A company with $11.6T worth of assets took the lead in RWA tokenization with over $1.2B worth of tokenized US Treasury Bonds. The US issues around $2T worth of bills every month, so even with 0.1% market share, BlackRock could tokenize $2B worth of T-bills monthly.

Considering BlackRock's overall network effect, this share is expected to increase, potentially reaching 1% of monthly issuance, which would equate to $20B worth of tokenized assets each month.

BUIDL has the potential to reach $100B in TVL within the next 12 months if BlackRock decides to go aggressive from here. With the current regulatory environment and growing demand for US T-bills, I expect BUIDL to witness significant growth.

Who will benefit from the anticipated BUIDL growth? > Securitize and Ondo for now. Securitize is the tech partner providing the infrastructure to launch BUIDL on different networks. @OndoFinance launched a stablecoin, OUSG, backed by US T-bills through BUIDL.

OUSG is also showing solid growth alongside BUIDL, and it will likely exhibit a strong correlation moving forward. Now, Ondo has announced the launch of OndoChain, which could place them in direct competition with Securitize.

Many asset management companies and banks are exploring various types of tokenized RWA funds, creating a massive opportunity for an L1 purpose-built for RWA, which Ondo Finance is now aiming to capture.

Ondo, with its blockchain and stablecoin products, has significant skin in the game. Their business model is straightforward: - Monetize tokenization onchain - Earn platform fees from OUSG participation

> Private Lending: The Biggest Market in RWA Currently, private lending is the largest segment in RWA, with around $2.5B in active loan value and an average 10% APY on stables, making it highly lucrative. In private lending, there are two key pathways: - Institutions borrowing fr

Institutions borrowing from retail has been successful so far, with projects like Maple Finance, which has disbursed over $2.5B in loans to date. Retail borrowing from institutions is gaining traction with PACT on Aptos, where over 3M+ people now have access to quick and

The current private lending market holds ~$3T in AUM, but it struggles with creating equal opportunities for borrowers. This is where blockchains can expand access to private credit markets in a more transparent way. Projects like @pactconsortium have great potential here.

Maple Finance is also experiencing strong TVL growth recently. They’ve launched Syrup, offering permissionless access to the private credit market, allowing retail users to earn high interest by lending their stables to institutions seeking credit. @maplefinance also captures

> The Biggest Opportunity: Building a DeFi Ecosystem Around Tokenized Funds For now, we have tokenized US T-bills, but in the future, there will be billions of dollars worth of tokenized stocks, commodities, real estate, and more. This opens the door for RWAFi (RWA + DeFi).

. @plumenetwork, a recently launched project, is working on this vision. They aim to build a complete RWAFi ecosystem while providing a tech stack to tokenize funds and enable composability of tokenized assets within the ecosystem.

They are well-positioned to compete directly with Securitize and OndoChain on tokenization infrastructure while pioneering the RWAFi ecosystem by partnering with different RWA projects.

In summary, four types of projects will become the major beneficiaries of the RWA narrative: - Close partners of BlackRock - An L1 offering tech and compliance support for launching tokenized RWAs of all kinds - A project that cracks the RWAFi ecosystem - The blockchain network

That's it from this thread. I am not sharing any financial advice in this educational thread above.

I hope you enjoyed reading this thread. If you appreciate my work, please like, share, and repost the tweet below

thats how institutional exposure would look like, the day when these numbers reach to 1K, the TVL would be above $100B, these are not retail with $100 paycheck.