Tokenized RWAs Hit $10.9 Billion: Institutional Interest Soars
The post Tokenized RWAs Hit $10.9 Billion: Institutional Interest Soars appeared on BitcoinEthereumNews.com.
The Real World Assets (RWA) tokenization market exceeded $10 billion in valuation, driven by growing institutional interest and a general push to integrate traditional (TradFi) and decentralized finance (DeFi). Supporters of tokenized real-world assets (RWAs) believe they offer several advantages. They make it easier for investors to diversify their portfolios, trade assets, and access more investment options. Additionally, they provide greater liquidity, simplify asset transfers, and enhance regulatory compliance through smart contracts. Over $10 Billion of Tokenized RWAs on Public Blockchains On-chain data from OurNetwork shows that the tokenized RWA market has surpassed $10.9 billion. This represents a rise of more than $2 billion since the beginning of the year, driven by strong demand for private loans and US Treasury debt. “The private credit market currently stands at $8.1 billion while that of tokenized treasuries is $1.9 billion. The remaining tokenized asset classes fall under $1 billion,” the research highlighted. Indeed, the tokenized US Treasury market has experienced substantial growth in 2024. RWA.xyz data shows that this segment’s total value expanded from $726.23 million to $1.94 billion this year. Read more: What is The Impact of Real World Asset (RWA) Tokenization? Tokenized Treasury Market Capitalization. Source: RWA.xyz BlackRock’s BUIDL, a tokenized real-world asset (RWA) fund launched in March, is emerging as a leader in the sector. The fund’s rising dividend yields highlight institutional investors’ increasing interest in tokenized money market funds. DeFi protocols like Ondo are leveraging BUIDL for derivative products, further expanding its use case. Other significant players in the tokenized RWA space include Franklin Templeton and Grayscale. Franklin Templeton’s Nasdaq-listed Onchain US Government Money Fund (FOBXX) has recently been deployed on Arbitrum and Avalanche. Grayscale, like Franklin Templeton, runs a tokenized RWA fund on Avalanche but also offers a broad portfolio of crypto investment trusts across various tokens. Institutional interest…
Filed under: News - @ August 23, 2024 11:18 am