Tokenized RWA Market: The Latest
All the latest news in the tokenized real-world asset market.
Market Value of On-Chain Real-World Assets Reaches Record $12 Billion, Excluding Stablecoins
The value of on-chain real-world assets (RWAs) has surged past $12 billion, signaling strong investor interest in the tokenization of traditional assets on blockchain networks, according to a Binance Research report released Friday. This excludes the $175 billion stablecoin market used to purchase RWAs on the blockchain.
Tokenizing RWAs—such as real estate, government bonds, and intangible assets like interest—has made traditionally illiquid markets more accessible, enabling fractional asset ownership and simplifying settlement processes. For over a year, tokenization has been promoted as a trillion-dollar opportunity, with major financial institutions like BlackRock and Fidelity joining crypto-native projects like Securitize in exploring this space.
Tokenized U.S. Treasury funds, led by BlackRock's BUILD and Franklin Templeton’s FBOXX, have surpassed $2.2 billion in market value. Elevated U.S. interest rates have driven growth, making tokenized Treasuries an attractive investment. However, anticipated rate cuts by the Federal Reserve could reduce the appeal of these yield-bearing instruments.
The report also highlighted the growth of on-chain private credit, which now totals $9 billion, and noted that fintech firm Figure leads the sector. Despite Figure's dominance, the space has seen growth from platforms like Centrifuge, Maple, and Goldfinch.
Analysts believe that substantial rate reductions would be necessary to materially impact demand for tokenized Treasuries, which currently yield 4.5%-5.5%.
ParaFi Capital Tokenizes Interest
ParaFi Capital, a New York-based digital asset manager backed by KKR & Co. co-founder Henry Kravis, is tokenizing a minority portion of its latest venture-capital fund. The limited partner (LP) interest will be available through the Securitize platform and will run on the Avalanche blockchain, both of which are ParaFi investments. This move marks the firm’s first venture into tokenizing its own fund, a strategy founder Ben Forman said was about "using the technology" they invest in, not just promoting it.
The tokenization trend has been slow to gain traction beyond stablecoins, though firms like JPMorgan, Franklin Templeton, and BlackRock have recently adopted blockchain technology for collateral settlements and fund tokenization. Forman pointed to improved crypto custody options and simpler compliance with KYC and anti-money-laundering regulations as drivers behind the acceleration in tokenization adoption.
Starknet Token Holders Approve Staking in Landmark Governance Vote
In a significant development for the Starknet blockchain, token holders voted on Friday to implement staking on the layer-2 network. The proposal, which had been under consideration since July, was passed with overwhelming support in a governance vote held on the newly decentralized Snapshot X platform.
While only 0.08% of eligible voters participated, 98.94% of those voting favored the staking proposal, with 0.61% voting against and 0.45% abstaining. The decision means that, starting in the fourth quarter of this year, holders of more than 20,000 STRK, Starknet’s native token, will be able to stake on the network.
StarkWare, the main developer behind the Starknet blockchain, also confirmed that a minting mechanism to reward stakers and manage inflation was approved during the vote. The governance process was powered by Snapshot X, a new on-chain feature designed to ensure that voting is limited to genuine community members, using a snapshot of STRK holdings to prevent market manipulation.
This vote marks a major milestone for Starknet as it moves forward with implementing staking and decentralized governance.