Tokenized institutional alternative funds (IAFs) have experienced significant growth, surging 47%

Tokenized institutional alternative funds surge 47% to $1.7B in the last 30 days to reach a total value of $1.74 billion, according to data from RWA.xyz, a tracker of real-world asset (RWA) tokenization.

Ethereum remains the dominant blockchain for tokenized IAFs, accounting for over half of the market with $1 billion in total value. The data highlights a significant shift towards blockchain-based tokenization of institutional assets, as traditional financial institutions increasingly turn to blockchain for its benefits of faster settlement, wider investor access, and greater transparency.

Centrifuge emerged as the leader in growth, expanding its market cap by a remarkable 252% to $704 million, capturing 40.4% of the IAF market share. Centrifuge’s success was boosted by its substantial holdings in tokenized US Treasury products, which contributed to its $1 billion in total value locked (TVL), allowing it to join the ranks of BlackRock’s BUIDL fund and Ondo Finance, both surpassing the $1 billion milestone for RWA tokenization.

Other key players and market distribution

Following Centrifuge, Securitize holds $652 million across 14 tokenized IAFs, securing 37.5% of the market. Other notable protocols include Superstate, with $206 million in fund value, and OnRe, which holds $102 million.

Despite the overall growth, the number of monthly active addresses for tokenized IAFs dropped by 50% to 21,867, according to RWA.xyz. However, the number of holders increased by 13.5% to 114,922, indicating that institutional and professional investors may be consolidating their funds into fewer addresses, while new investors are showing long-term confidence in the vehicle.

What are institutional alternative funds (IAFs)?

Institutional alternative funds (IAFs) are investment vehicles that allocate capital into asset classes outside of traditional stocks and bonds. These include hedge funds, private equity, private credit, venture capital, and assets like real estate and infrastructure.

By tokenizing these funds, they are brought onto the blockchain, making them more accessible to a wider range of investors and improving the speed and transparency of their transactions. The growth of tokenized IAFs highlights the increasing demand for RWA tokenization among traditional financial institutions seeking blockchain-based solutions.

Tokenized IAFs by blockchain network

As the market for tokenized IAFs grows, Ethereum continues to dominate, with over $1 billion in value. However, other blockchain networks are also gaining traction in the space. Mantle and ZKsync Era follow closely with $218.8 million and $214.8 million, respectively. Solana also holds $135.2 million, while networks like Plume and Avalanche account for $59.2 million and $41.2 million in tokenized IAFs.