Board of Governors. Dual Mandate. The Federal Reserve on Friday announced additional information about the periodic review of its monetary policy strategy, tools, and communications—the framework it uses to pursue its congressionally-assigned goals of maximum employment and price stability. Federal Reserve System.
Commodity Futures Trading Commission. Digitized tokens. The Commodity Futures Trading Commission’s Global Markets Advisory Committee, sponsored by Commissioner Caroline D. Pham, last Thursday advanced a recommendation to expand the use of non-cash collateral through the use of distributed ledger technology. The GMAC’s Digital Asset Markets Subcommittee also presented on the progress of its Utility Tokens workstream. CFTC.
Note: What does tokenization of a digitized asset mean?
Tokenization of assets is the process of converting rights to a physical or digital asset into a digital token on a blockchain. These tokens can represent a wide variety of assets, including real estate, art, stocks, bonds, and even intangible assets like intellectual property or carbon credits.
Here’s a breakdown of the concept, tokenization of a digitized asset:
- Digitization: The first step involves digitizing the ownership or rights to an asset. This means creating a digital representation of the asset on a blockchain.
- Token Creation: The digitized asset is then turned into a token, which can be either fungible (interchangeable) or non-fungible (unique).
- Blockchain Recording: These tokens are recorded on a blockchain, ensuring secure, transparent, and efficient transactions.
- Fractional Ownership: Tokenization allows for fractional ownership, meaning multiple people can own shares of an asset, making it more accessible to a broader audience.
Note: The blockchain is a decentralized digital ledger technology that securely records and verifies transactions across a network of computers.
Note: The benefits of tokenization include increased liquidity, lower transaction costs, and broader access to investment opportunities. It’s a transformative concept that’s reshaping industries by enabling more efficient and inclusive financial systems.
Treasurys. Yields. Scott Bessent. On Monday, yields on 10-year treasuries slipped to their lowest in nearly a month, suggesting investors’ concerns about tariffs and inflation may been allayed by one of Donald Trump’s recent cabinet picks. Investor concerns about inflation heavily influence Treasury yields, so some economists suggested the dip may reflect optimism among traders that Trump’s pick of Scott Bessent for Treasury Secretary could temper some of the president-elect’s plans for tariffs. Investopedia.
SEC. Gary Gensler. Crypto. Gary Gensler, the chair of the U.S. Securities and Exchange Commission, will step down from his position on Jan. 20, paving the way for President-elect Donald Trump to nominate a new head of financial markets regulation. Investopedia.
Trump. Canada. Mexico. China. President-elect Donald Trump is threatening to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office as part of his efforts to crack down on illegal immigration and drugs. MarketWatch.
Foreign exchange rates, per Reuters, as 10:34 PM EST
AUD/USD=0.647
GBP/USD=1.253
EUR/USD=1.0455
USD/JPY=153.96
10-year bond yields, per Reuters, as of 10:41 PM EST
Australia 10-year yield: 4.431%
Germany 10-year yield: 2.204%
United Kingdon 10-year yield: 4.338%
Japan 10-year yield: 1.060%
Lawyers Write the Bets. Bankers Sell the Bets. 