RWA Tokenization: Reshaping Asset Liquidity and Accessibility

Since the beginning of this year, the tokenization of real-world assets (RWA) has become an irreversible trend. From a trading platform planning to launch tokenized stocks to another platform considering putting its own stocks on-chain; from the active participation of traditional financial giants to leading DeFi protocols incorporating RWA into their collateral frameworks—tokenization is fundamentally reshaping the liquidity and accessibility of assets.

Despite facing challenges such as regulatory adaptation and infrastructure improvement, the RWA sector has shown great potential: the total locked value of tokenization of assets like U.S. Treasury bonds, real estate, and luxury goods has surpassed several billion dollars. According to data platforms, as of now, the total on-chain managed value in the RWA market has reached $23.92 billion. Moreover, industry forecasts predict that by 2030, the global scale of tokenized assets will reach $16 trillion, accounting for 10% of all investable assets.

This article will analyze the most promising subfields of RWA and review the leading projects that are most representative in each segment.

Tokenization of Treasury Bonds: A New High Ground for Financial Innovation

Tokenization of government bonds is an important innovation in the financial market, allowing traditional government bonds to be tokenized so that investors can directly participate in government bond investments through blockchain, enjoying higher liquidity and transparency.

A well-known asset management company has launched the world's first registered tokenized currency market fund, FOBXX, which invests in U.S. government securities, providing investors with stable returns and liquidity, while supporting fast trading of digital assets.

Another company has launched a tokenization of U.S. Treasury bonds (TBILL) through a certain public blockchain and has received tens of millions of dollars in investment. By tokenizing TBILL, the company has made trading in the Treasury bond market more decentralized and improved capital liquidity.

There are also companies that have launched short-term US Treasury Token (STBT), which daily allocates interest to holders through an on-chain re-benchmarking mechanism, providing investors with short-term liquidity tools and enhancing the flexibility of Treasury bonds.

A digital securities company has launched a tokenized U.S. Treasury bond fund (USTY) aimed at qualified investors in partnership with its partners. The platform manages fund operations through smart contracts, supporting the tokenization of the Treasury bond fund, which enhances investment transparency.

Another innovative company has launched a tokenized form of the short-term U.S. government securities fund (USTB), allowing investors to conduct fast and efficient transactions on the blockchain.

The USYC Token launched by a certain company represents short-term U.S. Treasury bonds and repurchase agreements, providing investors with low-risk, high Liquidity investment products.

A large asset management company has launched the tokenization of a national debt fund, BUIDL, and is using it as collateral on multiple crypto platforms, providing investors with more investment options while enhancing market liquidity.

Stablecoin: The Financial Foundation of Cryptocurrency

Stablecoins, as the "anchor" assets of the crypto market, have relatively stable value and occupy an important position in the cryptocurrency market. The tokenization characteristics of stablecoins make them digital currencies that are pegged to traditional currencies or assets, providing greater stability.

A well-known stablecoin issuer is urging stablecoin issuers to hold equivalent short-term U.S. Treasury bonds as reserve assets and to disclose reserves through the push of the GENIUS Act. This initiative aims to ensure the transparency and stability of stablecoins, enhancing market trust in their products.

Other stablecoin issuers will also face new regulatory requirements after the passage of the GENIUS Act, and may need to adjust their reserve mechanisms to comply with the new regulations and requirements.

Tokenization of Stocks: Bridging Traditional Stock Markets and the Crypto Market

Tokenization of stocks allows stock investments to be conducted via blockchain, enabling investors to make fractional investments with less capital while enjoying greater transparency and Liquidity.

A certain EU fintech company focuses on tokenizing traditional stocks and ETFs into "xStocks". These tokens operate on a specific blockchain, providing global investors with a 24/7 trading experience for US stocks. By the end of 2024, the company holds approximately 77% market share in the tokenized stock market.

Another US-registered transfer agent offers tokenized stocks and ETFs called dShares, ensuring that each dShare corresponds 1:1 with actual stocks. These tokens support trading on multiple blockchains, including Ethereum, Arbitrum, and Base. The company provides tokenized versions of over 100 US stocks and ETFs.

A certain American company has launched tokenized stock EXOD representing its Class A common shares, managed on a specific blockchain. The EXOD Token has been listed on NYSE American, becoming the first tokenized stock to be listed on a U.S. stock exchange.

Private Credit: Providing Low-Cost Financing for SMEs

Private lending provides loans to businesses through non-traditional financial institutions and tokenizes these loans via blockchain to enhance capital liquidity and transparency.

Several platforms provide financing channels for small and medium-sized enterprises by tokenizing accounts receivable and other assets. These platforms simplify the loan process through smart contracts, increasing the transparency and security of loans.

Some decentralized lending platforms focus on providing unsecured loans, managing loans through smart contracts, and offering investors new debt investment opportunities.

Some platforms provide unsecured loans to businesses through community governance, particularly targeting enterprises in developing countries, offering low-cost financing channels for global businesses and enhancing financial accessibility.

Real Estate Tokenization: Global Investors Share the Real Estate Market

Real estate tokenization allows small investors to participate in the traditionally high-barrier real estate market and enjoy higher liquidity.

A platform digitizes real estate transactions through blockchain, allowing investors to participate in the global real estate market via tokenization. The platform successfully held the world's first real estate transaction completed on the blockchain.

Another platform divides real estate assets into small tokens, allowing global investors to participate in the real estate market. Through tokenization, investors can enjoy monthly rental income, with transactions being more transparent.

There are also platforms that combine blockchain with real estate market data to provide investors with global real estate market investment opportunities. Through innovative data models, a more diverse range of real estate investment options is offered to investors.

Tokenization of Art and Collectibles: A New Investment Avenue for Collectors

The tokenization of artworks and luxury goods not only breaks the boundaries of traditional markets but also gives more investors the opportunity to participate in high-value collectible investments.

Multiple platforms focus on the tokenization of valuable items such as artworks, diamonds, luxury watches, etc., allowing investors to purchase and trade these assets through blockchain. These platforms provide investors with high liquidity and transparent investment channels.

Decentralized Exchange: A New Era of Crypto Asset Trading

The decentralized exchange ( DEX ) provides a more transparent and secure trading experience for the crypto market, avoiding the intermediary fees of traditional centralized exchanges.

Many platforms focus on decentralized trading of financial derivatives, structured products, and tokenized assets. Through decentralization, these platforms enable traditional financial assets to be traded on the blockchain, providing global investors with opportunities to participate in asset tokenization and trading.