RWA Tokenization: The Quiet Rise of the Distribution Layer The market is entering a new phase as major institutions accelerate tokenization efforts, pulling crypto deeper into tradFi. @krakenfx's partnership with Deutsche Börse clearly shows this shift. They're connecting two previously separate trading infrastructures, and together with Kraken's acquisition of @BackedFi, they now own the full issuance and trading stack for tokenized securities. The trend becomes even clearer with @centrifuge launching Whitelabel and enabling platforms like @daylightenergy_ to tokenize energy assets. Tokenization is moving into sectors with real industrial value, gradually positioning blockchain as the settlement layer for new capital flows. As more assets move onchain, global investors gain more flexible access to U.S. markets, and liquidity and transaction speed increasingly depend on crypto infra. BlackRock reinforces this narrative by comparing tokenization to an infrastructure overhaul similar to SWIFT. They see a future in which any asset can be recorded and transferred directly onchain. This lays the foundation for crypto to become the operational standard for a new financial system, where traditional and digital assets converge within a unified infrastructure. Tokenization can be understood through three linked layers: • The Issuer Layer: handles the creation and legal assurance of the asset. • The Infrastructure Layer: ensures the asset operates correctly on the blockchain. • The Distribution Layer: brings tokenized assets to end users. When all three layers align, tokenization scales quickly and pushes crypto closer to the center of finance. Phase 1 focused on the Issuer and Infrastructure layers. These were built by players such as Securitize, BackedFi, Ondo Global Markets, Robinhood, and Mantle. They created the legal and technical foundations that enable RWAs to be tokenized in a compliant and stable way. Market data shows the explosive growth in this phase. Tokenized stablecoins and U.S. Treasuries have reached $302.15B and $9.06B. Tokenized public equities followed with $681M, a 12,578% increase since early 2024. A major turning point came when Exodus Movement, Inc. ($EXOD) was tokenized on Algorand by Securitize, lifting the market from $10M to nearly $480M. This was the peak of Phase 1. A key question is which chain tokenized equities will choose. At first, Algorand dominated with more than 90% share due to EXOD. But as Securitize’s share declined, Algorand fell accordingly. Ethereum and Solana quickly became preferred destinations for new tokenized assets. Today, Ethereum holds 49.6% market share, Solana 23.75%, and Algorand 19.23%, followed by Stellar and BNB Chain. This shows that stock tokenization is moving toward chains with deeper liquidity and richer ecosystems. Transfer volume tells a different story. Ethereum holds nearly 50% of TVL, but its transfer activity is lower than Solana's. Solana holds only 23.8% of TVL but leads in usage. The difference comes from real utility. On Solana, @xStocksFi built a wide application network by integrating its offering with other DeFi apps. Holders of tokenized stocks can use them as collateral in money markets like @kamino and @piggybank_fi, or use them for leveraged trading on perps like @wasabi_protocol. The possibility to treat a traditional asset like a stock as collateral, a yield-bearing asset, or a leveraged trading asset drives high circulation across the ecosystem. On Ethereum, most tokenized assets remain "inactive" rather than being used. DeFi integrations for tokenized equities are still in their early stages tho. The Distribution Layer is expanding rapidly as platforms grow their partner networks and test new application models. This is happening not only with xStocks but also across many emerging distribution platforms that aim to become the core layer where traditional assets operate according to onchain liquidity. The rise of the Distribution Layer seems inevitable. The key questions now involve which projects can capture the most value from tokenized asset flows, whether the market will consolidate under a single protocol or develop through cooperation among several platforms, and how each project will position itself to take advantage of this shift.

Mantle & The Fat Protocol Thesis: The Bridge Between TradFi and DeFi RWA has become a core strategic direction for @Mantle_Official at a time when growth driven by restaking is losing effectiveness. Projects that once dominated the liquid restaking narrative have faded in momentum, and even @ether_fi has shifted toward a Neobank angle to find a more sustainable path. Mantle chose a different route, connecting tradFi and onchain markets, which is exactly the environment where the Fat Protocol Thesis becomes relevant: "Long-term value must ultimately accrue at the protocol layer". To achieve this, Mantle is expanding along two major axes: • The horizontal axis focuses on expanding the flow of assets and capital between TradFi and DeFi. • The vertical axis focuses on strengthening legal foundations, security, custody, and community education so that horizontal expansion can sustain itself. These two axes operate simultaneously and reinforce one another, creating a growth model that very few L2 networks have managed to build. Along the horizontal axis, Mantle has become a true two-way bridge. One direction brings TradFi into DeFi through tokenization. Mantle works with @BackedFi and @xStocksFi to bring US equities on-chain and connects directly to Bybit so users can trade and withdraw these tokenized assets back to Mantle without intermediaries. Alongside this shift, the team has announced a Tokenization-as-a-Service platform that enables institutions to bring RWAs onchain while ensuring full compliance across KYC, legal setup, smart contracts, and security audits. This positions Mantle as an RWA hub and opens the door to institutional capital. Meanwhile, USD1 from @worldlibertyfi, along with USDY and mUSD from @OndoFinance, backed by t-bills, have been integrated directly into the ecosystem. This diversifies Mantle’s DeFi activity away from reliance on crypto-native liquidity and toward capital from traditional markets. The bridge also works in the opposite direction. Instead of waiting for TradFi investors to figure out how to access crypto, Mantle brings crypto to them in a regulated format. Mantle Index Four (MI4) is the clearest example -> a tokenized index for tradFi investors to gain exposure to BTC, ETH, SOL, and synthetic USD through a standardized investment product. For all of this to operate sustainably, Mantle strengthens the vertical axis that supports the ecosystem. The RWA ScholarSHIP Content Bounty helps the builders community understand tokenization, institutional-grade stablecoins, and new primitives. When builders understand the nature of RWA, ecosystem expansion happens naturally and more sustainably. Reference: https://t.co/CtdSEG4l0x About institutional trust, another relevant aspect, the partnership with @Anchorage provides compliant custody for MNT through the self-managed Porto wallet, aligning with standards used by US-regulated banks. Mantle also integrates @CopperHQ to custody $mETH and uses @gelatonetwork to automate operational processes, creating a secure and compliant environment that institutions can rely on. As the infrastructure solidifies, institutional holdings of MNT continue to rise, signaling growing institutional confidence in Mantle. All of these movements demonstrate that Mantle is scaling in a way very few ecosystems can match. It attracts assets and capital from TradFi into DeFi, while distributing crypto assets into TradFi through regulated financial structures. It strengthens the full vertical infrastructure required for long-term expansion. These two axes intersect to form a model where value consistently returns to the protocol layer, aligning perfectly with the Fat Protocol Thesis and reinforcing Mantle’s position in the RWA sector.