Top Weekly Updates in Tokenized Assets: BlackRock, Deutsche Telekom, and More
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New Frontiers in Tokenized Real-World Assets
Fueled by the promise of stable yields in a volatile market, the tokenized real-world asset (RWA) market is on track for explosive growth. Analyst Tom Wan from 21.co predicts a surge to $3 billion by year-end, driven largely by the demand from Decentralized Autonomous Organizations (DAOs) and Decentralized Finance (DeFi) protocols.
While established players like Arbitrum and MakerDAO are making headlines with their allocations, a new wave of tokenized real-world assets is poised to make its mark this week. This update explores ventures venturing beyond traditional securities, showcasing the expanding landscape of tokenized assets.
BlackRock and Ethena Explore Tokenized Asset Allocation for USDe Reserves
Ethena, the protocol behind the $3.4 billion USDe token, is planning to allocate part of its reserves to tokenized real-world assets (RWAs) for yield generation. This initiative has attracted proposals from various entities in the crypto space. BlackRock's BUIDL fund, a tokenized money market fund, is seeking a $34 million allocation from Ethena's $45 million Reserve Fund.
Similarly, Steakhouse Financial has applied with a USDC lending vault on Morpho Blue, which is backed by wrapped crypto assets and tokenized Treasury Bills. Mountain Protocol, issuer of the USDM yield-bearing stablecoin, has also expressed interest in submitting a proposal. This move by Ethena follows recent trends in the DeFi space, mirroring MakerDAO's announcement to invest $1 billion of DAI stablecoin backing assets in tokenized Treasury products.
Deutsche Telekom Boosts XDC Network for RWA
Deutsche Telekom's subsidiary, Deutsche Telekom MMS, has joined the XDC Network as an infrastructure provider, focusing on tokenized real-world assets (RWA) and decentralized finance. Operating a standby masternode, Deutsche Telekom MMS enhances blockchain security and reliability, supporting XDC's finance sector applications.
The company, which also manages nodes on Ethereum, Polygon, Polkadot, and plans to mine Bitcoin, leverages its enterprise-grade infrastructure to enable secure blockchain services. XDC, compatible with Ethereum Virtual Machine, boasts fast transactions and minimal gas fees, hosting stablecoins and tokenized assets like gold and U.S. Treasuries.
Injective Expands RWA Offerings with OndoFinance
Injective has integrated OndoFinance, enhancing its Real World Asset (RWA) offerings for institutional investors by introducing the USDY tokenized treasury instrument. This move aims to improve capital efficiency across Injective's decentralized applications, including exchanges and money markets. The integration supports the tokenization of traditional financial assets within the blockchain ecosystem.
Additionally, Injective launched AINJ, a Staking Exchange-Traded Product in collaboration with 21Shares, allowing exposure to INJ and staking rewards via traditional finance platforms, further bridging traditional and decentralized finance sectors.
Coinbase Plans Tokenized Money-Market Fund
Coinbase Asset Management is planning to launch a tokenized money-market fund, entering a hot area of blockchain-based finance, according to four people familiar with the plan. This follows the success of BlackRock's BUIDL fund, which quickly amassed $500 million in assets. Tokenization of real-world assets offers benefits like transparency, liquidity, and efficiency.
Coinbase is working with Apex Group to facilitate the fund. This move expands Coinbase's efforts in tokenization, building on their approval to tokenize traditional assets on their Base network. The trend of tokenizing real-world assets is gaining traction in the crypto industry, with major players like BlackRock entering the space.
Polygon Emerges as Major Player in Tokenized Real-World Assets
Polygon has experienced a significant increase in Real World Asset (RWA) interest, positioning itself as the ‘second-largest network” in this domain after Ethereum, as per Founder Sandeep Nailwal, who noted numerous RWA launches on Polygon.
The network's collaboration with Italy's leading banks, Cassa Depositi e Prestiti SpA (CDP) and Intesa Sanpaolo, further exemplifies its RWA advancements. These banks issued a 25 million euro digital bond with a four-month maturity on the Polygon network, showcasing its expanding real-world financial applications.
Lisk and Backed Finance Expand RWA Reach in Emerging Markets
Lisk, an Ethereum Layer-2 solution, and Backed Finance have partnered to enhance real-world asset (RWA) adoption in emerging markets by leveraging Lisk's blockchain ecosystem and Backed's RWA tokenization expertise. This collaboration aims to drive economic growth and financial inclusion by integrating Backed's RWA solutions with the Optimism Superchain, improving accessibility and scalability.
Backed's ecosystem partners will also benefit from Lisk's Blockchain Incubation Hub, supporting innovation in the Web3 space, particularly for African startups. New projects on Lisk using Backed’s tokenization infrastructure may receive grants up to $100,000 in LSK tokens.
AgriDex Tokenizes Agriculture on Solana
AgriDex, a Solana-based platform, aims to revolutionize the $2.7 trillion agricultural market by bringing it on-chain. AgriDex offers a digital marketplace providing low-cost, near-instant settlement and supply chain transparency. Benefits include transaction costs under 0.5%, autonomous verification reducing fraud, and improved visibility for environmental and governance credentials.
AgriDex will launch its AGRI token in Q3 2024, rewarding users based on trade volumes and engagement. The platform secured $5 million in funding to facilitate this venture.
Bitrue Ventures Launches $40 Million Fund to Fuel Web3 Innovation
Bitrue Ventures has launched a $40 million fund to support Web3 startups, with individual investments up to $200,000. This fund targets sectors such as artificial intelligence (AI), Real World Asset (RWA) tokenization, GameFi, Decentralized Physical Infrastructure Networks (DePIN), and Decentralized Finance (DeFi).
Bitrue offers financial support and industry expertise, aiming to assist startups in overcoming development challenges. Additionally, Bitrue will publish research reports to guide development teams and inform consumers. This initiative aligns with the $1.9 billion raised by Web3 startups in Q1 2024, highlighting a growing interest from institutional investors.
Conclusion
The tokenized real-world asset market is experiencing rapid growth, with major players like BlackRock, Deutsche Telekom, and Polygon leading the way. From traditional securities to agriculture, diverse sectors are embracing blockchain technology. This trend promises enhanced liquidity, accessibility, and efficiency in asset management, potentially revolutionizing global financial markets.
FAQs
1: What is driving the growth of tokenized real-world assets?
The growth is primarily driven by the demand for stable yields in volatile markets. DAOs and DeFi protocols are particularly interested in these assets. Analyst Tom Wan predicts the market will reach $3 billion by year-end.
2: How is BlackRock involved in the tokenized asset space?
BlackRock's BUIDL fund, a tokenized money market fund, is seeking a $34 million allocation from Ethena's $45 million Reserve Fund. This is part of Ethena's plan to allocate part of its USDe token reserves to tokenized real-world assets for yield generation.
3: What role is Polygon playing in the tokenized real-world asset market?
Polygon has positioned itself as the second-largest network for RWAs after Ethereum. It has collaborated with major Italian banks to issue a 25 million euro digital bond, demonstrating its capacity for real-world financial applications.
This article has been refined and enhanced by ChatGPT.
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