Research Summary
The report provides an in-depth analysis of Real World Assets (RWAs) that have been tokenized on-chain. It covers the growth of tokenized assets, the role of different blockchains in this process, and the involvement of institutions. The report also discusses the performance of specific projects like Centrifuge and Maple Finance in the tokenization of RWAs.
Key Takeaways
Tokenization of Real World Assets
- Significant Growth: Over $72B in assets have been tokenized on public blockchains, with 97% of the AUM being stablecoins. The AUM of tokenized government securities increased by 560%, from $103M to $680M, during a high-interest-rate environment.
- Ethereum’s Dominance: Ethereum remains the industry’s financial hub, holding 76% of the AUM ($1.69B), followed by Stellar with $306M AUM (13.9%). Polygon has the most diversified tokenized asset types after Ethereum.
- Institutional Involvement: Institutions have tokenized over $375M worth of assets. Franklin Templeton, KKR, Hamilton Lane, and Siemens are among the institutions that have tokenized their assets.
Tokenized U.S. Treasuries
- Growth Trajectory: Tokenized US Treasuries have grown by 15% ($594M to $682M) since July. New entrants like Yieldteq and Truefi have debuted products, while existing players like Backed, Maple, and Ondo have witnessed significant gains.
- Blockchain Landscape: Ethereum recently overtook Stellar in U.S. Treasury product market cap, leading at $328M to Stellar’s $322M. Polygon and Solana have also entered the market, indicating a diversifying blockchain landscape for tokenized assets.
Centrifuge’s Performance
- Financing Real-World Assets: Centrifuge has financed $463.6M in real-world assets to-date. Institutional loans now make up 49.6% of Centrifuge’s cumulative originations. The real-estate sector has seen the largest growth, increasing 14% from $93M to $108.7M in Q3.
- TVL Growth: Centrifuge’s TVL increased $29M QoQ, from $211.7M in Q2 to $240.6M in Q3. Currently, Centrifuge TVL is $246.4M, the highest of any onchain credit protocol.
Tokenized Assets on Polygon
- Asset Diversity: Polygon PoS has over $113M in tokenized assets, offering RWA providers the advantages of an on-chain ecosystem with cost-effective transaction fees. Top RWA assets on Polygon have been Corporate Bonds, Fiat-Collateralized Stablecoins, Government Securities, and Real Estate.
- Tokenized Games: Pokemon cards have been tokenized on Polygon via Courtyard, with $339k of sales volume from 2.6k sales, and 2.6k cards on-chain.
Maple Finance’s Growth
- Outstanding Loans: Maple Finance’s on-chain capital marketplace continues to expand with additional credit opportunities for users. Total outstanding loans have climbed steadily throughout 2023, currently standing at $86.7M.
- Deposits: Lenders with different risk tolerances and liquidity needs have deposited $91M YTD across different Maple pools. 48.5% of those deposits ($44.6M) have flowed into cash management, yielding 4.8% net with daily liquidity.
Actionable Insights
- Investigate the Potential of Tokenized Assets: The significant growth in the tokenization of real-world assets indicates a promising trend. Businesses and investors should explore the potential benefits of tokenizing their assets, such as increased liquidity and accessibility.
- Consider Diversified Blockchain Platforms: Ethereum’s dominance in the tokenization space is evident, but other blockchains like Polygon and Stellar are also gaining traction. These platforms offer diversified tokenized asset types and could be worth considering for future tokenization efforts.
- Monitor the Role of Institutions: The involvement of institutions in tokenizing assets is a key trend to watch. Their participation could lend credibility to the process and potentially drive further growth in the sector.
- Assess the Performance of Specific Projects: Projects like Centrifuge and Maple Finance have shown strong performance in the tokenization of RWAs. Monitoring their strategies and results could provide valuable insights for other businesses considering tokenization.
