The Growing Value of Tokenized Real-World Assets
Despite the crypto bear market, the tokenization of real-world assets (RWA) continues to be a major growth area. In fact, the value of these tokenized assets has reached an all-time high and is still growing.
The Real-World Assets Narrative
RWA tokenization is one of the hottest trends in the crypto space, even during the ongoing crypto winter. Real-world assets are physical assets that are bought and sold on-chain.
According to Galaxy Research, the total value of all tokenized real-world assets reached $3.1 billion in August, a new record high. These assets include sectors such as gold, equities, money markets, carbon offsets, treasuries, real estate, and private credit.
Galaxy Research stated that the recent growth in RWAs is driven by the demand for off-chain sources of yield. Yield-bearing RWAs have grown by $1.44 billion this year, accounting for 87% of the total value added to RWAs.
Tokenized Treasuries and Explosive Growth
Tokenized treasuries have experienced explosive growth this year, with a 450% increase since the beginning of 2023. The total value of tokenized treasuries is currently $630 million. However, there has been little additional growth since mid-June.
Centrifuge and Goldfinch achieved all-time highs in active loan values after joining the Tokenized Asset Coalition (TAC). The coalition aims to educate the industry, promote standardization, and build protocols and infrastructure for widespread adoption.
Chainlink and ANZ Test Tokenized Asset Transfer
Australia’s ANZ bank recently tested the cross-chain transfer of tokenized assets using Chainlink. The bank believes that tokenized assets have the potential to revolutionize banking. The test involved the purchase of a tokenized asset using a digital Aussie dollar and an ANZ-issued stablecoin.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) facilitated the transaction, demonstrating how financial institutions can utilize CCIP for cross-chain transactions across public and private blockchains.
Hot Take: Tokenization of Real-World Assets Continues to Thrive
The tokenization of real-world assets shows no signs of slowing down, even in the midst of a crypto bear market. The value of these assets has reached record highs, driven by the demand for off-chain sources of yield. Tokenized treasuries have experienced significant growth, although recent months have seen limited additional growth.
The formation of the Tokenized Asset Coalition highlights the industry’s commitment to education, standardization, and infrastructure development. Additionally, ANZ’s successful test of cross-chain asset transfer using Chainlink demonstrates the potential for tokenized assets to transform traditional banking.
By
By
By
By
By