Tokenized institutional alternative funds (IAF) surged 47% in the last 30 days, reaching a total value of $1.74 billion, according to data from real-world asset (RWA) tokenization tracker RWA.xyz.
The data showed that all protocols except Libre Capital had percentage increases in the last 30 days. Centrifuge led the growth, expanding its market cap by 252% to $704 million. This gave the issuer a 40.4% market share for IAFs.
Apart from IAFs, Centrifuge also had almost $400 million in tokenized US Treasury products, bringing its total value locked (TVL) to over $1 billion. This allowed Centrifuge to join BlackRock’s BUIDL fund and Ondo Finance to surpass the $1 billion RWA milestone.
Securitize followed with $652 million across 14 tokenized IAFs, accounting for 37.5% of the market. Other notable protocols included Superstate with $206 million and OnRe with $102 million in fund value.
Institutional funds league table. Source: RWA.xyz
What are institutional alternative funds?
Institutional alternative funds, or IAFs, are professionally managed investment vehicles that allocate capital into asset classes outside of traditional stocks and bonds. These include hedge funds, private equity, private credit, venture capital and assets like real estate or infrastructure.
Tokenizing these funds brings them to the blockchain, allowing them to access benefits including faster settlement, wider investor access and greater transparency.
Protocols bringing such funds into blockchains highlight a growing demand for RWA tokenization among traditional financial institutions.
While tokenized IAFs increased in value, RWA.xyz data shows that monthly active addresses dropped by over 50% to 21,867 in the last 30 days, while the number of holders increased by 13.5% to 114,922.
This suggests that institutions or professional investors may be consolidating their funds into fewer addresses. It also suggests that new investors may be buying and holding, signaling long-term confidence in the investment vehicle.
Related: CoinShares reports 26% AUM increase to $3.46B in Q2
Ethereum remains the most dominant blockchain for tokenized IAFs
RWA.xyz data showed that Ethereum remained the most dominant network for tokenized IAFs. The blockchain hosts $1 billion in total value, which is more than half of the entire market.
Mantle and ZKsync Era followed with $218.8 million and $214.8 million, respectively, while Solana accounted for $135.2 million. Networks like Plume and Avalanche had smaller amounts, $59.2 million and $41.2 million.
Institutional funds total value by network. Source: RWA.xyz
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