The Web3 Foundation, devoted to the event of the Polkadot ecosystem, has introduced a $1 million seed funding in tokenized treasury payments.
In an X post on Nov. 29, 2023 the Web3 Foundation unveiled plans to put $1 million in tokenized U.S. treasury payments by way of Centrifuge, an institutional ecosystem for on-chain credit score. With the funding, the muse is claimed to change into the primary person of the real-world asset use-case supported and managed by the para-chain in a bit to digitize belongings with blockchain know-how.
Web3 Foundation Chief Government Fabian Gompf mentioned in a blog post that the trade of tokenized belongings has “huge potential and are steadfast in our dedication to assist develop the trade and Centrifuge protocol.” Gompf famous that the $1 million funding is only a begin, including that the muse expects to “shortly develop past that.”
After the information broke, Polkadot’s native cryptocurrency DOT jumped by 6% up to $5.4, bringing its market capitalization to $7.1 billion, in accordance to CoinGecko.
The race for asset tokenization is outwardly simply getting began because the British Monetary Conduct Authority (FCA) solely in late November 2023 officially granted funding managers with a permission to develop tokenized funds primarily based on a blockchain because the nation seeks to profit from the worldwide digitization development.
In early Nov. 2023, British financial institution HSBC additionally announced its newest blockchain endeavor in partnership with a Ripple-owned agency Metaco to service institutional shoppers with demand for real-world belongings hosted on a blockchain.
In accordance to the Boston Consulting Group, the full measurement of illiquid asset tokenization globally is expected to hit the $16 trillion mark by 2030 given {that a} “massive chunk of the world’s wealth immediately is locked in illiquid belongings.”