Tokenized institutional alternative funds (IAF) experienced a remarkable 47% surge over the past 30 days, reaching a total valuation of $1.74 billion, as reported by the real-world asset (RWA) tokenization tracker RWA.xyz.
The data indicated that, apart from Libre Capital, every protocol posted percentage growth in the last month. Centrifuge was at the forefront, boasting a market cap increase of 252% to $704 million, which provided the issuer with a 40.4% market share for IAFs.
Besides IAFs, Centrifuge held nearly $400 million in tokenized US Treasury products, elevating its total value locked (TVL) to over $1 billion. This achievement enabled Centrifuge to join BlackRock’s BUIDL fund and Ondo Finance in surpassing the $1 billion RWA threshold.
Securitize ranked second with $652 million spread across 14 tokenized IAFs, representing 37.5% of the market. Other significant protocols included Superstate with $206 million and OnRe with $102 million in fund valuation.
What are institutional alternative funds?
Institutional alternative funds, or IAFs, are expertly managed investment vehicles that allocate capital into asset classes beyond conventional stocks and bonds. These encompass hedge funds, private equity, private credit, venture capital, as well as assets like real estate or infrastructure.
By tokenizing these funds, they transition to the blockchain, enabling access to advantages such as accelerated settlement, broader investor access, and enhanced transparency.
Protocols facilitating the inclusion of such funds on blockchains underscore a rising demand for RWA tokenization among conventional financial institutions.
Despite the increase in the value of tokenized IAFs, RWA.xyz data indicates that monthly active addresses have declined by over 50% to 21,867 in the past month, although the number of holders rose by 13.5% to 114,922.
This trend implies that institutions or professional investors might be consolidating their funds into a smaller number of addresses, while also suggesting that new investors could be purchasing and holding, which reflects long-term confidence in the investment vehicle.
Related: CoinShares reports 26% AUM growth to $3.46B in Q2
Ethereum remains the premier blockchain for tokenized IAFs
According to RWA.xyz data, Ethereum has solidified its position as the leading network for tokenized IAFs, hosting $1 billion in total value, representing over half of the entire market.
Mantle and ZKsync Era followed closely with $218.8 million and $214.8 million, respectively, while Solana accounted for $135.2 million. Other networks such as Plume and Avalanche reported lesser amounts, at $59.2 million and $41.2 million.
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