Ethereum and One XRP Rival Leading Institutional Interest in Real-World Asset Tokenization
A Bloomberg crypto market analyst suggests that Ethereum (ETH) and a competitor to XRP are currently the top choices for institutional investors interested in real-world assets on public blockchains. Traditional finance is driving the tokenization of real-world assets (RWA), and the analyst predicts that more firms will enter this space soon.
According to the analyst, the tokenization of US money market funds has increased to nearly $700 million in total value from $100 million at the beginning of the year. Money market funds are mutual funds that invest in short-term debt instruments such as US treasuries and cash-equivalent securities to seek yield.
Ethereum is currently leading with $345 million in tokenized money market instruments in the US, followed closely by Stellar (XLM) with $321.2 million. Polygon (MATIC) ranks third with $23.7 million. The analyst believes that RWA tokenization could be a significant driver for blockchain adoption.
While stablecoins are considered a major driver for blockchain adoption, the analyst also sees potential in non-fungible tokens (NFTs), GameFi, and real-world asset tokenization.
Hot Take: Real-World Asset Tokenization Holds Immense Potential for Blockchain Adoption
The tokenization of real-world assets, such as money market funds, is gaining traction among institutional investors. Ethereum and a rival to XRP are currently leading in this space, attracting significant interest and investment. The rise of real-world asset tokenization indicates the growing adoption of blockchain technology in traditional finance.
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