Forecast of the coming world monetary system

[ThePythonicCow]

DTCC (Depository Trust & Clearing Corporation) owns much of the financial assets traded on the US financial markets. They handle quadrillions of US Dollars worth of trades each year. The DTCC was one of the main parties covered by David Rogers Webb's book "The Great Taking." Webb was telling us that the "taking" has already happened, in substantial part by the DTCC ... "they" just haven't told use yet.

Yesterday the U.S. Securities and Exchange Commission (SEC) authorized the DTCC to put their assets on block chains, in the coming year (2026).

This was reported by various sources, including:

DTCC Authorized to Offer New Tokenization Service, Paving the Way to Tokenized DTC-Custodied Assets (Business Wire):

DTC Receives No-Action Letter from SEC to Offer New Service to Accelerate Adoption of Digital Assets

Industry Partnership & Collaboration Will Continue to Underpin DTCC’s Efforts to Help Lead Transition to Digital Markets

NEW YORK & LONDON & HONG KONG & SINGAPORE & SYDNEY--(BUSINESS WIRE)--In a major milestone to drive digital asset adoption, The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that its subsidiary, The Depository Trust Company (DTC), has received a No-Action Letter (NAL) from the U.S. Securities and Exchange Commission (SEC) to offer, under federal securities laws and regulations, a new service to tokenize real-world, DTC-custodied assets in a controlled production environment. DTC anticipates beginning to roll out the service in the second half of 2026.

The No-Action Letter authorizes DTC to offer a tokenization service for DTC Participants and their clients on pre-approved blockchains for three years. Under the NAL, DTC will have the ability to tokenize real-world assets, with the digital version having all the same entitlements, investor protections and ownership rights as the asset in its traditional form. In addition, DTC will provide the same high level of resiliency, safety and soundness as that of traditional markets.

The authorization applies to a defined set of highly liquid assets, including the Russell 1000, which represents the 1,000 largest publicly traded U.S. companies by market cap, as well as ETFs tracking major indices and U.S. Treasury bills, bonds and notes.

=== ===

The world's financial systems are going onto block chains.

These block chains are essentially shared double entry accounting books, which enable all authorized users to transfer assets between themselves.

If parties Alice, Bob and Charlie (or corporations Nvidia, Amazon, and Microsoft) want to engage in a three way transfer of financial assets on a block chain that they are all authorized to use and all have accounts on, they send a digital order, securely signed by each of them, to the global network service managing that block chain, with instructions to move certain of their assets between their various accounts on that block chain.

That transaction would then be entered, almost instantly and for almost zero cost, reliably making all the requested actions happen simultaneously. Only transactions that "balance" (nothing created, nothing lost, just assets moved about) would be allowed.

[rgray222]

Posted by ThePythonicCow (here)
DTCC (Depository Trust & Clearing Corporation) owns much of the financial assets traded on the US financial markets. They handle quadrillions of US Dollars worth of trades each year. The DTCC was one of the main parties covered by David Rogers Webb's book "The Great Taking." Webb was telling us that the "taking" has already happened, in substantial part by the DTCC ... "they" just haven't told use yet.

Yesterday the U.S. Securities and Exchange Commission (SEC) authorized the DTCC to put their assets on block chains, in the coming year (2026).

This was reported by various sources, including:

DTCC Authorized to Offer New Tokenization Service, Paving the Way to Tokenized DTC-Custodied Assets (Business Wire):

DTC Receives No-Action Letter from SEC to Offer New Service to Accelerate Adoption of Digital Assets

Industry Partnership & Collaboration Will Continue to Underpin DTCC’s Efforts to Help Lead Transition to Digital Markets

NEW YORK & LONDON & HONG KONG & SINGAPORE & SYDNEY--(BUSINESS WIRE)--In a major milestone to drive digital asset adoption, The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that its subsidiary, The Depository Trust Company (DTC), has received a No-Action Letter (NAL) from the U.S. Securities and Exchange Commission (SEC) to offer, under federal securities laws and regulations, a new service to tokenize real-world, DTC-custodied assets in a controlled production environment. DTC anticipates beginning to roll out the service in the second half of 2026.

The No-Action Letter authorizes DTC to offer a tokenization service for DTC Participants and their clients on pre-approved blockchains for three years. Under the NAL, DTC will have the ability to tokenize real-world assets, with the digital version having all the same entitlements, investor protections and ownership rights as the asset in its traditional form. In addition, DTC will provide the same high level of resiliency, safety and soundness as that of traditional markets.

The authorization applies to a defined set of highly liquid assets, including the Russell 1000, which represents the 1,000 largest publicly traded U.S. companies by market cap, as well as ETFs tracking major indices and U.S. Treasury bills, bonds and notes.

=== ===

The world's financial systems are going onto block chains.

These block chains are essentially shared double entry accounting books, which enable all authorized users to transfer assets between themselves.

If parties Alice, Bob and Charlie (or corporations Nvidia, Amazon, and Microsoft) want to engage in a three way transfer of financial assets on a block chain that they are all authorized to use and all have accounts on, they send a digital order, securely signed by each of them, to the global network service managing that block chain, with instructions to move certain of their assets between their various accounts on that block chain.

That transaction would then be entered, almost instantly and for almost zero cost, reliably making all the requested actions happen simultaneously. Only transactions that "balance" (nothing created, nothing lost, just assets moved about) would be allowed.

This could represent a real buying opportunity if you stayed on top to the crypto market. I wonder if they will create new digital tokens to represent real-world assets like stocks, bonds, or government securities or use existing tokens? I suppose it will likely include a mix of both new tokens created for specific assets and existing tokens. The cat knocked my crystal ball off the desk last week, may he rest in peace.

[ThePythonicCow]

Posted by rgray222 (here)
The cat knocked my crystal ball off the desk last week, may he rest in peace.

May (1) the cat or (2) the crystal ball rest in peace ? Or both ?

I am observing a variety of digital tokens created, "backed by" various real world assets (stocks, bonds, precious metals, real estate, ... but especially US Treasury debt), and I am seeing Ripple (XRP) become the "lingua Franca" of such digital assets.

Cross token transactions (e.g. from some amount of tokens backed by Japanese national debt, to some amount of tokens backed by US national debt) will likely be made by submitting ISO 20022 standard format messages to the global Ripple server network, and would be converted in relative value between Japanese debt and US debt at that instant by converting into, then back out of, XRP.

Since nothing would ever remain in XRP past the instant of that one atomic transaction, XRP need not have backing itself ... it would just be the "lingua Franca" of assets, relative to which markets for all other digital assets would be traded.

Ripple (XRP) is shaping up to be the "lingua Franca" of asset transfers between banks, businesses, governments and other corporations. Stellar Lumens (XLM) is shaping up to be at least one of, if not the primary, "lingua Franca" asset for transfers between individual people.

[ThePythonicCow]

Posted by ThePythonicCow (here)
Ripple (XRP) is shaping up to be the "lingua Franca" of asset transfers between banks

Why do big banks support Ripple's XRP?

It's taken me a month to figure this out, but now it's clear.

The biggest banks, such as JP Morgan Chase, are investing heavily in Ripple's XRP blockchain because it means large and sustainable profits for them.

The XRP transfer system between banks will use large XRP markets in each national currency, where the banks can buy, and place limit orders, to exchange back and forth between XRP and each currency.

When Bill Gates wants to send fifty billion $US to his best buddy in Tokyo, who prefers to receive Yen, here's what would happen on the up and coming XRP based inter-bank system:

• His American bank will buy XRP with Bill Gates fifty billion $US.
• The Japanese bank of his best buddy will sell the same amount of XRP for Japanese Yen.

Total XRP in the world will be unchanged, but what was a fifty billion $US in one bank will become the equivalent Yen in another bank.

The big banks, such as JP Morgan Chase, are now working with Ripple, behind the scenes, to own major portions of the available XRP supply.

Working such markets, where large limit orders can be placed (sell my asset if the price rises to this level, or buy more of this asset if the price declines to this level) are the sorts of business where big investment banks can play to win all day long. Their powerful high frequency trading computers located close to the exchange can reliably shave razor thin margins off massive volumes of activity.

A JP Morgan Chase can obtain a billion $US of Ripple now, at it's low price of $2 to $3 per XRP, and then be a whale in the XRP currency exchange markets.

However:

There are now, and only ever have been, and only ever will be, 100 Billion XRP on the Ripple blockchain.

For such markets to work smoothly, with minimum price jitter around the current price level, there has to be enough open limit orders, just above or below that level, to handle any incoming transaction using just the existing limit orders that are outstanding close to the current price. Typically in such markets, at most one to a few percent of all shares (or in this case tokens) are sitting on the exchange awaiting to be sold at close to the current price, and only a similar amount of currency is on deposit, awaiting to buy at a price close to the current price.

So to handle the above example of a $US 50 billion order, there had better be a global supply of XRP worth upwards of 100 times $US 50 billion, which is $US 5,000 billion.

If the 100 billion XRP tokens that exist have a global market cap of $US 5,000 billion, that means each XRP token is worth 5,000/100 == $US 50.

But 50 billion $US transactions are small potatoes for the biggest banks. They will have to set the XRP price north of $US 1000 for the size transactions they handle.

End result:

JP Morgan, working directly with Ripple, buys a boat load of XRP for 2 or 3 $US per XRP token, then, working with other large banks world wide playing the same game, runs the price of XRP up from 2 or 3 $US, to multiples of 1000 $US, resulting in:

• a massive instant up front profit on their initial XRP investment, and
• the XRP reserves needed to play in these global currency <==> XRP markets "forever after".

That's why the big banks are working with Ripple to get this global currency exchange market up and running, and why any other bank that wants to exchange funds with these banks is working over time to handle XRP based inter-bank transfers. The only option for any existing bank will be to go out of the banking business. Those big banks that don't get in now, before the XRP price is run-up perhaps a thousand fold will "never" be able to play this game at the highest level ... they won't be able to obtain a large enough stash of XRP to compete with the likes of a JP Morgan in the XRP <-> currency exchange markets.

That's why XRP is as close to a lock as there can be to make a massive price gain, in the not distant future.

And that's why the big banks are onboard for this move from Swift to XRP as the dominant global currency exchange platform.

This pricing structure during early adoption mirrors what happened with Bitcoin. Get a few early adopters to make life changing profits, confident that some of those big winners will become huge, self-funded, enthusiastic supporters, thereby selling a much larger wave on the item.

Thanks to Versan Aljarrah, the Black Swan Capitalist, for much of this analysis.

[ThePythonicCow]

Posted by ThePythonicCow (here)
Thanks to Versan Aljarrah, the Black Swan Capitalist, for much of this analysis.

Versan Aljarrah spells out, in a straight forward way, how this current monetary restructuring has been and will be unfolding.

I recommend you give this a serious listen, and see if it can help guide you through these dramatic monetary changes.

Source: https://youtube.com/watch?v=b9pG67bUnGg

My longer, previous, post went deeper into the weeds as I made more sense, mostly just for my own insight, on some of the inner workings of this transition and what's coming. I might well be the only person to dig into those particular weeds here.

But Versan Aljarrah's video in this post could provide valuable insight and guidance to many of those who pass by here, and who plan on continued "living in the material world" for some years to follow.

[meat suit]

Alright, great video. So the only way to deal with the debt is to devalue it.
If I understand correctly, in the next financial system there will be many different digital coins rather than one world reserve currency like the dollar.
So with say 1000 different coins they can devalue most of them and such devalue the debt, while some of them go up in value so it appears its a workable system like the stock market. The coins could swap roles in their up and downs maintaining the illusion of value.

Its clearly the best way to invest in seeds, tools, land, self sustainability while its still possible to exchange fiat currency for stuff that actually matters in life.

[ThePythonicCow]

Posted by ThePythonicCow (here)
If the 100 billion XRP tokens that exist have a global market cap of $US 5,000 billion, that means each XRP token is worth 5,000/100 == $US 50.

But 50 billion $US transactions are small potatoes for the biggest banks. They will have to set the XRP price north of $US 1000 for the size transactions they handle.

End result:

JP Morgan, working directly with Ripple, buys a boat load of XRP for 2 or 3 $US per XRP token, then, working with other large banks world wide playing the same game, runs the price of XRP up from 2 or 3 $US, to multiples of 1000 $US

And one more result of these events:

Only JP Morgan Chase and a handful of other banks around the world will have the large pools of XRP required to transfer large sums. All the other banks will have to remain on good terms with one of these big banks if they ever want to move a big sum of money.

Can you imagine, if you live and bank in the U.S., going to your local bank or credit union and convincing them, right now, to stash a few million XRP, so that after the reset, they will be able to move large sums of money? Not a chance; local bank executives and directors don't think like that, and their banks don't have the means to do that anyway. XRP is just another crypto, with a more conflicted regulatory past than most, and a price that has wandered around between about $US 0.50 and $US 3.00 in recent years.

The New York banks have a long history of consolidating banking power in the U.S. ... they are writing another chapter of that history now. They will keep the price of XRP low, so they can get a lot of XRP cheaply for themselves, in exchange for working with Ripple to integrate XRP compatible ledgers world-wide, all the while discouraging other large scale buyers ... until they are ready to expose the role of XRP in the monetary system, at which point they will jack up the price of XRP enormously, shutting out any other large scale interlopers not already part of the "in crowd."