According to Kaiko Analytics, TradFi dominates the trend towards tokenization of real assets


According to blockchain data tracker Kaiko Analytics, traditional finance (TradFi) is increasingly taking the lead in real-world asset tokenization (RWA).

According to a new post by Kaiko Research, TradFi giants like Fidelity, JPMorgan and BlackRock are leading the new wave of RWA tokenization using cryptocurrencies.

“Last week, Fidelity International announced its participation in JPMorgan's tokenized network, becoming the latest institutional player to join the fast-growing tokenization trend. In parallel, BlackRock's BUIDL, its tokenized liquidity fund, continues to grow and has now accumulated over $460 million.

Since its launch in March, BlackRock's BUIDL has outperformed several crypto-native firms, including Maple Finance's Cash Management Fund, which focuses on short-term cash instruments. Although Maple has been active in the space for years and recovered from the collapse of crypto lending services in 2022, its Cash Management Fund has only amassed around $16 million in assets, pales in comparison to BUIDL.”

Source: Kaiko Analytics

Looking at the flagship cryptocurrency Bitcoin (BTC), Kaiko suspects that BTC's lower volatility is a sign of the asset's maturity.

“While BTC may have been on a rollercoaster ride last week due to macro news, it is clear that digital gold has reached a new level of maturity in 2024. This can be seen in its decreasing volatility, with BTC's historical 60-day volatility below 50% since the start of 2023. This is in stark contrast to the significant swings in 2022, when volatility exceeded 100%.”

Source: Kaiko Analytics

At the time of writing, BTC is worth $64,527.

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