Cardano is gaining traction in the real-world asset (RWA) tokenization sector, following its involvement in a landmark initiative tied to the London Stock Exchange Group (LSEG).
Yesterday, the LSEG welcomed investment manager Members Capital Management (MembersCap) to open the market. The event was part of efforts to celebrate the launch of its flagship MCM Fund I.
This marked the first institutional-grade reinsurance fund to be tokenized and recorded on LSEG’s new Digital Markets Infrastructure (DMI). For context, MembersCap launched the fund in collaboration with Archax. The Cardano Foundation also supported the initiative.
Although the investment was recorded on LSE’s private blockchain, it was tokenized on the Cardano blockchain, with Archax overseeing this process.
Cardano Foundation CEO Reacts
Frederik Gregaard, the CEO of the Cardano Foundation, expressed enthusiasm about the recent launch of the MembersCap fund, which was tokenized on the Cardano network. He views the MembersCap fund as a milestone to drive the adoption of RWAs through the Cardano network.
In his view, this move could open the door for qualified investors to access reinsurance-backed products through the Cardano platform. Gregaard stressed that the network is built on security, compliance, predictability, and operational resilience.
He also emphasized that the foundation will continue to promote Web3 adoption by supporting similar projects and innovative use cases from its partners in the future.
Cardano Stepping Into RWA Tokenization Spotlight
The initiative elicited reactions among Cardano proponents. Popular advocate Jaromir Tesar emphasized that Cardano is stepping into the spotlight for RWA tokenization.
Cardano is stepping into the spotlight for Real World Asset tokenization — with the London Stock Exchange’s new DMI platform showcasing how blockchain can bring private funds on-chain.
Big thanks belong to @Cardano_CF! https://t.co/X2cVzDXp5W pic.twitter.com/3Tgv5X8P8Q
— Cardano YOD₳ (@JaromirTesar) September 22, 2025
Indeed, Cardano has been gaining traction in RWA tokenization lately. Earlier this year, Kinka partnered with EMURGO to mint gold-backed tokens on the Cardano blockchain.
EMURGO, a co-founding entity of the Cardano network, continues to push for the expansion of the network’s RWA ecosystem. It intends to achieve this goal through partnerships with compliant tokenization platforms such as Haus, OpenEden, and DigiFT.
Through the partnerships, EMURGO aims to bring tokenized assets, including private credits, U.S. government bonds, and insurance factoring to Cardano.
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