Tokenization is moving through three stages.

Tokenization is moving through three stages. Most of the market is still in the first one. • Representation. Assets are brought on-chain to lower operational costs and improve recordkeeping. The blockchain is a better ledger. • Distribution. Tokenized assets reach new investors, platforms and sources of liquidity. • Composability. Tokenized assets become productive financial instruments: usable as collateral, connected to yield, integrated into broader on-chain and institutional infrastructure. Pantera Capital scored 542 tokenized assets across 11 asset classes on its Tokenization Progress Index, which rates issuance, transferability and composability from 1 to 5. The composite average came out at 2.04. 77.6% of those assets sit in what Pantera calls the wrapper tier: the token is a digital receipt and the authoritative ledger is still off-chain. 11.1% are hybrid. 2.7% are native. Pantera's own description of the market is the "newspaper-on-a-website" phase. The value has been tokenized. Very little of it has been made composable, and composability is the stage where net new capital has room to enter. That gap closes with infrastructure, not with more assets. #RWA #Tokenization #Capitalmarkets

• Tokenization is progressing through three stages: Representation, Distribution, and Composability, with most of the market currently in the Representation phase.
• Pantera Capital's Tokenization Progress Index shows a low average score of 2.04, indicating that a significant portion of tokenized assets are still in a 'wrapper' stage, acting as digital receipts rather than fully native on-chain assets.
• The article emphasizes that closing the gap to composability, where new capital can enter, requires advancements in infrastructure rather than simply tokenizing more assets.

Topics: Scalability, Infrastructure providers, Integration with defi, Growth metrics, Tokenization platforms, Rwa collateral lending

Tags: #tokenization #rwa #composability #representation #distribution #panteracapital #tokenizationprogressindex #infrastructure #capitalmarkets

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