Latest news with #GeoffKendrick
Yahoo
2 days ago
- Business
- Yahoo
Standard Chartered Sees New Growth Frontiers in Non-Stablecoin Tokenization
Stablecoins dominate the tokenization of real-world assets (RWA), but Standard Chartered (STAN) said it sees signs of a broader shift underway. With just $23 billion currently in non-stablecoin RWAs, around 10% the size of the stablecoin market, the investment bank anticipates significant growth as regulatory clarity improves and the focus shifts to assets that benefit more meaningfully from being on-chain, it said in a research report Wednesday. Tokenization is one of the main uses of blockchain technology and it is attracting attention and investment from the TradFi world. Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets and are also used to transfer money internationally. Jurisdictions like Singapore, Switzerland, the EU and Jersey have made progress on regulation, the bank noted, but inconsistent know your customer (KYC) rules remain a barrier. Still, the opportunity lies in targeting assets where tokenization adds real value, the report said. "To unlock growth potential, we believe tokenization efforts need to focus on on-chain assets that are cheaper and/or more liquid than their off-chain equivalents, with shorter settlement times, or that solve an on-chain need," wrote Geoff Kendrick, head of digital assets research at Standard Chartered. The bank noted that tokenized private credit has shown promise by offering faster settlement and cost efficiencies. In contrast, efforts to tokenize already-liquid assets such as gold or U.S. equities have seen limited traction as they fail to deliver clear on-chain advantages, the bank said. The bank expects private equity and liquid off-chain commodities to be the next growth areas for non-stablecoin in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-06-2025
- Business
- Yahoo
Should You Buy XRP (Ripple) While It's Under $2.50? A Wall Street Analyst Says It Could Soar 150%
Geoff Kendrick at Standard Chartered thinks XRP will overtake Ethereum in terms of market value by 2028, implying nearly 150% upside in XRP at current prices. Guggenheim recently launched digital commercial paper on the XPR Ledger, a move that could make the blockchain a larger player in the tokenized assets market. The potential approval of spot XRP ETFs could unlock demand for the cryptocurrency among retail and institutional investors, driving its price higher. 10 stocks we like better than XRP › XRP (CRYPTO: XRP) has advanced 13% year to date. It currently trades at $2.30 and has a market value of $135 billion as of June 10. But at least one Wall Street analyst thinks the cryptocurrency will be worth much more in three years. Geoff Kendrick at Standard Chartered recently predicted XRP would overtake Ethereum by 2028. To put that in context, Ethereum currently has a market value of $335 billion, so XRP must increase nearly 150% to reach the same level. That would bring its price to $5.70. Here's what investors should know. XRP is the native digital asset on the XRP Ledger, the blockchain developed by technology company Ripple to simplify cross-border transactions. Traditionally, banks have used the SWIFT (Society for Worldwide Interbank Financial Telecommunications) system to move money across borders, but transactions can be expensive and costly. The XRP Ledger is a faster and cheaper alternative to SWIFT. Ripple Payments lets financial institutions use the blockchain (with XRP as a bridge currency) to send cross-border payments. If banks and payment service providers adopt Ripple products, demand for XRP will increase and the token could become more valuable. However, the particular tailwind will likely be modest at best. In my opinion, the more likely catalyst is increased capital inflows as more retail investors and institutional investors buy the cryptocurrency for their portfolios. Asset manager Guggenheim recently tapped the XRP Ledger to issue digital commercial paper, a fixed-income asset backed by U.S. Treasuries. The XRP Ledger currently accounts for a small percentage of tokenized real-world assets -- which are forecast to hit $19 trillion by 2033 -- but the addition of tokenized debt to the platform is a positive development that could lead to more transactions on the network. However, not many financial institutions use XRP as a bridge currency, and I doubt that will change. Price volatility makes cryptocurrency a risky way to move money. Ripple has addressed that problem by creating a stablecoin called Ripple USD. Yet, while payments made in Ripple USD incur transaction fees denominated in XRP, those fees are small and the incremental demand for the cryptocurrency is negligible. For that reason, financial institutions using Ripple Payments are unlikely to be a material catalyst for XRP. The Chicago Mercantile Exchange, the largest derivatives marketplace in the United States, introduced XRP futures trading in May. Meanwhile, a few asset managers have rolled out XRP futures ETFs. Both create new ways for investors to trade XRP, but the most important potential catalyst is the pending approval of several applications for spot XRP ETFs. Spot XRP ETFs would own the crytocurrency and track its price, rather than trading futures contracts. In other words, spot XRP ETFs would give investors direct exposure to the cryptocurrency through traditional brokerage accounts, without the high fees associated with cryptocurrency exchanges. By reducing friction, spot ETFs could unlock demand among retail and institutional investors. Indeed, Bitcoin's price has skyrocketed 136% since spot Bitcoin ETFs were approved in January 2024. I think approval of spot XRP ETFs could lead to similar price appreciation, such that XRP could potentially overtake Ethereum by 2028. That makes XRP a compelling investment option. That said, I would rather own a spot XRP ETF than the cryptocurrency, so I plan to wait until those investment vehicles win SEC approval. Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and XRP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor's total average return is 996% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy. Should You Buy XRP (Ripple) While It's Under $2.50? A Wall Street Analyst Says It Could Soar 150% was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
12-06-2025
- Business
- Globe and Mail
Should You Buy XRP (Ripple) While It's Under $2.50? A Wall Street Analyst Says It Could Soar 150%
XRP (CRYPTO: XRP) has advanced 13% year to date. It currently trades at $2.30 and has a market value of $135 billion as of June 10. But at least one Wall Street analyst thinks the cryptocurrency will be worth much more in three years. Geoff Kendrick at Standard Chartered recently predicted XRP would overtake Ethereum by 2028. To put that in context, Ethereum currently has a market value of $335 billion, so XRP must increase nearly 150% to reach the same level. That would bring its price to $5.70. Here's what investors should know. The XRP Ledger was designed to make cross-border payments faster and cheaper XRP is the native digital asset on the XRP Ledger, the blockchain developed by technology company Ripple to simplify cross-border transactions. Traditionally, banks have used the SWIFT (Society for Worldwide Interbank Financial Telecommunications) system to move money across borders, but transactions can be expensive and costly. The XRP Ledger is a faster and cheaper alternative to SWIFT. Ripple Payments lets financial institutions use the blockchain (with XRP as a bridge currency) to send cross-border payments. If banks and payment service providers adopt Ripple products, demand for XRP will increase and the token could become more valuable. However, the particular tailwind will likely be modest at best. In my opinion, the more likely catalyst is increased capital inflows as more retail investors and institutional investors buy the cryptocurrency for their portfolios. XRP's price will increase if more financial institutions use it as a bridge currency Asset manager Guggenheim recently tapped the XRP Ledger to issue digital commercial paper, a fixed-income asset backed by U.S. Treasuries. The XRP Ledger currently accounts for a small percentage of tokenized real-world assets -- which are forecast to hit $19 trillion by 2033 -- but the addition of tokenized debt to the platform is a positive development that could lead to more transactions on the network. However, not many financial institutions use XRP as a bridge currency, and I doubt that will change. Price volatility makes cryptocurrency a risky way to move money. Ripple has addressed that problem by creating a stablecoin called Ripple USD. Yet, while payments made in Ripple USD incur transaction fees denominated in XRP, those fees are small and the incremental demand for the cryptocurrency is negligible. For that reason, financial institutions using Ripple Payments are unlikely to be a material catalyst for XRP. XRP's price will increase if more retail and institutional investors buy the token The Chicago Mercantile Exchange, the largest derivatives marketplace in the United States, introduced XRP futures trading in May. Meanwhile, a few asset managers have rolled out XRP futures ETFs. Both create new ways for investors to trade XRP, but the most important potential catalyst is the pending approval of several applications for spot XRP ETFs. Spot XRP ETFs would own the crytocurrency and track its price, rather than trading futures contracts. In other words, spot XRP ETFs would give investors direct exposure to the cryptocurrency through traditional brokerage accounts, without the high fees associated with cryptocurrency exchanges. By reducing friction, spot ETFs could unlock demand among retail and institutional investors. Indeed, Bitcoin 's price has skyrocketed 136% since spot Bitcoin ETFs were approved in January 2024. I think approval of spot XRP ETFs could lead to similar price appreciation, such that XRP could potentially overtake Ethereum by 2028. That makes XRP a compelling investment option. That said, I would rather own a spot XRP ETF than the cryptocurrency, so I plan to wait until those investment vehicles win SEC approval. Should you invest $1,000 in XRP right now? Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy.
CNBC
04-06-2025
- Business
- CNBC
Strategy imitators pushed bitcoin to new records. Why Standard Chartered sees that buying pressure reversing
The number of companies that buy bitcoin to hold on their balance sheet has grown in recent weeks, helping the leading cryptocurrency to hit its recent all-time high. But that newfound corporate support could soon become a downside risk to bitcoin's price, according to Standard Chartered. While Strategy , formerly MicroStrategy, is the poster child for the bitcoin acquisition strategy by corporate treasuries, "imitators" have been gaining ground, Standard Chartered said in a report out Tuesday. Holdings by bitcoin treasuries have doubled in the last two months to just below 100,000 bitcoins, but their average purchase prices are far higher than Strategy's in most cases, the note said. Reversal risk "Bitcoin treasuries are adding to bitcoin buying pressure for now, but we see a risk that this may reverse over time," Standard Chartered analyst Geoff Kendrick wrote. "Most of the bitcoin corporate treasuries in our sample … have [net asset value] multiples above 1. For now, we think this is justified by market inefficiencies, including regulatory hurdles to investor access and conservative investment committee processes. But as these inefficiencies are eventually removed, we think bitcoin treasuries could become a source of downside price pressure and volatility." Bitcoin's notorious volatility could well push its price below the average paid by many corporate treasury departments reasury, Kendrick added. Half of them would be underwater if bitcoin fell below $90,000, he estimated. Should bitcoin drop more than 22% below companies' average purchase prices, they could become forced sellers, he said. Pain threshold "The question then becomes, how much pain can companies withstand before being forced to sell their bitcoin?" Kendrick said, noting that Strategy's treasury faced its greatest challenge in November 2022, around the time of the FTX-related crash. Bitcoin halved in value, to $15,500 from $31,000, but the company continued holding its bitcoin throughout. "Perhaps because the absolute [dollar] loss was small," Kendrick suggested, "and also because U.S. spot [bitcoin] ETFs did not exist yet, so MSTR served a more important investment purpose than bitcoin treasuries do today." In today's altered crypto environment, "we do not think any of the newer entrants to the bitcoin treasury space could continue holding their bitcoin if bitcoin prices were to fall 50% below their average purchase price," the analyst added. There are 110 publicly-listed companies worldwide that own bitcoin, according to Bitcoin Treasuries. Standard Chartered monitors a sample of 61 that buy bitcoin purely to hold on their balance sheets but otherwise aren't involved in the industry. This, for example, excludes bitcoin miners, crypto exchanges, asset managers, Bitcoin ATM providers, crypto services providers and Tesla. The subgroup that Standard Chartered tracks owned a combined 673,897 bitcoins as of the end of May, accounting for 3.2% of bitcoin's maximum supply of 21 million. —CNBC's Michael Bloom contributed reporting. remains the biggest of these types of bitcoin proxies, its
Yahoo
03-06-2025
- Business
- Yahoo
Today's Corporate Bitcoin Holders Could be Tomorrow's Forced Sellers: StanChart
Corporate bitcoin BTC treasuries are adding to buying pressure at the moment, but a sharp drop in the price of the world's cryptocurrency could lead to forced liquidations, Standard Chartered analyst Geoff Kendrick said in a research report on Tuesday. As many as 61 publicly listed companies have adopted the cryptocurrency as a treasury asset, and these firms now own a combined 673,897 bitcoin as of the end of May, or 3.2% of the cryptocurrency's total supply, the report said. That big number, of course, owes nearly everything to Michael Saylor's Strategy (MSTR), which by itself holds a total of 580,955 tokens. "Based on the 2022 example of Core Scientific (CORZ), we estimate that prices more than 22% below average purchase prices could lead to liquidations," wrote Geoff Kendrick, head of digital assets research at Standard Chartered. In the bear market of that year, the bitcoin miner under considerable financial pressure sold 7,202 bitcoins in June 2022 at an average price of $23,000 to raise about $167 million.. "The forced sale price (forced in the sense that creditors would no longer fund Core Scientific's business model) was just 22% below the cost of production," said Kendrick. If bitcoin were to move back below the $90,000 level, half of these bitcoin treasuries would be underwater, he added.
