In a Sept. 20 announcement, Securitize has partnered with the Wormhole Foundation to enable cross-chain interoperability for all assets tokenized on its platform.
This partnership makes Wormhole the official blockchain interoperability provider for Securitize’s current and future tokenized assets, marking a major step forward in digital asset tokenization and cross-chain interoperability.
As a result, Securitize can now connect its tokens to the 32 blockchains available on Wormhole's infrastructure, enhancing cross-chain capabilities. The company provides tokenization infrastructure to institutions such as BlackRock and Hamilton Lane.
The collaboration aims to boost institutional adoption and bridge the gap between traditional and decentralized financial systems by enabling asset issuers using Securitize's tokenization platform to seamlessly transfer tokens across different blockchain ecosystems.
This is expected to increase liquidity and accessibility of tokenized assets and give investors more flexibility to manage their digital assets across multiple blockchains.
Carlos Domingo, co-founder and CEO of Securitize, emphasized that to realize the full potential of blockchain technology, tokenized versions of real-world assets (RWAs) need to thrive on public, permissionless blockchains.
Securitize plans to integrate its customized smart contracts with Wormhole's secure, open-source interoperability platform to create tailored solutions that meet specific asset managers' needs and comply with regulations. Users of the platform can expect increased trust, flexibility and legitimacy in their cross-chain activities, backed by Securitize's compliance expertise.
Robinson Varkey, co-founder and COO of the Wormhole Foundation, said the integration with the cross-chain messaging protocol paves the way for institutional adoption of tokenized assets, which he called a “pivotal moment” for bridging traditional finance and DeFi.
Issues to be addressed
The tokenized U.S. Treasury market is often used to gauge the health of the RWA tokenization sector, which currently has a market capitalization of over $2.2 billion, according to data from RWA.xyz.
BlackRock's tokenized fund, BUIDL, has approximately $522 million in assets under management (AUM) and represents a significant portion of the market cap. All BUIDL shares are deployed on the Ethereum blockchain.
Additionally, funds such as TBILL, OUSG, and USDY have also been deployed on Ethereum, with a total of $1.6 billion worth of tokenized U.S. Treasury bonds on the network.
Stellar holds the second largest market share as it hosts Franklin Templeton's FOBXX, the second largest tokenized fund by market share, while Solana comes in third with $69.2 million in tokenized assets.
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