Institutional Interest Boosts Real World Assets in Crypto Markets

2 mins mins

Key Points:

Institutional interest in RWA drives market capitalization expectations.
TVL in tokenized real-world assets recently surpassed $11 billion.
Community optimistic about scaling tokenization within crypto markets.

Institutional investors are showing increased interest in Real World Assets (RWA), as noted by Zhu Su in a social media post on March 28. This interest lies in the potential for RWA Total Value Locked (TVL) to be transformed into an equal measure of token market capitalization.

This surge in interest is linked to the assumption that significant TVL can boost corresponding protocol tokens’ valuation. RWAs, therefore, emerge as crucial participants within the broader cryptocurrency infrastructure. As Patrick Scott from DefiLlama stated, “The question isn’t if more assets will be tokenized, but how fast it will scale.” These moves suggest a strategic realignment within crypto finance.

Institutional Influence Elevates Tokenized RWA Market Value

Zhu Su highlighted the interest in RWAs as they offer a proportional conversion from $1 in TVL to $1 in token market capitalization. Institutional investors see RWA as a potential economic launchpad within crypto. Su identified BTC L2 and ETH Rebase as hidden investments like RWAs.

Historical Surge in RWA TVL Reflects Market Dynamics

Did you know? In just a few years, RWAs have grown significantly, with a 1,054% increase since March 2023—highlighting the sector’s massive scaling potential.

According to CoinMarketCap, the cryptocurrency DFOhub (BUIDL) remains priced at $0.00, with a fully diluted market cap of $21.25 million, despite no circulating supply. Its trading volume shows zero fluctuations, yet it marked a positive 35.28% shift over the past 30 days.

dfohub-daily-chart — DFOhub(BUIDL), daily chart, screenshot on CoinMarketCap at 18:28 UTC on August 17, 2022. *Source: CoinMarketCap*

Coincu research experts indicate institutional actions could effectively initiate broad-scale financial tokenization, impacting traditional finance sectors. As RWAs steadily integrate, increased regulatory scrutiny may heighten, necessitating robust compliance measures. Technological advances continue to promote enhanced capabilities for asset tokenization.