Listen to Blackrock CEO Larry Fink very carefully. And just a few days after this statement, BlackRock unveiled its first tokenized fund on the Ethereum blockchain – BlackRock USD Institutional Digital Liquidity Fund – B.U.I.D.L for short.
As a result, the tokenization of the real-world assets (RWA) sector has boomed. Leading to some tokens heavily outperforming the market over the past 7 days. Institutions are making larger investments in RWA than in any other crypto sector. This is good for us because we could catch the next 50-100x! In this sector. Let’s dive in.
1) Realio ($RIO)
Soon after Larry Fink kind of endorsed the RWA sector, the RIO token soared almost 190%. Why RIO? I will explain that in a bit but before that let’s quickly understand why Realio is a fundamentally good project.
Our roadmap for 2024 has been released! 💪
This roadmap outlines our development journey now through the end of the year!#Realio #LMX #RealioNetwork #DApp #KYC #Freehold #RWA #Districts #Issuance #Tokenization #Web3 pic.twitter.com/NM2MbB9rsQ
— Realio (@realio_network) February 15, 2024
Realio is headquartered in New York City and is a fully SEC-compliant Layer 1 blockchain for real-world assets built with Cosmos SDK, compatible with EVM and non-EVM chains. Coming back to the question – Why did $RIO pump the most after BlackRock news? Here is a plausible explanation.
We all know that recently the BlackRock Wallet was funded with $100 Million. Where did these funds come in from? Well, out of this $100 Million, 10,000 RIO tokens were transferred to Blackrock’s wallet from Realio Network’s reserve wallet. That indicates something big happening between a Trillion dollar investment company and an RWA project.
Transforming ownership and trading with RWAs, a 🧵
When it comes to asset management, there’s something you should not miss: Tokenization of Real World Assets (#RWAs).
And guess what? Realio is leading the way.
Curious about how it's reshaping the industry? Read on! 👇
— Realio (@realio_network) January 5, 2024
Now let’s look at $RIOs price potential. The current market Cap of Realio Network is $125M and considering the upcoming bullrun and the RWA sector potential, we foresee a 10x – 50x potential in the $RIO token.
2) Ondo Finance ($ONDO)
Why Ondo? See Over the past year, RWAs have been rediscovered through Treasuries. Protocols like $ONDO utilizing US Treasuries for tokenization have bridged high yields, safe government debt, and blockchain liquidity, attracting significant capital inflow.
Also, Ondo Finance has a very special advantage. Let me explain. RWA is a sector that inherently faces regulatory risks and infra issues, which are not easily resolved unless the project has been under development for years. Ondo is comparatively a new player in the space, then what is the advantage here? Firstly, Ondo is led by Goldman Sachs’s Digital Assets veterans.
📢 OUSG will soon offer 24/7/365 subscriptions and redemptions via USDC and transition its backing predominantly into the newly launched @BlackRock USD Institutional Digital Liquidity Fund (BUIDL).https://t.co/qXmC3Y3adm
— Ondo Finance (@OndoFinance) March 27, 2024
Secondly, Ondo is already appealing to institutions and institutional investors when selecting RWA partners. Big players like BlackRock, and Morgan Stanley are part of Ondo’s support system.
Wait one more big thing. Recently, Ondo partnered with Apotos blockchain. Ondo and Aptos envision a seamless blend of traditional finance and blockchain technology. The partnership explores solutions integrating on-chain native and real-world asset yields, bridging the gap between conventional financial markets and the emerging blockchain ecosystem.
🌐 We are proud to have contributed to the MetaMask Adapter Standard, allowing institutions to maintain reporting & portfolio management. We welcome @MMInstitutional to the Ondo Ecosystem with open arms! 🌐
MetaMask Institutional is an institutionally-compliant version of the… https://t.co/oLQXH6Zove pic.twitter.com/leghk1IuPg
— Ondo Finance (@OndoFinance) March 19, 2024
If we take a look at the price potential, $ONDO is up 852.9% since its token launch in Jan 2024. Its current market cap is $1.169 Billion and is undervalued at the moment. The fully diluted value is $8.1B and unlocked is 14.3% of the total supply. So We see solid potential in Ondo.
3) $CFG (Centrifuge)
Centrifuge is one of the pioneers of RWA. Their mainnet goes back to April 2020. Now, Centrifuge lets you borrow or lend assets. This eliminates any middlemen and all commissions they take.
The Centrifuge Credit Group is back with another Asset Primer, this time on US Non-Investment Grade Corporate Credit.
This segment of the fixed income universe provides higher yield in exchange for lower liquidity and credit quality.
Learn more in the full overview! ↓ pic.twitter.com/TdeiGe6qTL
— Centrifuge (@centrifuge) April 2, 2024
That’s only one advantage. It’s also possible to fractionalize an RWA. A good example is real estate. You may not be able to afford a whole real estate asset. However, after it’s tokenized and fractionalized, you can afford parts of it.
Their flagship is the Tinlake Dapp. You can find this on the Ethereum chain as an open marketplace. It’s also an investment Dapp. This is where you can tokenize RWAs into NFTs. Once it’s tokenized, you can move it around in the DeFi space. In contrast to Tinlake, Centrifuge itself calls Polkadot and Kusama its home. Centrifuge offers RWAs in a couple of different areas. For instance:
- Invoices.
- Real-estate.
- Revenue-based financing.
- US Treasury Bills.
Another interesting aspect of Centrifuge is that it offers a compliant legal infrastructure. The current CFG price is $0.958. It’s up 62% in the last 14 days. Next are the liquidity pools that Centrifuge launched. On Ethereum, Base, and Arbitrum. This allows you to invest funds in RWA pools without having to leave a chain or change wallets.
One cool thing about Centrifuge Liquidity Pools is that we can accept liquidity from any chain in any currency.
We're now live on @base, @arbitrum, @ethereum our native L1, @centrifuge Chain, and most recently, @Celo. https://t.co/RC9jMyatPv
— Bhaji Illuminati (@itsbhaji) March 29, 2024
The team also has the Kinto, Gnosis, Celo, and Mantle chains on their visor. These are all L2 or rollup chains. Which one of the protocols I mentioned today is your favorite, and why? Let me know in the comments.
Disclaimer
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