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

  • Blockchain network provider Ripple said real world asset tokenization could be a $16 trillion business by 2030.
  • Archax, an FCA-regulated digital asset exchange, broker, and custodian, obtained an ISO27001 license backed by the International Standards Organization (ISO).
  • Sony Bank and Sumitomo Mitsui, two of Japan’s largest banks, announced a partnership with Securitize to onboard security tokens, mostly condominium loan receivables, to the blockchain.
  • Ondo Finance, a pioneer in tokenizing U.S. treasuries, extended its operations to Polygon.
  • Avalanche announced a $50M initiative to encourage asset tokenization on its blockchain.

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
10XTS https://10xts.com/2017United StatesYesNoYesYes$2,400,000
ADDX https://addx.co/en/index.html2017SingaporeNoYesYesNo$140,900,000
Aktionariat https://www.aktionariat.com/2020SwitzerlandNoYesNoNo$1,500,000
AlphaPoint https://alphapoint.com/2013United StatesYesNoYesYes$23,200,000
Arca US Treasury Fund https://invest.arcalabs.com/#/log
 in?redirect=/home
2020United StatesNoNoYesNoUnknown
Archax https://www.archax.com/2018United KingdomNoYesYesYes$41,600,000
Arf https://arf.one/2019SwitzerlandNoNoNoNo$14,100,000
Bankex https://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 Vault https://www.enigmavault.io/2020United StatesNoNoNoYesUnknown
Ekta* https://ektarealestate.app/2021IndonesiaYesYesYesNo$67,100,000
Fnality International https://www.fnality.org/home2019United KingdomNoNoNoNo$62,000,000
Franklin Templeton https://www.franklintempleton.c
 om/investments/options/money-
 market-funds/products/29386/SI
1947United StatesNoNoYesNoN/A
HoneyBricks https://www.honeybricks.com/2020United StatesNoYesYesYesUnknown
HouseAfrica https://houseafrica.io/2017NigeriaNoYesYesNo$525,000
INX Digital https://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
Lofty https://www.lofty.ai/2018United StatesNoYesYesNo$5,000,000
Ownera https://ownera.io/2018United KingdomYesNoYesNo$20,000,000
Paxos https://paxos.com/2012United StatesNoYesNoYes$543,500,000
Polymath https://polymath.network/2017BarbadosYesYesYesNo$58,700,000
Pontoro https://www.pontoro.com/2015United StatesNoNoYesNo$10,000,000
RealT https://realt.co/2019United StatesNoYesYesNo$10,200,000
RealX* https://www.realx.in/about-us2017IndiaNoNoYesNoUnknown
Riddle&Code https://www.riddleandcode.com/2016AustriaYesNoNoYesUnknown
Robinland https://www.robinland.io/2021United StatesNoYesYesNo$2,000,000
SEBA Bank https://www.seba.swiss/2018SwitzerlandNoYesNoYes$246,900,000
Securitize https://securitize.io/2017United StatesNoYesYesNo$100,200,000
Securrency https://securrency.com/2015United StatesNoYesYesNo$64,500,000
Spydra* https://www.spydra.app/2021United StatesYesNoNoNo$18,300,000
Stobox https://stobox.io/2018United StatesNoYesYesNo$1,200,000
STOKR https://stokr.io/2018LuxembourgNoYesYesNo$8,100,000
Structure https://structure.fi/2020British Virgin IslandsNoYesNoNoUnknown
Taurus Platform https://www.taurushq.com/2018GenevaNoYesNoYes$75,900,000
Texture Capital https://www.texture.capital/2019United StatesNoYesYesNo$1,000,000
Tokeny Solutions https://tokeny.com/2017LuxembourgNoYesYesYes$5,660,000
TOKO https://toko.network/2022Hong KongNoNoYesNoUnknown
tZERO https://www.tzero.com/2014United StatesNoYesYesNo$275,000,000
Vertalo https://www.vertalo.com/2017United StatesNoNoYesNo$7,800,000
WeOwn https://weown.com/en/2017LiechtensteinYesYesYesYesUnknown
WisdomTree https://www.wisdomtree.com/in
 vestments/digital-funds
1985United StatesNoYesYesNo$126,400,000

*Newly added to the report

Key Takeaways

  • 23 of the listed organizations are registered in the United States, followed by Switzerland and the United Kingdom with 4 and 3 projects each, and Luxembourg with 2 projects.
  • This month we have an addition of institutions based in India and Indonesia.
  • Only 9 organizations utilize an in-house blockchain network.
  • 27 of the organizations have their own tokenized asset marketplace.
  • 32 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
Aktionariat
AlphaPoint
Arca US Treasury Fund
Archax
Arf
Avalanche Vista
Bankex
Brickken
Canton Network
Cerchia
Enigma Vault
Ekta*
Fnality International
Franklin Templeton
HoneyBricks
HouseAfrica
INX Digital
InvestaX
Jia
Lofty
Ownera
Paxos
Polymath
Pontoro
RealT
RealX*
Riddle & Code
Robinland
SEBA Bank
Securitize
Securrency
Spydra*
Stobox
STOKR
Structure
Taurus Platform
Texture Capital
Tokeny Solutions
TOKO
tZERO
Vertalo
WeOwn
WisdomTree

*Newly added to the report

Key Takeaways

  • New additions to this report Ekta and RealX fractionalize real estate ownership in Indonesia and India, respectively.
  • Spydra, which is also newly added to this report, is a platform that allows for tokenization of various different assets, with its main product being tokenizing carbon credits.
  • The most common tokenized asset types are equities (24) and real estate (22).
  • Tokenization of private credit and luxury goods are almost as popular, with 15 and 11 platforms, respectively, providing these services.
  • Tokenization of foreign exchange and commodities based-assets are least popular among CeFi RWA providers.

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
BitbondArbitrum, Avalanche, Binance, Ethereum, OptimismTokenizationFixed Income2013Germany
Bluejay FinanceEthereumStablecoin CreditFixed Income2021Singapore
Canza FinanceAvalanche, CeloStablecoin CreditCredit & Loans2020Nigeria
Carapace FinanceEthereumCreditCredit & Loans2021Unknown
CentrifugeEthereumCreditCredit & Loans, Real Estate2017Switzerland
CitaDAOEthereumTokenizationReal Estate2021Singapore
ClearpoolEthereum, PolygonCreditCredit & Loans2021Hong Kong
CredeFiEthereum, BinanceCreditCredit & Loans2020Bulgaria
CredixSolanaCreditCredit & Loans2021Belgium
DexstarEthereumCreditCredit & Loans2021Cayman Islands
DEFYCAAvalancheTokenizationCredit & Loans, Fiat2021Luxembourg
Ensuro*EthereumInsuranceInsurance Portfolio2021Singapore
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
Meld Gold*AlgorandCommoditiesGold2020Australia
ObligatePolygonCreditCredit & Loans2019Switzerland
Ondo FinanceEthereumTokenizationCredit & Loans2021United States
ParclSolanaDerivativesReal Estate2022British Virgin Islands
Polytrade FinancePolygonCreditCredit & Loans2021United Arab Emirates
PurpleFiTokenizationReal Estate2022United Kingdom
SaplingPolygonCreditCredit & Loans2022United Kingdom
TangiblePolygonStablecoinLuxury Goods, Precious Metals, Real Estate2021United States
Toucan ProtocolPolygon, CeloTokenizationCarbon Credit2021Switzerland
TrueFiEthereumCreditCredit & Loans2020United States

*Newly added to the report

Key Takeaways

  • Ensuro and Meld Gold are newly added to this report. Ensuro is a platform that tokenizes insurance products onto the blockchain, while Meld Gold is a decentralized platform for gold tokenization running on the Algorand network.
  • As of the end of July 2023, Credit & Loans is the most common sector for DeFi tokenization products with a total of 22 platforms supporting real-world loans.
  • Ethereum is the most common blockchain among RWA DeFi applications, with 22 out of 33 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 TokenMonth over Month Change in Market Capitalization (%) of Protocol’s Native Token
CentrifugeEthereum$232,912,144$424,208,673$228,395,553$100,708,9802+2.68%
MapleEthereum$135,341,970$2,118,172,251$45,859,392$46,409,681–17.55%
GoldfinchEthereum$101,344,767$113,029,773$1,900,000$23,490,072+30.96%
CredixSolana$35,537,576$39,020,152$36,368,871N/AN/A
ClearpoolEthereum$24,905,993$328,804,401$27,399,803$9,213,994–4.03%
TrueFiEthereum$19,002,202$1,738,198,576$11,540,657$37,510,293–20.46%
HomeCoinEthereum$6,118,607$7,955,966$6,314,132N/AN/A
ClearpoolPolygon$0.02$80,674,770$33,008$9,213,99–4.03%
MapleSolanaN/AN/AN/AN/AN/A
Ondo FinanceEthereumN/AN/A$28,681,000N/AN/A

*Newly added to the report

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

Key Takeaways

  • Active loans increased slightly from last month’s data. Centrifuge, Maple, Goldfinch, and Clearpool all issued more loans this month, while active loans data remain stagnant for Credix, TrueFi, and HomeCoin.
  • The increase in active loans translates to an increase in total lifetime loans for the protocols mentioned above.
  • By contrast, changes in total value locked varies for each protocol, implying that the number of loans and total value locked are not perfectly correlated at all times.
  • The same pattern is observed for market capitalization of the protocol’s native currency. An increased number of loans do not equate to an increase in price or circulating supply of the protocol’s tokens.

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