Binance Research has revealed that the sector of RWA (Real World Assets) tokens on blockchain is experiencing real growth. The market has surpassed 12 billion dollars.
Binance Research and the rapid growth of the RWA token market
The report by Binance Research highlighted a rapid growth in the Real World Assets sector on blockchain. In fact, at the moment, the on-chain market of RWA tokens seems to have exceeded 12 billion dollars.
Apparently, therefore, investors seem to find the tokenization of physical or tangible real-world assets on a blockchain increasingly interesting.
In fact, leading the scene seems to be the tokenization of traditional assets such as US government bonds, private credit, real estate, and commodities, which are increasingly integrated into the ecosystems of decentralized finance (DeFi).
Not by chance, the tokenized US government bonds, and therefore part of the RWA world, have surpassed 2 billion dollars in terms of market capitalization.
The motivation behind such an increase in interest for investors could be attributed to interest rates that remain high, or to the search for secure on-chain returns.
In any case, Binance Research has also delved into the crucial role of institutions in the ongoing growth of RWA tokens.
Binance Research: the growth of the RWA token market and the crucial role of institutions
Analyzing the current RWA market, there are important players in traditional finance who are launching their innovative tokens.
Among others, there isBUIDL, the Treasury token of BlackRock, which has surpassed 500 million dollars in capitalization. The tokens of Franklin Templeton and WisdomTree are also seriously involved in this sector.
This means that TradFi and DeFi find in the RWA token market a sort of bridge that increasingly contributes to strengthening the stability and legitimacy of the blockchain ecosystem.
In this regard, Gianluigi Guida, CEO of Binance Italy, commented:
“The merger between blockchain and traditional finance is generating a profound change in the way we conceive and manage financial assets. RWAs are bringing transparency, efficiency, and innovation, redefining the opportunities that blockchain technology can offer in the world of finance. In this sense, the Binance report provides a very interesting analysis for anyone interested in the evolution of the relationship between DeFi and traditional finance and the future of tokenized assets.”
The latest news on the Real World Asset sector
Among the latest news in the Real World Asset sector, there is the announcement of Assetera, the EU-regulated platform for RWA that has decided to use the Polygon blockchain.
In practice, Assetera allows its users to trade RWA tokens on the secondary market in a regulated manner and will be based on Polygon.
On the other hand, Plume Network, the modular layer-2 blockchain, announced its intention to tokenize 1.25 billion dollars in RWA by Q4 2024. Its goal is to achieve a total tokenization of 3 billion dollars.