Tokenizing the Financial Metaverse with Real-World Assets
If there is one thing that can bring together traditional finance (TradFi) and decentralized finance (DeFi) for a combo move, it’s real-world assets (RWAs) tokenization. Since its advent in 2015, RWAs tokenization has facilitated the convergence between TradFi and DeFi. A case in point is the breaching of the trillion dollar mark of the market value of tokenized gold as of April 2023. With this, tokenized gold comprised about half of the total estimated market value of tokenized RWAs on permissionless blockchains which according to data compiled by the U.S Federal Reserve stood at USD2.5 billion as of May 2023.
Fast forward to September 2023, TOKEN2049 catalyzed the RWAs tokenization trend through a string of related developments by the event’s partners below.
Circle’s Tokenized Asset Coalition
On 7 September 2023, Circle joined arms with other leading players in the crypto industry, including Coinbase and Aave to form the Tokenized Asset Coalition. The goal of the Coalition is to promote the use of public blockchains, asset tokenization, and institutional adoption of DeFi through education, advocacy, and adoption efforts. The Coalition’s initiatives are hosted via the website of RWA.xyz, a real-world assets analytics platform.
Tokenized Asset Coalition (Source: RWA.xyz)
Mantle x Ondo for $USDY Tokenization
On 12 September 2023, Mantle Network ventured into the RWAs tokenization domain by entering into a collaboration with Ondo Finance’s USD Yield ($USDY) token. With this, $USDY became the inaugural project of Mantle Showcase. The product-market fit and benefits of the tie-up stem from the harnessing of $USDY as an RWAs tokenization instrument to bring sustainable yield to Mantle’s DeFi ecosystem.
Ondo x Mantle (Source: Mantle Network)
Klatyn’s RWAs Tokenization Program
On 13 September 2023, the Klaytn Foundation furthered its goal of establishing a foundational layer for on-chain activities through the Klaytn blockchain by establishing a partnership with CREDER, Elysia, and Tokeny Solutions, to initiate a RWAs tokenization program. Under the program, the partners would jointly develop compliant solutions to support a wider range of RWAs on the Klaytn blockchain as part of Klatyn’s path to mass adoption using on-chain RWAs.
Klatyn’s Path to Mass Adoption Using On-chain RWAs (Source: Klatyn Foundation)
With global business advisory firm Boston Consulting Group having projected that the market value of tokenized RWAs could be worth USD16 trillion by 2030, it is no surprise that the BoA had referred to RWAs tokenization as a “key driver of digital-asset adoption” that would bring to life the financial Metaverse.