The RWA market is gaining momentum: Grvt expands its position in USDY by $100 million, Coinbase opens a tokenization hub in Abu Dhabi
The tokenization sector for real-world assets (RWA) continues to demonstrate explosive growth, and recent developments only confirm this. The hybrid CeDeFi platform Grvt has announced a strategic partnership with issuer Ondo Finance. Over the next twelve months, the exchange intends to grow its position in the tokenized product USDY to $100 million. This is not just a number—it is a confident bet on institutional adoption of tokenized treasury bonds.
Partnership Mechanics and Yield
A key element of the deal is the integration of an annual percentage yield (APY) of 3.5% into the base rate of the Grvt Earn product. Platform users already earn yield through integration with the Aave protocol, and now this liquidity pool will be supplemented with an institutional instrument. In essence, Grvt is turning passive asset custody into a full-fledged source of income, which is critical for attracting large capital.
At the time of analysis, Ondo Finance's total assets under management (AUM) stand at approximately $2.59 billion. The bulk is attributed to USDY—$2.1 billion distributed across eight networks. The remaining $500 million is the OUSG product, available exclusively to qualified investors from the United States. Grvt's planned position of $100 million is roughly 3.8% of current USDY AUM, making the exchange one of the largest holders of this instrument.
Infrastructural Shift in DeFi
This partnership is not merely a commercial deal. It marks the transition of tokenized bonds from the category of exotic investments into the foundational infrastructure of DeFi platforms. For Ondo, this solves the critical distribution problem that had been hindering USDY's scaling. Instead of targeting the retail market, the company gains access to institutional liquidity through Grvt.
It is worth recalling that Grvt operates on the ZKsync L2 solution. In September 2025, the platform raised $19 million in a Series A round, and on July 30, 2026, the TGE of the GRVT token took place. These steps demonstrate the project's serious ambitions in the fight for a share of the on-chain finance market.
Coinbase Strengthens Its Position in the Middle East
In parallel, Coinbase is making a significant move in its international expansion. The company has received approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market and is opening a tokenization hub there. It plans to offer digital securities backed by underlying equities. This comes amid growing interest from traditional banks and asset managers in moving funds, bonds, and stocks onto blockchain rails.
The new division will operate alongside Coinbase's derivatives business in Dubai, creating two anchor bases in the UAE. This is a strategically sound move: the UAE is becoming a global hub for crypto innovation, and a presence there opens access to capital from the Middle East and Asia.
My take: We are witnessing market consolidation. Major players such as Grvt and Coinbase are not just testing the technology but building full-fledged infrastructure for institutional capital. However, it is worth remembering that Ondo Finance recently saw a conflict over control of the project following the founder's death. This serves as a reminder that even in the most promising sectors, risks related to governance and centralization persist.