On the Trademark platform, an amount of $1.7 billion in private credit has been transformed into digital tokens using ZKsync. This move suggests a rising appetite among institutions for high-quality financial assets.
Based on a statement made on January 16th, the company Tradable has tokenized approximately 30 high-quality bond positions, often referred to as institutional-grade credits.
According to Tradable’s website, its portfolio opportunities target yields of between 8% and 15.5%.
Tradeable empowers institutions to convert their assets into digital tokens on a blockchain platform, thereby providing access to a wider pool of potential investors. They are confident that the ongoing shift towards online wealth management and financial transactions will bolster this approach.
Tradeable’s on-chain technology is constructed using ZKsync, a layer-2 Ethereum protocol created by Matter Labs. In 2024, ZKsync was one of the most anticipated blockchain projects, promising substantial enhancements to the efficiency and user-friendliness of the Ethereum network.
Among several businesses specializing in tokenization, Tradeable is one of the competitors aiming for a share in the Real World Assets (RWA) market. Noteworthy contenders include Securitize, which has already assisted in tokenizing over a billion dollars worth of assets. Recently, digital asset platform ParaFi Capital chose Securitize to tokenize a portion of its $1.2 billion fund, demonstrating the latter’s significant role in this sector.
As a crypto enthusiast based in the U.S., I’m thrilled about the expansion of Ondo Finance, a leading platform for US-based Treasury tokenization. Now, they’ve extended their services to include onchain treasury products in the Asia-Pacific region. This move not only broadens their reach but also opens up new opportunities for investors like me across the globe.
In other parts, the blockchain company Mantra has entered into a $1 billion deal with the Damac Group, an investment conglomerate, to facilitate token-based financing throughout the Middle East.
The opportunities for tokenization
As a crypto investor, I find the tokenization of private credit to be an exciting new frontier in the realm of risk-weighted assets (RWAs). It seems to effectively tackle some of the fundamental difficulties that have long plagued the private credit market, making it more accessible and efficient.
Based on findings from Coalition Greenwich’s research, many private credit investors express dissatisfaction due to issues with limited liquidity, inadequate transparency, and inefficiency within the private credit market. However, according to S&P Global, tokenization has the potential to address all these challenges.
This idea was also reinforced when consulting firm PwC stated that tokenization may facilitate a more seamless connection between buyers and sellers in the approximate $1.5 trillion private credit market.
According to PwC, when private credit adopts tokenization, it allows loans to be broken down into smaller pieces, thereby expanding the number of possible lenders who can participate.
Based on recent industry findings, the overall market value for tokenized Receivables and Assets (RWA) currently stands at approximately $12 billion. This figure represents an impressive 85% increase over the past two years, suggesting that institutional finance is increasingly embracing the digital asset sector. In other words, this growth trend indicates a strong interest from traditional finance institutions in the digital assets market as signified by Centrifuge’s platform.
Read More
- EUR JPY PREDICTION
- DF PREDICTION. DF cryptocurrency
- Doctor Strange’s Shocking Return in Marvel’s Avengers: Doomsday Revealed!
- COW PREDICTION. COW cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- ASTR PREDICTION. ASTR cryptocurrency
- USD MXN PREDICTION
- XDC PREDICTION. XDC cryptocurrency
- YFI PREDICTION. YFI cryptocurrency
- South of Midnight PC Requirements Revealed
2025-01-17 00:32