Kaiko Analytics Reports TradFi Leading the Tokenization of Real World Assets Trend

Kaiko Analytics Reports TradFi Leading the Tokenization of Real World Assets Trend

Traditional finance, known as TradFi, is making significant strides in the tokenization of real-world assets (RWA), as reported by blockchain data tracker Kaiko Analytics.

In a recent Kaiko Research update, it was revealed that industry heavyweights like Fidelity, JPMorgan, and BlackRock are at the forefront of the RWA tokenization movement using crypto.

Last week, Fidelity International made headlines by joining JPMorgan’s tokenized network, marking its entry into the rapidly expanding trend of tokenization among institutional players. Concurrently, BlackRock’s BUIDL, a tokenized liquidity fund, has shown remarkable growth, amassing over $460 million in assets.

Since its launch in March, BlackRock’s BUIDL has surpassed the performance of several crypto-native firms, including Maple Finance’s Cash Management Fund, which specializes in short-term cash instruments. Despite Maple’s experience in the field and recovery from the 2022 crypto lending services collapse, its Cash Management Fund has only managed to accumulate around $16 million in assets, significantly trailing behind BUIDL.

When examining the flagship cryptocurrency Bitcoin (BTC), Kaiko points out that the reduced volatility of BTC indicates the asset’s maturation.

While BTC may have experienced fluctuations driven by macro news last week, it is evident that the digital gold has reached a new level of maturity in 2024. This maturity is reflected in its decreasing volatility, with BTC’s 60-day historical volatility consistently below 50% since the start of 2023. This is a stark contrast to the significant volatility seen in 2022, when BTC’s volatility exceeded 100%.

As of the time of writing, BTC is valued at $64,527.

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