Spark, a leading blockchain platform, has recently announced the winners of its Tokenization Grand Prix. BlackRock, Superstate, and Centrifuge emerged victorious in the competition, which aimed to allocate $1 billion in tokenized assets. Among the winners, BlackRock’s BUIDL fund is set to receive half of the allocated funds.
The competition, which was launched in July 2024, utilized the Spark Liquidity Layer (SLL) to allocate funds. The primary goal of the initiative was to integrate real-world assets (RWAs) into the platform, diversifying Spark’s balance sheet and promoting stablecoin adoption in the DeFi space.
The final allocation of funds is contingent on approval from Sky (formerly MakerDAO) governance, with a vote scheduled for April 3. If approved, $300 million will be invested in Superstate’s USTB and $200 million in Centrifuge-Anemoy Janus Henderson’s JTRSY.
Currently, the Spark Liquidity Layer holds various stablecoins, including USDC, USDS, sUSDS, USDe, and sUSDe. These stablecoins will be used to add BUIDL, USTB, and JTRSY to the platform.
The process of adding RWAs to the treasury involved reviewing 39 applications by Steakhouse Financial, a firm specializing in RWAs within the Spark ecosystem. Applicants were evaluated based on pricing transparency, liquidity levels, and alignment with Spark’s objectives.
Each of the selected RWA tokens is backed by US Treasury securities, indicating a preference for liquid and conservative assets. BUIDL, offered by BlackRock and tokenized by Securitize, invests in US Treasury bills, repurchase agreements, and cash. With a market cap of over $1.2 billion, BUIDL is the largest tokenized money fund, and Spark’s investment could potentially push it close to $2 billion.
Superstate’s USTB focuses on short-duration US Treasury bills maturing in six months or less, providing a predictable and secure yield. On the other hand, Centrifuge-Anemoy Janus Henderson’s JTRSY allocates funds to a short-duration US Treasury fund that reinvests in new issuances as existing securities mature. With a market cap of $32.4 million, JTRSY is the smallest of the three tokenized funds potentially receiving Spark’s investment.
If approved, Spark’s investments in BlackRock/Securitize, Superstate, and Centrifuge will represent a significant advancement in integrating tokenized RWAs into DeFi infrastructure.
Overall, the Tokenization Grand Prix winners demonstrate the growing interest and investment in tokenizing real-world assets, paving the way for further innovation and adoption in the blockchain industry.