RWA Sector Accelerates: From New Public Chain Converge to Sky Competition, BUIDL Fund Surpasses $1 Billion
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RWA Sector Accelerates: From New Public Chain Converge to Sky Competition, BUIDL Fund Surpasses $1 Billion
The RWA sector sees multiple key developments, spanning public chain innovation, tokenization races, mortgage-backed securities markets, and real estate tokenization.
Navigating Web3 tides with focused insightsAuthor: Weilin, PANews
RWA is undoubtedly one of the fastest-growing sectors in Web3. As of March 25, according to data from rwa.xyz, the total value of on-chain real-world assets (RWA) has reached $19.53 billion, representing a 19.58% increase over the past 30 days. Compared to $9.407 billion a year ago, the RWA market has achieved a 108% year-on-year growth in on-chain value. In terms of blockchain networks' total RWA value, Ethereum leads with $5.01 billion, followed by ZKsync Era ($672 million) and Algorand ($473 million).
Recently, the RWA sector has seen several key developments spanning public chain innovation, tokenization competitions, mortgage-backed securities markets, and real estate tokenization. This article provides a brief overview and introduction to these developments.
Ethena and Securitize Launch New Blockchain Converge, Planned for Q2 Launch
Converge is a traditional finance and digital dollar settlement network powered by Ethena Labs and Securitize. Its vision is to provide the first settlement layer specifically designed for integrating TradFi and DeFi, centered around USDe and USDtb, with security provided by ENA.
The blockchain is expected to serve two core use cases:
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Settlement for permissionless spot and leveraged DeFi speculation;
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Storage and settlement of stablecoins and tokenized assets.
Securitize will deploy its core future asset tokenization layer on Converge, extending beyond tokenized Treasury products and funds to include securities across all asset classes. Ethena will launch its core products—USDe, USDtb, and iUSDe—natively on the chain.
Applications will be built on Converge specifically to enable traditional finance to interact on-chain with iUSDe, USDe, and assets supported by Securitize.
Currently, five protocols have committed to building and distributing institutional-grade DeFi products on Converge:
Aave Labs’ Horizon: Bridging traditional finance and DeFi through a market designed for Securitize-tokenized assets, including Ethena’s institutional-grade iUSDe;
Pendle Institutional: Providing infrastructure for interest rate speculation on scalable institutional opportunities like iUSDe;
Morpho Labs: Offering modular money markets for Ethena and Securitize assets;
Maple Finance and Syrup: Building verifiable on-chain institutional yield and credit products based on USDe and real-world assets (RWA);
EtherealDEX: Delivering high-performance derivatives and spot trading tailored for Ethena liquidity, using USDe as collateral.
Sky's $1 Billion Tokenization Competition Winners Announced: BlackRock, Superstate, Centrifuge
On March 18, BlackRock-Securitize, Superstate, and Centrifuge were selected as winners of the Spark Tokenization Grand Prix, a competition launched by Sky (formerly MakerDAO) aimed at bringing up to $1 billion in tokenized assets into the Spark Liquidity Layer.
Judge Steakhouse Financial selected three winners from 39 applications: BUIDL by BlackRock and Securitize, USTB by Superstate, and JTRSY by Centrifuge. They will receive funding allocations of $500 million, $300 million, and $200 million respectively. Notably, Centrifuge’s JTRSY was issued in partnership with asset management firms Anemoy and Janus Henderson.
Sky’s initiative aims to diversify the Spark portfolio and accelerate the adoption of real-world asset (RWA) tokenization. Once approved by Sky governance, these assets will become eligible collateral for Sky’s native stablecoin USDS and its yield-bearing stablecoin sUSDS.
DigiFT Launches Two On-Chain Tokenized Index Funds Covering AI Stocks and Crypto Assets
On March 25, Singapore-licensed crypto exchange DigiFT announced the launch of index funds with fully tokenized shares and underlying stocks, enabling on-chain trading accessible to qualified and institutional investors.
The initial offerings include:
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AI Stocks Index Fund (tracking Apple, Tesla, Microsoft, NVIDIA, etc.)
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Web3 Index Fund (covering crypto assets such as BTC, ETH, SOL)
These funds are managed by Hash Global, with Amber Premium as the issuance partner. Operating via smart contracts, they support subscription and redemption in USDT and USDC, require no bank accounts, and offer real-time on-chain transparency with a 24/7 settlement cycle.
Earlier, on February 19, DigiFT announced a tokenized version of Invesco’s $6.3 billion private credit fund. This product allows institutional investors to purchase tokenized fund shares using USD, USDC, or USDT. Since its inception in 2006, the fund has delivered an average net annual return of 4.5%, investing in senior secured loans to corporations.
Figure Advances On-Chain Mortgage-Backed Securities (MBS) Market
According to rwa.xyz, Figure Technology Solutions currently dominates nearly 80% of the tokenized private credit market, revolutionizing the mortgage-backed securities capital markets through blockchain technology. Major financial institutions including Goldman Sachs, Jefferies, and Deutsche Bank are adopting Figure’s DART electronic lien registry system to expand their use of the Figure Connect loan marketplace, launched in June 2024.
The loan marketplace automates lending on the Provenance blockchain, enabling homeowners to receive approval for home equity lines of credit (HELOCs) within minutes and access funds within days, eliminating manual underwriting processes.
In February, Figure formed a joint venture with Sixth Street and secured a $200 million equity commitment to establish a loan securitization mechanism and build a liquid market.
Republic and Hamilton Lane Launch Tokenized Private Equity Infrastructure Fund Targeting Retail Investors
Republic announced a collaboration with Hamilton Lane to launch a tokenized private equity infrastructure fund targeting retail investors, with a minimum investment threshold of just $500.
The Hamilton Lane Private Infrastructure Fund (HLPIF) is the first registered, "evergreen" tokenized infrastructure fund in the U.S. open to non-accredited investors. The fund will acquire direct positions and secondary stakes in infrastructure assets such as data centers (serving AI companies), energy pipelines, and transportation hubs. Although fund shares typically have low liquidity, the company plans to offer quarterly redemption options. This move reflects the evolving trend among online capital-raising platforms expanding from early-stage investments into broader asset classes to meet retail investor demand.
Dubai Launches Real Estate Tokenization Pilot, Targets $16 Billion by 2033
The Dubai Land Department (DLD) has initiated the pilot phase of its “Real Estate Tokenization Project,” becoming the first registry in the Middle East to implement blockchain-based tokenization of real estate ownership.
This project is part of Dubai’s *2033 Real Estate Sector Strategy* and the Real Estate Innovation Program (REES), jointly implemented by the Dubai Virtual Assets Regulatory Authority (VARA) and the Dubai Future Foundation (DFF) via SandBox Real Estate. It aims to achieve a market value exceeding $16 billion by 2033, accounting for 7% of Dubai’s total real estate transactions.
This development comes amid rising interest in asset tokenization across the UAE, including DAMAC Group’s announcement with MantraChain to tokenize $1 billion in assets.
Fidelity Expands Into RWA With “OnChain” Share Class for Tokenized Money Market Fund
According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on March 21, Fidelity filed to register an “OnChain” share class for its tokenized dollar money market fund, Fidelity Treasury Digital Fund (FYHXX). Launched at the end of last year, the fund holds cash and U.S. Treasury securities. Documentation indicates that the “OnChain” class currently operates on the Ethereum network but may expand to other blockchains in the future. Subject to regulatory approval, the registration is expected to take effect on May 30.
BlackRock’s BUIDL Fund Surpasses $1 Billion AUM, Expands to Solana
On March 14, BlackRock’s BUIDL fund surpassed $1 billion in assets under management (AUM), becoming the first institutional-grade on-chain fund to reach this milestone. Backed by short-term U.S. Treasuries, BUIDL offers daily yields to qualified investors—functioning similarly to a stablecoin on-chain.
Since its launch in March 2024, BUIDL has overtaken Franklin Templeton’s BENJI and Hashnote’s USYC to become the world’s largest on-chain fund, capturing approximately one-quarter of the entire $4.2 billion on-chain Treasury market. Originally operating on Ethereum Mainnet, BUIDL has expanded to Aptos, Arbitrum, Avalanche, Optimism, and Polygon, supporting cross-chain transfers via Wormhole. Custody is handled by Anchorage Digital, BitGo, Copper, and Fireblocks, with settlement managed by BNY Mellon. BlackRock is accelerating its Web3 strategy and offering institutional crypto asset management services through Coinbase.
On March 25, BlackRock announced a partnership with Securitize to extend its blockchain-based money market fund BUIDL to Solana. Beyond expanding BUIDL’s footprint, the asset manager is increasingly deepening its involvement in the cryptocurrency market.
Conclusion
Currently, BlackRock’s BUIDL fund surpassing $1 billion in AUM stands out as a landmark event in the RWA space. From public chain development and tokenized funds to innovations in real estate and credit markets—and national-level initiatives like Dubai’s pilot—RWA is emerging as one of the most dynamic sectors in the crypto industry. As institutional capital continues to flow in and infrastructure matures, RWA is poised to significantly expand its influence within both the crypto market and the broader global financial system. Future developments warrant close attention.
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