Mercado Bitcoin, a leading Latin American cryptocurrency exchange, announced Friday the tokenization of $200 million in real-world assets (RWAs) on the XRP Ledger (XRPL).

The initiative involves tokenizing fixed-income and equity financial instruments, as detailed in an announcement from Ripple, the developer of the XRPL.

Global Market Potential

According to a joint report by Boston Consulting Group and Ripple, the market for tokenized real-world assets is projected to reach $19 trillion in market capitalization by 2033.

Industry Push for Regulatory Clarity

The deal emerges as the crypto industry, alongside asset managers, intensifies efforts to secure regulatory clarity for tokenized equities and RWAs in the United States. Companies are rapidly expanding their tokenized offerings and integrating them into existing trading platforms.

RWA Tokenization Overview
An overview of the tokenized real-world asset market, excluding stablecoins. Source: RWA.XYZ

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Recent Activity in the RWA Space

Ondo Finance acquires tokenized asset firm Oasis Pro

DeFi protocol Ondo Finance finalized a deal to acquire tokenized asset firm Oasis Pro. Ondo stated, “Oasis Pro was one of the first US-regulated alternative trading systems authorized to support the settlement of digital securities in both fiat and stablecoins.”

Centrifuge targets the S&P 500 with RWA tokenization

Blockchain firm Centrifuge, focused on integrating RWAs into DeFi, announced plans Tuesday to tokenize the S&P 500 stock market index, representing the 500 largest US-listed companies by market capitalization.

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Industry Calls for SEC Approval

In January, BlackRock CEO Larry Fink advocated for the SEC’s approval of tokenized stocks and bonds.

Regulatory Challenges Persist

Despite industry momentum, regulatory challenges persist. John Murillo, chief business officer of B2BROKER, highlighted the “regulatory grey zone” surrounding tokenized equities.

“There is no direct claim on company assets, no voting rights, and no access to internal financial information,” Murillo wrote.

He emphasized the critical need for investors to scrutinize fine print for cash flows, dividends, legal stipulations, and smart contract risks inherent in each tokenized RWA.

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