😵 RWA Token Crashed 90% In Hours

Spring is in the air, and Ray Buckton, Head of Research at RWA World, is here to celebrate it with you. 🌷

Big news – Mantra is probably rethinking its $108 million RWA and DeFi fund as the $OM price collapsed 90% in an hour in a mass liquidation (or fraud?) event, with speculation still swirling. 😦

The whole thing is strange – $277 million moved to exchanges just before the collapse, but TVL was up 500% days before the event. Time will tell what went sour with Mantra. 🍋

🎯🔥 Rapid Fire Takeaways:

☁️ Sky and Spark protocols deploy $25 million in Maple Finance lending pool with plans to potentially double the allocation

🗺️ SEC Offers Guidance for Crypto Issuers

⚖️ Moody’s explores risks of fund tokenization

📈 Zero Hash Processed $2B in Flows to Tokenized Funds as RWA Demand Accelerates

☄️ Only 11 stablecoin issuers survive MiCA’s first 100 days

👏 Chronicle tapped as oracle provider for winners of the $1 billion SparkDAO Tokenization Grand Prix

🔍 The State of Crypto Lending – Bringing Transparency to an Opaque Market

Tokenization pressed forward regardless, with RWAs reclaiming the $20 billion mark, as Ripple eyes $19 trillion by 2033. 👀

Given that Tether is responsible for around 73% of centralized crypto lending, according to an excellent report by Galaxy, stablecoins will likely lead that charge. 🥇

✈️ Tokenization Taking Off

Assets are coming on-chain at an insane rate. Arbitrum’s RWA market is up 1000X year over year, and Zero Hash has processed over $2 billion in flows to tokenized funds. Plume is also tokenizing gold via Matrixport’s RWA platform, Matrixdock – given the yellow metals' rise lately, it’s a good move. ⛏️

While Argentina revealed a tokenization sandbox for digital securities, Moody’s is actively exploring the risks associated with fund tokenization. It’s not all glitter and gold – Securitize COO Michael Sonnenshein says that real estate might not be the best fit for asset tokenization. 🏚️

BlackRock, as always, has the wherewithal to shrug it all off. LTP is supporting BUIDL as collateral. BlackRock also named Anchorage Digital as its latest digital asset service provider. CEO Larry Fink is looking at the big picture, recently claiming that tokenization has no future without digital IDs. 🖼️

💳 Stablecoins On The Move Again

Of course, we can’t talk about tokenization without diving into stablecoins. Cointelegraph has an excellent write-up on how to read a stablecoin attestation report – it’s worth reviewing. That backing matters, as only 11 stablecoins have survived MiCA’s first 100 days. It’s a bit of an extinction event, and across the channel, JP Morgan is using Kinexys Digital Payments in the UK at the same time that the Bank of England is exploring offline CBDC options. 💶

This week, OpenEden’s USDO crossed the $100 million TVL milestone. Trump’s World Liberty Financial officially launched its USD1 stablecoin in presidential fashion. Then there’s Visa, which joins Paxos and Robinhood in their USDG stablecoin consortium, further bolstering their ranks and serving as the first TradFi payment giant to join the group. 🧑‍🤝‍🧑

Tron’s CEO, Justin Sun, is again fighting off allegations, claiming FDUSD is fully backed, while M^0 has expanded to Solana by working with neo-bank KAST. Even the Ethereum Foundation is getting involved in tokenization, announcing more support for RWAs and stablecoins, leading to whales scooping up around 16,000 ETH. 🐳

🌉 Institutions + Infrastructure

Companies are moving to tokenize in significant ways. For example, OKX is working with Standard Chartered on a collateral mirroring program, then Hydra X is working with the Canton Network on an institutional tokenized offering, and finally Libre Capital is working with Chainlink on tokenized funds. 🤝

Fnality is also on a tear – they’re launching earmarking for tokenized payments and revealed £20m in funding, plus Broadridge is collaborating with them for real-time settlement on intraday repo. Speaking of banks, Taurus also kicked off the first interbank network for digital asset collaboration. 🏛️

Meanwhile, Hedera is working on cross-chain functionality with Chainlink in parallel to Centrifuge tapping Wormhole for a multichain tokenization platform. Sometimes it’s multichain, sometimes it's data for private markets and scalable agentic AI, as is the case with Inveniam’s acquisition of Hedgehog. 🦔

📜 Regulatory Developments and Lending

It’s like a whole new SEC out there – they’re considering a sandbox for crypto exchanges to test tokenized securities while also providing guidance for crypto issuers. Speaking of sandboxes, SEI and Ctrl Alt are playing in the Bank of England’s sandbox along with French and Italian regulations proposing changes to their DLT pilot regime. 🤓

Sky and Spark protocols are deploying $25 million into Maple Finance with more to come, as well as Securitize acquiring MG Stover’s fund admin business to become the largest digital asset fund administrator globally. Speaking of Spark, our friends at Chronicle were tapped to be their oracle provider via their $1 billion Tokenization Grand Pri – awesome news for decentralization. 🏁

🏆 Going For The (Tokenized) Gold

Another week, another win for tokenization.

Stablecoins are seriously becoming the next big thing, just like we always knew they would.

Make sure to join our X Space with Wolf Crypto on Thursday at 2 pm EDT for a live breakdown of what’s going on with tokenization.

And thanks for being awesome – we’ll see you next time!