The Ongoing Popularity of Real-World Asset Tokenization in the Crypto Sphere

The Ongoing Popularity of Real-World Asset Tokenization in the Crypto Sphere


The Growing Value of Tokenized Real-World Assets

Regardless of the cryptocurrency bear market, the tokenization of real-world assets (RWA) continues  to be a major growth area. In reality, the value of these tokenized assets has reached an record-breaking peak and is still growing.

The Real-World Assets Narrative

RWA tokenization is one of the hottest trends in the cryptocurrency space, even during the ongoing cryptocurrency winter. Real-world assets are physical assets that are purchased 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.

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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 in the year, accounting for 87% of the total value added to RWAs.

Tokenized Treasuries and Explosive Growth

Tokenized treasuries have experienced explosive growth in the year, with a 450% increase since the beginning of 2023. The total value of tokenized treasuries is as of now $630 Million. Nonetheless, there has been little additional growth since mid-June.

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Centrifuge and Goldfinch achieved all-time highs in active loan values after joining the Tokenized Asset Coalition (TAC). The coalition intends to educate the industry, encourage 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  capacity to revolutionize banking. The test involved the purchase of a tokenized asset using a digital Aussie dollar and an ANZ- announced 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.

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Hot Take: Tokenization of Real-World Assets Continues to Thrive

The tokenization of real-world assets shows no indications of slowing down, even in the midst of a cryptocurrency 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 whole lot of growth, although recent months have seen limited additional growth.

The formation of the Tokenized Asset Coalition outlines the industry’s commitment to education, standardization, and infrastructure development. In addition, ANZ’s successful test of cross-chain asset transfer using Chainlink demonstrates the  capacity for tokenized assets to transform traditional banking.

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Author – Contributor at | Website

Bernard Nicolai emerges as a beacon of wisdom, seamlessly harmonizing the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the labyrinth of digital assets, Bernard’s insights echo like a resonant chord, touching the minds of seekers with diverse curiosities. His talent for deciphering the most intricate strands of crypto intricacies seamlessly aligns with his editorial finesse, transforming complexity into a captivating narrative of comprehension.

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