Capitalize on institutional RWA adoption through blockchain settlement layers, treasury protocols, and fractionalized asset platforms targeting $18T private credit markets.
BlackRock’s BUIDL fund and Fidelity’s blockchain initiatives signal institutional readiness for tokenized assets. This strategy targets protocols bridging TradFi yields with crypto efficiency, focusing on infrastructure providers poised to capture value from the projected $10-15T tokenization market by 2030.
Context
2024 saw $1.3B flow into tokenized treasuries as institutions seek blockchain efficiency. The RWA sector remains 92% below its 2022 peak despite tripling institutional participation since 2023.
Strategy Explanation
Target three layers: 1) Base chains (Ethereum/Polygon) collecting transaction fees 2) Yield protocols (Ondo) capturing Treasury spreads 3) Niche platforms (Propy) solving illiquid asset markets. Diversified exposure to tokenization’s plumbing layer.
Token Targets
- 50% Core: ETH (settlement risk), MATIC (institutional pipelines)
- 30% Yield: ONDO (short-duration bonds), CPOOL (credit markets)
- 20% Speculative: PRO (real estate), GFI (EM lending)
Expected Returns & Risks
5-8x upside if RWA reaches 5% private credit market share. Key risk: TradFi platforms bypassing crypto rails. Mitigated by focusing on composable infrastructure.
Exit Signals
- Take 25% profit at $200B aggregate RWA market cap
- Full exit if traditional banks capture >40% tokenization volume
- Stop-loss on regulatory custody rule fragmentation
