DigiFT hits US$25m in funding signaling maturing real-world assets market

DigiFT, a licensed exchange for institutional-grade, tokenized real-world assets (RWAs), has successfully raised a total of US$25 million in funding, with its latest strategic round led by Japan’s SBI Holdings. This recent capital infusion follows a previous pre-Series A round in February 2023, where the firm secured US$10.5 million led by Shanda Group. The new funding is intended to help DigiFT expand as an RWA infrastructure provider, connecting traditional asset management with on-chain finance via regulated tokenized products.

DigiFT is a platform that operates licensed exchanges in both Singapore and Hong Kong. It facilitates the trading and distribution of RWAs, aiming to improve secondary market liquidity, capital efficiency, and access to yield for both institutional and Web3-native investors. The platform’s offerings include strategies in money markets, public mutual funds, U.S. Treasuries, and private credit, with asset managers like Invesco, UBS Asset Management, and Wellington Management. The company was recently granted Type 1 and Type 4 licenses by the Hong Kong Securities and Futures Commission (SFC), making it the first regulated platform for institutional-grade tokenized RWAs to be licensed by both the SFC and the Monetary Authority of Singapore (MAS).

The success of DigiFT’s fundraising efforts reflects a broader, yet often overlooked, trend in the crypto world: the tokenization of real-world assets. Unlike speculative crypto tokens, RWA tokens are backed by tangible assets and can generate real-world income, making them an appealing option for institutional investors and traditional finance players seeking lower-risk blockchain exposure. This process involves converting physical or financial assets like real estate, government bonds, or fine art into digital tokens on a blockchain.

Experts at Boston Consulting Group and ADDX predict that asset tokenization could become a US$16 trillion opportunity by 2030, representing a significant portion of global asset markets that are currently illiquid and tied to outdated infrastructure. RWA tokenization brings several key advantages, including:

• Fractional Ownership: It allows investors to buy small percentages of high-value assets like property or art, lowering the barrier to entry.
• Global Access: Tokenized assets are borderless and available 24/7, enabling participation from anywhere with an internet connection.
• Improved Liquidity: Tokens can be traded instantly, in contrast to traditional assets like real estate that can take months to sell.
• Programmability: Embedded smart contracts allow for automated functions such as dividend payouts and compliance checks.

Despite its potential, RWA tokenization has been a quiet trend for several reasons, including its non-speculative nature, which does not fit the typical crypto mold driven by excitement over overnight gains. Additionally, the space has faced hurdles from heavy regulatory requirements and a lack of suitable infrastructure. However, this is changing as jurisdictions like Singapore, the UAE, and Switzerland create clear guidelines for digital assets, and new blockchain protocols are developed to meet the specific needs of RWA deployment, including built-in compliance modules.

2025 has become a pivotal year for RWAs, fueled by high interest rates that are driving demand for consistent, transparent yield. With traditional finance institutions like JPMorgan and Franklin Templeton actively engaging in blockchain initiatives, RWA tokenization is moving from an experimental concept to a mainstream financial solution.