Coinbase Tokenized Fund Is Being Planned For RWA’s New Boom

Key Points:

• Coinbase Asset Management is introducing a tokenized money-market fund to enhance transparency and liquidity.
• To facilitate Coinbase tokenized fund, the exchange is working with Bermuda-based Apex Group, which manages over $3 trillion in assets.
• The move follows Coinbase’s December 2023 approval to tokenize traditional assets on its Ethereum scaling network, Base.

According to CoinDesk, the U.S.-listed cryptocurrency exchange, Coinbase, is gearing up to launch a tokenized money-market fund.

Read more: Coinbase Custody Services Will Access 8 New Spot Ethereum ETFs

Coinbase Tokenized Fund Is Being Planned

Coinbase tokenized fund is one of the largest advancements toward the swiftly developing space of blockchain-powered finance. More broadlyfund, this plays into the current trend in the industry of tokenization—transformation of real-world assets to a blockchain-based product.

Tokenized funds up the ante for investors regarding transparency and liquidity or fungibility directly on the blockchain. For issuers, this is quite efficient since it enables the Coinbase tokenized funds to efficiently carry on the processes affecting asset management.

This isn’t Coinbase‘s first foray into tokenized finance. Last December, it got the in-principle nod from an Abu Dhabi regulator to offer tokenized traditional assets through Base, its Ethereum scaling network. It signals a continuation of its business in the tokenization space after prior development.

Coinbase Asset Management is collaborating with Apex Group, which is a Bermuda-domiciled company responsible for over $3 trillion in assets under management and also offers services in custody and administration.

Coinbase Expands Tokenization Efforts Following ORDAM Acquisition

Tokenization, replacing sensitive data with secure and unique identification symbols, has turned out to be one of the hot trends in the cryptocurrency space. For example, BlackRock, the world’s biggest asset manager, launched a similar fund—dubbed BUIDL—in March 2023, which held U.S. Treasuries and quickly attracted $500 million in holdings.

ORDAAM is a registered investment adviser with the SEC, and offers investment advisory services to its new and existing institutional clients. ORDAM became part of Coinbase Asset Management in March 2023.