Kicking off on August 12, the Spark Tokenization Grand Prix is a part of MakerDAO’s Endgame technique.
Final week, MakerDAO unveiled the Spark Tokenization Grand Prix — a contest aimed toward onboarding $1 billion of tokenized real-world property.
The initiative has caught the attention of main monetary heavyweights, together with BlackRock, which manages $10 trillion of property, Superstate, and Ondo Finance.
Carlos Domingo, CEO of Securitize, BlackRock’s issuance companion, believes this can be a “great strategy” by MakerDAO.
“We will be there supporting this initiative with BlackRock’s BUIDL, the largest tokenized treasury fund,” he stated on X, noting BUIDL’s participation in an identical initiative by Arbitrum, the most important Ethereum Layer 2 community by whole worth locked (TVL).
Asset administration agency Superstate and Ondo Finance, which manages $550 million in real-world property (RWAs), additionally plan to take part.
“Superstate is excited for the opportunity to participate in MakerDAO’s tokenized treasury investment plan,” the agency tweeted.
MakerDAO’s MKR token is up almost 30% up to now seven days, making it top-of-the-line performers among the many high 100 digital property by market capitalization.
The Spark Tokenization Grand Prix, scheduled to kick off on August 12, is a part of MakerDAO’s broader Endgame technique.
The Endgame Plan goals to enhance the governance and tokenomics of the Maker ecosystem to succeed in a self-sustainable equilibrium known as the Endgame State. On this state, “the ecosystem is resilient, and the scope and complexity of Maker Core will no longer change,” claims MakerDAO’s documentation.
The competition invites builders to onboard tokenized versions of traditional financial products, such as U.S. government bonds. MakerDAO plans to invest $1 billion into these products to integrate them into its ecosystem.
According to the MakerDAO forum, eligible products must have fair pricing, ample liquidity, and align with MakerDAO’s long-term goals. A committee led by Maker governance will evaluate and decide which products are best suited to be onboarded.
According to Token Terminal, MakerDAO’s weekly active users increased by 18% in July, rising to 726 from 614 in June. In terms of revenue growth, July recorded $14 million in the first 15 days of the month, compared to $10 million in June.
BlackRock’s BUIDL Reaches $500M Market Cap
BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, recently achieved a $500 million market cap, making it the first product of its kind to hit the milestone. BUIDL holds $502.8 million worth of tokenized Treasuries, according to Ethereum block explorer Etherscan.
Real-world asset tokenization continues to gain traction, with firms like Ondo Finance buying more of BlackRock’s BUIDL to back its OUSG token. This demand has pushed the tokenized Treasury market to nearly $1.56 billion from just $100 million in January 2023.
In December 2022, BlackRock CEO Larry Fink said that blockchain tokenization will be “the following technology for markets, the following technology for securities.” In line with estimates by the Boston Consulting Group, the tokenization market is projected to succeed in $16 trillion by 2030.
In June 2023, almost 80% of MakerDAO’s price income got here from RWAs, amounting to $13.5 million for the treasury.
MakerDAO is the most important DeFi protocol within the Collateralized Debt Place (CDP) class, with almost $5.7 billion in whole worth locked, in line with DeFiLlama.
Customers can mint DAI, a dollar-pegged stablecoin, in opposition to collateral property deposited to the MakerDAO protocol. DAI is the third-largest stablecoin, with a market capitalization of $5.3 billion, in line with CoinGecko.
