22 May 2025, 16:12

Major TradFi Institutions to Pursue Tokenization Efforts on Solana

A number of large banks and other traditional financial (TradFi) institutions are set to use the Solana blockchain for their tokenization efforts. R3, a U.K. developer of blockchain technology for financial institutions, is teaming up with the Solana Foundation to bring the former's clients and their tokenized real-world assets to Solana. Through its blockchain platform, Corda, R3 holds over $10 billion in assets and counts the likes of HSBC, Bank of America, Bank of Italy and the Monetary Authority of Singapore among its participants. Tokenization, the term for minting real-world assets such as stocks and bonds as digital tokens that can be traded on decentralized networks, is one of the principal use cases of blockchain technology attracting the attention and investment of the TradFi world. A recent report by Boston Consulting Group and crypto payments company Ripple said the tokenization market could reach $18.9 trillion by 2033 . R3's aim is to supercharge the scale and liquidity of the tokenized asset ecosystem by making the assets available on a public blockchain like Solana. The total value of assets held on Solana may be dwarfed by Ethereum, but it processes more transactions and has more active addresses . "As the world's most used public blockchain, Solana ... [is] the ideal foundation for the next generation of regulated digital finance," R3 said in an announcement on Thursday.

22 May 2025, 16:10

MicroStrategy Announces Massive $2.1B Preferred Stock Offering with 10% Dividend

BitcoinWorld MicroStrategy Announces Massive $2.1B Preferred Stock Offering with 10% Dividend In a significant financial move, MicroStrategy, the software intelligence firm known for its aggressive Bitcoin acquisition strategy, is reportedly planning to issue up to $2.1 billion in preferred stock. This potential offering, first reported by Walter Bloomberg on X, carries a notable 10% annual dividend, signaling a strategic decision by the company to potentially raise substantial capital. What is MicroStrategy Preferred Stock and What’s Being Offered? MicroStrategy preferred stock represents a class of ownership in the company that has a higher claim on assets and earnings than common stock. Holders of preferred stock typically receive fixed dividends before common shareholders and have priority in the event of liquidation. However, they usually do not have voting rights. According to the report, MicroStrategy is aiming to issue up to $2.1 billion worth of this preferred stock. The specific terms and conditions will be detailed in the offering documents, but the headline figure of $2.1 billion suggests a substantial capital raise. This isn’t MicroStrategy’s first foray into raising capital through debt or equity to fund its Bitcoin purchases, but the scale and the nature of preferred stock make this particular move noteworthy. Understanding the Attractive 10% Dividend Yield One of the most striking features of this potential offering is the proposed 10% annual dividend. A 10% yield on preferred stock is relatively high in the current market environment, especially for a company like MicroStrategy. This high dividend rate is likely intended to attract a wide range of investors, particularly those seeking income streams. For investors, a 10% dividend offers a potentially attractive return on investment, paid out before common stock dividends (though MicroStrategy does not currently pay a common stock dividend). However, the high yield also implicitly suggests a level of risk perceived by the market or structured into the offering to make it appealing despite other potential factors like market volatility or the company’s specific business model tied heavily to Bitcoin. How Does This Fuel MicroStrategy’s Bitcoin Strategy? MicroStrategy’s primary corporate strategy under Michael Saylor has been to acquire and hold Bitcoin. The company has consistently used various financial instruments, including convertible senior notes and stock offerings, to raise capital specifically for purchasing more Bitcoin. This $2.1 billion preferred stock offering appears to be another mechanism to further that core objective. By issuing preferred stock, MicroStrategy can raise significant capital without diluting the voting power of its common shareholders (as preferred stock typically has no voting rights). The capital raised would likely be used to acquire more Bitcoin, increasing the company’s overall BTC holdings. This move aligns perfectly with MicroStrategy’s stated goal of being a corporate vehicle for investing in Bitcoin. The company’s balance sheet is increasingly dominated by its Bitcoin holdings. Raising capital through preferred stock adds to its liabilities but increases its capacity to accumulate more digital assets, reinforcing its unique position among publicly traded companies. Is This MicroStrategy Investment Opportunity Right for You? Investing in MicroStrategy preferred stock comes with its own set of considerations, distinct from investing in the common MSTR stock or Bitcoin directly. Potential investors should weigh the benefits against the risks: Potential Benefits: Attractive Income: The 10% annual dividend offers a potentially high fixed return. Priority in Liquidation: Preferred shareholders have a higher claim on company assets than common shareholders if the company were to be liquidated. Potential for Capital Appreciation: While the primary draw is the dividend, the market price of preferred stock can fluctuate based on interest rates, company performance, and market sentiment. Potential Risks: Subordination to Debt: Preferred stock is subordinate to the company’s debt obligations. If MicroStrategy faced financial distress, debt holders would be paid before preferred shareholders. Call Risk: The company may have the right to ‘call’ or redeem the preferred stock at a certain price after a specific date, potentially limiting the investor’s income stream if interest rates fall. Market Risk: The value of the preferred stock can be affected by changes in interest rates and the overall market’s perception of MicroStrategy and the cryptocurrency market. No Voting Rights: Preferred shareholders typically do not have a say in company management decisions. Tied to Bitcoin Volatility: While preferred stock offers a fixed dividend, the company’s underlying health and ability to pay that dividend are heavily influenced by the volatile price of Bitcoin, which constitutes a significant portion of its assets. Investors interested in this specific MicroStrategy investment should carefully review the official offering documents once they are released to understand the full terms, conditions, and risks. Potential Impact on MSTR Stock and the Market The issuance of $2.1 billion in preferred stock could have several implications for MicroStrategy’s common stock (MSTR stock) and the broader market: Funding for Bitcoin: If the capital is used to buy more Bitcoin, it reinforces MicroStrategy’s commitment to its Bitcoin strategy and could be seen positively by investors bullish on Bitcoin. Increased demand from MSTR could also have a minor impact on Bitcoin’s price. Increased Leverage: This offering adds another layer of financing to MicroStrategy’s capital structure, increasing its overall leverage. While leverage can amplify gains when asset values rise, it also magnifies losses if asset values decline. Market Perception: A large preferred stock offering with a high dividend yield could be interpreted in different ways by the market. Some may see it as an aggressive, confident move to capitalize on market conditions, while others might view the high yield as indicative of higher risk or a costlier way to raise funds compared to other options. Potential for Future Capital Raises: Success with this offering might pave the way for future similar capital-raising activities. The market’s reaction will depend on the final terms of the offering and the prevailing sentiment towards both MicroStrategy and Bitcoin at the time. Conclusion: A Bold Financial Maneuver MicroStrategy’s reported plan to issue up to $2.1 billion in preferred stock with a 10% dividend is a bold financial maneuver that underscores the company’s unwavering commitment to its Bitcoin strategy. This offering provides MicroStrategy with significant capital to potentially expand its Bitcoin holdings, further solidifying its position as a unique investment vehicle for gaining exposure to the digital asset. For investors, the preferred stock offers a high-yield income opportunity but comes with risks related to MicroStrategy’s leveraged balance sheet and the inherent volatility of Bitcoin. As always, potential investors should conduct thorough due diligence and consider their own risk tolerance and investment goals before participating in such an offering. To learn more about the latest crypto market trends, explore our articles on key developments shaping Bitcoin price action and institutional adoption. This post MicroStrategy Announces Massive $2.1B Preferred Stock Offering with 10% Dividend first appeared on BitcoinWorld and is written by Editorial Team

22 May 2025, 16:01

Ledger Launches Solana Branded Ledger Flex Hardware Wallets

The device launches in four phases, with early access for existing Solana SBT holders receiving up to $70 in SOL rebates.

22 May 2025, 16:00

Ripple vs SEC: How the Outcome Could Reshape Financial Infrastructure Forever

The Ripple lawsuit’s outcome could reshape global financial infrastructure, says SMQKE. A complete victory for Ripple could help financial institutions adopt blockchain technology. Ripple and the SEC seek another chance to reach a settlement in the ongoing case. SMQKE, a well-known crypto researcher, believes that the result of the Ripple lawsuit may launch a new stage in global financial infrastructure. American lawyer James C. Spindler made this claim in his legal report titled “SHAQ, RIPPLE AND THE FUTURE OF CRYPTO REGULATION.” The report was prepared and released by William & Mary Law School. SMQKE stated that if Ripple won, it would give banks and asset managers a clear path to use blockchain for main financial activities. The findings reveal that Judge Analisa Torres found that a portion of Ripple’s XRP sales was not in violation of securities laws. Legal experts claim that Ripple’s initial XRP release was the same as selling shares in an unwritten corporate value. Ripple’s Win Could Redefine Financial Systems If Ripple prevailed, SMQKE expected that financial institutions could use Ripple’s results to plot the future of their core functio… The post Ripple vs SEC: How the Outcome Could Reshape Financial Infrastructure Forever appeared first on Coin Edition .

22 May 2025, 15:55

Carmaker DeLorean tokenizes EV reservations on Sui

DeLorean launched an onchain reservation system and non-fungible token (NFT) marketplace for its upcoming electric vehicle launch, introducing a new blockchain-based approach for reserving and reselling cars. According to DeLorean, its Build Slot NFT collection grants holders priority access to purchase DeLorean’s upcoming electric car, Alpha 5 EV. The model is the carmaker’s first vehicle in over 40 years, inspired by the iconic flux capacitor from the movie Back to the Future. The company created an exclusive marketplace for its NFT holders, in which users can buy or trade the NFTs using the USDC ( USDC ) stablecoin on the Sui network and will be able to earn rewards. DeLorean says that each vehicle’s history and performance data will be recorded onchain through the FLUX protocol, including key data such as battery health, maintenance records, accident history, and verified odometer readings. This detailed data makes it easier for auto enthusiasts to bid on or resell vehicles in the secondary market, the company said. DeLorean NFT platform. Source: DeLorean “Since DeLorean’s emergence in the 1980s, the brand has stood as a symbol of vision, rebellion, and futuristic innovation,” according to Cameron Wynne, the chief brand officer at DeLorean. “By using blockchain technology, we're setting a new standard for the automotive industry,” Wynne said. The NFT-based reservation system and the tokenization of an electric vehicle signal DeLorean’s interest in digital assets. The company is also the first carmaker to introduce a utility token, the DeLorean ($DMC) token. DMC tokenomics. Source: Deloreanlabs Luxury brands exploring blockchain, NFTs NFTs are becoming digital passports for luxury goods, linking to full lifecycle benefits such as reservation, maintenance, resale, and membership services. By tokenizing luxury products using NFTs, brands can enhance their technological appeal while reinforcing a sense of scarcity and community value. Global fashion brand Louis Vuitton ventured into NFTs in 2023, offering NFT holders exclusive access to certain products like a $6,400 digital mini trunk, a $9,000 bag and a varsity jacket worth around $8,400. LVMH Group launched the blockchain-based AURA platform, where luxury items are represented as unique NFTs containing information such as the origin of raw materials, production date and maintenance history. Magazine: Pranksy: Inside the anonymous life of an NFT legend — NFT Collector

22 May 2025, 14:45

Coming soon: Kraken takes Wall Street onchain with tokenized equities

Have you ever asked yourself: Why can’t I trade stocks at 2 a.m.? Why is it still so difficult and expensive to access U.S. equities from outside the U.S.? Can’t crypto fix that? The truth is simple: Traditional finance (TradFi) hasn’t kept up with the pace of innovation. Global markets still operate on outdated rails, with limited hours, high fees and layers of friction that exclude far too many people. We see the revolution of crypto as a disrupting force that can solve real-world financial problems – and tokenized equities are the next frontier. Today, we’re excited to announce that Kraken will soon offer xStocks – an exciting new tokenized equities brand developed by Backed – to clients in select non-U.S. markets worldwide. These clients will be able to gain exposure to several popular U.S.-listed stocks and ETFs, issued as SPL tokens on the Solana blockchain. These xStocks assets can be traded both on our platform as well as onchain through compatible wallet providers, allowing users to leverage their xStocks as collateral in ways that simply is not possible through TradFi. “We’re reimagining equities investing and ushering in a new wave of demand from clients seeking better alternatives to the status quo,” said Mark Greenberg, Kraken Global Head of Consumer. “Access to traditional U.S. equities remains slow, costly and restricted. With xStocks, we’re using blockchain technology to deliver something better – open, instant, accessible and borderless exposure to some of America’s most iconic companies. This is what the future of investing looks like.” This move marks a major milestone in our broader strategy to bridge TradFi and crypto. It follows our recent rollout of equities trading for U.S. clients, giving millions of Americans access to over 11,000 U.S.-listed stocks and ETFs directly within the Kraken app. We’re planning to expand that offering to clients in the U.K., Europe and Australia soon. With xStocks, we’re taking the next step: Democratizing access to equities on a global scale. We plan to steadily expand both the range of tokenized assets and the jurisdictions where xStocks are available, unlocking global access to equities markets like never before. Stay tuned — the next generation of equities investing is just getting started. Get started with Kraken The value of an investment may go down as well as up and past performance is not a reliable indicator of future results. Read Kraken’s xStocks Risk Disclosure at kraken.com/legal/xstocks as well as the Base Prospectus and related Final Terms for xStocks (available on backed.fi ) to learn more. The post Coming soon: Kraken takes Wall Street onchain with tokenized equities appeared first on Kraken Blog .