- According to blockchain data tracker Kaiko Analytics, traditional finance (TradFi) is beginning to take the lead in tokenizing real-world assets (RWA).
- TradFi behemoths like Fidelity, JPMorgan, and BlackRock are spearheading the new wave of RWA tokenization utilizing cryptocurrency, per a recent Kaiko Research piece.
As the most recent institutional player to get on the quickly expanding tokenization bandwagon, Fidelity International announced last week that it would be joining JPMorgan’s tokenized network. Concurrently, BlackRock’s tokenized liquidity fund, BUIDL, is expanding and currently stands at more over $460 million.
BlackRock’s BUIDL, which was introduced in March, has outperformed a number of cryptocurrency-native companies, such as Maple Finance’s Cash Management Fund, which concentrates on short-term cash products.
Despite having recovered from the collapse of the 2022 crypto loan services and being active in the market for years, Maple’s Cash Management Fund has only accumulated assets of about $16 million, which pales in contrast to BUIDL.
With regard to the leading cryptocurrency Bitcoin (BTC), Kaiko argues that the asset’s decreased volatility is an indication of its development.
Despite the fact that macro news may have caused a wild ride for Bitcoin last week, it is evident that in 2024 the digital gold has matured to a new degree.
This is evident in its decreasing volatility; since the start of 2023, BTC’s 60-day historical volatility has been below 50%. This contrasts sharply with the notable oscillations of 2022, when volatility topped 100%.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
