Assetera, a blockchain-based investment and trading firm, has partnered with Polygon to launch Europe’s first regulated marketplace for tokenized real-world assets (RWAs).
The platform will enable the trading of tokenized securities, funds, and money market instruments in a secure and efficient digital environment.
Assetera will use Polygon’s Ethereum scaling network to provide fast and cost-effective transactions, while using stablecoins for purchase, clearing, and settlement processes.
Assetera is Regulated Under MiFID II
The Austrian firm is already regulated under the MiFID II framework and holds a virtual asset service provider (VASP) license.
It is now preparing to comply with the upcoming Markets in Crypto Assets (MiCA) regulations, which will allow it to expand its services across the European Union.
The platform is accessible to both retail and professional investors, reflecting a growing trend in the tokenization of traditional financial assets like bonds and commodities.
The process, which brings traditional assets onto the blockchain, promises increased speed and transparency in trading.
POLYGON TO HOST EUROPE'S FIRST REGULATED SECONDARY MARKET FOR TOKENIZED RWAS
– Assetera has chosen @0xPolygon to launch Europe’s first regulated secondary market for tokenized real-world assets (RWAs), CoinTelegraph reported.
Key Highlights:
– This partnership will reportedly… https://t.co/KyhFz8UPBa pic.twitter.com/JoCmynDlaf— BSCN (@BSCNews) September 25, 2024
MiFID II does not offer a clear definition of a financial instrument but instead provides examples, leaving the specifics to be determined by individual countries.
In April, the European Securities and Markets Authority (ESMA) issued a consultative document to address this ambiguity.
In a collaborative effort in July, ESMA joined forces with the European Banking Authority and the European Insurance and Occupational Pensions Authority to revisit the classification of crypto assets.
Meanwhile, provisions under the MiCA regulation concerning stablecoins took effect on July 1, preceding other aspects of the regulatory framework.
This resulted in an immediate reshuffling of the market, with non-compliant stablecoins being restricted in Europe and new, compliant stablecoins being introduced.
Tokenized Asset Market Could Reach $1.3T by 2030
Some in the crypto community have cast doubt on a recent projection suggesting that tokenized real-world assets (RWAs) could reach a staggering $30 trillion by 2030.
Among the critics is Jamie Coutts, chief crypto analyst at Real Vision, who believes that a more realistic valuation is closer to $1.3 trillion.
Coutts pointed out that if the current compound annual growth rate (CAGR) of 121% for tokenized assets continues, the market could indeed reach $1.3 trillion by 2030.
Coutts’ cautious outlook is echoed by other industry experts.
McKinsey & Company recently reported that tokenized financial assets have had a “cold start” but are still expected to grow to a $2 trillion market by 2030.
Meanwhile, a report by the Global Financial Markets Association (GFMA) and Boston Consulting Group estimates the global value of tokenized illiquid assets will reach $16 trillion by 2030.
Even more conservative estimates from Citigroup suggest that $4 trillion to $5 trillion worth of tokenized digital securities could be minted by 2030.
Recognizing this potential, major companies 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.
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