RWA track development acceleration: new public chains, asset competitions and institutional entry

As one of the most dynamic tracks in the Web3 ecosystem, RWA is developing rapidly. According to the data, as of March 25, the total value of on-chain physical assets reached $19.53 billion, an increase of 108% over the same period last year. Among blockchain networks, Ethereum leads with a total value of $5.01 billion, followed by ZKsync Era and Algorand.

Recently, there have been several important developments in the RWA field, involving innovations in public chains, asset tokenization, securitization of mortgages, and more.

! RWA track development acceleration: from the new public chain Converge to the Sky competition, the BUIDL fund has exceeded 1 billion US dollars

The Converge public chain is scheduled to be launched in the second quarter

Converge is a settlement network designed for the convergence of traditional finance and DeFi, with USDe and USDtb as the core assets, and security provided by ENA. The network is primarily used for the settlement of permissionless spot and leveraged DeFi transactions, as well as the storage and settlement of stablecoins and tokenized assets.

Several well-known protocols have committed to building institutional-grade DeFi products on Converge, including:

• Horizon by Aave Labs: Designed a dedicated marketplace for tokenized assets
• Pendle Institutional: Provides infrastructure for interest rate speculation
• Morpho Labs: Providing modular money markets for assets
• Maple Finance and Syrup: Building on-chain yield and credit products based on USDe and RWA
• EtherealDEX: Designed for USDe high-performance derivatives and spot trading

Sky Holds $1 Billion Asset Tokenization Contest

The results of the Spark Tokenization Grand Prix hosted by Sky (formerly MakerDAO) have been announced, and the three winning projects will receive $500 million, $300 million, and $200 million respectively:

1. BlackRock-Securitize BUIDL
2. Superstate’s USTB
3. Centrifuge’s JTRSY with Anemoy and Janus Henderson

These assets will be included in the collateral pools of Sky’s native stablecoin USDS and yield-bearing stablecoin sUSDS, to diversify the investment portfolio and promote RWA tokenization applications.

DigiFT Launches On-Chain Tokenized Index Fund

Singapore licensed exchange DigiFT has launched two fully tokenized index funds aimed at qualified and institutional investors:

• AI Equity Index Fund: Tracks tech giants such as Apple, Tesla, Microsoft, Nvidia, and more
• Web3 index funds: covering mainstream crypto assets such as BTC, ETH, SOL, etc

These funds are managed by Hash Global and support USDT and USDC subscription and redemption, with real-time on-chain transparency and a round-the-clock liquidation cycle.

Figure advances the on-chain mortgage-backed securities market

Figure Technology Solutions is using blockchain technology to revolutionize the mortgage-backed securities market. Major financial institutions are using Figure’s DART electronic lien registry system to automate loans on the Provenance blockchain.

Figure also formed a joint venture with Sixth Street to secure a US$200 million equity commitment to establish a loan securitization facility and liquidity market.

Republic partners with Hamilton Lane to launch retail private equity fund

Republic has partnered with Hamilton Lane to launch a tokenized private equity infrastructure fund for retail investors with a minimum investment threshold of just $500. The fund will invest in infrastructure assets such as data centers, energy pipelines and transportation hubs, with an expected quarterly sale option.

Dubai Launches Real Estate Tokenization Pilot

The Dubai Land Authority launched a pilot of the “Real Estate Tokenization Project”, becoming the first registry in the Middle East to implement blockchain-based tokenization of real estate titles. The project is expected to have a market value of more than US$16 billion by 2033, accounting for 7% of Dubai’s total real estate transactions.

Fidelity launches a new category of tokenized money market funds

Fidelity has applied for registration of the “OnChain” equity class for its tokenized USD money market fund, Fidelity Treasury Digital Fund (FYHXX). The fund currently uses the Ethereum network and may expand to other blockchains in the future.

BlackRock’s BUIDL fund exceeded $1 billion

BlackRock’s BUIDL fund surpassed $1 billion in AUM, becoming the first institutional-grade on-chain fund to reach this milestone. BUIDL is backed by short-term Treasury bonds and provides daily income to accredited investors. The fund has expanded into multiple blockchain networks and partnered with Securitize to expand its business to Solana.

With the continuous influx of institutional funds and the continuous improvement of infrastructure, the RWA track is expected to further expand its influence in the crypto market and the global financial system, and the future development is worth looking forward to.