introducing our amazing guest.
So, first of all, we have today Steven Gartner from Tiamonds, and we have two experts in tokenization field, Tyler Sherwin and Ray Buckton from RWA world.
How are you guys today?
Speaker: Tyler
We are great! Thank you so much for having us.
What an honor to be talking with our friends at the time and team and the LCX team. There’s some really cool stuff you guys are doing. And, you know, we’re just really excited to be talking about our favorite topic, which is tokenization.
Speaker: Steven Gaertner
So great to be here. Riko. Hi, Tyler Hi, Ray. It’s great to have you guys on our Twitter space today, and let’s kickstart and talk about tokenization.
Riko Crypto, Moderator
Maybe you could give us a quick introduction to Tiamonds and how it is revolutionizing and changing the game?
Speaker: Steven Gaertner
So Tiamonds stands for tokenized diamonds. So we are tokenizing real world diamonds, bringing them to the blockchain to make it simple. And we have a web3 marketplace where you can own, trade, purchase, send over Tiamonds like tokenized diamonds without the complexity of need to ship the physical assets, to pay for transportation costs, to pay for import and export taxes. The added value of the blockchain is a great game changer for the diamond industry. And this is what diamond is representing and doing at the moment.
Riko Crypto, Moderator
Perfect, perfect.
So today’s topic is tokenization. And all over Twitter, we are seeing lots of headlines about Blackrock, about tokenization, rwas, even meme coins are using keywords. And lots of retail investors are also starting to notice this topic. And of course, everyone’s not ready for the change. That’s why I would like to start with a simple question, why traditional ownership is broken right now.
Speaker: Tyler
Yeah, I’m happy to jump in and tackle this one specifically with a focus on diamonds
and just gemstones and physical assets in general. Traditional ownership is fundamentally broken for a number of reasons. For the gemstone industry, there are huge price disconnects
from the producers who are getting these things out of the ground, moving them to the supply chain, and getting them to the end consumer. And in any economy, any level and any lens that you add between the end consumer and the producer of the raw good is going to ultimately kind of muddy the waters in terms of the ultimate value of that end product. So what we’re seeing with tokenization, specifically what Tiamonds is doing, is creating an ecosystem through which information about price, about quality, about fidelity, about origin, can flow more seamlessly to the end consumer.
And that is a huge, huge spotlight on what’s wrong with the industry today. You wouldn’t go and buy a car if you weren’t sure what make, mode,l and history. It had no mileage, nothing like that. That would be really alienating for anyone hoping to purchase an automobile. Yet that’s the kind of thing we accept all the time with diamonds and gemstones.
So that’s the biggest disconnect that I see in the industry today.
Speaker: Steven Gaertner
Yeah, exactly.
We are also building something, and maybe something you don’t know or for people who are not listening now to who don’t know about the diamond industry, basically there’s a new
legislation that came in, as of the 1 January in 2024 this year, that the G seven countries have banned all russian diamonds to enter the G seven countries.
So basically what’s happening here, just for the knowledge of everybody. So Russia accounts for 30% to 35% of the diamond export, rough diamond export worldwide. So basically. the G7 decided to ban russian diamonds. The basic idea is to fight against the Russian Ukrainian war.
And why is that?
It’s because 30% or 35% of the diamond mines in Russia are government owned. So basically they are fighting against that. And why I’m telling that story is in fact that, but for us, it’s super important and for our users as well, to not go against that G seven new legislation.
First of all, we are entering european markets with our diamonds. We are entering other markets as wellthat are part of the G7. And so it’s super important that our users have knowledge
and know for 100% sure that the provenance or the origin of the diamonds are of non conflictual. So 100% not coming from Russia as of now. And we really need to prove it. And this is what we are doing. And the blockchain has that added value that can easily be traceable. So this is what we are really trying to work hard for now.
Speaker: Tyler
Steven, that’s so cool.And something you pointed on is like, diamonds from non conflict zones.
And that’s something that I’ve heard about with diamonds that a lot of people don’t actually
know the provenance of the diamonds. And what you’re talking about here is this goes back to the question of why traditional ownership is broken.
Transparency! Lack of transparency here is definitely something that you guys are solving, which I think is really interesting because you now have a way to authenticate and prove to people that they are getting a diamond that is from what you just described as a non conflict zone.
Can you talk a little bit about like that, that tracking process when people are interacting with a tokenized diamond, with Tiamonds, how are you guys going through that process and putting that information on chain so that way people can verify the origination point?
Speaker: Steven Gaertner
Yeah, exactly.
So two things here. First of all, we are working with. We purchase our diamonds from legit sources. So for non conflict zones and only working with diamond dealers in the world, that can
prove to us that those diamonds have the KP process when it is a rough diamond. So the KP is the Kimberley process. It’s a certificate that is given to rough diamond exporters or rough diamond dealers to prove that those diamonds are not coming from conflict zones and have that KP process. That is for the, let’s say for the rough diamond parts. And it’s important for us, if they manufacture those rough diamonds, that we have the proof that they have that KP process certificate. That’s one.
Secondly, also, even if we purchase directly from polishers, so from polished diamonds companies, they have also, for now, it’s not on chain. And this is what we are working currently, is to try to bring those informations on chain. So how does it happen in the traditional diamond industry, those diamond dealers that receive the authorization either from the bears, which is on
of the big, is the biggest miner nowadays. So they are working in South Africa, they are working in Botswana, and they yearly point out like 50 to 100 companies that have the right to purchase directly from them. And so when we know that those dealers are purchasing directly from the biggest miner worldwide, we have the first of all, the insurance. We have the authentication also of the beers that those diamond dealers are 100% working with them.
Also on non-conflict zones. And so they give us, when we purchase from them, they give us, for now, a paper version of that certificate. And this is what we can bring to the table now on our platform.And we are working now on a system to bring all that on chain.
Riko Crypto, Moderator
Sounds good. So, yeah, actually, from what I’m listening, like, I’m not gonna lie, every time I learn more about tokenization, I’m surprised how much it really makes sense in so many different industries.
And the next question probably would be, which is always asked, like, what are the benefits of the RWA tokenization? Like, overall, in different industries, not only diamonds, but, like, overall industries
Speaker: Tyler
You know, there’s actually a couple more elements that make traditional ownership
broken that I want to just underline. Real quick, Riko, before we go into the benefits, one of them, I just want to. I want to underline a couple of them.
Stephen had pointed out one of them, which was limited access. So he talked about this 30% supply shock, essentially, where if you now have a ban of 30% of the rough diamond export worldwide, that is a 30% reduction in the supply. And so being able to get access to diamonds by having them tokenized, this can reduce barriers to entry. And that’s a really exciting thing to think about.
When I was buying my wife, you know, our wedding ring, you know, I had to go, like, physically to the store, and I had to, like, pick out different things and, like, think through it. And I actually ended up just deciding to. To give a diamond that we had had in our family, which is a lot more meaningful. But I didn’t really have a lot of the history of that diamond, you know, and I couldn’t quite, you know, figure out where it was. So the transparency aspect, we talked about that. The access aspect was something that I also struggled with. Right.
Which was like, okay. I can’t, like, buy a token or, excuse me, a tokenized diamond at that time when we got engaged. So I ended up just having to use one that I had already because I didn’t want to go through that whole process of, like, another store. But then there’s also this inefficiency aspect. And Steven was saying this from the timings team, which I really want to underline, which is there’s a big bureaucratic process involved in the ownership transfer and record keeping process that he just described.
So all of that paperwork from the non-conflict zones and all of those exports, that KP Kimberly process at you called it, Stephen, that stuff is a lot of work that if you can have all of that embedded into the token and the platform, the timings platform, it just takes away a ton of the stress that’s involved with the brokers and the buyers and the market that they normally have to think through. So all of these things are a lot of work that the timings team has done behind the scenes to improve the transparency, lack of access and the inefficiency of this market.
And then, of course, there’s also these security concerns as well, which are like, you know,
physical documents and centralized systems are prone to fraud or loss or potential, like, you know, records getting flooded in a warehouse somewhere. When you digitize these ownership records, but then also secure them on an immutable blockchain, you create a much more secure and transparent system.
Speaker: Steven Gaertner
I totally agree, Tyler, and I wanted to jump in also because I maybe forgot to mention it here earlier, but there is something that. That we are doing at Tiamond.
So, first of all, we are working hand in hand with LCX, which is the Liechtenstein cryptocurrency exchange. Based in Liechtenstein. Basically they have eight different licenses to operate as a crypto exchange. And one of those license is the physical validator. And I think this is something that is important in the chain that we are building when we are purchasing the physical diamonds from those renowned non conflictual diamond dealers. We are sending the physical asset to LCX, which is based in Liechtenstein. And they act with this physical validator license. They act as a notary. They authenticate the stone. They will match, in fact, that the stone is, first of all, real. That it is, according to the GIA certificate that we purchased with that stone, it is exactly the same color, the same clarity. So the four c’s that are in the. That are defining the diamonds. So the carats, the clarity, the color and the cut of the diamond. And also, you know that there is a GIA certificate number that normally is engraved into the stone. So they, LCX can act. Act as a real authenticator to make it 100% real and legit. Also, what’s important and a part of their job is to see that this diamond is not owned by someone else, is not borrowed out to someone else. So they really give this stamp of physical validator and authenticator before they will send it to a third party to be locked into a physical vault. Once this happens, then we tokenize the asset, we bring it to the chain. And this is where people can technically trade
those assets, like I said, without the burden of transporting the asset or sending it through FedEx or stuff like this. I think that’s a real added value. And thanks again to the blockchain, we
can really go into that direction.
Speaker: Tyler
That’s such a huge differentiator just at this point in time.Timings is doing some really amazing stuff from a historical perspective, just for context. For everyone listening here, it may be at times confusing for me as well. I’m head of research at RWA World and I see a litany of different approaches to tokenization, but they all have one thing in common. We are moving from a curated access paradigm where previously, 50, even 100 years ago, there wasn’t as ubiquitous access to markets. So when you access to market for the first time, in this example, diamonds, you wanted a curated user journey. You wanted to be educated and to understand. Now we’re moving from a curated access to an open access paradigm and economy where we want things quickly, but we want them to be trustworthy and we want the ability to engage with education and information as it pertains to what we’re buying.But we don’t want to have to go through that process. We have an abundance of choice now. And what time it’s is doing is reconfiguring the current diamond industry, which is very historical and rooted in the curated access model, and moving it towards that open, basically not curated access, but open access model where you can choose what you want, when you want it, while still enjoying that assurance and that insurance of high fidelity opportunities as time is just outlined through LCX as well. So really fantastic stuff. It’s a whole historical arc that we’re seeing unfold before us. And these guys are leading the charge for gemstones.
Speaker: Steven Gaertner
Yeah, I think. Great point.
Sorry, Riko, but I just want to add something on that. Also, I think that open access that you just mentioned is something very, how to say, the Gen Z or the new generation is very picky about that. Even when they buy t shirts, if it comes from H & M, or if it comes from Zara or big brands or luxury brands and so on, they want to know where it was manufactured.
They want to make sure that there’s no child labor. They want to make sure that it’s totally legit.
So again, that provenance and that open access to information, to the trajectory that your goods have done between either the mine for diamonds, but the confection factories and so on, they want to trace it.
And I think a lot of companies are now working into that direction. It’s something that will attract more and more new generations and Gen Z to the diamond market again, because I think the diamond market also is a bit suffering lately because of all those reasons that were not in the traditional diamond market. And I think nowadays it comes backwith the aids, with the technology. And I think that’s a very important point to gain more curiosity and more
traction and attraction to the diamond industry.
Riko Crypto, Moderator
So time was a really wide, wide topic. And can we come back to the question I had before? Because I think audience also want to ask questions about more, wider and other industries also. So we had a really long talk about how is it broken?Like 20 minutes, actually.It’s so broken. And maybe you can add some of the benefits of RWA tokenization in, like, diamonds, but also other industries. 100%.
Speaker: Tyler
At RWA World, we have our proprietary taxonomy categories that show how tokenization impacts a variety of industries. Because one thing that we ran into really early is some ongoing comparisons still happens today between treasury bills, let’s say, and tokenized Pokemon cards.
While both are, at the end of the day, can be made of paper or cardboard, they’re not the same thing by any means. So in terms of different industries, tokenization impacts them in different ways. But the common current that we see running through
all of it is that open access model that I alluded to earlier, the idea that you can just go in and access these assets. Some of them may require KYC AML compliance, where you need to enter in your id and ensure you’re part or a member of a certain jurisdiction. Others, like Pokemon cards, you can order from anywhere in the world. But the concurrent trend that we see running through all of these tokenization categories is ultimately access and also better price discovery. It’s something that Stephen alluded to or mentioned in terms of the diamond industries, particularly. But this also affects other industries. The more information, the more participants you have in a given market, the more liquid and clear the actual underlying price is for the instrument that you’re purchasing or the asset that you’re purchasing. So really, access leads into better price discovery. And that’s the thing that we see. Whether you’re talking about Pokemon cards, treasury bills, diamonds, you can even tokenize my little pudgy, technically, which I guess that was an early form of tokenization. Tokenizing penguins goes to show you can do it with anything. Yeah, and the benefits are pretty straightforward.
Speaker: Ray
I mean, you know, there’s an improvement of transparency. So we talked about that a little bit before. So blockchains are immutable, they provide a very long history and verified ownership throughout the history of the asset, they’re also more secure. So that’s the second bullet point, is that they, you know, it’s essentially a secure transfer mechanism for ownership, the actual settlement of the asset itself. So long as you’re using trusted counterparties like what we’ve talked about here with LCX and just a massive apparatus of the real world asset management process that Tiamonds and the team are working on, you have a really secure process for keeping track of everything. You can have this ability to do fractional ownership. We haven’t talked about this a lot, but if you think about it, the price to buy a nice diamond is rather expensive. And if you could have the ability to pool resources and perhaps own a fraction of a diamond and be able to speculate on the value of that diamond, that’s something.
That’s another benefit of tokenization, fractional ownership. And we see that benefit across a variety of different sectors as well. Not just tokenized precious metals and diamonds, or even strange assets like uranium, like Ray mentioned, we have a team that’s tokenizing uranium. This also especially applies to things like real estate, where people have a really hard time getting access to the real estate that they want in certain markets. But by tokenizing that real estate, you can fractionalize it, and then people can have and easier entry point into that asset that they previously could not have, where they needed to put up a, you know, a 20% down payment to purchase the property. And so tokenization will dramatically change the
way in which value exchanges hands throughout the next many decades of our lives. And this will become the ubiquitous financial base primitive that everybody is interacting with without even knowing it.
Speaker: Steven Garertner
Yeah, totally. Tyler, I strongly believe in fractionalization for all the RWA projects. This will also bring a lot of liquidity to the markets because, as you said, if I take an example of a high-value diamond, let’s say a pink diamond, or a 10 Carat D flawless diamond, which are exceptional stones, which I can’t afford, which I think 95% of the population can’t afford, but they want to be part of that, and they want to be part of that because they know that with time, those kind of assets will gain value. There’s not a lot of ten carat diamonds. Just to give you an example about pink diamonds, there is this Argyle mine in Australia that closed like a year and a half or two years ago. So if you think about that, they extracted everything that they could within this mine. Technically, we know that rule in economics, but when there is no supply or no offer anymore, the demand somehow is still even stable, growing. The price will fluctuate, of course.
And so I think there is some interesting thing to be part, even in the fractional part, to invest partially into high valued pieces, which is either diamonds or art or high luxury assets. And I think that’s a real game changer for that industry. Another point, and I think a great benefit that it
brings to the table as well, is to use your real asset as collateral in order to get some lending.
This happened and started already with the NFT craze in 2021, where people were putting either the project penguins or, but at that time, less, because the price was not as great as today, but it was more board apes or cryptopunks. And those big collections were put as a collateral to take a loan out in a peer to peer market or peer to pool marketplace.
And I think the advantage of the real world asset to be collateralized is at the end of the day, you have something in hand. It’s not just a JPEG, it’s not just a picture or just a digital asset, but you have a real world asset if something would happen with your loan or you couldn’t pay back or something like this. So that’s my take on that.
But I’m happy to hear, Tyler and Ray, about those loans and collateralizing assets.
Speaker: Tyler
Yeah, there’s a couple of teams working on this. One of which we’ve gotten to know a little bit, is Unlocked Finance. And they’re doing some pretty cool stuff, stuff where they’re underwriting these real world assets and other tokenized assets as collateral. And they use some AI systems
to help with the underwriting. And this is something I am really excited about in the context of tokenized real estate.
So there’s another project that we know pretty well, which is Fabrica Land. And they’re currently using one of the platforms that you were referring to there, Steven, which is Niftify, which does help people take out loans against rare nfts. They’re using that platform to help people gain access to tokenized real estate. And what Fabrica does is they take a property and
put it into a trust that’s controlled by an NFT.
And so by moving the NFT, you move the ownership of the real estate. And then this is just like Riko, this is just like one of, like many tons of different use cases that we’ve all been addressing here. Ray, Steven, and myself. As you can see, it gets pretty wild and composable and interoperable and really exciting, really quickly when you start combining DeFi primitives with tokenized real-world assets.And that is where I think it gets the most exciting.Because yes, you get all these benefits that we’ve talked about, which was transparency, security and visibility and all of these things. But there’s even more emergent use cases that are going to come out of this that we can’t even be prepared for because we haven’t even thought of them yet.
Riko Crypto, Moderator
Yeah, you kind of mentioned real estate, like nfts authorized like loans.But what do you think?
Like other real world benefits and use cases. Because even when I do videos about tokenization,like retail investors, they always have questions like how can I personally use it?
Maybe you have some examples of some industries that everyday people can try it out and use it.
Speaker: Tyler
I absolutely do. I have to fly. I have to flex my yankee centrism for a moment. My favorite one that I’ve stumbled upon thatI personally absolutely love is called Mocrypt. And this is a perfect real world example. Here in the US during the COVID era, there was a huge supply and demand disconnect for the price of ammunition for weaponry. Naturally going to the store, you would see Mo that otherwise was reasonably accessible. Pre-COVID, no problem. You just go and grab a few boxes, limit of maybe ten boxes, for example, with no issue now that Mo is behind the counter, one box per person, and you have to arrive at 09:00 in the morning in order to even have a chance to get far up enough in line to get one. What Mocrypt did was of course, notice that being in the defense industry and what they’ve done is they’ve leveraged nfts to allow you to basically forward purchase amounts of Mo at a fixed price based on the market price for a given time. So rather than having to hold this in your safe or keep it buried under your house somewhere, you’re able to have it in a custody vault, pristine. And just as. Just as Stephen was saying with Tiamonds, they’re leveraging very similar approach for point of origin to ensure that the entire fidelity of the supply chain remains intact so you’re not getting bootleg Mo from an unknown jurisdiction that may explode in your hand when you’re using it.
So ultimately, that’s a very real-world use case. Being that there are a number of parallels
with how time is approaching shows that there’s an undercurrent of how to approach this sort
of thing successfully that’s on full display here. So very exciting time to be in the industry. And also, if you’re a Yankee like me and you need some memo, they’re really cool opportunity.
Speaker: Ray
And there’s a lot of other use cases, too. I mean, like intellectual property, ticketing, supply chain, luxury goods. Like, there’s no shortage of different areas that will become tokenized and are in the process of being tokenized. So I’ll just briefly plug our website, RWA World, where we categorize twelve different categories of real world assets where people who are investors wanting to learn more can learn about these different assets, protocols, marketplaces, etcetera.
And we’ve categorized over 370 projects in our database. And so when we come across projects like time is, we’re really excited because we clearly see them as leaders of the precious gems, you know, category and of the area where this type of market is needed to improve.
We get really excited when we find opportunities like this. So, yeah, check out our website or our newsletter where we go into a lot of these details and we try to make it, we try to break it down, Riko, for regular audiences, right, because there’s a lot of institutions that want to
get into this place, into the space, but there’s also alot of retail investors who want to learn more.
And then, of course, we want to also encourage people to check out Lichtenstein protocol LCX,
of course, because there’s a lot of innovation happening there from the regulatory side that I
think is really changing the game.
Riko Crypto, Moderator
Thank you for that.
So if we’re talking about, you have this list of future projects, maybe you could give us some examples. And where’s the market going? What are the market trends and maybe some growth numbers, expectations for this industry?
Spreaker: Tyler
Totally. Yeah. I mean, there’s a ton of expectations.I mean, so there’s a lot of different categories.
One of them is tokenized securities. A lot of different depends onwhich reports you look at. Some are saying, oh, this market could be 5 trillion. Some are saying that this could be 10 trillion. The reality is, is that global markets, derivatives and others are to the tune of, like, quadrillions, okay? So whenever I say these numbers, like five or 10 trillion, I really don’t think they’re big enough because of what’s possible. This is something Ray and I talk about. So one report talks about how the tokenized securities market could be 5.6 trillion by 2030,
you know, which would be pretty, pretty impressive. There’s another one that’s talking about tokenized real estate, which could be 4 trillion by 2030.So that’s like 9 trillion right now already close to 10 trillion of both of those assets. The thing to keep in mind is that I think tokenization will take place in the markets that are most desperate for it first. And so what have we seen previously is that we’ve seen tokenized bills become the main narrative because most people in blockchain were really starved for yield. Ironically, Defi yield was down while tradfi yield was up. And so this has led to a lot of people buying tokenized bonds, tokenized t-bills. This is a trend that was exacerbated by market dynamics. And so we saw that most of the original use cases for tokenization, if you don’t count stable coins, which I do count stable coins, as like a perfect example of real-world asset, the bills being tokenized was the thing that drove a lot of energy and investment and attention. Now that Defi yield is coming back up, we’re starting to see people say, okay, now I want to sort of diversify my sources of yield, but I still want to be in RWA world, so. Or, excuse me, I still want to be investing in real world assets. And so there’s opportunities like this other team that we’ve met, which is called Chateau Capital. They’re tokenizing a private debt fund that’s achieving somewhere in the range of like 10% to 18% annually for about the last ten years. And that’s a fund that has never existed on the blockchain until today.
So you’re going to see these market dynamics play out where people are saying, okay, what makes the most sense from a real world asset tokenization perspective and what are my needs today? And I think that will drive the level of adoption.
I don’t know, Ray, if you had more stats you wanted to share or insights about where you see this thing going.
Speaker: Ray
No, 100%. As research lead over at RWA World, I tend to look at these things from a kind of a macro long arc perspective. And one of the things I’ll just shine a light on is the European jurisdiction. And Tyler, you mentioned theLiechtenstein protocol through LCX. Europe has been a quiet a leader for tokenization. I know there’s been huge eyeballs on the US and the bitcoin ETF, but in terms of the Michael all just being finalized, thereby opening up the floodgates for compliant tokenization, along with the fact that they custody the supermajority of tokenized assets because of SAP 121, there’s huge opportunity in that jurisdiction.
So where this thing is going is absolutely, as you highlighted, Tyler, to any industry where it makes the most sense. Stablecoins being the killer use case like you outlined, just simply because it’s frictionless. It’s better than cash in many ways. You can’t, can send cash in the
mail, but don’t ever do that. Stablecoins are just a better product in every regard. So where this thing is going from a monetary standpoint, it’s going to be in the trillions with a T, maybe the quadrillions with a Q.
We got a new one going on there. Huge numbers we’re talking about. And from a jurisdictional standpoint, Europe is a leader and will continue to be a leader and it’s going to be really interesting to see how that evolves over the next twelve to 36 months.
Riko Crypto, Moderator
Yeah, the numbers are looking really promising. And maybe I’ll add one question from myself because I see this topic and headline all over my Twitter or X.com, it’s the blackrock kind of embracing tokenization.
What do you think about that?
Like these big players joining it?
Speaker: Tyler
Well, they already, I mean it’s undoubtedly bullish.
Speaker: Steven Gaertner
Yeah, I totally agree.I think this gave the kickoff to 2024. The first or second week of January 2024 was the announcement of bitcoin ETF’s agreement in the US. I think it gave in comparison to the other bull runs or to the other halvings. Let’s say it gave a kick before the halving. And I think it’s only the beginning and it’s a way to attracting more traditional investors to the crypto space. And I think not only to the crypto space, but once they’ll be into the crypto space, they’ll find out about other way, about other stuff and so on.
Riko Crypto, Moderator
Yeah, I totally agree.This big headline with BlackRock really I think attracted lots of retail investors.
As I talk a lot about tokenization, I really see the shift in mentality in my comments Before it was like, questions what it is now? It’s like how can I join it? So I’m really bullish myself about this topic and I started also with this 10 trillion industry, which is again another really bullish headline.
What do you think? Like what’s, what’s the future for tokenization?
What is the like endgame for all this industry?
Speaker: Tyler
Well, I’ll tell you the end game. It’s all value secured on blockchains. And that is a pretty radical statement, but it just makes a lot of sense based on the inefficiencies, the silos, the lack of ability to communicate across centralized intermediaries by using protocols like blockchains, and then using cross chain communication services like Chainlinks, CCIP, cross chain interoperability protocol, you will be able to communicate in an intranet and Internet fashion. So people are familiar. There’s like, like internal closed ecosystems that access the Internet called intranets, where they’re more private and gated, and not everybody in the public can access them. But then there is also the free and open Internet. And these two sandboxes, they do interact with one another. And this is a similar thing that we are going to be seeing play out across blockchains. A lot of people, when Larry Fink was launching this fund, before he launched it, people were speculating and saying, oh, Blackrock would never use a public blockchain. They would never use a public blockchain. They’re going to do a private blockchain.
And I saw so many takes saying on Twitter, oh, yeah, there’s no way. Are you kidding me? You think Larry Fink’s going to buy ETH to send a transaction on the blockchain on ethereum?
No, get real. And then what did we have happen? They tokenized the fund on Ethereum with securitized. So what you’re seeing is that these fund managers like Blackrock, who, when BlackRock does something, people pay attention. They are now setting the trend, they are setting the narrative, they are setting the direction.
And trust me, everyone else is going to get in line. All the other asset managers are going to do likewise. They have said, yes, we can use public blockchains to tokenize funds. Now, that doesn’t mean that we won’t still have some private funds that happen. But the thing is, is institutions wantto go where the liquidity is. And if the market continues to prove that public blockchains are where all of the liquidity is, which spoiler alert, yes, that is what’s happening. A lot of these private blockchain experiments haven’t really materialized in terms of a ton of liquidity. his means that you’re going to be seeing a lot more of this. So the end game is really, you know, we’re far away from the end game. I still think we’re like a decade or so or so out before.
Like, you see significant, you know, large other, like, like everything becoming tokenized.We always overestimate what can happen in the near term, but then also underestimate what can happen in the medium to longer term. So, yeah, the end game really is tokenizing on public blockchains, cross chain communication across different assets. You will prefer to buy a tokenized diamond versus a non tokenized diamond like that will just become the way in which you prefer to interact with these assets because you’ll have a more secure and safe and transparent record.
As people are seeing, this whole AI trend really spook people. They’re wondering about authenticity. They’re wondering about are these pictures real? Well, imagine a camera that takes a photo and transcribes on the blockchain exactly where and when that photo was taken, under what sort of circumstances, then you can never have it doctored. These are things that we definitely need to have because we are in a crisis of trust today in the world.
And I think blockchains are a secure and safe way to provably demonstrate that something is authentic. And so that’s why I’m building a tokenization at RWA World. That’s why I’m excited about Tiamonds. That’s why I love working with my friend here, Ray. And that’s why, Riko, I could talk about this all day, every day for hours.
Riko Crypto, Moderator
Yes, the future looks really exciting. And I would like to ask the last question,
probably because I believe the guests could talk for hours, but it’s time on Twitter space.
So the last question would be, what can we actually expect from Tiamonds and what is the future? Maybe some updates or rumors,something for Tiamonds fans.
Speaker: Steven Gaertner
Okay, so first of all, next month we will be in Dubai for token 2049. There’s also.
So during the whole week we’ll be there with our team, meet people, networking, and try
to bring diamonds out to everyone over there. There’s a great event that Polytrade
is organizing on the 16 April. We’ll also be joining over there. That’s for, let’s say, the events and our attendance. Our friends at LCX will also be there. So if you want to talk with the physical validator directly, it’s always a good opportunity to meet. So that’s one then, on the future
and the development side of diamond.
So what we said in the beginning, for us, it’s important to have really open access for everyone. Open access on pricing, open access to the provenance and the, the origin of our assets of the stones. We will be launching our project on other blockchains and on other NFT marketplaces. So you will hear the news very soon of new partnerships that we are busy with and hopefully we will continue to grow and continue to work hand in hand with Tyler, with Ray, with all the RWAworld Team, because I think they’re doing a great, great job.
Don’t forget to jump on their website to follow them on Twitter. I think how to say the insights they are bringing, the toads that they have, I know that they’re doing quite a lot of AMA spaces on Twitter, with AMA’s and stuff like this. So follow them, hear them, try to network with them,and it’s a great added value to the ecosystem.
Speaker: Tyler
Thank you so much for the kind words, even. Yeah, we’re really just honored to be hereand we love doing what we’re doing. And when there’s cool projects like Tiamonds, it makes our job really easy because we love working with credible, sincere actors who are building
just really, really smart solutions in the space. So, yeah, thank you so much for the kind words.
Riko Crypto, Moderator
Thank you so much everyone for joining us.
