Latest news with #realWorldAssets
Yahoo
22-05-2025
- Business
- Yahoo
Tokenization is Full Steam Ahead… with Tracks Still Needing to be Built
The tokenization of real world assets (RWAs) is gaining recognition from institutions seeking collateral mobility, issuers making private, alternative assets more accessible to retail investors and crypto enthusiasts engaging in more serious conversations as compared to the NFT and memecoin craze of past years. As predicted earlier this year, tokenization is solidifying its position and moving into the "pragmatists" portion of the adoption bell curve. 2024 ended with a $50 billion market cap and as of May 2025 has surpassed $65 billion, excluding stablecoins. A recent conference, TokenizeThis 2025, brought together industry leaders to dive deep into specific areas of the tokenization space, celebrating innovative accomplishments and evaluating how to tackle remaining challenges to reach mainstream adoption. While the conference panel topics delved into granular areas, a couple overarching themes to highlight include 1) collateral mobility and new utility enhancing real world assets and 2) the effects tokenization will have on investment strategies and workflows. 'I think that's actually what makes this technology so powerful is that you're talking about the same token but it can be used in very different ways for very different investors as long as of course the risk framework is right,' said Maredith Hannon, head of business development, digital assets at WisdomTree. While tokenizing assets is straightforward, the real opportunity lies in enabling more streamlined usage of assets compared to their traditional counterparts and addressing the needs of different participants. A panel dedicated to this topic shared examples of tokenized treasury products that can be used in both retail and institutional settings. Because blockchain allows an asset to move more freely, a money market fund could be used as collateral on a prime brokerage, eliminating the need to exit from that position thus still earning its corresponding yield for the investor. From a retail perspective, the same is possible with a different application where the fund units can be used for payment using a debit card linked to them. Utility can be added to other, higher risk investment products as well through different applications depending on the use case, with the common denominator being the use of blockchain technology. Along the same lines, lending and borrowing is being disrupted thanks to tokenization. Going to a traditional lender (usually an institution) for cash is a cumbersome process. 'The end goal in my opinion would be that my kids when doing their first mortgage just apply anonymously on a mortgage saying 'this is my situation I want to borrow this for that' and then she just borrows it [from] many people at the same time and repaying stablecoins… it's already quite daunting to talk to 20 banks because you want to buy one apartment, at least this is how it works in France right now,' said Jerome de Tychey, CEO at Cometh. Jerome's anecdote speaks to the power of decentralized finance for an individual and how it can fast-track a loan. Figure offers an internet-based solution for home equity lines of credit (HELOCs) and even they are using the blockchain in the backend. By issuing, warehousing and securitizing them, they've saved 150 bps out of the process — an operational advantage. From an investment standpoint, the DeFi vaults panel showcased how vaults streamline something similar but for investors, with an example being Apollo's tokenized private credit fund now using this technology to enable leverage loops. This means borrowed stablecoin can be used to buy more of the asset, increasing yield while being subject to a built-in programmatic risk framework. Source: Securitize However, challenges remain to be solved before vaults can take off, such as high custody and liquidity provision costs, limited RWA composability in DeFi and minimal appeal to crypto-native users seeking higher returns. Despite these obstacles, participants expressed enthusiasm for future possibilities. 'The reason this technology is so powerful is because it's a computer. If you think about all the middle and back office work from originating an asset to selling it, how many intermediaries touch it and take fees, how many people ensure loan tapes match with received funds — bringing that workflow on-chain is far more meaningful than just focusing on the asset itself,' said Kevin Miao, head of growth at Steakhouse Financial. Traditional markets have had a challenging time incorporating less liquid, higher yielding assets into investment strategies due to complex back and middle office needs for transfers, servicing, reporting and other factors. Automating transfer processes and providing on-chain transparency would make it easier for these assets to be allocated in and out of, in addition to cryptocurrencies introducing new investment opportunities. Cameron Drinkwater from S&P Dow Jones Indices and Ambre Soubiran from Kaiko discussed how blockchain will unlock previously inaccessible portfolio construction tools. They shared how this could result in blockchain-native investment strategies combining crypto and private asset allocations for greater diversification and new sources of yield. Achieving this, however, requires interoperability between legacy and blockchain-based infrastructure and between blockchains themselves. Some critical elements include aligning workflows, price transparency, rebalancing, on-chain identity, risk assessment considerations and risk management solutions. Providing maximum visibility into these assets and tools to navigate markets on-chain is one key step in. RWAs are shifting from theoretical blockchain to practical tokenized asset implementation in traditional and decentralized finance. The focus is now on enabling real utility through better collateral mobility, new financial products and more efficient workflows. By improving interoperability and identity frameworks, tokenization is expected to democratize illiquid assets and enhance financial efficiency. For additional recordings of the informational sessions, please visit STM TV on YouTube.
Forbes
20-05-2025
- Business
- Forbes
Breaking: Robinhood's RWA Proposal Could Bring Wall Street Onchain
Robinhood Seeks To Bring Wallstreet Onchain (Photo Illustration by Jakub Porzycki/NurPhoto via ... More Getty Images) Robinhood submitted a 42-page SEC proposal to create a federal framework for tokenized real-world assets, aiming to modernize U.S. securities markets. For years, the financial world has talked about tokenizing real-world assets (RWAs). RWA tokenization is projected to become a $30 trillion market by 2030, according to research from The Trading View. This surge is driven by rising institutional interest in onchain financial products, offering faster settlement, greater transparency, and broader asset access. The vision has always been tantalizing: frictionless trading of everything from Treasury bills to real estate, recorded transparently on a blockchain, available to all. But despite the headlines and hype, most of the progress has been confined to controlled pilots, sandboxes, and siloed platforms—largely disconnected from the regulated core of finance. That may be about to change. Robinhood submitted a formal 42-page proposal to the U.S. Securities and Exchange Commission (SEC) requesting the creation of a federal regulatory framework for the issuance and trading of tokenized RWAs. This is more than just a compliance tweak—it's a structural rethinking of how assets can be issued, settled, and tracked in the U.S. financial system. If accepted, it could signal the beginning of a scalable, legally sound foundation for tokenized markets in America. Robinhood's proposal introduces some of the most important legal infrastructure yet seen in the RWA space. It calls for a unified national framework to replace the fragmented, state-by-state compliance approach that currently governs securities. It proposes that tokens representing assets—like equities or government bonds—should be legally equivalent to the underlying asset, not classified as derivatives or synthetic products. That one change, if approved, would eliminate the need for duplicate systems and ambiguous ownership rights. It would also allow broker-dealers like Robinhood to custody and trade tokenized assets using existing regulatory guardrails, not separate, uncertain structures. The platform, dubbed the Real World Asset Exchange (RRE), would feature off-chain matching for speed and on-chain settlement for transparency. It integrates identity verification and anti-money-laundering tools via Jumio and Chainalysis, designed to meet global KYC/AML requirements. The proposal embeds laundering tools via Jumio and Chainalysis, designed to meet global KYC/AML ... More requirements. (Photo by Jakub Porzycki/NurPhoto via Getty Images) In blockchain, technical innovation tends to outpace regulatory acceptance. But this time, the real advance is on the legal side. Robinhood isn't inventing new technology—it's anchoring existing capabilities to firm legal ground. By seeking asset-token equivalence and regulatory interoperability, the company is building what could become a common framework not just for startups and DeFi protocols, but for banks, hedge funds, and asset managers as well. Crypto expert and founder of Quantum Economics, Mati Greenspan put it plainly: 'This proposal could mark the first time a U.S.-regulated broker has laid out a viable path for bringing trillions of dollars in assets onchain—without compromising regulatory integrity. If the SEC embraces this, it's a signal to the world that tokenization has a legitimate seat at the traditional finance table.' Mati Greenspan, Founder of Quantum Economics It's a move that marries innovation with institutional comfort—something the crypto industry has long struggled to do. Robinhood is best known for its role in the GameStop saga and the explosion of retail trading and meme coins. But this proposal shows a different face of the company—one positioning itself as a serious infrastructure player in the next phase of digital finance. Its RRE platform wouldn't be a sideshow to equities trading. It would offer 24/7 access to tokenized assets that reflect the diversity of global capital markets—from funds and bonds to commodities and real estate. Robinhood is best known for its role in the GameStop saga and the explosion of retail trading. ... More (Photo by Olivier DOULIERY / AFP) (Photo by OLIVIER DOULIERY/AFP via Getty Images) This marks a transition for Robinhood, from a mobile brokerage to a potential regulatory blueprint builder. It also potentially creates a new revenue model based on trading, custody, and compliance services in tokenized markets—distinct from the spread-based retail model of its early years. Of course, not every bold proposal reshapes the system. The SEC has yet to respond, and the agency has historically taken a cautious—often adversarial—approach to digital assets. Token equivalence could raise new questions about taxation, investor protections, and international jurisdictional conflicts. Even with legal clarity, there's no guarantee of adoption by other institutions. Some might still prefer existing frameworks and settlement rails for reasons of trust, scale, or inertia. Moreover, the current U.S. regulatory climate remains divided. Without legislative alignment between the SEC and other bodies like the CFTC, there's still a risk that even well-designed frameworks could be undermined by fragmented enforcement or political pushback. There's also the broader question of market timing. Institutional capital has warmed to tokenization in theory, but many remain on the sidelines awaiting proof points at scale. If Robinhood launches the RRE platform without significant asset partners or volume, it may struggle to prove immediate utility—regardless of regulatory progress. Still, even if the SEC drags its feet, the importance of Robinhood's proposal shouldn't be underestimated. It's the first full-throated attempt by a major U.S. broker to bring tokenized RWAs into the mainstream—and to do so by rewriting the rules of engagement. Whether the SEC accepts the blueprint in its current form or sends it back with revisions, the very act of submitting it moves the conversation forward. If approved, Robinhood will gain more than first-mover advantage. It will help define what 'compliant tokenization' means in the U.S.—and give other players the legal scaffolding to follow. That's what the RWA space has been missing: not another blockchain, not another asset wrapper, but a bridge to real regulation. Robinhood may have just laid the first stone. Did you enjoy this story about Robinhood and RWA? Don't miss my next one: Use the blue follow button at the top of the article near my byline to follow more of my work
Crypto Insight
14-05-2025
- Business
- Crypto Insight
VanEck to launch its first RWA tokenization fund
Investment firm VanEck is launching a tokenized real-world asset (RWA) fund that offers exposure to US Treasury bills, developed in partnership with tokenization platform Securitize. The initiative places VanEck among a growing number of traditional finance firms entering the RWA tokenization space. The fund, called VBILL, will be initially available on Avalanche, BNB Chain, Ethereum and Solana blockchains, VanEck said in a May 13 statement. The fund's minimum subscriptions start at $100,000 for investments running on Avalanche, BNB Chain, and Solana, while the minimum subscription on Ethereum is $1 million. VanEck joins a burgeoning field of traditional financial firms that have launched RWA tokenized funds, with competitors including BlackRock and Franklin Templeton. In January, Apollo, an investment firm with $751 billion in assets under management, also launched a private credit tokenized fund. With a market capitalization of $6.9 billion, US Treasurys are among the largest asset classes in tokenized funds, second only to private credit, according to data from VanEck's partner, Securitize, has tokenized over $3.9 billion in assets. In May 2024, it raised $47 million in a strategic funding round led by BlackRock. Tokenization of real-world assets has many benefits that outpace traditional finance systems, including faster settlement times and liquidity to previously illiquid assets, advocates say. SEC Chair Atkins on RWA tokenization At the Securities and Exchange Commission's (SEC's) roundtable on May 12, Chair Paul Atkins compared the moving of securities onchain to the transition of songs from analog to digital. 'Just as the shift to digital audio revolutionized the music industry, the migration to onchain securities has the potential to remodel aspects of the securities market by enabling entirely new methods of issuing, trading, owning, and using securities,' Atkins said. 'Blockchain technology holds the promise to allow for a broad swath of novel use cases for securities, fostering new kinds of market activities that many of the Commission's legacy rules and regulations do not contemplate today,' he added. Source:
Forbes
08-05-2025
- Business
- Forbes
BlackRock-Backed Securitize Raises Strategic Funding From Jump Crypto
Carlos Domingo, founder and CEO of Securitize Securitize Jump Crypto, the digital asset arm of Chicago quantitative trading firm Jump Trading, has taken a strategic stake in Miami-based Securitize, one of the leading platforms bringing real-world assets (RWAs) like Treasurys and private credit onto public blockchains. Terms of the deal were not disclosed. This is the first outside investment in Securitize since BlackRock's $47 million round last year, which cemented the firm as a cornerstone of the fast-growing tokenization market. Other blue-chip asset managers, including Apollo, Hamilton Lane and KKR, have also tapped Securitize to issue blockchain-based funds. These aren't fringe crypto experiments. The funds tokenize mainstream products including Treasurys, private credit, and private equity on blockchains like Ethereum and Solana. BlackRock's BUIDL fund, the $10 trillion asset manager's first blockchain-based vehicle, which also is Securitize's marquee product, has become something of a bellwether of tokenization. Structured as a money market fund, it now manages $2.86 billion in assets. Since its debut just a little over a year ago, tokenized Treasury products have surged 800% to nearly $7 billion, a sign that the pitch is resonating with yield-hungry investors looking for alternatives to traditional wrappers. Michael Sonnenshein, COO at Securitize Securitize 'We think that the market should be digesting this investment really as a signal that firms like Jump now have conviction in not only tokenization, but the role and the impact that tokenization is having on capital markets, capital formation and investment accessibility on chain,' says Michael Sonneshein, Securitize's COO and former CEO of crypto asset manager Grayscale. He argues that tokenization offers distinct advantages that legacy formats don't match. Products like BUIDL, for instance, pay daily dividends, something traditional money market funds do not, and investors are increasingly choosing tokenized Treasurys over stablecoins as collateral, largely because tokenized products share yield with holders. In addition, pairing tokenized funds with decentralized finance opens new lending opportunities. Jump will help Securitize to do just that: expand the role of tokenized assets in collateral management and trading. The tokenization sector is growing fast. Since BUIDL's launch, RWAs have more than doubled from about $9 billion in total value locked to $22.4 billion. Boston Consulting Group projects the tokenized asset market will balloon to $19 trillion by 2033. On Monday, the SEC's Crypto Task Force will host a roundtable on tokenization with issuers including Securitize. Meanwhile, the company is preparing its next act. In partnership with Lisbon-based Ethena Labs, it is about to launch a new blockchain called Converge. The idea is to create a compliant gateway for institutional capital into DeFi. Converge is expected to launch later this quarter.
