The world of Tokenized Real-World Assets (RWAs), or what I like to call, Really Weird Assets, is ballooning faster than a greedy giant after a Wonka Whipple-Scrumptious Fudgemallow Delight! But hold your horses! 🐴Contrary to what those blithering Blockheads believe, it isn’t those pesky regulations slowing things down. Oh no, it’s something far more sinister… or, well, just a bit annoying, really. According to that chap Aaron Kaplan, co-CEO of Prometheum (sounds like a spell from Harry Potter, doesn’t it?), it’s the pathetic lack of proper places to buy and sell these tokenized whatsits.
In a chinwag with CryptoMoon, Kaplan (the name sounds a bit fishy, doesn’t it?) mentioned that Cathie Wood from ARK Invest (sounds like a dog barking) whined at some Digital Asset knees-up in New York that regulatory fog was stopping her from turning her funds into tokens.
“Poppycock!” says Kaplan (probably with a twinkle in his eye). He reckons that the SEC (those boring suits!) already has rules and licences that let you issue these blockchainy-native funds. Makes you wonder what she’s complaining about! 🤔
“The real problem,” he declared, “is that there aren’t enough markets to sell this digital dribble to the masses.”
Apparently, the value of these RWAs (except for those yawn-inducing stablecoins) has jumped nearly 8% to a whopping $19.5 billion in just 30 days! Most of it’s in private credit and US Treasury debt (whatever that is!).
Kaplan (yes, him again) grumbled that these assets are stuck on a few blockchains, and there isn’t a proper public market where regular folk and fancy institutions can buy, sell, and trade them like they do with normal shares. Can you imagine the chaos? 🤪 He thinks there are two ways to solve this terrible tragedy.
First, you could build these tokenized markets using DeFi (Decentralized Finance), just like those clever clogs at Ondo Finance, Ethena Labs, and Securitize are doing.
Or, you could bung these tokenization protocols into existing brokerage platforms that are already regulated by those SEC blighters.
“Those old crypto and fintech platforms already shuffle cryptocurrencies about, so they’ll probably want to sell tokenized securities too,” said Kaplan (still going on!).
But those old-fashioned companies, the ones who don’t do things digitally, “won’t give up without a squabble,” Kaplan warned. “They’re already splashing cash on their own tokenization schemes, or teaming up with those fintech and crypto whippersnappers, to stay in the game.”
“The prize is the next bunch of suckers… I mean, users… joining the digital asset game! The question is: will the old brokerage giants muscle in on the digital world, or will the crypto platforms build the future markets for buying and selling digital whatsits?”
Prometheum, being a digital asset trading and custody thingamajig, is trying to bridge the gap (whatever that means) by building a full-service digital asset securities marketplace. They claim their securities have lower fees, faster settlements, and are generally more efficient. Blimey!
Investors Want Digital Versions of the Same Old Gruel
Apparently, the biggest reason investors want tokenized assets is because they want “digital versions of everything they already own, plus those crypto tokens, all in one place where they feel comfy, to achieve their financial goals,” Kaplan (him again!) declared. Sounds dreadfully dull, doesn’t it?😴
One place where this tokenization seems to be catching on is in real estate. Luxury and commercial properties are being turned into tokens all over North America, and markets are being set up to trade these tokenized shares. Fancy! 🤩
A 2024 report by Boston Consulting Group (those brainy boffins) called tokenization a “game-changing blockchain use case in financial services” because it’s scalable and quick.
According to BCG managing director Sean Park, tokenization could boost investors’ returns by roughly $100 billion a year and make financial institutions even richer. Disgusting! 🤑
Even the World Economic Forum has mentioned the potential of tokenization in an article by Yuvan Rooz, the CEO of Digital Asset.
Rooz (sounds like someone you’d find in a zoo) showed that about 10% of the $230 trillion global securities market could be used as collateral.
“Tokenization, which makes collateral move faster and uses capital more efficiently, could unlock this untapped cash and make it easier to move funds around within the same day to meet payment deadlines,” said Rooz. Sounds frightfully complicated, doesn’t it? 🤔
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2025-03-31 19:59