ON–190: Real World Assets (RWAs) 🌍

360° Coverage on Top Projects, Tokenized Treasuries, Institutions & More.

Oct 27, 2023

ON–190: Real World Assets (RWAs) 🌍

About the editor: Spencer Noon is an independent crypto investor. Looking to get in touch? DM him on Telegram or reply to this email and say hi 👋

This Issue Is Powered By Polygon 💜. Check out the new hyper-scalable DeFi hub emerging on Polygon zkEVM.

RWAs 🌍

📈 $72B+ Real World Assets have been tokenized On-Chain

  • Over $72B+ in assets have been tokenized on public blockchains. 97% of the AUM are stablecoins. They are the 1st tokenized asset that has reached product-market fit for supporting trading, crypto on/off ramp, and global remittances. During the high-interest-rate environment, the AUM of tokenized government securities increased by 560%, from $103M to $680M, as they are more attractive than yield in DeFi from a risk and return perspective.
Source: Dune Analytics - @21co
  • Ethereum remains the industry’s financial hub, with 76% of the AUM ($1.69B), followed by Stellar with $306M AUM (13.9%). Aside from Ethereum, Polygon has the most diversified tokenized asset types, such as Corporate Bonds, Government Securities, Real Estate, Private Funds, Equities, and Commodities. In contrast, other blockchains only have 2-3 tokenized asset types.
Source: Dune Analytics - @21co
  • $375M+ worth of assets are tokenized by institutions. Franklin Templeton has tokenized their Money Market Funds on Stellar and Polygon with $308M AUM. KKR, Hamilton Lane have tokenized their private funds via Securitize on Avalanche and Polygon. Siemens tokenized $63M corporate bonds on Polygon via Obligate.
Source: Dune Analytics - @21co

② Tokenized Treasuries 🏛️

📈 Tokenized U.S. Treasuries Continue to Gain Traction, Surpassing 600% Growth Since the Start of the Year

  • The trajectory of tokenized US Treasuries illustrates a growing market, increasing by 15% ($594M to $682M) since they were last featured in July. New entrants like Yieldteq and Truefi have debuted products with $4.5M and $8.5M respectively, while existing players like Backed, Maple, and Ondo witnessed significant gains, growing the market cap of their treasury products from $12M to $47M, $21M to $39M, and $144M to $172M respectively.
Source: RWA.xyz
  • Ethereum recently overtook Stellar in U.S. Treasury product market cap, leading at $328M to Stellar's $322M. Polygon and Solana recently entered with lower traction so far, holding $24M and $17M respectively, indicating a diversifying blockchain landscape for tokenized assets.
Source: RWA.xyz
  • An emerging trend is the advent of Mountain and Ondo's permissionless yield-bearing stablecoins. Despite their recent entrance, both have shown a swift uptick in market cap, with figures resting at $240k and $4.8M respectively, hinting at a potential new avenue within the tokenization sector.
Source: RWA.xyz
  • 💦🔬 Tx-Level Alpha: This $8.5M deposit is the first into the newly formed Adapt3r U.S. Treasuries Fund, hosted by the TrueFi protocol. The fund manager, Adapt3r, has since put the capital to work in short-term Treasury Bills, generating over $40,000 in interest, or 4.9% annualized, for the depositor.

③ Centrifuge 🌀

📈 Centrifuge crosses $463.6M in real-world assets financed

  • Centrifuge is an onchain ecosystem for structured credit. Centrifuge has financed $463.6M in real-world assets to-date. Institutional loans now make up 49.6% of Centrifuge’s cumulative originations. Other asset classes continue to grow, with the largest growth in the real-estate sector, growing 14% from $93M to $108.7M in Q3. Centrifuge announced new pools, including t-bills and carbon credits, in an effort to continue offering a diverse portfolio of real-world assets.
Source: Dune Analytics - @j1002
  • Centrifuge TVL increased $29M QoQ, from $211.7M in Q2 to $240.6M in Q3. Currently, Centrifuge TVL is $246.4M, the highest of any onchain credit protocol. Centrifuge continues to grow despite crypto market cycles.
Source: DefiLlama
  • Despite a decrease in the number of assets tokenized YoY (33 in October 2022 to 18 this month), the average value of those assets has increased, as seen by Centrifuge’s strong TVL growth. This is largely due to Institutional Pools like BlockTower, who tokenize asset-backed securities, or a bundle of assets, as opposed to individual assets.
Source: Dune Analytics - @j1002

④ RWAs on Polygon 🟣

📈 $113M+ worth of tokenized assets on Polygon

  • Polygon PoS has over $113M in tokenized assets offering these RWA providers the advantages of an on-chain ecosystem with cost-effective transaction fees. Top RWA assets on Polygon have been Corporate Bonds (43.9%), Fiat-Collateralized Stablecoins (21.9%) Government Securities (16.5%), and Real Estate (13.2%).
Source: Dune Analytics - @petertherock; @21co
  • Games can be tokenized too: There are Pokemon cards on Polygon via Courtyard. To date, there has been $339k of sales volume from 2.6k sales, with 2.6k cards on-chain. Last week also saw Pokemon cards' sale activity picking up with an ATH of 28k listing and bidding events made (114% more than the previous week).
Source: Dune Analytics - @polygon_analytics
  • Tokenized Government Securities: At 6.5% and behind Ethereum, Polygon has the highest market cap of the chains amongst Solana (4.5%), Gnosis (1.2%), Avalanche (0.4%) and Base (0.1%). Polygon's market share of market cap had also increased by 0.3% in the past two weeks.
Source: Dune Analytics - @petertherock (forked from @21co)
  • 💦🔬 Tx-Level Alpha: Destruction and Replenishment of RWAs onchain: An entire fund of more than $2M worth of BENJI from Franklin OnChain U.S. Government Money Fund were burned to $0. But since then, that fund has been replenished with more than $2M worth of BENJI. These on-chain data show a change in the contract, possibly to introduce new functionalities to the on-chain funds. That's how on-chain assets can synergize with RWAs. Their composability and tokenization characteristics unlocks another level of trading with RWAs.

⑤ Maple Finance 🥞

📈 Maple Finance crosses $86.7M in outstanding loans

  • Maple Finance’s on-chain capital marketplace continues to expand with additional credit opportunities for users. Recently launched RWA pools include Cash Management at $25.6M in TVL (tokenized treasuries), AQRU at $23.7M in TVL (IRS receivables financing) and Osprey at $8.1M in TVL (investment grade syndicated loans and Asset-Based Securities). Total outstanding loans have climbed steadily throughout 2023, currently standing at $86.7M.
Source: Dune Analytics - @maple-finance (Excludes Solana data)
  • Lenders with different risk tolerances and liquidity needs have deposited $91M YTD across different Maple pools. 48.5% of those deposits ($44.6M) have flowed into cash management, yielding 4.8% net with daily liquidity. The AQRU receivables pool, yielding 14% net with weekly liquidity, has received the second-most deposits at 25.1% ($23.1M).
Source: Dune Analytics - @maple-finance; app.maple.finance
  • After originating $209M in loans on Solana in 2022, Maple re-launched its Cash Management product. Being the only tokenized t-bill product live on Solana today, users can now access the same yield offered on Ethereum mainnet. To date, $16.7M has been deposited, currently earning 4.8% APY.
Source: solana.maple.finance
  • 💦🔬 Tx-Level Alpha: Maple lenders drop in and out of the Cash Management pool as other opportunities arise. Here you can see a withdrawal from Cash for 1MM USDC, which is then re-deposited right away here to the higher yielding Maple Direct pool. To date, more than 60% of withdrawals from Maple Cash have been re-deposited directly into another pool on the platform.