Tokenized Debt

The tokenization of financial instruments is the most mature and institutionally adopted RWA vertical. Public debt leads the charge in terms of public interest and mind share, with tokenized U.S. Treasuries exceeding $1.8B in AUM. Platforms like BlackRock’s BUIDL, Ondo Finance, and Franklin Templeton drive this adoption rate.

These offerings leverage blockchain to enable real-time settlement, 24/7 access, and programmable yield distribution.

Meanwhile, private credit has seen explosive growth through Figure Markets and Centrifuge, with over $9B in tokenized HELOCs alone. This segment offers flexible structures such as revenue-based financing and real-world lending protocols tied to invoice factoring and SME debt.

Data Fidelity Requirements

High data fidelity is mandatory for tokenized assets, especially when considering regulatory implications. Regulatory regimes such as the SEC in the U.S. or ESMA in the EU require continuous and accurate reporting for tokenized securities.

Oracles must support audit-grade data standards for real-time NAV calculation, tax compliance, and investor reporting. Risk assessment parameters like creditworthiness, leverage ratios, and historical payment behavior all have to be verifiable on-chain and sourced from validated data providers.

Settlement and clearing also demand alignment with traditional systems like DTC or SWIFT, necessitating oracles that can synchronize state transitions across legacy and blockchain infrastructure.

Oracle Solutions for Financial Instruments

Oracle solutions fill these roles through purpose-built data feeds. Real-time pricing is essential for T-bills, equities, and fund shares. Programmable oracle protocols like SEDA that use data provided by RWA World’s publishing service may be configured to fetch pricing data from external sources, including primary trading venues, and apply custom aggregation logic.

Tracking for things like dividends, splits, and governance changes must also be relayed to smart contracts managing tokenized funds. For compliance-related applications, oracles can be configured to support investor accreditation checks, jurisdictional restrictions, and AML/KYC verification processes using third-party identity providers and regulated attestations.