DeFi protocol Ondo Finance and enterprise agency Pantera Capital plan to ramp up investments in real-world property (RWAs), highlighting the business’s growing deal with tokenization amid favorable regulatory developments in the USA.
Each firms knowledgeable Axios that they plan to speculate $250 million in RWAs by way of a brand new fund known as Ondo Catalyst. Ondo’s chief technique officer, Ian De Bode, says the funds will likely be invested to accumulate fairness stakes and tokens in rising tasks.
“We’re seeing a little bit of an arms race proper now” within the tokenization market, De Bode advised Axios, referring to the surge of firms getting into the house. Exchanges specifically are zeroing in on tokenized shares and exchange-traded fund (ETF) choices.
As Cointelegraph just lately reported, digital brokerage agency Robinhood has launched a brand new layer-2 blockchain to allow European purchasers to commerce tokenized US shares and ETFs.
In Might, Kraken introduced plans to supply tokenized US inventory buying and selling to buyers outdoors the USA.
In the meantime, crypto change Coinbase is reportedly pursuing regulatory approval to supply tokenized equities, a transfer that will assist it compete with Robinhood and different buying and selling platforms.
Ondo Finance has been ramping up its push into onchain finance, just lately saying the formation of a World Markets Alliance with a number of crypto corporations to drive adoption of blockchain-based capital markets. On Thursday, the corporate introduced that OKX Pockets has joined the alliance.
Earlier this 12 months, the corporate launched Ondo World Markets to deliver conventional monetary markets onto the blockchain.
Notably, Ondo is backed by Peter Thiel’s Founders Fund, which is reportedly supporting efforts to construct a brand new crypto-friendly financial institution.
Associated: Chainlink, JPMorgan, Ondo Finance full crosschain treasury settlement
The tokenized RWA market is gaining momentum
Efforts to construct a brand new tokenized financial system are being supported at a number of ranges throughout business and authorities, with US Securities and Alternate Fee (SEC) Chair Paul Atkins pledging to create pathways for tokenization innovation.
Following a regulatory period marked by “regulation by way of enforcement,” Atkins’ SEC is now targeted on “how will we advance innovation within the market,” he advised CNBC earlier this week.
A latest business report co-authored by RedStone, Gauntlet and RWA.xyz discovered that the tokenized RWA market has grown by as a lot as 380% since 2022, reaching $24 billion as of June. Notably, this determine excludes stablecoins, that are collectively valued at greater than $250 billion.
The RedStone report discovered that personal credit score and US authorities debt are the principle development drivers for RWAs.
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