Securitize adds Wormhole to multi-chain RWA tokens
Securitize, a tokenization platform, has integrated the cross-chain communication protocol Wormhole in an effort to “bring on-chain capabilities to all assets tokenized through the Securitize platform,” Securitize said in a September 20 announcement.
Real-world assets (RWAs) — including claims on financial assets, commodities or art — are emerging as one of cryptocurrency's most popular market segments, but transfer restrictions between blockchain networks and wallets hinder adoption.
“Tokenized securities should be leveraged on public, permissionless blockchains to unlock the potential of blockchain technology,” said Securities CEO Carlos Domingo in a statement.
Securities said the merger aims to “enable sub-second, sub-coin transactions” and develop the RWA cross-chain ecosystem.
RWAs are a nearly $12 billion market. Source: RWA.xyz
Related: WisdomTree aims to bring autonomy to regulated RWAs.
On September 18, WisdomTree launched an RWA platform designed to allow its users to access the asset manager's RWA tokens from any wallet or blockchain network. Franklin Templeton has similar plans, the asset manager told Cointelegraph in July.
Securitize sells RWA tokenization as a service to institutional investment managers including BlackRock, Hamilton Lane Invest Corp and KKR. It has about $1 billion in RWAs on board and is registered with U.S. regulators as a broker-dealer, transfer agent and alternative trading system (ATS), according to the securities website.
According to RWA.xyz, Tokenized RWAs command over $12 billion in total value locked (TVL). They represent a $30-trillion market opportunity globally, Colin Butler, Polygon's global head of institutional capital, told Cointelegraph in August.
The largest mutual funds by assets under management (AUM) are BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin Onchain US Government Money Fund (FOBXX), with AUM of approximately $520 million and $430 million, respectively.
Securitize helps institutions launch tokenized funds. Source: Securities
A wormhole is a blockchain protocol that focuses on sending and filtering messages between different blockchains – including information on token transfers. It connects nearly 30 networks and layer 2 blockchains, including Ethereum (ETH), Avalanche, and Solana (SOL).
Ethereum dominates RWAs by total value locked (TVL), reaching approximately $9 billion as of September 20, according to RWA.xyz. Providers are expanding into other chains, with Franklin Templeton planning to launch tokenized funds on Solana on September 20.
Smooth cross-chain integration “sets the stage for institutional acceptance for increasing tokenized assets,” Wormhole Foundation CCO Robinson Berkey said in a statement.
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