In a September 20 announcement, Securitize announced that it is working with the Wormhole Foundation to enable cross-chain interoperability for all tokenized assets on its platform.
Through this partnership, Wormhole becomes the official blockchain interoperability provider for Securitize’s current and future tokenized assets, representing a major step forward in the tokenization and cross-chain interoperability of digital assets.
As a result, Securitize can enhance cross-chain functionality by linking tokens to 32 blockchains available on the Wormhole infrastructure. The company is a tokenization infrastructure provider to institutions such as BlackRock and Hamilton Lane.
The goal of this collaboration is to drive institutional adoption and bridge the gap between traditional and decentralized financial systems by allowing asset issuers using Securitize’s tokenization platform to seamlessly transfer tokens across various blockchain ecosystems.
This is expected to increase the liquidity and accessibility of tokenized assets, while giving investors greater flexibility when managing digital assets across multiple blockchains.
Carlos Domingo, Co-Founder and CEO of Securitize, emphasized that in order to fully realize the potential of blockchain technology, tokenized versions of real-world assets (RWAs) must be developed on public, permissionless blockchains.
Securitize plans to integrate custom smart contracts with Wormhole’s secure open source interoperability platform to create tailored solutions that meet the needs of specific asset managers and are compliant with regulations. Platform users can expect increased trust, flexibility, and legitimacy in cross-chain activities, backed by Securitize’s compliance expertise.
Robinson Burke, co-founder and COO of the Wormhole Foundation, said the integration with the cross-chain messaging protocol paves the way for institutional adoption of tokenized assets, calling it a “pivotal moment” in bridging traditional finance and DeFi.
Problems to be solved
The tokenized US Treasury market is commonly used to gauge the health of the RWA tokenization sector. According to RWA.xyz data, the current market size is over $2.2 billion.
BlackRock’s tokenized fund, BUIDL, has approximately $522 million in assets under management (AUM), accounting for a significant portion of the market cap. All of BUIDL’s shares are placed on the Ethereum blockchain.
Additionally, funds such as TBILL, OUSG, and USDY are also deployed on Ethereum, bringing the total amount of tokenized US Treasurys on the network to $1.6 billion.
Stellar holds the second largest market share by hosting Franklin Templeton’s FOBXX, the second largest tokenized fund by market share, while Solana ranks third with $69.2 million in tokenized assets.