S&P Launches Digital Markets 50 Index: Bridging Wall Street And Web3

S&P Global has launched its Digital Markets 50 Index, a revolutionary benchmark that connects equities with cryptocurrencies. This index is made up of 35 companies related to blockchain technology and 15 major digital currencies.With this, S&P has taken a first step to connect the traditional financial world with the newly emerging Web3 economy that is decentralised. The Digital Markets 50 Index stands as a symbol of technological innovation and progress among the various financial ecosystems.Moreover, it indicates the trend that institutional investors are progressively accepting digital assets and mixing them with the overall market portfolios.The newly created S&P Digital Markets 50 consists of companies and assets that have been subjected to rigorous market capitalisation criteria. The minimum market value for each listed company must be at least US$100 million (approximately AU$152 million).The market cap of the cryptocurrencies included in the index has to be above US$300 million (which is approximately AU$457 million). Moreover, no single component can represent more than five per cent of the entire index weight.The 50 companies incorporated are those that provide infrastructure for blockchain technology, render Web3 services, and have established their cryptocurrencies. The index is going to be rebalanced every quarter based on the existing governance framework of S&P.The S&P has formed a collaboration with Dinari, a technology-oriented financial company, to perform a tokenisation process on the index. The investors will be able to have an on-chain exposure to both stocks and crypto via Dinari’s dShares platform.This technical breakthrough will be the reason for the token holders to replicate the performance of the index on the blockchain in a safe manner. The digitised version of the Digital Markets 50 Index is predicted to be ready for launch by the end of 2025.

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