RWA Tokenization Report

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This report highlights developments related to the tokenization and on-chain adoption of Real-World Assets (RWAs). Our report includes details on centralized industry players and asset class coverage, as well as coverage of select decentralized finance protocols working to integrate RWAs on-chain. Information is compiled from Digital Asset Research’s (DAR’s) data sources, public sources, media reports, and press releases, and, while wide-ranging, this report covers only representative initiatives related to the development and tokenization of RWAs in the digital asset space.

Introduction

While many cryptocurrencies offer solutions to the challenges encountered by Web3 users, only a few digital assets possess characteristics that connect them to real-world economic activities. Skeptics contend that cryptocurrency use cases are confined to the digital realm, and therefore the value of crypto assets is not sustainable, given that much of daily life revolves around the physical world. Real-world asset tokenization bridges this gap between the physical and digital worlds. Real-World Assets (RWAs) are assets that exist tangibly offline, such as real estate or equities. Tokenization refers to the process of generating a digital certificate that is impervious to alteration or replication to represent an RWA on a blockchain. These digital certificates are backed by real-world assets as collateral. Through tokenization, investors can gain access to conventional investment opportunities in a more trustless and efficient manner via blockchain technology. Settlement can be conducted in real time and investors are always able to see where their assets are stored on chain. The spectrum of assets that could be tokenized includes but is not confined to, real estate, private credit, securities, commodities, and fiat currencies. A significant proportion of the world’s financial value is ascribed to RWAs, thereby presenting the potential for RWA tokens to access a total addressable market equivalent to the largest financial markets.

In this report, entities working on RWA initiatives are classified into two groups:

  • Centralized organizations that offer tokenization services are detailed in the CeFi RWA sections.
  • Decentralized Finance (DeFi) protocols that integrate RWAs with on-chain market participants are detailed in the DeFi RWA sections.

Significant RWA Tokenization News

  • Over 20 traditional financial institutions, including Goldman Sachs and BNP Paribas, participated in the launch of Canton Network, a privacy-preserving blockchain network designed for the tokenization of real-world assets.
  • The market capitalization of tokenized securities across three prominent blockchains – Ethereum, Polygon, and Gnosis Chain – surpassed $225M for the first time according to a report.
  • Investment management firm Hamilton Lane announced their second tokenized product, the Senior Credit Opportunities (SCOPE) Fund, in collaboration with Securitize.
  • Blockchain lending platform Jia raised $4.3M in a recent seed funding round.
  • NEOPIN, Galaxia Metaverse, and BKEX Labs are set to launch a real-world asset backed on-chain lendingplatform targeting South Korean customers.

CeFi RWA Industry Players

The table below provides details on a selection of centralized tokenization service providers.

EntityWebsiteFoundedJurisdictionIn-House BlockchainTokenized Asset MarketplaceFractionalization of AssetsSelf-CustodyTotal Funding
10XTShttps://10xts.com/2017United StatesYesNoYesYes£2,400,000
ADDX*https://addx.co/en/index.html2017SingaporeNoYesYesNo£140,900,000
AlphaPointhttps://alphapoint.com/2013United StatesYesNoYesYes£23,200,000
Arca US Treasury Fund*https://invest.arcalabs.com/#/login?redirect=/home2020United StatesNoNoYesNoUnknown
Archaxhttps://www.archax.com/2018United KingdomNoYesYesYes£41,600,000
Arf*https://arf.one/2019SwitzerlandNoNoNoNo£14,100,000
Bankexhttps://bankex.com/2015United StatesNoNoYesYes£70,600,000
Brickken*https://www.brickken.com/2020SpainNoYesYesNo£2,700,000
Canton Network*https://www.canton.network/2023United StatesYesNoNoNoUnknown
Cerchia*https://www.cerchia.io/2020SwitzerlandNoYesNoNo£2,700,000
Enigma Vaulthttps://www.enigmavault.io/2020United StatesNoNoNoYesUnknown
Fnality Internationalhttps://www.fnality.org/home2019United KingdomNoNoNoNo£62,000,000
Franklin Templeton*https://www.franklintempleton.com/investments/options/money-market-funds/products/29386/SINGLCLASS/franklin-on-chain-u-s-government-money-fund/FOBXX1947United StatesNoNoYesNoN/A
HoneyBricks*https://www.honeybricks.com/2020United StatesNoYesYesYesUnknown
HouseAfrica*https://houseafrica.io/2017NigeriaNoYesYesNo£525,000
INX Digitalhttps://www.inx.co/2017United StatesNoYesYesNo£96,500,000
InvestaX*https://investax.io/2015SingaporeNoNoYesYes£150,000
Jia*https://www.jia.xyz/2022United StatesNoYesYesNo£4,300,000
Ownerahttps://ownera.io/2018United KingdomYesNoYesNo£20,000,000
Paxoshttps://paxos.com/2012United StatesNoYesNoYes£543,500,000
Polymathhttps://polymath.network/2017BarbadosYesYesYesNo£58,700,000
Pontorohttps://www.pontoro.com/2015United StatesNoNoYesNo£10,000,000
Riddle&Codehttps://www.riddleandcode.com/2016AustriaYesNoNoYesUnknown
Robinland*https://www.robinland.io/2021United StatesNoYesYesNo£2,000,000
SEBA Bankhttps://www.seba.swiss/2018SwitzerlandNoYesNoYes£246,900,000
Securitizehttps://securitize.io/2017United StatesNoYesYesNo£100,200,000
Securrencyhttps://securrency.com/2015United StatesNoYesYesNo£64,500,000
Stoboxhttps://stobox.io/2018United StatesNoYesYesNo£1,200,000
STOKRhttps://stokr.io/2018LuxembourgNoYesYesNo£8,100,000
Structure*https://structure.fi/2020British Virgin IslandsNoYesNoNoUnknown
Taurus Platformhttps://www.taurushq.com/2018GenevaNoYesNoYes£75,900,000
Texture Capitalhttps://www.texture.capital/2019United StatesNoYesYesNo£1,000,000
Tokeny Solutionshttps://tokeny.com/2017LuxembourgNoYesYesYes£5,660,000
TOKOhttps://toko.network/2022Hong KongNoNoYesNoUnknown
tZEROhttps://www.tzero.com/2014United StatesNoYesYesNo£275,000,000
Vertalohttps://www.vertalo.com/2017United StatesNoNoYesNo£7,800,000
WeOwnhttps://weown.com/en/2017LiechtensteinYesYesYesYesUnknown
WisdomTree*https://www.wisdomtree.com/investments/digital-funds1985United StatesNoYesYesNo£126,400,000

*Newly added to the report

Key Takeaways

  • 20 of the listed organizations are registered in the United States, followed by the United Kingdom and Switzerland with 3 projects each and Luxembourg with 2 projects.
  • Only 7 organizations utilize an in-house blockchain network.
  • 23 of the organizations have their own tokenized asset marketplace.
  • 28 organizations support the fractionalization of real-world assets.

CeFi RWA Asset Classes

The table below displays the types of underlying assets tokenized by the selected protocols.

EntityReal EstateEquitiesCommoditiesFixed IncomePrivate CreditForexOther (Art, Luxury, etc.)
10XTS
ADDX*
AlphaPoint
Arca US Treasury Fund*
Archax
Arf
Bankex
Brickken*
Canton Network*
Cerchia*
Enigma Vault
Fnality International
Franklin Templeton*
HoneyBricks*
HouseAfrica*
INX Digital
InvestaX*
Jia*
Ownera
Paxos
Polymath
Pontoro
Riddle & Code
Robinland*
SEBA Bank
Securitize
Securrency
Stobox
STOKR
Structure*
Taurus Platform
Texture Capital
Tokeny Solutions
TOKO
tZERO
Vertalo
WeOwn
WisdomTree*

*Newly added to the report

Key Takeaways

  • The most common tokenized asset types are equities (23) and real estate (18).
  • Tokenization of private credit and luxury goods are also popular, with 14 and 10 platforms, respectively, providing these services.

DeFi RWA Industry Players

The table provides details on a selection of 31 on-chain tokenization providers. Unlike their CeFi counterparts, DeFi RWA providers are generally more permissionless, with a majority of operations conducted on the blockchain.

EntityBlockchain(s)SectorAsset Class(es)Founding YearGeography/Jurisdiction
AmFiAvalancheCreditCredit & Loans, Real Estate2022United States
Backed FinanceEthereum, GnosisTokenizationCredit & Loans, Equities2021Switzerland
Bitbond*Arbitrum, Avalanche, Binance, Ethereum, OptimismTokenizationFixed Income2013Germany
Bluejay FinanceEthereumStablecoin CreditFixed Income2021Singapore
Canza FinanceAvalanche, CeloStablecoin CreditCredit & Loans2020Nigeria
Carapace FinanceEthereumCreditCredit & Loans2021Unknown
CentrifugeEthereumCreditCredit & Loans, Real Estate2017Switzerland
CitaDAOEthereumTokenizationReal Estate2021Unknown
ClearpoolEthereum, PolygonCreditCredit & Loans2021Hong Kong
CredeFi*Ethereum, BinanceCreditCredit & Loans2020Bulgaria
Credix*SolanaCreditCredit & Loans2021Belgium
DexstarEthereumCreditCredit & Loans2021Cayman Islands
DEFYCAAvalancheTokenizationCredit & Loans, Fiat2021Luxembourg
FabricaEthereumDerivativesReal Estate2019United States
Florence FinanceEthereumCreditCredit & LoansUnited Arab Emirates
FriggEthereumCreditCredit & Loans2022Switzerland
GoldfinchEthereumCreditCredit & Loans2020United States
HomecoinEthereumStablecoinMortgagesUnknown
LandXEthereumCreditCredit & LoansLithuania
MakerEthereumStablecoin CreditCredit & Loans, Cryptocurrencies2015Denmark
MapleEthereum, SolanaCreditCredit & Loans2020Australia
MaxosEthereumStablecoin CreditCredit & Loans2020United States
ObligatePolygonCreditCredit & Loans2019Switzerland
Ondo FinanceEthereumTokenizationCredit & Loans2021United States
ParclSolanaDerivativesReal Estate2022British Virgin Islands
Polytrade FinancePolygonCreditCredit & Loans2021United Arab Emirates
PurpleFiTokenizationReal Estate2022United Kingdom
Ribbon LendEthereumCreditCredit & Loans2020Singapore
SaplingPolygonCreditCredit & Loans2022United Kingdom
TangiblePolygonStablecoinLuxury Goods, Precious Metals,, Real Estate2021United States
TrueFiEthereumCreditCredit & Loans2020United States

Key Takeaways

  • As of the end of May 2023, Credit & Loans is the most common sector for DeFi tokenization products with a total of 23 platforms supporting real-world loans.
  • Ethereum is the most common blockchain among RWA DeFi applications, with 21 out of 31 platforms being run on the blockchain.
  • A smaller portion of the RWA DeFi applications run on the Polygon, Solana, Avalanche, Celo, BNB Smart Chain, and Gnosis Chain blockchains.

DeFi RWA Protocols

The following table provides details on DeFi protocols that integrate real-world assets. These range from on-chain emerging markets lenders to protocols providing on-chain market participants with access to US Treasury Bills.

ProtocolNetworkActive LoansTotal Lifetime LoansTotal Value Locked (TVL)Market Capitalization of Protocol’s Native TokenCapitalization (%) of Protocol’s Native Token
CentrifugeEthereum$207,534,761$391,409,805$211,484,420$10,424,936↓-85.99%
MapleEthereum$132,171,450$1,782,522,9228$3,978,562$46,257,044↑15.63%
GoldfinchEthereum$103,754,399$113,029,773$1,171,058$17,678,057↓-18.11%
CredixSolana$35,537,576$39,020,152$35,650,130N/AN/A
ClearpoolEthereum$20,908,895$166,838,2190$24,886,602$10,428,906↓-17.11%
TrueFiEthereum$19,002,202$1,738,198,576$17,970,000$36,632,220↓-25.44%
HomeCoinEthereum$6,160,287$7,955,966$6,355,856N/AN/A
Ribbon LendEthereum$39$55,647,465$31,960,000$114,308,695↓-9.77%
ClearpoolPolygon$0.02$80,674,770$36,786$10,428,906↓-17.11%
MapleSolanaN/AN/AN/A$46,257,044↑15.63%
Ondo FinanceEthereumN/AN/A$136,800,000N/AN/A

Data is sourced from project websites or other publicly available information, including rwa.xyz.

Key Takeaways

  • There has not been much change in the amount of money loaned out in active loans between now and the past month, with the exception of Clearpool on Polygon, which has experienced a significant decrease in active loans.
  • While loans remain stagnant, the market capitalization of the protocol tokens shows a notable decrease.

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