Welcome to The State of Tokenization. Every month, we dive into the biggest updates in the real-world asset tokenization space, what’s hot onchain and offchain, who’s integrating with whom, and more.
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Tokenization Metrics We’re Tracking
RWA distributed asset value: $38.71B (+0.17%)
Number of RWA holders: 4.6M (+63.61%)
Daily Transfer volume: $10.10B (+44.09%)
Total stablecoin value: $305.30B (+1.07%)
Tokenized treasuries total value: $14.80B (-5.41%)
Tokenized private credit (active loans value): $8.22B (+6.00%)
The metrics are accurate at the time of publication. The percentage change is over a 30-day period.
What Caught Our Eye This Month
The SEC approved a temporary "Innovation Exemption" that allows Tokenized Securities Venues (TSVs) to trade tokenized stocks on some onchain exchanges.
To qualify, platforms need to ensure token holders get the same rights as regular shareholders; notify a company before tokenizing its stock; keep their trading technology open and checkable; and stop trading a token immediately if the real stock stops trading too.
The rule also protects the firms supplying liquidity on these platforms from being treated as unlicensed securities dealers.
The move marks a step towards allowing tokenized stock trading across DeFi applications in the United States.
Kraken's parent company, Payward, is teaming up with the London Stock Exchange (LSE) to bring the 100 biggest LSE-listed companies onto the blockchain as tokenized "xStocks.”
If regulators approve, the tokens would trade on the LSE's new extended-hours venue.
The companies are also exploring issuance of new share tokens directly through LSE's own systems.
Securitize and Socios.com have partnered up to create "Socios Equity Tokens," which will represent minority ownership stakes in professional sports teams.
Socios will tap its relationships with over 70 major clubs (including Arsenal, FC Barcelona, and Juventus) and its fan-facing platform, while Securitize will manage token issuance, investor onboarding, and ownership records.
Chart of the month
Tokenized stock trading volume skyrocketed in September, reaching $19.72 billion in the past 30 days, a 207.5% increase from the 30 days prior.
Much of the growth happened on Robinhood Chain, which handled 53.2% of the total volume, processing over $10.37 billion. BNB came in second, handling 27.8%, boosted by an exceptionally busy trading day on September 9.
Additional RWA & Tokenization Developments
Coinbase will use Chainlink to supply live price data for its new tokenized stocks. Each token is backed by a real share held in regulated custody.
DBS and Citi completed a cross-boarder payment on Swift’s new Digital Ledger system over a weekend early in September.
The transaction was an early pilot for the network, showcasing its ability to handle international banking activity outside of traditional banking hours.
tZERO and Intercontinental Exchange (ICE), the parent company of the NYSE, have partnered to build infrastructure for trading tokenized stocks.
tZERO will help ICE develop the technology and record-keeping systems needed to settle tokenized-securities trades on ICE's upcoming Digital Trading Platform, and is expected to eventually be approved as one of its official participants.
ICE is investing in tZERO's latest funding round and, in return, gets a license to use tZERO's blockchain patents.
The companies also plan to explore using tZERO's tokenized assets as collateral at ICE's clearing houses.
WisdomTree and MoonPay have joined hands to expand access to WTGXX, WisdomTree's tokenized money market fund.
The deal gives WisdomTree a new way to reach U.S. retail investors directly via MoonPay's platform.
MoonPay plans to hold WTGXX as part of the reserves backing its stablecoin business.
Aegis Trust, a digital asset custodian, unveiled its plans for a tokenized money market fund designed around humanitarian impact. About 10% of the fund's gross revenue will be directed to disaster relief, and additional token rewards will be for investors, nonprofits, and a governing council of "Super Validators."
Term of the month: Special Purpose Vehicle (SPV)
Definition: A legal entity that a company creates to hold a specific asset or take on a specific project. Such entities are walled off from the parent company's other business and risks.
Used in a sentence: Coinbase holds the shares backing its tokenized stocks inside a special purpose vehicle, so that if something went wrong elsewhere at Coinbase, the assets backing those tokens would stay protected.
What we’re listening to
Will Peck, head of digital assets at WisdomTree, was the first guest on Convergence, a joint show between Token Relations and The Rollup. He talked about how tokenized funds complement stablecoins, the private markets tokenization thesis, and how the firm received SEC approval to trade a tokenized money market fund via a broker dealer.
This is the State of Tokenization. September Edition.
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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.
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