Tokenized institutional alternative funds (IAF) have risen by 47% over the past month, achieving a total value of $1.74 billion, according to data from the real-world asset (RWA) tokenization tracker RWA.xyz.
The data indicated that all protocols, except for Libre Capital, recorded percentage gains in the last 30 days. Centrifuge spearheaded the growth with a 252% increase in market cap, reaching $704 million, giving it a 40.4% market share in IAFs.
In addition to IAFs, Centrifuge reported nearly $400 million in tokenized US Treasury products, raising its total value locked (TVL) over the $1 billion mark. This achievement enabled Centrifuge to join BlackRock’s BUIDL fund and Ondo Finance, collectively exceeding the $1 billion RWA milestone.
Securitize came next with $652 million distributed 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 value.
What are institutional alternative funds?
Institutional alternative funds, or IAFs, are investment vehicles managed by professionals that invest in asset classes beyond traditional stocks and bonds. These can include hedge funds, private equity, private credit, venture capital, and assets such as real estate or infrastructure.
Tokenizing these funds allows them to enter the blockchain, granting advantages such as quicker settlement, broader investor access, and enhanced transparency.
Protocols facilitating these fund transitions to blockchains are responding to the increasing demand for RWA tokenization among traditional financial institutions.
Despite the rise in value of tokenized IAFs, RWA.xyz data indicates a drop of over 50% in monthly active addresses, down to 21,867 in the last 30 days, while the number of holders increased by 13.5% to 114,922.
This indicates that institutions or professional investors may be consolidating assets into fewer addresses, while new investors could be accumulating and retaining, suggesting long-term confidence in the investment vehicle.
Related: CoinShares reports 26% AUM increase to $3.46B in Q2
Ethereum retains its dominance in tokenized IAFs
According to RWA.xyz data, Ethereum remains the leading network for tokenized IAFs. The blockchain holds $1 billion in total value, which is over half of the entire market.
Mantle and ZKsync Era followed with values of $218.8 million and $214.8 million, respectively, while Solana accounted for $135.2 million. Other networks, such as Plume and Avalanche, recorded smaller values of $59.2 million and $41.2 million.
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