Tokenized institutional alternative funds (IAF) saw an impressive rise of 47% in the past 30 days, reaching a total valuation of $1.74 billion, as indicated by data from the real-world asset (RWA) tokenization tracker RWA.xyz.
The data revealed that each protocol, excluding Libre Capital, experienced percentage increases over the last month. Leading this growth was Centrifuge, which increased its market cap by 252% to $704 million, securing a 40.4% market share for IAFs.
In addition to IAFs, Centrifuge also managed nearly $400 million in tokenized US Treasury products, bringing its total value locked (TVL) to over $1 billion. This achievement enabled Centrifuge to join BlackRock’s BUIDL fund and Ondo Finance in exceeding the $1 billion RWA milestone.
Securitize followed closely with $652 million across 14 tokenized IAFs, making up 37.5% of the market. Other notable 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 professionally managed investment vehicles that allocate capital into asset classes beyond traditional stocks and bonds. These include hedge funds, private equity, private credit, venture capital, and assets like real estate or infrastructure.
Tokenizing these funds brings them onto the blockchain, enhancing access to benefits such as faster settlement, broader investor reach, and increased transparency.
Protocols responsible for integrating these funds into blockchains underscore a growing demand for RWA tokenization among traditional financial institutions.
While the value of tokenized IAFs has grown, RWA.xyz data indicates that monthly active addresses have decreased by over 50% to 21,867 in the last month, whereas the number of holders increased by 13.5% to 114,922.
This trend implies that institutions or professional investors may be consolidating their resources into fewer addresses. Additionally, it suggests that new investors may be purchasing and holding assets, reflecting long-term confidence in this investment vehicle.
Related: CoinShares reports 26% AUM increase to $3.46B in Q2
Ethereum remains the most dominant blockchain for tokenized IAFs
Data from RWA.xyz indicates that Ethereum continues to be the leading network for tokenized IAFs, with $1 billion in total value, representing over half of the entire market.
Following Ethereum are Mantle and ZKsync Era, with $218.8 million and $214.8 million respectively, while Solana contributes $135.2 million. Other networks like Plume and Avalanche had lesser amounts, at $59.2 million and $41.2 million.
Magazine: Stablecoins in Japan and China, India mulls crypto tax changes: Asia Express
