Terra's Onchain Collapse Highlights Need for RWA Transparency

**Distribution infrastructure is finally catching up to tokenization issuance**, creating new pathways for capital to flow into real-world assets. **Key developments:** - MetaMask integrated tokenized stocks through Ondo, bringing RWA access to millions of wallet users - Bitwise launched dedicated RWA investment portfolios for institutional and retail investors - $280M worth of diamonds were tokenized, expanding asset class diversity - Bed Bath & Beyond acquired tokenization infrastructure capabilities **Regional expansion continues:** - RWA Inc. partnered in Dubai to accelerate real estate tokenization - Saudi Arabia opened its first national RWA tokenization center supporting Vision 2030 The shift represents a maturation phase where **access points are multiplying** beyond just creating tokenized assets. With major wallet providers and asset managers entering distribution, the infrastructure gap between issuance and adoption is narrowing. This convergence of issuance and distribution channels could unlock significant capital flows into tokenized real-world assets across multiple asset classes and geographies.

Multiliquid and Metalayer have launched an onchain redemption facility on Solana designed to improve liquidity and redemption processes for tokenized real-world assets. **Key Development:** - The facility addresses a critical infrastructure gap in RWA tokenization by streamlining the redemption process - Built on Solana's high-throughput blockchain to enable efficient settlement - Aims to reduce friction in converting tokenized assets back to their underlying real-world equivalents **Market Context:** The onchain RWA market has grown beyond $30 billion in early 2026, with institutional products like BlackRock's BUIDL fund managing over $2 billion. Industry forecasts project the tokenized asset market could reach $4-16 trillion by 2030. This infrastructure development comes as the sector matures beyond initial tokenization efforts toward building the operational systems needed for institutional-scale adoption. Improved redemption mechanisms are essential for maintaining liquidity and investor confidence in tokenized real-world assets.

Billiton and Ctrl Alt have successfully tokenized more than $280 million worth of diamonds on the XRP Ledger, marking a significant move in bringing high-value physical commodities onchain. **Key Details:** - The tokenization represents one of the largest commodity-backed digital asset initiatives to date - XRP Ledger was chosen as the blockchain infrastructure for this deployment - This follows previous institutional adoption, including DBS, Franklin Templeton, and Ripple's collaboration to offer tokenized trading and lending services on the same network **Why It Matters:** The diamond tokenization demonstrates growing institutional confidence in blockchain infrastructure for real-world asset (RWA) tokenization. By digitizing physical diamonds, the initiative could improve liquidity, transparency, and accessibility in traditionally illiquid commodity markets. The XRP Ledger continues to attract institutional players seeking to tokenize traditional assets, building on momentum from earlier financial services partnerships.

Bitwise, managing $15 billion in assets, has launched new model portfolios that include allocations to stablecoins and tokenized real-world assets (RWAs). **Key Development:** - Major asset manager integrating digital assets into traditional portfolio structures - Portfolios feature both stablecoins and tokenized RWAs as core components **Industry Context:** This move aligns with broader institutional trends. State Street's recent study of the $5 trillion asset manager showed that stablecoins and tokenized RWAs represent the largest share of institutional digital asset allocations, with expectations to reach 16% of total allocations within three years. The launch signals growing acceptance of digital assets in traditional finance, particularly for instruments that bridge conventional and blockchain-based markets.