According to the latest report published by Messari, the total value locked (TVL) in tokenization protocols for real world assets (RWA) had risen to $8 billion as of April 26. This locked value represents a nearly 60% increase since February. A noticeable transformation in the finance ecosystem is evident with the integration of blockchain technology, as seen in the latest outlook on the tokenization of real world assets.
RWA Tokens and Rising Adoption
The increase in TVL linked to RWA tokens highlights a clear preference shift towards high-yield, debt-based investments in the market.
These figures are notable for being independent of fiat-backed stablecoins and for providing diversification through commodities, securities, and real estate tokenization protocols.
On the other hand, platforms focusing on real estate are seeing noticeable increases in both TVL and active user numbers, indicating growing interest among individual investors.
El Salvador and Its New Move
In this process, the government of El Salvador, known for its keen interest in cryptocurrencies, has taken a new step by initiating a tokenized debt issuance to finance a new hotel project around the International Airport, marking a significant move in the sector.
This initiative is known to have a fundraising target of $6.25 million linked to HILSV tokens.
The tokens are discussed to offer a 10% discount for investments of at least $1,000 over five years, with investors also potentially benefiting from perks such as free hotel stays depending on the amount of their investments.
Paolo Ardoino, CEO of Tether, the issuer of the world’s largest stablecoin by volume, USDT, once again highlighted the tokenization of real world assets. Ardoino made the following statement:
For the first time, investors who typically do not have the opportunity to invest in such assets will have the chance to do so, while issuers in markets with less access to capital can benefit from a new asset class to secure financing.
Meanwhile, tokenized U.S. Treasury bonds and bills also appear to be on the rise, with an 80% increase since the start of 2024, reaching a total of $1.29 billion.
