Crypto Market Rebounds with Real-World Asset Tokens as Tokenization Story Picks Up Pace

Crypto Recovery Led by Real-World Asset Tokens as Tokenization Momentum Builds

Real-world asset (RWA) tokenization emerged as a key driver in the crypto market’s rebound, with notable gains in tokens linked to this sector, while many altcoins continue to recover from recent declines. The resurgence underscores the growing focus on tokenization as an investment strategy.

Ondo Finance, a decentralized finance (DeFi) platform for tokenized assets, saw its governance token rise by 16%, recovering nearly 40% from its overnight lows. The platform also launched Ondo Nexus, an instant minting and redemption service for tokenized Treasury issuers. Ondo will be hosting a summit in New York this week, bringing together traditional finance giants, including BlackRock and Franklin Templeton.

Meanwhile, the native token of MANTRA (OM), a layer-1 blockchain designed for tokenized assets in the Middle East, jumped 30% from its Monday lows, posting a 16% increase on the day. MANTRA recently entered a significant partnership with Dubai’s DAMAC Group to tokenize a billion-dollar portfolio, including real estate and data center investments.

The CHEX token from Chintai, a tokenization platform regulated by Singapore’s Monetary Authority, surged 27% during the same period. The company outlined plans in late January to expand into the U.S. market and pursue securities licensing there.

Bitcoin (BTC) itself also rebounded above $101,000 from its previous lows, gaining 4% in the last 24 hours. The broader market, as measured by the CoinDesk 20 Index, posted a more modest 2% increase.

Market observers often look to the strongest assets during a recovery to gauge the broader strength of the market. The RWA tokenization sector continues to grow rapidly, with the total value locked (TVL) increasing by 200% last year, reaching $7.3 billion. The government securities sector played a pivotal role in this expansion, according to crypto trading firm Wintermute.

Prominent voices in finance have increasingly highlighted tokenized RWAs as a major innovation in the financial world, with the potential to evolve into a multitrillion-dollar market. Larry Fink, CEO of BlackRock, has urged U.S. regulators to create clear rules for tokenized securities, foreseeing a future where bonds and stocks are traded on blockchain platforms.

Robinhood CEO Vlad Tenev also backed regulatory changes last week, proposing the opening of tokenized private equity markets to retail investors, which are currently accessible only to accredited and high-net-worth individuals.