Tokenization partner BlackRock uses Wormhole for cross-chain RWA transfers

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Securitize has integrated Wormhole as the official blockchain interoperability provider for all tokenized assets, according to a September 20 announcement. This collaboration enables cross-capability for current and future tokenized assets through the Securitize platform.

Notably, Securitize is the company providing the infrastructure for BlackRock’s foray into tokenized US Treasuries through its BUIDL fund. BUIDL is currently the largest tokenized fund in the US with a market capitalization of over $520 million, according to RWA.xyz data.

“Tokenized securities must thrive on public, permissionless blockchains to unlock the potential of blockchain technology,” said Carlos Domingo, CEO and co-founder of Securitize.

Domingo added that the partnership is important to allow Securitize to move into a cross-ecosystem, which shows how public blockchains enable new use cases that were previously unavailable.

Thus, integration allows tokens to move across different blockchain ecosystems, increasing liquidity and accessibility for tokenized assets.

Securitize will use its own smart contracts in a customized approach, enabling customized solutions that meet specific asset manager requirements and regulations while leveraging the Wormhole messaging protocol.

“Securitize has established itself as a leader in the tokenized asset ecosystem, and we are excited to bring the Wormhole platform to its customers to enable a more complete asset management experience,” added Robinson Burkey, co-founder and CCO of the Wormhole Foundation.

Burkey also pointed out that this sets the stage for increased institutional adoption of tokenized assets, allowing the massive market of traditional finance to be connected to decentralized finance.

According to Wormholescan data, Wormhole’s interoperability infrastructure has moved nearly $47.7 billion in chains since implementation.

Over 2 billion dollars split across different blockchains

The tokenized U.S. Treasury market is set to surpass $2.2 billion in 2024 after growing 187% year-to-date, according to data from RWA.xyz.

Despite Ethereum having the largest market share with over $1.6 billion of real-world tokenized assets deployed in its infrastructure, significant liquidity is fragmented across different ecosystems, which warrants a cross-interoperability solution in this sector .

Stellar holds $422 million in tokenized US Treasuries, followed by Solana’s $69 million market cap. Arbitrum and Mantle also own $39 million and $27 million, respectively.

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