Crypto online banking company Meld has received a VASP license in Lithuania and is set to launch a tokenized real world asset (RWA) for retail investors.
The bank will launch lending services in exchange for tokenized RWAs in cooperation with German DeFi platform Swarm Markets. According to a Swarm Markets spokesperson, both Meld and Swarm have signed a memorandum of understanding (MoU)
SwarmMarkets, which claims to be the world’s first regulated DeFi protocol, operates under a regulatory license issued by the Federal Financial Supervisory Authority (BaFin) in Germany.
Last year, Swarm launched an EU-compliant “know your customer”(KYC) solution for tokenized securities and trading with its users under German law. The company launched its RWA trading platform without authorization in December 2023.
Meld is entering into this partnership to provide retail investors with a margin option covering a variety of assets, which is not available through traditional methods.
The company has 75,000 customers who have pledged their consent for early access to the platform. In addition, Meld recently received a license as a Virtual Asset Service Provider(VASP) in Lithuania.
RWA’s range of tokenized assets
According to analysts at 21.co, a digital asset management firm, tokenized RWA could grow to a staggering $10 trillion in a best-case scenario and $3.5 trillion in a worse-case scenario by 2030. The October report said the market is “experiencing unprecedented growth.”
“Convergence between cryptocurrencies and traditional asset classes, including fiat currencies, equities, government bonds and real estate, is experiencing unprecedented growth.”
The outlook for tokenized assets remains high. According to the Bank of America report, tokenization is likely to transform financial infrastructure and markets. The bank also noted that tokenization can increase efficiency, reduce costs and optimize supply chains.
