The Web3 Foundation, the organization behind the Polkadot network, is the latest crypto development team to invest treasury assets into real-world assets.
On November 29, the Web3 Foundation announced that it would make a $1 million pilot investment in U.S. Treasury bills through Anemoy, an asset manager from Centrifuge Chain, a real-world asset (RWA)-focused asset manager Polkadot parachain, to be brought onto the chain.
“This partnership demonstrates the Web3 Foundation’s commitment to supporting the growth and innovation of real-world assets on Polkadot’s infrastructure,” the Web3 Foundation said.
“This collaboration between Centrifuge and the Web3 Foundation sets the stage for significant growth and innovation for real-world assets leveraging Polkadot’s infrastructure and technology,” said Lucas Vogelsang, co-founder of Centrifuge.
The Web3 Foundation will invest the funds in Anemoy’s upcoming Liquid Short Treasury Fund, which is designed to provide DAOs and other investors with access to short-term yields on U.S. Treasury bonds.
Fabian Gompf, the recently appointed executive director of the Web3 Foundation, indicated that the organization plans to significantly increase its RWA allocation in the future. “$1 million is a start, and we expect to quickly grow beyond that.”
On-chain RWA introduction
The news comes as RWAs enjoy increasing adoption across Web3.
MakerDAO led the way last year when its leadership passed a proposal last September to pump up to $500 million USDC into U.S. Treasuries through investment management group Monetalis. MakerDAO’s RWA commitment increased from $17 million to $640 million in 2022, with the project also opening a $100 million vault for the 151-year-old Huntingdon Valley Bank.
Although RWAs only make up 10% of asset holdings, they generated almost half of MakerDAO’s annual revenue. According to Daistats, Maker has continued to increase its RWA commitment, now totaling $2.8 billion. Maker’s RWA portfolio includes nearly $144 million invested in pools running on Centrifuge’s Tinlake dApp.
In July, MakerDAO estimated that 79% of its fee income over the past 12 months came from real-world assets.
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Also in July, Avalanche launched a $50 million fund to invest in natively tokenized assets, including RWAs such as stocks, loans and real estate assets.
In August, Frax announced plans to custody RWAs on-chain, including Treasury bills and other traditional financial assets.
Centrifuge expands RWA offering
Anemoy Capital was introduced in August by Martin Quensel, a co-founder of Centrifuge and director of Anemoy.
Anemoy is the first asset issuer to integrate with Centrifuge Chain, a Layer 1 Polkadot parachain, and promises to migrate a “broad range of lending assets to the chain” and bridge the gap between TradFi and DeFi.
In September, Centrifuge announced testnet deployments for its new RWA liquidity pools on Base and Arbitrum, two leading Ethereum Layer 2 networks.
“As we continue to see increasing demand for real-world asset investments, we look forward to offering Base users access to a diversified pool of institutional assets through our collaboration with Centrifuge,” said Jesse Pollak, the founder of Base and Head of Protocols at Coinbase .
Around the same time, Centrifuge also participated in Anemoy Capital’s first pool, which provided exposure to on-chain government bonds.
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