Traditional finance (TradFi) is beginning to take the lead in tokenizing real-world assets (RWA), according to blockchain data tracker Kaiko Analytics.
According to a new article from Kaiko Research, TradFi giants such as Fidelity, JP Morgan, and BlackRock are leading the new wave of RWA tokenization with cryptocurrencies.
“Last week, Fidelity International announced it was joining the J.P. Morgan Tokenization Network, becoming the latest institutional investor to join the rapidly growing tokenization trend. In parallel, BlackRock’s tokenized liquidity fund BUIDL continues to grow, now accumulating over $460 million.
Since its launch in March, BlackRock’s BUIDL has outperformed some crypto-native firms, including Maple Finance’s Cash Management Fund, which focuses on short-term cash products. Maple has been in the space for years and recovered from the collapse of its crypto lending service in 2022, but its Cash Management Fund has just $16 million in assets, which pales in comparison to BUIDL.”
Turning his attention to the mainstream cryptocurrency Bitcoin (BTC), Kaiko suggested that BTC’s declining volatility is a sign of the asset’s maturity.
“BTC may have had a rollercoaster ride last week due to macro news, but it’s clear that the digital gold has reached a new level of maturity in 2024. This can be seen in the decline in volatility, with BTC’s 60-day historical volatility remaining below 50% since the beginning of 2023. This is in contrast to the wild swings in 2022, when volatility exceeded 100%.”
At the time of writing, BTC is worth $64,527.
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