Crypto giants form coalition to tokenize traditional assets and boost DeFi sector

In a significant move to bridge the gap between traditional finance and the crypto world, key players in the cryptocurrency industry, including Coinbase (NASDAQ:COIN), Aave, and Centrifuge, have formed the Tokenized Asset Coalition (TAC). The coalition's primary aim is to tokenize real-world assets (RWAs) such as precious metals, real estate, and treasury bonds, thereby creating a pathway for substantial investments into the decentralized finance (DeFi) sector.

The TAC initiative comes at a time when the crypto market is experiencing a bearish phase. However, tokenized treasuries, a subsector of the RWA space, have shown remarkable growth this year, increasing nearly 500% to over $600 million. This development suggests that the Coalition's efforts could potentially catalyze broader crypto adoption and market stability.

Lucas Vogelsang, CEO and co-founder of Centrifuge, one of the founding members of TAC, emphasized that efficiency gains from tokenizing assets will increase liquidity across various asset classes. He stated that the coalition's focus is on accelerating the maturation of this technology and expanding the potential of finance.

The Coalition is also committed to promoting education and transparency in public cryptosystems. It aims to attract traditional investors by highlighting the advantages of DeFi over conventional financial systems. In addition to institutions being crucial drivers for advancing the tokenization agenda, Vogelsang pointed out that educating these entities could change perceptions about crypto as a volatile asset class.

To further its objectives, TAC has scheduled its inaugural Real World Asset Summit on September 19 in New York. The summit is designed to foster influential discussions similar to those leading up to DeFi’s summer boom in 2019. Vogelsang expressed hope that TAC's events would innovate and push forward the evolution of finance.

Other founding members of TAC include Goldfinch and Credix, which are focused on credit markets, RWA.xyz, an analytics platform, and Base, a recently launched Layer 2 network from Coinbase.

The formation of the Tokenized Asset Coalition represents a strategic alliance that merges the best of traditional and decentralized finance. Its focus on tokenizing RWAs is expected to attract a new wave of investors and significantly boost the entire crypto sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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