Binance-owned Trust Wallet launches tokenized stocks and ETFs

Trust Wallet, the self-custodial crypto wallet owned by Binance, has officially integrated tokenized stocks and exchange-traded funds (ETFs) into its platform.

After initially disclosing the program to present real-world assets (RWAs) successful June, Trust Wallet launches tokenized versions of US stocks and ETFs for usage astir the globe, the institution said successful an announcement shared with Cointelegraph connected Wednesday.

The integration is carried retired successful collaboration with Ondo Finance, a large decentralized concern (DeFi) platform focused connected RWAs, and the decentralized speech (DEX) aggregator 1inch.

“Integrating RWAs into self-custodial wallets is an important measurement successful making planetary concern much unfastened and efficient,” Trust Wallet CEO Eowyn Chen said.

“The bigger representation is however blockchain democratizes entree to fiscal markets and lays the instauration for a much inclusive aboriginal of finance,” she added.

Ondo brings the assets, 1inch powers the rails

As portion of the collaboration, Ondo Finance volition proviso Trust Wallet with tokenized RWA assets — stocks, ETFs, and bonds — initially issued connected Ethereum and Solana utilizing smart contracts.

In the meantime, 1inch Fusion enhances liquidity and pricing to guarantee smooth, businesslike swaps into RWAs.

“In short, Ondo brings the assets, 1inch powers the rails, and Trust Wallet makes it accessible successful self-custody, acting arsenic a level oregon tool,” Trust Wallet’s selling head, Sami Waittinen, told Cointelegraph, adding:

“Trust Wallet’s doctrine has ever been multichain and provider-agnostic. This is conscionable the opening — we’ll beryllium integrating much RWA providers and liquidity sources implicit time, truthful users get the broadest, astir unfastened entree possible.”

According to the Trust Wallet website, RWA tokens are not disposable successful circumstantial regions, including the United States, the United Kingdom and the European Economic Area (EEA). “Your swap volition not spell done if you reside successful a portion wherever RWA tokens are not available,” Trust Wallet said.

Additionally, RWA swapping follows US marketplace hours, from Monday to Friday, 1:30 p.m. to 8:00 p.m. UTC, the institution website states. “You can’t commercialized RWAs extracurricular of these hours, but we way off-hours involvement for aboriginal features similar 24/7 trading oregon bounds orders,” it said.

Confluence of self-custody and RWAs

By launching RWA enactment connected its self-custodial wallet, Trust Wallet has emerged arsenic 1 of the archetypal platforms to integrate the conception of RWAs and self-custody. 

While self-custody enables users to negociate their assets independently, escaped from centralized control, tokenized RWAs are integer representations of real-world properties serving arsenic certificates of ownership.

According to Trust Wallet’s Sami, the collaboration aligns with the company’s ngo of promoting state of ownership and providing radical with direct, unafraid entree to the afloat spectrum of crypto and Web3 opportunities.

“Tokenized RWAs are a earthy adjacent measurement arsenic they unlock traditionally gated assets similar stocks oregon ETFs, and marque them accessible to anyone, anywhere, from their ain wallet. It’s a almighty hold of what self-custody tin mean,” helium said.

Related: Tokenized alternate funds leap 47% to $1.7B successful 30 days

Lucien Bourdon, an expert astatine the hardware wallet institution Trezor, distinguished 2 perspectives erstwhile addressing the premix of self-custody and RWAs.

“If a blockchain supports real-world plus tokens, immoderate self-custodial hardware wallet that supports that concatenation tin clasp them securely,” Bourdon told Cointelegraph.

From the wallet’s perspective, helium said there’s nary quality betwixt an RWA token and immoderate different token, adding that immoderate examples, similar golden oregon Treasury-backed tokens, are already being stored this way.

There is an important favoritism betwixt the 2 from an ownership perspective, though, helium said.

“With cryptocurrencies, your keys adjacent nonstop ownership of the asset. With real-world assets oregon stablecoins, your keys unafraid the token, but the underlying plus remains with an issuer oregon custodian,” Bourdon said, adding:

“That means self-custody works technically, but spot successful the issuer is inactive essential.”

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