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Tokenized Funds Outpace Early ETF Growth, Standard Chartered-Backed Libeara Reports

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A brand new report, Real World Assets: A Practitioner’s Guide, co-authored by Libeara, a Standard Chartered Ventures–backed tokenization platform, highlights how tokenized belongings are quickly gaining traction in world markets.

The report states that tokenization is greater than digitization: it entails creating programmable, composable belongings that may settle immediately on world blockchain rails.

Unlike conventional monetary infrastructure, the place belongings are siloed throughout custodians and clearinghouses, tokenized belongings exist as bearer devices that may be transferred, swapped, or built-in into good contracts in real-time.

This composability permits new capabilities akin to atomic swaps between tokenized Treasuries and stablecoins, or the usage of tokenized loans as collateral inside decentralized finance (DeFi) programs.

From Bitcoin to Stablecoins to Tokenized Funds

Libeara traces the evolution of tokenization by three phases. The first started with Bitcoin, which launched digital shortage however was too unstable to function a mainstream monetary instrument.

The second got here with Ethereum’s good contracts, which created programmable finance however initially relied on unstable crypto-native collateral.

The third, beginning round 2020, mixed stablecoins and real-world belongings (RWAs), extending programmable finance into the realm of Treasuries, cash market funds (MMFs), and personal credit score.

This development has laid the groundwork for institutional adoption. Stablecoins proved the viability of tokenized cash, and tokenized RWAs are actually connecting capital markets to blockchain infrastructure, with rising participation from established monetary corporations.

Market Growth and Structural Drivers

While nonetheless small relative to conventional markets, tokenized funds are increasing shortly. Tokenized Treasuries symbolize only some billion {dollars} in belongings beneath administration in comparison with the $20 trillion Treasury market, however their progress curve mirrors the early trajectory of exchange-traded funds (ETFs).

CoinShares notes that tokenized MMFs are scaling sooner than ETFs did of their first decade, pointing to trillion-dollar potential within the years forward.

The report identifies a number of elements driving adoption: the return of constructive rates of interest, the success of stablecoins, institutional experiments by corporations akin to Franklin Templeton and BlackRock, enhancements in blockchain scalability, and clearer regulatory frameworks rising within the U.S. and Asia. Together, these forces have made tokenization each technically possible and commercially engaging.

Case Studies in Institutional Credibility

Examples from main asset managers underscore this momentum. Franklin Templeton’s OnChain U.S. Government Money Fund, launched in 2018, demonstrated regulated tokenized funds may function throughout a number of public blockchains.

BlackRock’s 2024 launch of the BUIDL fund on Ethereum additional validated the market, attracting half a billion {dollars} in belongings inside months. Fidelity, WisdomTree, and Janus Henderson have since launched their very own tokenized Treasury merchandise.

Global scores companies akin to S&P and Moody’s are actually score tokenized funds, with some merchandise receiving investment-grade classifications.

According to Libeara, this institutional credibility marks a turning level, suggesting tokenized funds are positioned to observe — and probably exceed — the expansion trajectory of ETFs.

The submit Tokenized Funds Outpace Early ETF Growth, Standard Chartered-Backed Libeara Reports appeared first on Cryptonews.

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