Cryptofinance Firm XBTO Establishes New Team Focused On RWA Tokenization

Cryptofinance firm XBTO has launched a dedicated tokenization team focused on real world assets (RWAs). The team’s goal is to advance the company’s blockchain-based corporate debt issuances, with plans to expand into areas such as real estate in the near future.

Major financial institutions like JPMorgan and BlackRock have been at the forefront of tokenizing US Treasuries. However, XBTO is taking a different approach by targeting mid-tier corporate debt issuances.

The Bermuda-based firm has already made strides in this area. For one, the company has collaborated with boutique airline BermudAir on the issuance of tokenized debt, known as “senior e-notes.”

In the coming weeks, XBTO is set to launch an e-note for hemp and CBD producer AgroRef.

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XBTO’s Tokenization Team Collaborates With Obligate

The new tokenization team at XBTO, led by Managing Director Mas Nakachi, collaborates with Obligate, an on-chain capital markets platform. Credora, a platform that provides technology-driven credit assessments, is responsible for rating these e-notes.

Javier Rodriguez Alarcon, Chief Commercial Officer of XBTO, highlighted the challenges faced by mid-sized and smaller companies in accessing traditional financing markets. He pointed out that the high costs associated with investment banks can be prohibitive for these firms.

“Reducing the cost burden for private companies to be able to issue can also be translated into a better rate for the investor and a more appealing investment proposition,” Rodriguez Alarcon explained.

“On top of that there’s the speed to settlement and the transparency associated with using the rails of crypto.”

XBTO, regulated in Bermuda, offers its tokenized assets to accredited investors, with a focus on markets outside the U.S.

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Market For Tokenized US Treasuries To Reach $3B This Year

The market for tokenized US Treasuries is experiencing significant growth, with projections suggesting it could surpass $3 billion by the end of 2024.

In a recent post on X, Tom Wan, a research strategist at 21.co, attributed the surge to the growing adoption of tokenized financial products, particularly by decentralized autonomous organizations (DAOs) diversifying their holdings into tokenized U.S. Treasuries.

Major players like Securitize and BlackRock are leading this expansion. Wan noted that BlackRock’s USD Institutional Digital Liquidity Fund, ticker symbol BUIDL, has become the largest tokenized treasury fund, rapidly accumulating over $528 million in assets since its launch in March.

The potential of tokenization extends far beyond U.S. Treasuries. A report by the Global Financial Markets Association (GFMA) and Boston Consulting Group estimates that the global value of tokenized illiquid assets could reach $16 trillion by 2030.

Recognizing this potential, major financial institutions are making significant moves in the tokenization space. Goldman Sachs, for instance, plans to launch three new tokenization products later this year, driven by growing client interest.

Likewise, $500 million worth of assets are going to be tokenized in Dubai. Credit goes to the partnership between Mantra Chain, known for enabling the fractionalization and tokenization of real-world assets, and the popular Dubai-based real estate developer, MAG Group.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.