Blockchain infrastructure platform Centrifuge has officially surpassed $1 billion in total value locked (TVL), a landmark achievement that places it in an exclusive group of real-world asset (RWA) platforms. This milestone sees Centrifuge joining industry giants like BlackRock’s BUIDL fund and Ondo Finance as one of the few to cross the billion-dollar threshold, signaling the growing maturity of the tokenized asset sector.
Centrifuge CEO Bhaji Illuminati attributed the rapid growth to a fundamental shift in the market, where institutions are now moving from experimental pilots to “real deployments” of onchain assets. This transition is being fueled by strong demand from onchain allocators looking for diverse and higher-yielding opportunities.
Beyond T-Bills: The Quest for Differentiated Yield
While U.S. Treasurys have been the dominant entry point for onchain capital, the market’s appetite is evolving. “Markets need more than T-bills,” Illuminati told Cointelegraph, highlighting the increasing demand for assets that offer more attractive returns than risk-free rates.
A prime example is JAAA, an onchain version of Janus Henderson’s AAA-rated collateralized loan obligation (CLO) investment fund. According to Illuminati, the JAAA product is the fastest-growing tokenized fund in its segment, serving as a natural next step for institutions. “We are also seeing rising interest in private credit as institutions look for differentiated yield, with more news coming soon on that front,” he added, hinting at further expansion into new asset classes.
Bringing Wall Street Onchain: Strong Demand for Tokenized S&P 500
In a significant move to bridge traditional and decentralized finance, Centrifuge recently announced a partnership with S&P Dow Jones Indices (S&P DJI) to launch a tokenized S&P 500 product. The product, structured as a regulated professional fund in the British Virgin Islands, is already generating significant buzz ahead of its official rollout.
“Demand has been very strong,” Illuminati confirmed, noting that the launch will be supported by an anchor pool of capital to ensure broad accessibility from day one. This initiative is just the beginning, with plans to bring more specialized indexes onchain. “We see strong potential for sector and thematic index products to come onchain next,” he said.
Democratizing Access Through ‘deRWA’
To further expand its reach, Centrifuge is spearheading the deRWA initiative, designed to open access to tokenized assets for retail investors. The goal is to integrate these products into major exchanges, wallets, and leading DeFi protocols. deRWA, or tokenized RWAs engineered for composability, aims to make these assets as liquid and accessible as native crypto assets.
This vision is shared by its partners. Stephanie Rowton, Director of U.S. Equities at S&P DJI, stated that the firm is in discussions with exchanges and custodians to list tokenized versions of its benchmarks. “By establishing these types of relationships, we hope we can work together to participate in a robust infrastructure that supports the trading and accessibility of tokenized versions of our indexes, ultimately enhancing the investor experience,” Rowton said.
A Glimpse into an $18 Trillion Future
Looking ahead, Illuminati expects public market RWAs like Treasurys and equities to lead adoption in the short term due to their liquidity and familiarity. However, he firmly believes that private markets will eventually dominate the space, as blockchain technology is uniquely positioned to remove long-standing inefficiencies and unlock hidden value in less liquid assets.
This long-term view is supported by major industry forecasts. A recent report from Boston Consulting Group and Ripple estimated that the market for tokenized real-world assets could soar to over $18 trillion by 2033, growing at a compound annual rate of 53%.
Centrifuge’s $1 billion milestone is more than just a number; it’s a clear indicator that the tokenization of real-world assets is moving from a niche concept to a mainstream financial reality.
