Cardano advances in RWAs as Genius Yield approves milestone for asset tokenization

The Cardano ecosystem is stepping up its involvement in RWAs, as the Genius Yield protocol approves a key proposal.

The Cardano (ADA) ecosystem is expanding its footprint in the growing RWA tokenization industry. On Friday, April 18, the Genius Yield protocol announced the approval of its second milestone in RWA swaps.

The proposal, dubbed F12 Catalyst, establishes key procedures for the RWA trading platform. This includes checks on asset auditing and ownership verification, critical components for investor confidence, as they ensure proof of authenticity and real ownership.

The next step for the platform is the development of a digital onboarding portal for asset owners. After that, the project will implement mechanisms for token issuance and rewards distribution ahead of the platform’s launch.

RWA market projected to reach $2 trillion by 2030

Genius Yield is among several Cardano projects that work on RWAs. For one, Empowa is building a property funding platform focusing on the African market. At the same time, Tiamonds enables the tokenization and trading of real-world diamonds, enabling users to own a fraction of these assets.

Real-world are emerging as one of the most promising use cases for crypto. They involve recording real-world assets on-chain and converting them into tradable tokens. These tokens can represent fractional ownership, a key advantage in traditionally illiquid markets like real estate and fine art.

By March this year, the total value locked of all tokenized assets reached $50 billion, according to a report from Brickken. Notably, $30 billion of this figure came from tokenized real estate. The same report cited a projection from consulting firm McKinsey, forecasting that the RWA market could grow to $2 trillion by 2030.