Real-World Asset Tokens Drive Crypto Recovery, Showcasing Tokenization Trend
In the wake of a market downturn, cryptocurrencies linked to real-world assets (RWAs) led the digital asset sector’s rebound, demonstrating the growing strength of the tokenization narrative. Several tokens related to the RWA sector posted double-digit gains, with some altcoins still recovering from their losses.
Ondo Finance’s governance token (MANTRA), which operates within the decentralized finance (DeFi) space, surged by 16% on the day, climbing nearly 40% from its overnight lows. The platform unveiled its new service, Ondo Nexus, which enables instant minting and redemption for tokenized Treasury issuers. Ondo Finance will host a summit in New York this week, featuring participants like BlackRock and Franklin Templeton.
Similarly, MANTRA’s OM token, part of a layer-1 blockchain focused on tokenized assets in the Middle East, experienced a 30% recovery from Monday’s low and rose 16% during the day. Last month, MANTRA secured a billion-dollar asset tokenization partnership with DAMAC Group, a Dubai-based property conglomerate involved in real estate and data center investments.
Chintai’s CHEX token, from a regulated tokenization platform licensed by the Monetary Authority of Singapore, advanced 27% during the same period. The platform announced plans to expand into the U.S. market and pursue securities licensing in January.
Meanwhile, Bitcoin (BTC) surged back above $101,000 from its overnight low, climbing 4% within 24 hours. The CoinDesk 20 Index, a broad-market benchmark for large-cap tokens, saw a more modest 2% gain.
Sophisticated investors often focus on the fastest-recovering assets post-capitulation, as these tend to reveal broader market strength. The RWA tokenization sector, which seeks to bring traditional financial assets like bonds, commodities, and real estate to blockchain platforms, remains a hot area for growth. The sector saw a remarkable 200% expansion last year, growing to $7.3 billion in total value locked (TVL), with government securities protocols driving the expansion, according to crypto trading firm Wintermute.
Many prominent financial leaders are now calling tokenized RWAs the next frontier of financial innovation, with the potential to become a multitrillion-dollar market in the coming years. BlackRock CEO Larry Fink has pushed for U.S. regulators to establish rules for tokenized securities, predicting that blockchain will be the future platform for bonds and stocks.
Robinhood CEO and co-founder Vlad Tenev also proposed regulatory changes last week to allow retail investors to access tokenized private equities, which are currently restricted to accredited investors and wealthy individuals.
