Centrifuge leads $ 1B TVL while institutions are driving tokenized RWA growth

The Blockchain Infrastructure Platform Centrifuge crossed $ 1 billion in total locked amount (TVL), joining the rank of Blaid’s Buidl Fund and Onddo Finance as the only real-world assets (RWA) platform to overcome the milestone.

Centrifuge CEO Bhaji Illuminati linked the milestone to institutions moving from pilots to “real deployment,” in conjunction with the onchain allocator’s strong demand.

“Markets require more than just T-bills,” Illuminati told Cointelegraph, pointing to JAAA, an onchain version of Janus Henderson’s AAA rated collateralized loan obligation (CLO) investment fund, as a natural next step for institutions that seek higher risk.

Illuminati said the US Treasurys remains a dominant point of entry for Onchain allocators, but the JAAA product is the fastest growing tokenized fund in the segment. “We also see an increase in interest in private credit as institutions are looking for different produce, with a lot of news coming in front of that,” he added.

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Strong demand for tokenized S&P 500

In early July, Centrifuge Unveiled a tokenized S&P 500 product As part of a partnership with the S&P Dow Jones Indians (S&P DJI). The product is structured as a regulated professional fund with the British Virgin Islands.

According to Illuminati, the demand is “very strong” leading the official control over the coming weeks. The launch will be supported by an anchor pool of capital to ensure widespread access from the sun.

Illuminati added that the S&P 500 is just the beginning, with plans to bring a specific and thematic index onchain sector in the near future. “We see strong potential for the sector and thematic index products to come next,” he said.

The Centrifuge pipeline is divided between traditional asset managers using Web3 Native Asset Manager Anemoy and Onchain-Native Managers using RWA Launchpad. On the demand side, stablecoins and yield products are the largest consumer, using RWWa to set a “yield floor” for reserves.

Related: Ethoro to Tokenize 100 Most Popular US stock in Ethereum

Derwa to bring tokenized genitals to retail

Illuminati has highlights plans to open tokenized properties to retail investors through major exchanges, purses, lending protocols and integration of the DEFI through Derwa initiative. Derwa, as used in Defi, stands for tokenized RWA engineers for composability and liquidity within the Defi.

As reported, the S&P Dow Jones Indians (S&P DJI) are in Discussions with major exchanges.

“By establishing these kinds of relationships, we hope that we can work together to participate in a stable infrastructure that supports trading and accessing tokenized versions of our indexes, ultimately enhances the investor experience,” Rowton said.

At the forefront, Illuminati expects RWA public markets such as Treasurys and Equities to rule over the short term due to liquidity and familiarity. However, he believes that private markets will eventually dominate, as the blockchain has removed the efficiency and unlocking of the hidden value.