Ethereum and XRP Competitor Lead in Asset Tokenization Interest: Bloomberg Analysis

Bloomberg Crypto Analysis: Ethereum & XRP Competitor Top Institutional Interest for Asset Tokenization on Public Blockchains

Jamie Coutts Reveals on Platform X: Traditional Finance Fuels RWA Tokenization; Foresees More Firms Joining.

He states, "Though starting from a modest base, the growth is consistent. The surge in demand notably comes from emerging markets, aligning with the rise in stablecoin adoption."

Highlighting the rapid growth, Coutts points out that the tokenized value of US money market funds has skyrocketed to nearly $700 million, a significant leap from $100 million at the year's onset.

For context, a money market fund is a mutual fund variant that aims for returns by channeling investments into highly liquid short-term debt assets, including US treasuries and cash-like securities.

According to Coutts, Ethereum leads as the preferred network for US tokenized money market instruments, boasting a value of $345 million. However, Stellar (XLM) is hot on its heels with $321.2 million. Polygon (MATIC), a blockchain scaling solution, secures the third spot with $23.7 million

Bloomberg analyst suggests that RWA tokenization might be a major catalyst for blockchain adoption. They opine, "While stablecoins probably remain the primary force behind blockchain adoption, emerging sectors like NFTs, GameFi, and notably, RWA tokenization, hold vast potential, even if still in their infancy.

Oct 17, 2023