Crypto Bank Meld to Launch Tokenized RWAs to Retail Investors

Author

Sujha Sundararajan

Author

Sujha Sundararajan

About Author

Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

Author Profile

Share

Copied

Last updated:

March 21, 2024 03:09 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

Crypto online banking company Meld, which received a VASP license in Lithuania, is set to launch tokenized real-world assets (RWA) for retail investors.

The bank will launch borrowing and lending services against tokenized RWA in partnership with German-licensed DeFi platform Swarm Markets.

According to Swarm Markets spokesperson, both Meld and Swarm signed a memorandum of understanding (MoU)

“This could be really interesting as we go into the next bull run, where people can lend against their stocks to ape more into bitcoin, for example,” the source told CoinDesk.

Swarm Markets, which claims to be the world’s first regulated DeFi protocol, operates under regulatory license from the Federal Financial Supervisory Authority (BaFin) in Germany.

Last year, Swarm launched EU-compliant know-your-customer (KYC) solution for tokenized securities and trading to their users under German law. The company launched its permissionless RWA trading platform in December 2023.

With the collaboration Meld aims to introduce cross-asset margining opportunities for retail investors, which lacks in traditional methods.

Meld has a customer base of 75,000, who have signed for early access to its platform. Furthermore, Meld recently received its virtual asset service provider (VASP) license in Lithuania.

Scope for Tokenized RWA

Per analysts from digital asset management firm 21.co, tokenized RWA could grow to a staggering $10 trillion in a “bull case” and $3.5 trillion in the “bear case” by 2030.

A report published in October noted that the market is “experiencing an unprecedented growth.”

“The convergence between crypto and traditional asset classes, including fiat currencies, equities, government bonds, and real estate, is experiencing an unprecedented growth.”

The forecast for tokenized assets remains high. According to a Bank of America report, tokenization is likely to transform infrastructure and financial markets. The bank also noted that tokenization could increase efficiencies, reduce costs and optimize supply chains.