The RWA market is gaining momentum: Grvt builds a $100 million position in USDY, and Coinbase opens a tokenization hub in Abu Dhabi.
The real-world asset (RWA) tokenization sector continues to demonstrate impressive momentum, attracting increasingly larger players. This week, we are witnessing two landmark events that confirm: institutional interest in on-chain finance has moved from the experimentation stage to a phase of active scaling.
Grvt bets on tokenized treasury bonds
CeDeFi platform Grvt has announced a strategic partnership with RWA product issuer Ondo Finance. Over the next twelve months, the exchange intends to grow its position in the tokenized USDY instrument to $100 million. These funds will be integrated into the Grvt Earn product, which already provides users with passive income for providing liquidity.
The base yield of 3.5% per annum (APY) will become part of a unified rate that clients receive on the platform, including integrations with protocols like Aave. Essentially, Grvt is using institutional US Treasury bonds as a reliable foundation for rewarding its users, which significantly enhances the platform's appeal in the eyes of conservative investors.
According to current RWA.xyz data, Ondo Finance's total assets under management (AUM) stand at approximately $2.59 billion. The bulk of this comes from USDY — $2.1 billion distributed across eight networks, while the OUSG product, available only to qualified US investors, has accumulated $500 million. Grvt's planned $100 million position would constitute roughly 3.8% of USDY's current AUM — a serious commitment that directly addresses the distribution challenge for Ondo.
For me, this is a vivid example of how tokenized bonds are transforming from a niche investment tool into a foundational infrastructure layer for the entire DeFi ecosystem. This is a natural stage of evolution: platforms are seeking stable, low-risk sources of yield, while issuers are looking for distribution channels without entering the retail market.
Coinbase strengthens its position in the Middle East
In parallel, Coinbase has announced the opening of an international tokenization hub in Abu Dhabi. The company has received financial activity permission from the Financial Services Regulatory Authority of the Abu Dhabi Global Market and plans to offer digital securities backed by underlying equities.
This move is part of Coinbase's global strategy to expand beyond the US market. The new division will operate alongside the exchange's derivatives business in Dubai, forming two anchor points in the UAE. Amid growing demand from traditional asset managers and banks to move funds, bonds, and equities onto blockchain rails, Coinbase is clearly seeking to take a leading position in this process outside the US.
My take on the situation
This week's events are a clear signal that tokenization has ceased to be a buzzword and has become a real business with billion-dollar volumes. However, investors should remember: the rapid growth of the RWA sector will inevitably attract regulatory attention, and those projects that are already building transparent and legally sound structures now (as Coinbase is doing in the UAE) will gain a tremendous advantage in the long term.