What To Know:
- Plume is seeking US regulatory approval to launch a platform that would let users buy tokenized representations of real-world assets, including equity, agricultural holdings, and energy infrastructure.
- The push has intensified scrutiny from economists and regulators.
- Some Federal Reserve officials warn that tokenization could transmit volatility from crypto markets into the wider financial system as blockchain products move closer to traditional capital markets.
Plume, a blockchain startup focused on real-world asset tokenization, has been pressing US regulators for approval to launch an online platform that would allow customers to buy digital currencies backed by physical and financial assets, including companies, farms, and oil wells. The effort places Plume at the center of a growing debate over whether tokenization can safely extend crypto infrastructure deeper into the traditional economy.
Plume Pushes for US Approval of Tokenized Asset Platform
According to reports, Plume has been in active discussions with US regulators for months as it works to secure the necessary permissions to operate such a platform. The initiative was highlighted recently by The New York Times, which described the company’s ambitions as an attempt to apply crypto’s underlying technology to more conventional forms of finance.
The article noted that Plume’s founders, Chris Yin and Supakorn Pornprinya, have been laying the groundwork for a system where real-world ownership stakes could be represented and traded on-chain. The firm has met with the SEC’s crypto task force, contributed to the White House report, and set up its U.S. HQ in the Empire State Building.
Plume is expanding blockchain use to include equity, agriculture, and energy assets.
The regulatory push has drawn attention beyond the crypto industry. Some economists at the Federal Reserve have cautioned that tokenization could act as a transmission channel. They believe that financial shocks originating in volatile crypto markets to spread more easily into the broader economy due to tokenization. The concern reflects a wider unease among policymakers as blockchain-based financial products move closer to regulated capital markets.
Plume’s regulatory profile has also raised eyebrows. Reports indicate that the company advises the US Securities and Exchange Commission’s crypto task force and maintains a business partnership with World Liberty Financial, a crypto project associated with the Trump family.
In interviews, Yin has argued that interest in real-world assets, or RWAs, has intensified because of current market conditions. In the fourth quarter, the broader crypto market came under sustained pressure, prompting many participants to exit riskier positions. Even so, the RWA sector continued to attract both retail and institutional capital.
Data from RWA.xyz showed that the number of RWA asset holders rose 6.82% over the past month, pointing to growing engagement during a period of weak sentiment elsewhere in crypto markets. Yin said the appeal lies in on-chain assets that are directly linked to tangible economic activity.
“The RWA market has been driven by an interest across sectors in on-chain assets linked to reality,” he said. “A level of certainty, as we have faced a not-quite-bear, not-quite-bull environment.”
Yin added that governments, financial institutions, and technology companies are increasingly focused on tokenization initiatives. While these programs often take years to reach scale, he believes their rollout could eventually bring billions of dollars’ worth of assets on-chain.
Plume has already taken concrete steps to align itself with regulated finance. In October, Plume Network, a modular Layer 2 blockchain designed for RWAs, received approval from the SEC to operate as a registered transfer agent. The designation allows Plume to manage digital securities and shareholder records on-chain, covering processes such as securities transfers, dividend distribution, and real-time reporting to the SEC and the Depository Trust and Clearing Corporation.
The approval marked a notable milestone in efforts to connect decentralized finance with traditional securities infrastructure. It also positioned Plume to play a role in the gradual migration of parts of the US securities market onto blockchain-based systems.
USD1 has a market capitalization of about $2.2 billion, making it the seventh-largest stablecoin in circulation. The token is now live across the Plume ecosystem, including on Nest, the network’s staking protocol. According to RWA.xyz, Plume’s on-chain RWA value is currently $119.94 million, while the number of RWA wallet holders surged to more than 281,823.
Yin said the integration allows users and institutions to interact with the US dollar in a crypto-native format, including using the stablecoin as collateral for loans tied to other assets. He added that broader adoption of stablecoins could eventually support everyday use cases such as payments, lending, and investment in tokenized real-world assets.
Also Read: Shenzhen Firm Issues World’s First Public RWA Digital Bond on Ethereum
