Securitize, a leading tokenization platform, has announced its integration of the cross-chain communication protocol Wormhole, aiming to enhance cross-chain functionality for all assets tokenized via the Securitize platform. This update was shared in a press release on September 20.
Real-world assets (RWAs) — which encompass tokenized representations of financial assets, commodities, and art — are rapidly becoming a favored segment within the cryptocurrency market. However, limitations on the transferability of these assets across various blockchain networks and wallets present significant barriers to widespread adoption.
“To truly harness the potential of blockchain technology, tokenized securities must flourish on public, permissionless blockchains,” stated Carlos Domingo, CEO of Securitize.
The integration with Wormhole is designed to facilitate “sub-second, sub-penny transactions” and promote a robust RWA cross-chain ecosystem.
RWAs currently represent a market valued at approximately $12 billion. Source: RWA.xyz
In related developments, on September 18, WisdomTree unveiled an RWA platform aimed at enabling users to access the asset manager’s RWA tokens across any wallet or blockchain network. Similarly, Franklin Templeton has expressed intentions to pursue comparable initiatives, as reported by Cointelegraph in July.
Securitize offers RWA tokenization services to institutional investment managers, including industry giants like BlackRock, Hamilton Lane InvestCorp, and KKR. The platform has successfully onboarded around $1 billion in RWAs and is registered with U.S. regulators as a broker-dealer, transfer agent, and alternative trading system (ATS), as per information available on Securitize’s website.
Currently, tokenized RWAs hold a total value locked (TVL) exceeding $12 billion, according to RWA.xyz, and globally represent a market opportunity of $30 trillion, as highlighted by Colin Butler, Polygon’s global head of institutional capital, in a discussion with Cointelegraph in August.
The largest tokenized investment funds by assets under management (AUM) include the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and the Franklin OnChain U.S. Government Money Fund (FOBXX), boasting AUM of approximately $520 million and $430 million, respectively.
Securitize assists institutions in launching tokenized funds. Source: Securitize
Wormhole is a specialized blockchain protocol that facilitates the sending and verification of messages — including information on token transfers — across different blockchains. It connects nearly 30 networks and layer-2 scaling solutions, such as Ethereum (ETH), Avalanche, and Solana (SOL).
Ethereum currently leads the RWA landscape with a total value locked (TVL) of around $9 billion as of September 20, according to RWA.xyz. Issuers are also exploring opportunities on other chains, with Franklin Templeton revealing plans to introduce tokenized funds on Solana on the same date.
The enhanced cross-chain integration “has created an environment conducive to greater institutional adoption of tokenized assets,” remarked Robinson Burkey, Chief Commercial Officer of the Wormhole Foundation.
Magazine: What Solana’s critics get right… and what they get wrong.