TD Bank Needs to Turn on Earnings ‘Afterburners' to Extend Winning Streak
The firm spent years in the penalty box under the shadow of US investigations that culminated in fines of more than $3 billion and a cap on its American retail banking business last October. Its stock slumped even further when it suspended its financial guidance less than two months later.
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Fast Company
a minute ago
- Fast Company
Tokenization is gaining ground in the crypto world. Here's what to know
Tokenization has long been a buzzword for crypto enthusiasts, who have been arguing for years that blockchain-based assets will change the underlying infrastructure of financial markets. The technology is seen as rapidly increasing in coming years, especially in the U.S., helped by the passage of three new bills. President Donald Trump's administration has eased regulation of the broader crypto industry, paving the way for a boom in the valuation of companies in the sector and the rapid growth of crypto-related securities. However, the growth of the market for tokenized assets has been far slower than expected in recent years, with many projects still in their infancy or not yet live. How does tokenization work? The term 'tokenization' is used in a variety of ways. But it generally refers to the process of turning financial assets – such as bank deposits, stocks, bonds, funds and even real estate – into crypto assets. This means creating a record on digital ledger blockchain that represents the original asset. These blockchain-based assets, or 'tokens', can be held in crypto wallets and traded on blockchain, just like cryptocurrencies. Where do stablecoins come in? Stablecoins can be seen as an example of tokenization. They are a type of cryptocurrency designed to maintain a constant value by being pegged to a real-world currency, typically the U.S. dollar. The issuer holds one U.S. dollar in reserve for every dollar-pegged crypto token it creates. Stablecoins are blockchain-based tokens acting as a proxy for an asset that already exists outside the blockchain. They allow people to move money across borders without interacting with the banking system. While critics say that this makes them useful for criminals who want to avoid banks' anti-money laundering checks, stablecoin issuers say that they are a lifeline for people in countries without a developed payments system. Are tokenized assets taking off? Yes and no. Stablecoins have grown in recent years, with the market estimated to be worth about $256 billion, according to crypto data provider CoinMarketCap, and expected to touch $2 trillion by 2028, according to Standard Chartered. But banks have talked for years about creating tokenized versions of other types of assets, which they say will make trading more efficient, faster and cheaper, and those 'tokens' have struggled to gain traction. While there have been individual issuances, there is not a liquid secondary market for these kinds of assets. One impediment to trading traditional assets via blockchain is that banks are working on their own private networks, making it difficult to trade across platforms. What are the pros of tokenization? Some proponents of the crypto industry have said tokenization can improve liquidity in the financial system. Illiquid assets like real estate could be traded more easily if they are broken up into small digital tokens. It is also expected to improve access to asset classes that are typically out of reach of smaller investors by creating a cheaper entry point. Which companies are interested in tokenization? Some major global banks, including Bank of America and Citi have said they could explore launching tokenized assets, including stablecoins. Asset manager BlackRock is also doubling down on the tokenization boom, and has highlighted its ambition of becoming the largest cryptocurrency manager in the world by 2030. Coinbase, the largest U.S. crypto exchange, is seeking permission from the SEC to offer 'tokenized equities' to its customers. How does new regulation help tokenization? Since stablecoins themselves are tokens and seen as one of the biggest drivers of the growth of tokenization, the new stablecoin law will end up boosting the proliferation of tokenization, experts say. The new market structure bill, known as the Clarity Act, is expected to establish a clear framework that could enable stablecoins and other crypto tokens to become more widely used. What are the risks? Some analysts say the hype around tokenization might be premature and caution that the rapidly growing crypto ecosystem could experience near-term turbulence due to the potential risks of a big decline in prices. European Central Bank President Christine Lagarde has warned stablecoins pose risks for monetary policy and financial stability. Some critics of the industry warn the frenzy around the new technology could introduce new systemic risks, especially in the absence of stringent regulation. They also say there is no reason why blockchain should be any more efficient than the electronic ledgers and trading systems already used in financial markets. Buyers of third-party tokens, which are issued by unaffiliated third parties – such as crypto exchange Kraken – that have custody of securities, could be exposed to counterparty risks, and regulators are sounding notes of caution. Earlier in July, Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission who has frequently spoken positively about cryptocurrency, said tokenized securities would not be able to circumvent existing securities laws. More than half of the world's U.S. dollar stablecoins are issued by a single company, Tether, which says it manages $160 billion in reserves, but has not undergone a financial audit.
Bloomberg
2 minutes ago
- Bloomberg
Tether CEO Discusses US Dollar Hegemony, Competitors
Tether CEO Paolo Ardoino says the US stablecoin industry is poised to increase US dollar hegemony and explains how they stay ahead of their competitors who are attempting to establish their own stablecoin. He speaks with Vonnie Quinn and Sonali Basak on "Bloomberg Markets." (Source: Bloomberg)
CBS News
2 minutes ago
- CBS News
3 smart money moves seniors should make this August
News last week that the inflation rate is heading further away from the Federal Reserve's target 2% goal wasn't the development millions of Americans were hoping for, seniors least among them. Now at 2.7%, inflation has increased in both May and June, helping to ensure that today's high interest rates and, thus, borrowing costs, remain elevated for the foreseeable future. While this is problematic for most adults, it's arguably more of an issue for seniors traditionally reliant upon limited income streams like Social Security and retirement funds. For these Americans, each dollar needs to be stretched strategically, especially now with everyday costs remaining high and rate relief being delayed further. Fortunately, there are some strategic money moves that these seniors can explore currently, some of which can help them as soon as this August. Below, we'll detail three worth investigating right now. Start by checking your credit card debt forgiveness qualifications here. Here are three smart money moves, either made together or individually, that could go a long way toward improving the financial health of seniors this August: The average credit card rate is just under a recent record high of 23%. The average credit card debt is around $8,000. So if you're stuck with the latter and paying the former, it's past time to tackle your high-rate debt. Fortunately, there are multiple debt relief options that can help, ranging from debt management programs to debt consolidation loans to credit counseling and even credit card debt forgiveness and bankruptcy for more extreme cases. Just don't sit idle, either. With rates high and interest compounding here, taking action is critical if you want to regain your financial independence anytime soon. Compare your top debt relief options here to learn more. For many seniors, Social Security just doesn't make ends meet. And now, with concerns surrounding overpayments and potential clawbacks, this may not be the reliable income stream it once was. But there are alternatives worth exploring, whether that means a personal loan or tapping into your home equity with a home equity loan or reverse mortgage. The latter home equity borrowing tool can be particularly effective now as it's only available for seniors and won't require monthly payments back to a lender the way a personal loan or home equity loan would. Still, it does require reducing your home's worth to secure that extra income, so it's worth investigating closely before getting started. Compare your reverse mortgage options online to see if it makes sense for you now. It's never too late to increase your insurance protections … or look for ways to reduce costly premiums. Use this summer, then, to do both. Are your life insurance protections adequate for your current financial circumstances and your beneficiaries? What about your long-term care insurance needs? Some seniors may find Medicare supplemental insurance a worthwhile investment if it makes up the gap left over by traditional Medicare coverage. Use this time to revisit your insurance protections for ways to cover yourself more adequately while also reducing premiums and coverage costs that no longer meet your changing needs. Learn more about your Medicare supplemental coverage options here now. While the above list is not all-encompassing, it marks a good starting point for seniors in need of financial relief, additional income and long-term economic protections right now. By making these strategic money moves and by speaking with a financial advisor (if needed), seniors can take steps toward improving their financial health as soon as August and, hopefully, maintaining and enhancing it in the months and years still to come.
