Multiliquid and Metallayer Ventures have launched an institutional liquidity facility to provide instant redemption of tokenized real world assets (RWA) on Solana.
This feature allows holders of tokenized assets to instantly convert their positions into stablecoins. According to an announcement shared with Cointelegraph, the vehicle will be procured and managed by Metallayer Ventures, with infrastructure and market support provided by Uniform Labs, developer of the Multiliquid protocol.
“Traditional finance has repo markets, prime brokerage, and overnight lending capabilities. Until now, there has been no equivalent in the tokenization market,” said Will Beeson, founder and CEO of Uniform Labs. “This is the liquidity infrastructure that the institutional RWA market needs at scale.”
Last year, the Bank for International Settlements warned that tokenized money market funds were facing liquidity mismatches, which could exacerbate stress at a time of high redemption demand.
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Resident buyers provide instant RWA liquidity
Metalayer's facilities act as standing buyers of tokenized RWA, purchasing assets at a dynamic discount to their net asset value.
Metalayer Ventures will supply and manage the capital backing redemptions, and Multiliquid will provide the smart contract infrastructure used for pricing, compliance enforcement, and settlement.
The vehicle will initially support tokenized assets issued by companies such as VanEck, Janus Henderson, and Fasanara, and will cover tokenized Treasury funds and some alternative investment products.
Related: True tokenization requires composability of assets, not wrapped bubbles
Solana gains ground with tokenized RWA
Solana (SOL) is emerging as a place of growth for tokenized RWA. According to RWA.xyz data, it ranks 8th among blockchains in terms of total RWA, with approximately $1.2 billion represented in 343 assets. Although its market share remains modest at 0.31%, Solana has shown steady momentum, increasing its RWA value by more than 10% over the past month.
Overview of the RWA market. Source: RWA.xyz
Canton Network, Ethereum (ETH), and Provenance are the three largest blockchains with total amount of tokenized RWA.
Canton dominates the market with over $348 billion RWA and over 88% market share. Ethereum ranks second with $15 billion in tokenized assets, while Provenance also has fewer assets with $15 billion.
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