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The Plumeberg News — 18.10.2024
October 19, 2024

The Plumeberg News offers weekly insights into the Real World Asset Finance (RWAfi) sector, carefully curated by the Goonheads specifically for PLUME GOONS.

Here is an overview of what the Plumeberg News will cover:

  1. Weekly RWA Highlights
  2. RWAfi Market Commentary
  3. Narrative Overview
  4. RWAfi Category Insights
  5. Tokenized Assets Analytics

1)Weekly RWAfi Highlights

Ripple Enhances Crypto Custody Services for Banks with RWA Tokenization

Ripple has upgraded its Ripple Custody service, targeting banks and fintech firms with new features for secure digital asset storage, including RWA tokenization. The updates leverage the XRP Ledger for token issuance and transfers, and include access to a decentralized exchange for low-fee trading. Enhanced user interface, compliance tools through Elliptic, and improved security options are also part of the offering.

Read more: theblock.co

Ethena Picks BlackRock’s BUIDL, Mountain, Superstate, and Sky’s USDS for $46M Tokenized RWA Investment

Decentralized finance (DeFi) protocol Ethena (ENA), issuer of the $2.5 billion USDe “synthetic dollar” token, has announced a $46 million investment in tokenized real world assets. The Reserve Fund will allocate approximately $18 million in BlackRock’s BUIDL, $13 million in Sky’s USDS, $8 million in Mountain’s USDM, and $7 million in Superstate’s USTB. This move aligns with a trend among DeFi platforms to secure yield through RWA-backed tokens, diversifying beyond crypto markets.

Read more: coindesk.com

Phlomis Finance to Transform RWA Tokenization with Chromia

Phlomis Finance is set to revolutionize real world asset (RWA) tokenization through Chromia’s blockchain infrastructure, leveraging the Chromia Real World Assets Protocol (CRWA). Incubated by ChromaWay, Phlomis aims to open access to institutional-grade assets, typically reserved for established financial institutions, by tokenizing projects like global infrastructure and climate initiatives. The partnership focuses on overcoming RWA challenges such as scalability and cost, with Phlomis planning to launch its first tokenized products in Q4 2024.

Read more: coinpaper.com

RWA Tokenization Sector Could See 50x Growth by 2030: Report

The real world asset (RWA) tokenization sector is experiencing a breakthrough in 2024, with projections of a 50-fold increase by 2030. According to a Tren Finance research report, the sector could reach a market size between $4 trillion and $30 trillion. The median estimate suggests a potential market value of $10 trillion, a substantial leap from its current $185 billion valuation, which includes stablecoins. As the industry evolves, RWA tokenization could reshape global financial markets by integrating traditional finance with blockchain technology.

Read more: cointelegraph.com

Wall Street Firms Are Embracing Asset Tokenization (RWA): Bloomberg Report

A recent Bloomberg report highlights why Wall Street firms are increasingly turning to the tokenization of real world assets (RWAs). The report names BlackRock as a key player in this shift, citing benefits like enhanced liquidity, lower costs, and faster transactions through blockchain technology. Tokenization enables the fractional ownership of assets, such as stocks and real estate, making them more accessible. The RWA tokenization market could reach $2 trillion by 2030, with factors like AI integration and evolving regulations shaping its future.

Read more: cryptopolitan.com

RWA Tokenization Startup Plume Network Offers $100 Million in Solar Assets for Yield

Plume Network, a real world asset tokenization firm, announced a partnership with Projective Finance to make $100 million worth of solar assets available for users seeking yield opportunities. Through this collaboration, users can deposit stablecoins or other assets into a solar token to earn yields on these solar assets. This move is part of Plume Network’s broader plan to tokenize $1.25 billion in real world assets by Q4, including mineral rights and Medicaid claims.

Read more: theblock.co

How RWA Tokenization Could Disrupt Financial Markets by 2030

The financial landscape is rapidly evolving, with Real World Asset (RWA) tokenization emerging as a game-changer poised to transform markets by 2030. This process digitizes tangible assets like real estate and commodities, enabling easier transactions and fractional ownership on blockchain networks. The rise of RWA tokenization could democratize access to high-value assets, enhance liquidity, and improve market transparency. Forecasts suggest that the sector could grow over 50 times, potentially reaching a market size between $4 trillion and $30 trillion by 2030.

Read more: ecoinimist.com

WisdomTree Integrates Debit Services with WTGXX RWA Fund

On October 9, WisdomTree launched “Earn-Until-You-Spend,” a feature allowing debit cardholders to use the WTGXX Money Market Fund as a spending source. This tokenized real world asset (RWA) fund, offering a 4.6% yield, lets users earn returns on idle funds, similar to a checking account. Accessible through the WisdomTree Prime debit card, the feature connects liquid on-chain investments to everyday spending, offering a unique value proposition for both new and existing investors.

Read more: thedefiant.io

2)RWA Market Commentary

1. Growth and Institutional Adoption

Ripple’s upgraded custody service integrates RWA tokenization, allowing banks to leverage the XRP Ledger for token issuance and trading, reflecting a growing institutional interest in blockchain-based solutions. Ethena’s $46 million investment in RWA-backed tokens highlights DeFi’s shift toward stable, yield-bearing strategies, blending DeFi innovation with traditional finance. Wall Street firms, including BlackRock, are increasingly adopting RWA tokenization, attracted by the potential for enhanced liquidity and fractional ownership, marking a shift from initial skepticism towards active exploration of blockchain’s benefits.

2. Challenges and Opportunities in RWA Implementation

RWA tokenization faces hurdles like regulatory uncertainty, especially in the U.S., and the need for scalable blockchain infrastructure to manage increased transaction volumes. Phlomis Finance, through its partnership with Chromia, addresses these challenges by creating a scalable framework for RWA tokenization, making institutional-grade assets more accessible. Stablecoins play a crucial role in the ecosystem by bridging traditional finance and blockchain, offering stability and liquidity, thus facilitating smoother RWA transactions and expanding investment opportunities.

3. Sector-Specific Dynamics

Plume Network’s partnership with Projective Finance to tokenize $100 million in solar assets demonstrates RWA’s potential in renewable energy, offering users yield opportunities while supporting sustainable projects. WisdomTree’s “Earn-Until-You-Spend” feature links RWA investments with everyday spending, providing users a way to earn returns while maintaining liquidity. Phlomis Finance’s focus on tokenizing large-scale infrastructure and climate projects expands the scope of RWAs, demonstrating the versatility of tokenization across diverse sectors and the ability to attract a broader range of investors.

4. Emerging Trends and Future Outlook

The RWA market is projected to grow 50-fold by 2030, potentially reaching a market size of $4–30 trillion, driven by blockchain’s integration into traditional finance. AI’s role in RWA expansion, through improved asset management and operational efficiencies, is gaining attention, as seen in partnerships like SingularityDAO’s. Regulatory clarity from countries like Singapore sets the stage for broader RWA adoption, facilitating a global shift towards a more interconnected financial system, where tokenization plays a fundamental role in modernizing investment strategies.

3)Narrative Overview

Top Performing narratives (7D change):

  • Memes: 26%
  • NFTs: 12%
  • BTC: 6%
  • Bitcoin Narrative: 4%
  • RWA: -8%

RWA Index Ranking 4th:

4)RWA Category Insights

Market Cap: $7.7B (-2.3%)

Top Gainers:

  • Carnomaly: +15.5%
  • Everest: +18%
  • Artrade: +10.5%

Market Cap Ranking:

  • Mantra $OM
  • Ondo $ONDO
  • Pendle $PENDLE

5)Tokenized Assets Analytics

Private credit

  • Active Loan Value: $9.17B
  • Total Loans Value: $15.07B
  • Total Loans: 1940

Tokenized Treasuries

  • Total Value: $2.35B (+0.9%)
  • Average Yield To Maturity: 4.93%
  • Holders: 6,265 (-0.78%)

Stablecoins:

  • Market Cap: $171.4B (+0.14%)
  • Monthly Transfer Volume: $1.50T (-1.55%)
  • Monthly Active Addresses: 19.57M (2.56%)

Conclusion

The RWA tokenization market is experiencing significant growth, merging the strengths of blockchain with traditional finance. With projections suggesting a potential 50x market expansion by 2030, this sector is drawing interest from banks, DeFi platforms, and institutional investors. While challenges like regulatory uncertainty persist, the push for greater liquidity, accessibility, and integration signals a transformation in how assets are managed and exchanged globally.

Leading this shift, Ripple’s upgraded custody services and Ethena’s $46 million RWA investment exemplify how key players are adapting to new opportunities. Ripple leverages its XRP Ledger for secure token issuance, while Ethena allocates funds into stable, yield-bearing tokens like BlackRock’s BUIDL. Plume Network’s $100 million solar asset initiative further showcases how RWA projects are expanding into diverse areas, supporting both financial and sustainable growth.

About Plume

Plume is the first fully integrated and modular chain focused on RWAfi. We’ve built a composable, scalable ecosystem that supports the seamless onboarding of all types of real world assets, from equities to private credit and beyond. With our end-to-end tokenization engine, over 170 projects are building on Plume’s infrastructure, simplifying compliance and capital management to help projects scale globally.


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