How Cosmos Powers Real World Asset Tokenization for Institutional Capital Markets

TLDR:

• Tokenized U.S. Treasuries reached $5.6 billion by April 2025, growing five times year over year. 
• Cosmos powers 150+ blockchains including Provenance, Progmat, and institutional RWA platforms. 
• Ondo Finance moved $95 million into BlackRock’s BUIDL fund, enabling continuous redemptions. 
• Lombard’s LBTC token surpassed $1 billion in three months with Franklin Templeton backing.

Capital markets are shifting toward blockchain infrastructure as tokenization gains traction across traditional finance.

Asset managers and banks now issue tokenized treasuries, credit instruments, and securities through distributed ledgers.

Stablecoins represent $250 billion in circulating value, while tokenized U.S. Treasuries reached $5.6 billion in assets under management by April 2025.

Citi analysts project tokenized assets could reach $4 to $5 trillion by 2030. Cosmos has emerged as preferred infrastructure for institutions seeking on-chain capital markets solutions.

Cosmos Architecture Addresses Institutional Requirements

Cosmos provides institutions with blockchain infrastructure that balances operational control and market connectivity.

The framework allows financial firms to build custom chains with internal governance, security protocols, and compliance automation.

Over 150 interoperable blockchains currently operate on Cosmos technology, with regulated institutions increasingly adopting the stack for capital markets applications.

Provenance powers Figure’s non-bank home equity lending platform, which leads the U.S. market in this segment. Progmat, a joint venture of Japan’s MUFG, Mizuho, and SMB, operates the country’s largest regulated tokenization platform on Cosmos infrastructure.

These deployments validate the technology for high-stakes financial operations requiring regulatory compliance and institutional-grade security.

The Inter-Blockchain Communication protocol enables asset distribution across networks while preserving issuer sovereignty.

Institutions can issue securities on proprietary chains and connect to external liquidity venues without surrendering control over core asset rules.

This separation of governance and distribution resolves a fundamental tension in institutional blockchain adoption.

Ledger-based settlement reduces reconciliation costs across custodians, transfer agents, and clearing systems. Asset managers achieve faster liquidity access, while banks minimize counterparty exposure.

Tokenization expands distribution by enabling asset fractionalization across regions without reconstructing product structures for each venue.

These operational benefits have accelerated adoption in cash equivalents, credit products, and exchange-traded instruments.

Production-Scale Implementations Demonstrate Market Readiness

Injective addresses digital securities market fragmentation through purpose-built financial infrastructure. The platform provides native primitives for tokenized asset issuance and trading at institutional scale.

DigiShares and publicly listed Valereum deployed their digital securities platform on Injective using the ERC-7943 interoperability standard for single-asset tokenization.

The integration supports real estate, pre-IPO equity, and alternative assets with institutional-grade settlement. Valereum’s secondary trading platform leverages Injective’s on-chain order book and cross-chain capabilities.

Institutions can perform due diligence, execute investments, and trade digital securities through a unified interface built on Cosmos-compatible infrastructure.

Ondo Finance solves liquidity constraints that limited early tokenized markets. The platform connects tokenized assets to public exchange liquidity through direct acquisition mechanisms.

Users fund purchases with stablecoins, Ondo acquires underlying securities on regulated venues, and redemption processes maintain price alignment.

In March 2024, Ondo moved $95 million into BlackRock’s BUIDL tokenized money market fund. This enabled continuous redemptions instead of T+2 settlement delays.

Ondo Global Markets, built on the Cosmos Stack, now offers hundreds of tokenized equities and ETFs. Partnerships with Franklin Templeton and BlackRock position the platform as a bridge between traditional finance and on-chain markets.

Lombard Finance demonstrates Bitcoin’s evolution as capital markets collateral through its liquid-staked LBTC token.

The product surpassed $1 billion in total value locked within three months, with supply actively deployed across on-chain financial markets.

Franklin Templeton participated in the $16 million seed round, while Wintermute, Galaxy, and DCG provide security oversight.

ZIGChain combines brokerage rails with blockchain settlement to extend retail access to global tokenized equities.

Announced in 2024 with a $100 million ecosystem fund, the platform recently partnered with Apex Group to launch regulated on-chain fund structures.

The $3.4 trillion fund administrator collaboration demonstrates institutional confidence in Cosmos infrastructure for real-world asset tokenization at scale.

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