USDReal-World Assets Surge Past $20B as Tokenization Gains Momentum: Weekly Recap
Tokenized Assets Surge Past $20B as Gold Audit Concerns Boost Blockchain Adoption
By February 2025, tokenized real-world assets (RWAs) surpassed $20 billion in total value, driven by private credit and institutional demand for US dollar-denominated yield products. Over $11.9 billion is tied to tokenized private debt, with Moody’s predicting private credit will reach $3 trillion AUM by 2028. Leading platforms like DigiFT and Kadena are expanding tokenization infrastructure, while tokens like Mantra (OM) and Maker (MKR) gained value despite market declines. The tokenized bond market reached $3.7 billion.
Meanwhile, concerns over US gold reserves have intensified, with Elon Musk questioning the lack of audits at Fort Knox. Blockchain-based tokenization of gold is being explored to enhance transparency and security. Senator Rand Paul called for an investigation, and Polymarket bettors estimate a 50% chance that Musk’s Department of Government Efficiency (DOGE) will audit Fort Knox by May 2025. Gold and other commodities are expected to be the next major assets for tokenization.
Franklin Templeton Launches First Fully Tokenized U.S. Treasury Fund in Luxembourg
Franklin Templeton has launched the first fully tokenized U.S. Treasury fund in Luxembourg, named the Franklin OnChain U.S. Government Money Fund, broadening access for institutional investors across eight European countries, including Austria, France, Germany, and Italy. This innovative fund operates on the Stellar XLM network, utilizing blockchain technology to enhance efficiency, transparency, and security in transactions. Following regulatory approval in October 2023, the fund aims to capitalize on the emerging $4 billion market for tokenized U.S. Treasuries.
Notably, the U.S. version launched in 2021 has attracted over $580 million in assets but is exclusive to U.S. investors. Additionally, Franklin Templeton is expanding this fund's accessibility by incorporating multiple blockchains, including recently adding Solana, which follows their Delaware registration of the Franklin Solana Trust. This initiative reflects the merging of traditional finance with crypto and marks a significant advance in real-world asset tokenization.
Mantra Finance Secures Dubai VASP License to Enhance DeFi and RWA Tokenization Services
Mantra Finance has obtained a virtual asset service provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), enabling it to expand its decentralized finance (DeFi) and real-world asset (RWA) tokenization services in the UAE and MENA regions. Announced on February 19, the license allows Mantra to operate as a digital asset exchange and provide various financial services primarily for institutional clients. CEO John Patrick Mullin emphasized that this regulatory framework in Dubai fosters a thriving Web3 ecosystem.
The company aims to bridge DeFi with traditional finance and is currently collaborating with notable institutions, including Damac and Novus Aviation, to tokenize billions in assets. Mantra’s focus is on institutional adoption, with future plans to extend access to retail investors while ensuring compliance and investor protection. VARA has intensified regulations, demanding clear disclaimers in crypto advertising and issuing fines to unlicensed firms, promoting a safer digital asset environment.
Taurus and Aztec Launch Confidential Token Standard
Taurus, backed by Deutsche Bank and other financial giants, has partnered with Aztec to launch an open-source confidential token standard aimed at enhancing the tokenization of debt and equity. This new standard, known as CMTAT, utilizes zero-knowledge proofs to ensure customer privacy on public blockchains, addressing a critical barrier to institutional adoption of blockchain technology. By enabling financial institutions to issue tokenized assets while keeping ownership and transaction details private, the collaboration seeks to unlock the potential of blockchain in traditional finance.
The code is developed in the Noir programming language and is publicly available on GitHub. With regulatory compliance and data privacy being significant concerns, this initiative may accelerate the adoption of blockchain in capital markets, potentially transforming the industry. As institutional interest grows, this development promises to streamline operations and create innovative financial products, meeting the needs of both traditional and decentralized finance.
Arbitrum DAO Invests 35 Million ARB in Real-World Assets for Treasury Diversification
Arbitrum DAO recently approved a substantial investment of 35 million ARB in real-world assets (RWAs) to diversify its treasury and mitigate volatility, with the proposal receiving 93% support in a vote held on February 17, 2025. This marks the second phase of its Stable Treasury Endowment Program (STEP), aimed at incorporating stable, liquid assets with non-correlated yields. The selection process for U.S. dollar-denominated RWA providers is open from February 20 to March 20.
Arbitrum ranks third in RWA ownership among blockchain ecosystems, trailing only Ethereum and ZKsync Era, within a $17.3 billion market, of which $8.8 billion is locked in decentralized financial protocols. The ARB token currently trades at $0.45671, significantly lower than its all-time high of $2.15 from January 2024. Previous RWA investments have yielded $450,000 in interest for the DAO, highlighting the ongoing focus on treasury management and stability.
Assetera Partners with Ondo Finance to Launch Tokenized US Treasuries in Europe
Assetera has launched tokenized US Treasury products in Europe in collaboration with Ondo Finance, enabling both retail and institutional investors access to US government-backed securities through a compliant platform. The securities are built on the Polygon network, which supports atomic settlements that reduce counterparty risk and allow for efficient trade execution. This initiative is set to improve liquidity and transparency in the digital assets market while utilizing Assetera’s innovative trading tools and real-time pricing. Overall, this partnership represents a significant step in bringing institutional-grade financial products to the European market in a fully regulated manner.
This article has been refined and enhanced by ChatGPT.
