Latest news with #AbuDhabi‑based
Arabian Post
14 hours ago
- Business
- Arabian Post
Tokenised RWA Market Rockets Past $23 Billion
The market capitalisation of tokenised Real‑World Assets has soared to over $23 billion, marking a surge of more than 260% since the start of the year, with private credit and US Treasury tokens accounting for the bulk of the growth. Leading the charge, tokenised private credit comprises roughly 58% of the total market, while tokenised US Treasuries make up about 34% of the overall valuation. The dramatic expansion reflects increasing demand for on‑chain exposure to established asset classes beyond cryptocurrencies, as investors seek yield and diversification within a regulated digital framework. Market participants have highlighted the clarity in evolving regulatory frameworks as a crucial catalyst. The enhanced transparency and legal recognition of tokenised assets in jurisdictions such as Abu Dhabi Global Market are encouraging institutional players to engage more actively. Concurrently, technology platforms and traditional finance firms are racing to establish token issuance and trading infrastructure. ADVERTISEMENT One of the most prominent sector players, Securitize Inc., provides a full-stack platform enabling compliant tokenisation across asset types. As of May 2025, the firm has issued over $4 billion on‑chain, including $2.8 billion in tokenised US Treasury exposure, commanding more than 70% share of tokenised US Treasury products. Its leadership on tokenised private credit is also significant, with major asset managers like Apollo and BlackRock utilising the platform for their tokenised offerings. Private credit, defined as non‑bank lending embedded in project, corporate, and direct lending vehicles, has long been one of the fastest‑growing alternative asset classes. Currently valued at an estimated $2–3 trillion globally, private credit forms a natural fit for tokenisation, enabling fractionated access, faster settlement, and enhanced transparency. By bridging direct lending with blockchain infrastructure, tokenisation platforms are opening access to smaller investors and unlocking liquidity for traditionally illiquid instruments. US Treasury tokens have also gained rapid traction. In October 2024, Abu Dhabi‑based Realize launched a tokenised US Treasury ETF fund targeting $200 million assets. This initiative marked the first tokenised Treasury fund domiciled in Abu Dhabi Global Market, reflecting the growing confidence in sovereign debt tokens. Growth to date appears driven by institutional interest, but emerging trends suggest growing participation from global wealth firms, family offices, and retail platforms. Securitize has onboarded numerous institutional investors and is planning retail channels in collaboration with custodians like Anchorage Digital, BitGo, and Copper. Regulatory clarity is playing a defining role. US leadership from figures such as Securitize's CEO appearing before House Financial Services, along with the Commodities Futures Trading Commission and Securities and Exchange Commission's deliberations, is building a foundation for mainstream adoption. Internationally, regulatory sandbox setups—like Abu Dhabi's—are providing live environments for tokenised asset experimentation. As the total market cap moves beyond $23 billion, key drivers include mature tokenisation platforms, growing regulator engagement, and rising investor demand for yield-bearing digital assets within compliant frameworks. Whether private credit and Treasury tokens continue to dominate depends on lasting improvements in interoperability, standardisation, and token issuance efficiency. Going forward, momentum may attract tokenisation of other asset types—real estate, commodities, infrastructure debt and equity. Yet challenges such as secondary market liquidity, cross‑chain compatibility, and investor education remain to be addressed. Leading infrastructure providers and asset managers appear intent on solving these, which may mutate tokenised RWAs from a niche tool into a mainstream financial innovation.
Arabian Post
6 days ago
- Business
- Arabian Post
AI‑Powered 'RIQ' Sets New Reinsurance Benchmark
Arabian Post Staff -Dubai Abu Dhabi‑based IHC, in collaboration with BlackRock and Lunate, has officially launched Reinsurance Intelligence Quotient—RIQ—a global, AI‑native reinsurance platform headquartered in the Abu Dhabi Global Market. Anchored by over US $1 billion in initial equity, RIQ aims to underwrite more than US $10 billion in liabilities, spanning property and casualty, life, and specialty lines. The platform unites human talent with advanced artificial intelligence to refine risk selection, cost control, underwriting, and customer service. Its AI core provides real‑time insights and precision decision‑making, seeking to optimise capital deployment on a global scale. Registered with the Financial Services Regulatory Authority of ADGM, RIQ is in the final stages of securing full regulatory approval. ADVERTISEMENT The board of directors, chaired by Dr Sultan Ahmed Al Jaber, includes notable figures such as Syed Basar Shueb, H E Mohamed Hassan Alsuwaidi, Sofia Abdellatif Lasky, and RIQ CEO Mark Wilson, former leader at Aviva and AIA. The governance structure positions RIQ to balance regional expertise with global vision, leveraging its strategic partners. The initiative builds on a May plan unveiled by IHC, BlackRock, and Lunate to establish an AI‑powered reinsurer targeting US $10 billion in liabilities with over US $1 billion in capital. BlackRock will contribute its Aladdin technology and insurance asset management services, while Lunate brings private and public market investment capabilities. IHC CEO Syed Basar Shueb has emphasised the venture's role in accelerating Abu Dhabi's and the wider region's nascent insurance and capital market ecosystems. 'RIQ is the embodiment of IHC's vision to invest in the next frontier of global financial services,' Shueb stated. Meanwhile, RIQ CEO Mark Wilson described the platform as purpose‑built for a changing market, combining speed and flexibility backed by deep capital. Dr Al Jaber, who also serves as UAE's minister of industry and advanced technology, said the platform would 'connect global capital with high‑growth markets, all from the heart of Abu Dhabi's thriving financial centre'. This reflects a broader strategic push by Abu Dhabi to position itself as a hub for innovative financial services and AI‑driven offerings. Analysts have observed that RIQ's AI‑native architecture could challenge traditional reinsurance models, where legacy systems often hinder real‑time pricing accuracy and capital efficiency. With global risk landscapes evolving due to climate change, cyber threats, and geopolitical instability, the deployment of AI in underwriting and risk transfer represents a notable shift in industry norms. Industry commentators note that IHC, already one of the region's largest investment houses, continues to accelerate its diversification strategy, adding reinsurance to its growing portfolio that spans technology, energy, real estate, healthcare, and food production. Its ability to marshal more than US $455 billion in assets and maintain tight ties to the Abu Dhabi ruling establishment adds strategic depth to RIQ's capital and governance framework. Key trends marking this launch include the convergence of finance and bleeding‑edge technology, a stronger regional emphasis on insurance capacity, and elevated geopolitical importance of financial resilience. RIQ is set to capitalise on these developments, channeling global capital into emerging markets, while establishing Abu Dhabi as a next‑generation centre for financial innovation.
