New fund targets startups bringing real-world assets like bonds and equities to the blockchain as institutional interest rises.
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.
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
Why this matters
Tokenization of RWA is considered one of the most promising applications of blockchain technology.
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