Tokenization: A Key Evolution in the Future of Finance

According to BlackRock CEO Larry Fink, tokenization represents the future of finance and a key market evolution, a trend that is impacting other major financial institutions. Research shows that real-world assets (RWA) are becoming an important component of the cryptocurrency industry, mainly driven by projects like Dusk Network and Ondo Finance. As of May 2024, the RWA market size has exceeded $6.6 billion, and it is expected that by 2030, the scale of asset tokenization will reach $10 trillion.

The World Federation of Exchanges ( WFE ) recently published a paper on tokenization, describing it as a natural evolution of finance. JPMorgan is also very active in this field, and Fidelity International is using JPMorgan's Onyx Digital Assets platform to tokenize money market fund shares.

The custody trust and clearing company ( DTCC ) have recently completed a pilot test of fund tokenization technology and standards. Deutsche Bank has joined the Monetary Authority of Singapore's Project Guardian, which is a blockchain alliance that includes JPMorgan, Citibank, BNY Mellon, UBS, HSBC, and others, aimed at exploring interoperable tokenized fund blockchain platforms.

With the growing interest in blockchain narratives, many projects are fiercely competing to become leaders in the field. Among these projects, IX Swap stands out with its unique approach and ambitious goals. IX Swap is a real-world asset tokenization launch platform and a decentralized exchange (DEX), facilitating the trading of security tokens through licensed custodians and broker-dealers. Its aim is to democratize investment opportunities in the private placement market and address the liquidity challenges faced by the tokenization industry.

IX Swap co-founder Julian Kwan explained that in 2017, only the top ten cryptocurrencies could receive significant market-making support and afford to be listed on major exchanges. At that time, most small tokens were limited to basic listing platforms, lacking an order book, market makers, or liquidity.

The emergence of Uniswap is a revolutionary innovation in the DeFi space, allowing anyone with two cryptocurrencies to create liquidity pools through smart contracts. This enables asset holders to earn fees and trade directly on the platform.

Today, as more assets are being tokenized, the RWA sector is facing similar liquidity challenges. IX Swap aims to become the Uniswap of the security token space, allowing anyone with RWA and USDC( or other cryptocurrencies) to legally create liquidity pools. This facilitates the buying and selling of tokenized assets, addresses liquidity issues, and makes investments in the private market more convenient.

IX Swap offers a variety of products, including:

1. Secondary trading products: allow trading of security tokens ( STOs ) and fractionalized NFTs ( F-NFTs ), providing access to real-world assets such as private equity, real estate, infrastructure, natural resources, and private debt.

2. Launch Platform: A crowdfunding platform that offers unique investment opportunities in promising startups.

3. SaaS Solutions: Enhance the liquidity of real-world asset platforms through automated market makers and liquidity pools.

4. IXS Token: As the native token of the IX Swap platform, it is the foundation of its ecosystem.

As of June 20, 2024, the market capitalization of the IXS Token is $121 million, the 24-hour trading volume is $1.62 million, and the circulating supply is 174,746,266 IXS.

The IX Swap team started working on developing automated market makers for the security token industry in 2017. The platform officially launched in September 2021 and was founded by Julian Kwan, Alice Chen, and Aaron Ong. Recently, IX Swap was acquired by the parent company of InvestaX to enhance its capabilities and expand its market presence.

IX Swap has completed multiple rounds of financing, including IDO, IEO, and private placement, raising a total of approximately 2.73 million USD. The project has also established several strategic partnerships to drive innovation in the RWA market.

In terms of competition, IX Swap provides a unique, legal, and compliant secondary trading platform for RWA Token trading. Compared to other platforms, IX Swap has an operational AMM model and offers retail investors a securities license, supporting stock trading.

On-chain analysis shows that since November last year, the IXS Token has been performing better than the market, entering a sustained upward trend. The number of smart wallets and holders is also steadily increasing.

IX Swap has some bullish factors, including an engaging narrative, relatively reasonable valuation, emphasis on security and compliance, and an experienced team leadership. However, there are also some bearish factors, such as market volatility risks, regulatory uncertainty, intense competition, and challenges in adoption and liquidity.