The RWA market is gaining momentum: Grvt expands its position in USDY by $100 million, and Coinbase opens a tokenization hub in Abu Dhabi.
The real-world asset (RWA) tokenization sector continues to demonstrate explosive growth, and recent developments only confirm this. 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 signal that institutional players are beginning to view RWA instruments as a full-fledged component of their liquidity.
Yield mechanics and Ondo's scale
An annual percentage yield (APY) of 3.5% will be integrated into a unified base rate that users already receive through the Grvt Earn product. In addition to the partnership with Ondo, the platform also leverages an integration with the Aave protocol, allowing clients to earn passive income on provided liquidity. In essence, we are witnessing a convergence of traditional financial instruments and DeFi mechanics.
According to my data, Ondo Finance's total assets under management (AUM) currently stand at approximately $2.59 billion. This capital is distributed across two key products: USDY — $2.1 billion (deployed across eight networks) and OUSG — $500 million (available only to qualified U.S. investors). USDY, backed by short-term U.S. Treasury bonds and bank deposits, is the flagship instrument. Grvt's planned $100 million position would represent roughly 3.8% of current USDY AUM — a substantial share that speaks to a high degree of confidence in the product.
Strategic context and Coinbase expansion
This partnership is not an isolated case but part of a larger trend. Tokenized Treasury bonds are ceasing to be merely an investment product and are becoming foundational infrastructure for DeFi platforms. For Ondo, this solves the distribution problem: integration with Grvt Earn allows for expanded reach without the need to enter the retail market directly.
In parallel, Coinbase is taking a significant step in the geopolitical dimension of RWA. The company has announced the opening of an international tokenization hub in Abu Dhabi, having obtained a license from the Financial Services Regulatory Authority of the International Financial Centre. This will allow the exchange to offer digital securities backed by underlying equities outside U.S. jurisdiction. The new division will operate in conjunction with Coinbase's derivatives business in Dubai, forming two key footholds in the UAE.
Against this backdrop, it is worth noting that Ondo Finance recently faced an internal conflict over control of the project following the founder's death — a reminder that even in fast-growing segments, corporate risks persist.
My view: the RWA market is moving from pilot projects to large-scale institutional integration. The actions of Grvt and Coinbase are a clear signal that tokenization is becoming mainstream, and those who take positions now will gain a significant advantage in the coming years.