Musk Made Direct Appeals to Trump to Reverse New Tariffs, Washington Post Reports

The tokenization of real-world assets has emerged as one of the most talked-about topics in the finance sector. Key figures like Ripple CEO Brad Garlinghouse, Coinbase CEO Brian Armstrong, and XRP legal advisor John Deaton have expressed that this process can lead to fundamental changes in the financial system. The advantages provided by digital asset technologies, such as flexibility and accessibility, have further amplified the discussion surrounding the topic. Comments indicating the inevitability of tokenization signal strong prospects for the future of the industry.

The Digitalization of Real-World Assets: A New Financial Era

XRP legal advisor John Deaton emphasized via social media that the tokenization of real-world assets marks an irreversible transformation. He pointed out that influential figures like Ripple’s Brad Garlinghouse, Coinbase’s Brian Armstrong, and BlackRock’s Larry Fink are at the forefront of this change. According to him, these individuals are presenting significant ideas at the intersection of traditional finance and digital assets.

Coinbase CEO Brian Armstrong argues that all asset classes will eventually transition to blockchain-based systems. He showcases the increase in on-chain credit and borrowing instruments as a practical example of what tokenization offers. Deaton supports this view, labeling Armstrong’s approach as being “on the right track.”

Brad Garlinghouse’s comments focus on the XRP Ledger (XRPL) infrastructure developed by Ripple. He states that the tokenization of real-world assets is restructuring the financial system. In his view, this transition not only enhances asset accessibility but also elevates transaction efficiency to new heights.

XRPL and Tokenization: Performance and Potential

Recent posts from Ripple’s social media have highlighted how the XRP Ledger has become a hub for tokenized treasury, commodities, and stable assets. The updates also included current performance metrics of the network. These insights demonstrate that Ripple is positioned not only as a provider of technological infrastructure but also as a pioneer in the sectoral transformation.

Galaxy Digital CEO Mike Novogratz provided another significant comment on the tokenization trend. He mentioned that this growing trend on a global scale will accelerate in the coming years. According to him, tokenization will open new doors for both investors and financial institutions.

John Deaton does not view the process merely as a technical advancement. He believes that the ability to divide tokenized assets into smaller shares can help reduce income inequality. Moreover, he argues that digital assets can establish a more accessible financial structure by diminishing reliance on traditional financial intermediaries.

The transition of real-world assets into the digital realm has the potential to transform not only the technological landscape but also the social and economic structures of the industry. Each new announcement in this context signals the construction of a future rooted in stronger foundations within the cryptocurrency world.

The post Tokenization of Real-World Assets Sparks Exciting Changes in Finance appeared first on COINTURK NEWS.

Source: CryptoSlate

Key points:

1. The latest US tariffs/trade protectionist policies, announced on April 2, have greatly exceeded market expectations.
2. A 54% effective tariff rate toward China is arguably an act of economic war.
3. Market implications are grim — near-term growth/inflation trade-offs are likely to worsen dramatically, and we’ll likely see an immediate US recession and a significant short-term spike in US inflation

Before I unpack the economic and market implications of the sweeping tariffs the Trump administration introduced on April 2 (which have raised the effective tariff rate to the highest level since the 1930s), I want to acknowledge that this is an early response* to a nascent policy. The situation will very likely.

The tariffs

As part of this new policy, a universal 10% tariff on all countries will take effect on April 5. Additional, “reciprocal” tariffs will be implemented on April 9. These are a purported response to tariffs imposed by other nations toward the US. The presidential administration asserts these tariffs represent half the rate of the tariffs imposed toward the US by other countries and positions this halving as a kindness on the part of the US.

There are a few particularly notable aspects of the new policies I’d like to point out. First, the tariff rate for China appears to be “stacking,” meaning that while the new, “reciprocal” tariff is 34%, the effective rate is 54% given 20% was imposed earlier this year. It also ends duty-free de minimis treatment for covered goods. Next, exemptions to future Section 232 tariffs — applied to gold, autos, and energy/critical materials — were mentioned. Investigations into pharma and semiconductors are expected, as well. Finally, on a relative basis, Canada and Mexico will continue to receive no tariffs on USMCA-compliant goods, a 25% tariff on non-USMCA compliant goods, and a 10% tariff on non-USMCA-compliant energy and potash.

Let’s turn our attention back to timing. In theory, because the “reciprocal” tariffs are meant to be enacted a week after the announcement was made, there is room for negotiation. In my view, the administration is likely calculating that using an aggressive starting point increases the probability that other countries make concessions, which the US could accept before/immediately following implementation. I suspect the administration would view such concessions as both a testament to US strength and a means of retaining some revenue from a fiscal perspective. The latter point is important — a reconciliation process may lead to higher debt levels over the medium term with a current policy baseline and the addition of further tax cuts beyond the extension of the Tax Cuts and Jobs Act (TCJA).

As part of this conversation, it’s worth noting the April 2 judicial election results revealed that voters are souring on the Trump administration. This type of feedback can be a disciplinarian, but President Trump is steadfast in his conviction in the efficacy of tariffs, which he seems to view as a solution to structural issues around labor share of income and income inequality. It remains to be seen whether they will achieve the desired outcome over time.

The economic implications

The magnitude of the tariffs will erode, if not destroy, trust among US allies. A loss of trust may make allies less likely to engage in negotiations than the administration bargains on — a dynamic that is likely to become clearer in the coming days. What’s more, a decline in institutional integrity undermines the status of the US dollar as reserve currency. This risk has now accelerated, and even if the administration walks the tariffs back before implementation, this is unlikely to dissipate. In the short and medium term, these actions:

• Increase the probability of a more sustained rise in inflation volatility
• Bode poorly for short- and medium-term growth prospects
• Heighten the probability of the business/economic cycle engaging with negative signals from policy uncertainty
• Raise the likelihood of economic nationalism and repatriation

This all said, I’ll be surprised if all these tariffs go into effect as announced, which makes analysis of the situation difficult. Uncertainty multiplier effects can be large — especially when bilateral negotiations with 60 countries may be looming large and potential shifts in tariff rates by the day/week are likely.

Source: Wellington Management

Bitcoin risks falling below its old all-time highs from March 2024 next, Data from Cointelegraph Markets Pro and TradingView shows.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

“This is $BTC's last chance to maintain its macro uptrend structure,” popular analyst Kevin Svenson summarized in a warning on X.

BTC/USD 1-day chart. Source: Kevin Svenson/X

“If we drop below support and get back above it, then I'll consider this as a deviation and that will be my long trigger fo a push up back to $87k,” he explained.

BTC/USDT 1-week chart with 50EMA. Source: CrypNuevo/X

“Stay tuned…”

BTC/USD 1-day chart with 50, 200 SMA. Source: Cointelegraph/TradingView

“As the new policies and their likely economic effects become clear, we will have a better sense of the implications for the economy and for monetary policy,” he subsequently said during a speech last week.

Fed target rate probability comparison for May FOMC meeting. Source: CME Group

“Inflation has fallen to the lowest levels since 2020. If this continues, it will be a BIG problem.”

Odds for 2025 Fed rate cut as of April 7 (screenshot). Source: Polymarket

Van de Poppe saw an emergency Fed rate cut as the only logical escape path for stemming the risk-asset bleed.

BTC/USDT 1-day chart with RSI data. Source: Michaël van de Poppe/X

“Looking back at 2024, major price corrections were accompanied by sharp drops in STH-SOPR, often reaching or falling below the -2 standard deviation band. These moments — notably in May, July, and August — aligned with periods of panic selling among short-term market participants.”

Bitcoin STH-SOPR chart. Source: CryptoQuant

Bitcoin’s total aggregate cost basis, which includes long-term holders, currently sits at $43,000.

Bitcoin STH cost bases. Source: CryptoQuant

“It’s never been this low: not in COVID, not after FTX collapse,” popular crypto commentator Atlas noted.

Fear & Greed Index (screenshot). Source: CNN

Crypto continues to weather the storm somewhat better, with the Crypto Fear & Greed Index at 23/100 on April 7.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

Source: Cointelegraph

Above: Pound to Euro rate shown at daily intervals with Fibonacci retracements of August to December uptrend indicating possible areas of technical support for Sterling. Click for closer inspection.

However, toward the end of the week, on Friday, the release of the UK’s February GDP report might also be impactful for Sterling and could see any recovery of the Pound to Euro rate tempered if it shows the economy stalling afresh as high interest rates and downbeat sentiment weigh ahead of April’s fiscal policy changes.

Above: Quantitative model estimates of possible ranges for the week.

Above: Pound to Canadian Dollar rate shown at daily intervals with Fibonacci retracements and selected moving averages indicating possible support levels for Sterling. Click for closer inspection.

Above: Quantitative model estimates of possible ranges for the week. Source: Pound Sterling Live.

Source: Poundsterlinglive

Source: Euronews