The RWA Track is Thriving: New Public Chains, Large Competitions, and Institutional Get on Board Leading Industry Transformation

Real-world assets (RWA) are rapidly becoming one of the fastest-growing sectors in the Web3 space. As of March 25, the total on-chain value of RWAs has reached $19.53 billion, with a 30-day increase of 19.58%, achieving a year-on-year growth of 108% compared to the same period last year. Ethereum leads with a total value of $5.01 billion, followed by ZKsync Era and Algorand.

Recently, the RWA track has seen several important developments, involving innovations in public chains, the competition for asset tokenization, the mortgage-backed securities market, and real estate tokenization.

Converge public chain is about to launch, focusing on the integration of traditional finance and DeFi.

Converge is a new public chain designed specifically for traditional finance and digital dollar settlements, scheduled to launch in the second quarter of this year. The network aims to be the first settlement layer specifically designed for the integration of TradFi and DeFi, with USDe and USDtb at its core.

The two core application scenarios of Converge include:

1. Permissionless spot and leverage DeFi trading settlement
2. Storage and Settlement of Stablecoins and Tokenized Assets

Multiple well-known protocols have committed to building institutional-grade DeFi products on Converge, including Aave Labs' Horizon, Pendle Institutional, Morpho Labs, Maple Finance, and Syrup, as well as EtherealDEX. These projects will provide diversified financial services and products for the Converge ecosystem.

The Sky-hosted $1 billion asset tokenization competition successfully concluded

The results of the Spark tokenization competition initiated by Sky (formerly MakerDAO) have recently been announced. The tokenized treasury products from BlackRock-Securitize, Superstate, and Centrifuge stood out from 39 applications, receiving funding support of $500 million, $300 million, and $200 million, respectively.

These winning projects will be incorporated into Sky's native stablecoin USDS and the yield-bearing stablecoin sUSDS as collateral, helping to diversify Spark's investment portfolio and accelerate the tokenization of RWA applications.

DigiFT Launches Innovative On-Chain Tokenized Index Fund

The Singapore licensed crypto exchange DigiFT has announced the launch of two fully tokenized index funds, namely the AI Stock Index Fund and the Web3 Index Fund. These funds will fully tokenize fund shares and underlying assets, enabling on-chain trading, and are open to qualified and institutional investors.

These funds operate based on smart contracts, supporting the subscription and redemption of USDT and USDC, without the need for a bank account, providing real-time on-chain transparency and 24/7 settlement cycles. This move signifies a deep integration of traditional financial products with blockchain technology.

Figure promotes the development of on-chain collateralized loan-backed securities market

Figure Technology Solutions is leveraging blockchain technology to innovate the mortgage-backed securities capital market. Several major financial institutions have adopted Figure's DART electronic lien registry system to advance its application in the Figure Connect loan market.

The loan market automates loans on the Provenance blockchain, significantly simplifying the process for homeowners to obtain home equity credit lines. Figure has also formed a joint venture with Sixth Street, securing a $200 million equity commitment to establish a loan securitization mechanism and liquidity market.

Republic collaborates with Hamilton Lane to launch a tokenized infrastructure fund accessible to retail investors.

Republic announced a partnership with Hamilton Lane to launch a tokenized private equity infrastructure fund, with a minimum investment threshold of only $500, accessible to retail investors. This is the first "perpetual" tokenized infrastructure fund in the United States open to non-accredited investors, with investment coverage including infrastructure assets such as data centers, energy pipelines, and transportation hubs.

Dubai Launches Real Estate Tokenization Pilot Project

The Dubai Land Department has launched a pilot "Real Estate Tokenization Project," becoming the first registration authority in the Middle East to implement blockchain-based real estate property tokenization. This project is part of Dubai's "2033 Real Estate Industry Strategy," which is expected to exceed a market value of $16 billion by 2033, accounting for 7% of the total real estate transaction volume in Dubai.

Fidelity International Expands RWA Business

Fidelity International has applied to register the "OnChain" stock class for its tokenized US dollar money market fund, Fidelity Treasury Digital Fund (FYHXX). The fund currently utilizes the Ethereum network and may expand to other blockchains in the future. This move reflects the ongoing interest of traditional asset management giants in the RWA space.

BlackRock BUIDL fund size exceeds $1 billion, expanding to Solana

BlackRock's BUIDL fund has surpassed $1 billion in assets under management, becoming the first institutional on-chain fund to reach this milestone. BUIDL is backed by short-term government bonds and offers daily returns to qualified investors. The fund has expanded to multiple blockchain networks, including Ethereum, Aptos, Arbitrum, Avalanche, Optimism, Polygon, and recently added Solana.

With institutional funds continuing to flow in and infrastructure constantly improving, RWA is expected to further expand its influence in the cryptocurrency market and even in the global financial system. From public chain construction to tokenized funds, from real estate to innovations in the credit market, RWA is becoming one of the most promising areas in the crypto industry, and its future development deserves ongoing attention.