A swathe of new research reports from major traditional financial institutions predicts outsized growth and adoption of real-world asset tokenization over the next few years.
Solayer says anyone can mint the yield-bearing sUSD token with at little as $5 in USDC.
Stablecoin issuer Tether has proposed a new initiative to Turkey: digital tokens backed by boron, a mineral in which the country holds over 70% of the global reserves, Bloomberg News reported on Oct. 24. Boron, essential in manufacturing ceramics, glass, and fertilizers, is a major asset for Turkey’s economy, with sales projected to reach $1.3 […]
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The RWA market can overcome its current challenges with blockchain and decentralized oracles.
Turkey’s state-owned boron miner estimates the country has more than 70% of global reserves of borate minerals.
The card links to WisdomTree's WTGXX onchain money fund, which yields 4.6% APR.
Assetera and Archax are collaborating to provide UK and global investors with regulated access to tokenized funds, including real-world and digital assets.
It's an important step toward winning the tokenized RWA market as Circle continues to vye with stablecoin leader Tether.
Easier cross-chain transferability for RWAs is crucial to institutional adoption, executives say.
According to Colin Butler, financial institutions that don't embrace blockchain technology will lose their relevancy and competitive edge.
Trillions of dollars will flow into Web3 once the details of the Internet of Contracts are worked out.
Centrifuge, a real-world asset (RWA) solution and a Parachain, has a plan for Polkadot, a smart contracts platform. In a proposal, the RWA platform suggests that the newly created Polkadot Community Foundation allocates $3 million USDC to their T-Bill pool. This pool is held within the Anemoy Liquid Treasury Fund and aims to serve multiple objectives. Centrifuge Wants Polkadot To Invest $3 Million In T-Bills In their proposal, allocating the $3 million to T-Bill as an investment will benefit the broader ecosystem. Of note, it will help boost the long-term sustainability of the Polkadot Treasury. This is because the T-Bill pool will generate stable yields from real-world assets, thereby further increasing the financial health of the Treasury. Related Reading: Cardano Foundation Reports Massive Growth In These Key Metrics – ADA Price Soars 3% Though the funds will be from the foundation, Centrifuge argues that injecting the $3 million USDC into the T-Bill pool will help increase the network’s total value locked (TVL). Subsequently, this will also expand the Treasury’s assets. The foundation might consider investing in RWAs, as proposed by Centrifuge, as it could foster the growth of this technology within Polkadot, pushing adoption and growth as a result. Laying out their proposal, Centrifuge said if the foundation decides to invest, it would align with their previous investment in the Anemoy Liquid Treasury Fund. In turn, this may offer a unique opportunity for Polkadot to diversify and expand its investment basket. It is especially now that tokenization and RWA is picking up momentum. RWA Picking Up Steam, Will DOT Reverse Losses? BlackRock, one of the top asset managers in the world, is one of the leaders in tokenizing treasury bills. On Ethereum, the manager has launched BUIDL, a platform where institutions can invest in tokenized Treasury bills. As of September 10, BUIDL is the largest tokenized Treasuries provider, managing over $514 million, according to RWA.xyz. The proposal is so far garnering community support. Roughly a week before the decision, over 53% agreed with this proposal. However, some community members are expressing concerns. Related Reading: Ethereum Sees Massive Outflows from Derivatives: What Does This Mean For ETH? Most of them point to the potential risks and the negative implications of this on the network’s Treasury. One concern is that if this is approved, it could increase DOT spending requests, eventually depleting its reserves. While the prospect of RWA taking off in Polkadot is bullish, DOT is still under pressure. From the daily chart, DOT is down roughly 65% from March highs. It is also in a descending channel and retesting multi-month support. The primary support lies at around $3.5. On the upper end, resistance is at $5. A break above this line will lift sentiment, propelling the coin towards $6.5 in a buy trend continuation formation. Feature image from Unsplash, chart from TradingView
Tokenized treasury products are gaining widespread adoption on blockchain networks.
High-net-worth individuals and private equity funds will drive adoption, said Colin Butler.
Increased crypto adoption and high treasury yields could push tokenized US Treasurys toward a $3 billion market cap by the end of 2024.
The asset manager is considering expanding tokenized securities to the Ethereum mainnet and other EVMs, its digital assets head told Cointelegraph.
In a move highlighting the growing intersection of traditional finance (TradFi) and blockchain technology, Hamilton Lane, one of the world’s largest asset managers, has announced the launch of a private credit fund on the Solana (SOL) blockchain. The fund, named Senior Credit Opportunities Fund (SCOPE), will now be accessible to investors through the Solana network, according to a recent report by Fortune. Institutional Fund Directly On The Solana Blockchain Hamilton Lane, which has over $290 billion in assets under management, has partnered with Libre, a Web3 protocol developed by Brevan Howard’s WebN Group and Nomura’s crypto firm Laser Digital to facilitate this initiative. Related Reading: Ethereum ETFs Witness Stellar Start As Trading Soars; Analyst Sees ETH’s Price Reaching $8,000 In Q4 According to Fortune, Libre will serve as the “backbone infrastructure,” enabling the issuance and distribution of tokenized real-world assets (RWAs) on-chain. With this, Hamilton Lane aims to expand its distribution channels and reach a broader range of investors, including the “mass affluent” and crypto-native traders. Dr. Avtar Sehra, CEO and founder of Libre, emphasized that Solana’s “low latency and high throughput capabilities” make it an ideal network for tokenization. Interestingly, this move marks a significant milestone for the Solana ecosystem, as it is the first institutional fund to be launched directly on the blockchain, with the potential for more to follow as RWAs have been an increasing investment vehicle for institutional investors to capitalize on crypto technology over the past year. Financial Inclusion Through Tokenization? Hamilton Lane’s foray into blockchain technology is not entirely new, as the firm previously tokenized SCOPE and an equity fund using the digital securities issuance platform Securitize. Victor Jung, Head of Digital Assets at Hamilton Lane, expressed satisfaction with the inflows generated by these efforts. However, he heralded the launch of Solana as a critical step forward for the company, enabling the tokenization of collateralized lending. Jung said: This is for the decentralized finance natives. We believe that this is just a start of a portion of the financial asset class that will be available to a new audience with a different risk return profile. Related Reading: Dogecoin Falling Wedge Pattern: Crypto Analyst Predicts Breakout To $0.22 Similarly, proponents of these initiatives argue that the tokenization of financial assets will modernize and democratize conventional financial markets. BlackRock CEO Larry Fink, for instance, has expressed his belief that the next step in the industry will involve tokenizing every stock and bond, envisioning a future where all financial assets reside on a unified ledger. While tokenized private credit has gained traction, Fortune reports that some challenges remain. Startups like Maple and Centrifuge have faced difficulties selling to crypto investors due to factors such as long lock-up periods and the varying risk appetite of this particular audience. Additionally, some crypto investors prefer higher returns offered by meme coins, which can overshadow the more modest returns from traditional assets over a longer time horizon. At the time of writing, SOL was trading at $173, down nearly 5% in the 24-hour time frame, led by Tuesday’s broader market decline. Featured image from DALL-E, chart from TradingView.com
Following the highs of 2024’s first quarter (Q1), the crypto market faced a retrace during the second one (Q2). Despite this, Memecoins has remained the reigning champion of the market for the last three months. Related Reading: Big Filecoin Rally Ahead: Analyst Predicts 4,000% ‘Uphill Run’ Total Crypto Market Cap Falls 14% In Q2 On Tuesday, CoinGecko released its 2024 Q2 Crypto Industry Report. In the report, the crypto tracking website revealed that the total market capitalization declined last quarter. The total crypto market cap dropped 14.4%, $408.8 billion, in the last three months. The crypto market closed Q2 with a market cap of $2.43 trillion, unable to make new all-time highs (ATH). Comparatively, the total crypto market cap reached $2.9 trillion in March. During Q1, the market soared 64.5%, doubling Q3 2024’s growth. In absolute terms, the growth of this quarter (+$1.1 trillion) was almost double that of the previous quarter (+$0.61 trillion). This was largely driven by the approval of US spot Bitcoin ETFs in early January, sending BTC to a new all-time high in March. Additionally, CoinGecko highlighted that the crypto market cap was outperformed by the S&P 500, which registered a 3.9% increase. As a result, the correlation between the total crypto market cap and the S&P 500 plummeted from 0.84 in Q1 to 0.16 in Q2. In Q2, crypto volatility remained high, with an annualized volatility of 48.2% for the total crypto market cap. Meanwhile, Bitcoin (BTC) and the S&P 500 saw 48.2% and 12.7% volatility. Memecoins Continue Leading The Market Despite the market retrace, Memecoins remain the most popular narrative in Q2. According to CoinGecko’s categories web tracking, the sector dominated the chart with a 14.3% market share. Last quarter, Memecoins emerged as the most popular and profitable narrative. The sector delivered massive returns in the first quarter of 2024, with an average return of 1,313% across the top tokens. Tokens like Dogwifhat (WIF) and Book Of Meme (BOME) became market sensations, fueling the memecoin frenzy. These tokens had over 2,000% and 1,000% returns. This quarter, the market saw a Celebrity memecoin frenzy. Public figures like Iggy Azalea, Caitlyn Jenner, and Andrew Tate joined the industry amid controversial launches, hacks, and scam allegations. Moreover, the PolitiFi memecoins surged in popularity. Last week, these tokens outperformed most categories in the crypto market following Donald Trump’s failed assassination attempt. 4 out of the top 15 most popular narratives were memecoin-related, with Solana and Base memecoins registering an 8.44% and 4.61% share. Meanwhile, cat-themed tokens overpowered Q1’s reigning champions in the sector, Dog-inspired tokens. Related Reading: Whale Makes $8 Million With Trump-Inspired Memecoin As PolitiFi Tokens Soar This quarter, the feline-inspired tokens made it to the top 15. The category ran remarkably this cycle, with tokens like Cat in a Dogs World (MEW) and Popcat (POPCAT) surging over 200%. Similarly to Q1, Real World Assets (RWA) and Artificial intelligence (AI) were the second and third most popular sectors. RWA registered an 11.3% market share, while IA tokens saw a 10.9% share of market attention. Featured Image from Unsplash.com, Chart from TradingView.com
21co analyst Tom Wan believes tokenized US treasuries will hit $3 billion by the end of 2024 amid rising adoption among DeFi projects and Decentralized Autonomous Organizations (DAOs). According to Wan, the trend is driven by a need for diversification and stability, especially as high interest rates make these assets attractive. Currently, there are over […]
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BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is close to reaching $500 million in assets under management. The tokenized fund, represented by the BUIDL token on the Ethereum network, now holds $491 million in assets, according to Dune Analytics data. Blockchain analytics platform IntoTheBlock noted that this milestone comes during a period of price struggles […]
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In a move that could reshape the global agricultural landscape, AgriDex is setting out to bring the $2.7 trillion agricultural industry onto the blockchain. In this exclusive CryptoSlate interview, Henry Duckworth, CEO and co-founder of AgriDex, unveils his vision for revolutionizing the way agricultural commodities are traded and tracked worldwide. Fresh off a $5 million […]
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BlackRock's BUIDL fund now supports Mountain Protocol's wUSDM, increasing its security and utility for DeFi applications.
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Investcorp’s Strategic Capital Group currently has $1.5 billion in assets under management and will handle the collaborative deals.
Increased stablecoin usage could be a sign of growing crypto adoption for a maturing industry.
The Ethereum layer-2 solution is leveraging Chainlink for blockchain interoperability and real-world price data.
VeChain and UFC's partnership brings blockchain to the octagon with NFC-chipped, tokenized gloves, enhancing memorabilia and preventing counterfeits.
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The TVL across real-world asset tokenization protocols has surged almost 60% since February, says blockchain analytics firm Messari.
The real-world assets sector continues generating interest as the second most profitable crypto narrative in the first quarter of 2024.
Bitfinex Securities is issuing a tokenized debt offering to fund the construction of a new Hampton by Hilton hotel at El Salvador International Airport, according to an April 11 statement shared with CryptoSlate. The tokenized debt offering is the first of its kind in the Central American country, seeking to raise $6.25 million. The short-term […]
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Amid the renewed strength recently displayed by Bitcoin, Michael Van De Poppe, a recognized cryptocurrency analyst and trader has offered an intriguing prediction for BTC, highlighting that the crypto asset is likely to reach the $300,000 threshold in this bull cycle. Bitcoin Price Targetted At Unprecedented Heights This Cycle Over the past month, the price of Bitcoin has been consolidating and hasn’t been able to sustain its rise beyond its new peak of $73,000. However, things could soon be changing, as Michael Van De Poppe expects the coin to surge immensely in the short term. His forecast coincides with anticipation around the upcoming Bitcoin Halving expected to take place in less than 12 days, fueling optimism within the crypto community. Related Reading: 12 Days Until Bitcoin Halving: Why $100,000 Isn’t Much Further Away According to the expert, the largest cryptocurrency asset by market cap is still experiencing significant resistance. Nonetheless, if Bitcoin manages to break out of this zone, the coin could witness a progression towards new all-time highs in the coming months. Given that BTC achieved the $70,000 price level ahead of the halving event, Poppe believes that it is likely to surge to unprecedented levels, particularly topping out at $300,000 in this bull run. The post read: Bitcoin still facing crucial resistance. If this breaks, then we will be seeing a continuation towards new all-time highs. Bitcoin at $70,000 pre-halving. Likely $300,000 this cycle. Poppe underscored that the price of Bitcoin returned to $70,000 level over the weekend. As a result, he has pointed out bullish indicators that are presently occurring in the crypto landscape. The analyst also noted that the strength of the cryptocurrency markets has now exceeded our perceptions, and dips in altcoins represent opportunities for good entries. In addition, BTC’s price action demonstrates the potential to reach a new all-time high pre-halving, and the shift in favor of altcoins is on the horizon. Altcoin Season Set To Kick Off In Weeks Poppe is super bullish toward an ‘altcoin season’. However, it is important to note that altcoins’ value has frequently coincided with shifts in Bitcoin’s supremacy. But even though Bitcoin’s dominance is still at its peak prior to the halving, Poppe thinks these coins still have a lot of momentum. Related Reading: Forget Bitcoin! Altcoins Set For Explosive Growth With Potential 1,000x Returns — Analyst He advocates that a new altcoin season will undoubtedly begin in the upcoming weeks. “We always have one, we have seen Meme coins, Solana (SOL) ecosystem, and AI,” he stated. The expert’s statement suggests that the Solana ecosystem, AI projects, and meme coins in recent months have led the altcoin market. Thus, Michael Van De Poppe has contended that in the impending alt season, crypto initiatives that prioritize the tokenization of Real-World Assets (RWA), the Ethereum (ETH) ecosystem, and the Decentralized Physical Infrastructure Network (DePIN) are likely to be next, paving the way for alts this cycle. At the time of writing, the altcoin’s overall market excluding Bitcoin and Ethereum was valued at $753.47 billion. This indicates a 2% increase in the market cap in the past 24 hours. Featured image from iStock, chart from Tradingview.com