Ondo Finance and Pantera Capital are launching a $250 million investment vehicle designed to accelerate the tokenization of real-world assets (RWAs), Axios reported on July 3.
Dubbed the Ondo Catalyst Fund, the initiative will focus on startups that tokenize traditional financial instruments such as stocks, bonds, real estate, and private equity.
Sponsored
The move highlights a growing trend among institutional players to explore blockchain-based representations of conventional assets.
Tokenized Securities are Gaining Momentum
The fund’s launch arrives as the tokenized securities space experiences rapid development.
From trading platform Robinhood’s blockchain-related initiatives that could support tokenized asset access for European users, to crypto exchange Kraken’s plans for international tokenized equity trading, platforms are actively entering the space. Coinbase, meanwhile, is reportedly seeking regulatory approval to join the race.
Earlier this year, Ondo introduced Ondo Global Markets, a platform that enables access to tokenized U.S. assets for crypto wallets and decentralized applications.
The initiative is backed by the Global Markets Alliance, which includes Solana Foundation, Fireblocks, BitGo, Trust Wallet, and 1inch.
RWA Market Poised for Trillions in Value
The market for tokenized real-world assets is experiencing rapid growth. According to Boston Consulting Group, the sector could reach $600 billion by 2030, driven by increased institutional adoption and improved blockchain infrastructure.
As of mid-2024, over $11.5 billion worth of RWAs have already been tokenized on-chain.
Tokenized Treasury bills are currently the most represented asset class, followed by private credit and real estate. The total value of the tokenized treasuries currently stands at $7.39 billion. BlackRock’s tokenized fund, BUIDL, launched in March 2024 on Ethereum, has already gained a market value of more than $2.8 billion.
On the Flipside
- The infrastructure for large-scale RWA adoption is still in development, and regulatory clarity regarding tokenized securities remains inconsistent across jurisdictions.
- Many tokenized RWA platforms struggle to achieve the trading volume and liquidity needed to attract institutional capital.
Why this matters
Tokenization of RWA is considered one of the most promising applications of blockchain technology.
Discover DailyCoin’s top crypto news:
First SOL Staking ETF Raises $12M, Opens Door for Yield-Driven Crypto Products
XRP Price Winks At $100 Amid Ripple’s US Bank Push
People Also Ask:
Real-World Assets refer to tangible or traditional financial instruments like stocks, bonds, real estate, and private equity, which are represented digitally on a blockchain through tokenization.
Tokenization enables fractional ownership, faster settlement, increased transparency, and broader access to traditional asset classes through blockchain technology.
Tokenization is the process of converting ownership rights of real-world assets into digital tokens on a blockchain, enabling easier trading, access, and liquidity.
