Securitize Leads Real-World Asset Boom as Tokenized Finance Accelerates

The real-world asset tokenization (RWA) is expanding rapidly, with the total value across the sector now amounting to the quite astonishing figure of 22 billion dollars.

Leading this charge, quite commanding in fact, is Securitize, a tokenization platform with now more than 3.5 billion dollars in tokenized real-world assets. That 3.5 billion, by the way, apparently represents a 31 percent market share—all this giving Securitize a commanding (we said it again) position in the next wave of blockchain-based finance.

Securitize has significantly boosted its growth trajectory through an alliance with BlackRock, the world’s largest asset manager. BlackRock’s fund tokenization, known by the fund’s ticker BUILD, has seen its supply surge in the last 30 days to a 46 percent rise—that’s on top of a previous surge early in 2023. This single fund now comprises, by a substantial margin, the largest piece of Securitize’s total RWA volume. Securitize, in turn, reflects the gross overperformance of institutional confidence in the blockchain as a financial infrastructure, something that has seemed elusive since the collapse of FTX.

BUILD is successful, which says a lot about a burgeoning trend: big legacy finance actors are flocking to tokenized instruments in order to achieve much-desired (by them) ends such as improved liquidity, transparency, and settlement efficiency. Securitize, in particular, has staked out a position as a bridge between highly regulated financial products and the world of blockchain technology, offering tokenized representations of everything from U.S. Treasuries to private equity and real estate.

Securitize may be number one in the market, but other RWA issuers are also enjoying impressive growth. A prime example is Superstate, which recently saw its total value rocket up 72 percent in just one month! This surge is mostly due to the enormous appetite that was just opened up for their tokenized short-duration U.S. Treasury fund, USTB.

Unique among DeFi stablecoins, USTB is issued on both Ethereum and the Plume Network, providing great flexibility and accessibility for a diverse range of investors and DeFi applications. Superstate takes the road less traveled by blockchain funds in choosing a low-risk treasury yield strategy. Its procurement of short-duration treasuries taps a core, near-ubiquitous holding among traditional asset managers that’s been historically inaccessible to retail investors.

The growth of Superstate underlines the burgeoning diversity within the RWA space, where not just simple instruments anymore but also far more complex fixed-income strategies, real estate, and private securities are being tokenized.

The adoption of RWA is surging, and the reasons are becoming clear. Institutions are viewing tokenized RWAs not just as an avenue for a speculative opportunity but as an actual transformational shift in the way that assets are issued, controlled, and exchanged. The promise that tokenized RWAs hold for capital markets is making them a prime candidate for pilot projects.

Through the use of blockchain, asset management firms can not only cut their operational costs and lower their settlement times from days to minutes, but also widen access to previously exclusive, high-end investments by offering much more affordable, fractional ownership. Regulatory clarity in places like the United States, the European Union, and Asia is also driving adoption and seems to be particularly helping with the sales of tokenized treasury products, which are being sold as low-risk and highly scalable investments.

Securitize, with the support of BlackRock, is making a strong move into the RWA space. The Securitize team has a deep understanding of what is required to deliver compliant, and above all, operationalized digital securities. Their dominance sends a signal that these platforms can scale and that traditional finance is taking the RWA space seriously.

Even as the real-world asset sector’s total tokenized value continues to surge—now up to $22 billion and counting—this slice of the digital asset space is getting more and more mainstream. Whether through institutional-grade funds like BUILD or blockchain-native offerings like USTB, real-world assets are making the leap onto the blockchain. And they’re here to stay.

This evolution may well proceed to its next phase, which involves even deeper integrations of real-world assets and decentralized finance protocols. Securitize may well start to integrate its SEC-compliant, on-chain system of record for digital securities with other decentralized finance protocols for tokenized real-world assets. Secondary markets for tokenized securities already exist (more or less), and most people in the crypto community know that we might do better by building digital asset platforms in the U.S. that are backed by the full faith and credit of the American government.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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