Plume Network, a layer-2 blockchain created to manage real-world assets (RWAs), has attained certification as a transfer agent from the U.S. Securities and Exchange Commission (SEC). This milestone enhances its capacity to integrate traditional financial products onto the blockchain and streamline the process of issuing tokenized securities.

The announcement of this certification was made via social media, reinforcing Plume’s commitment to transitioning securities markets to blockchain infrastructure.

Transfer agents have historically been responsible for important back-office operations for securities issuers, such as managing shareholder registries, recording ownership transfers, and overseeing corporate actions.

Plume asserts that this SEC registration empowers it to replicate and automate these functions onchain, “linking cap tables and reporting directly to SEC and DTCC systems,” referring to the Depository Trust and Clearing Corporation, which is pivotal in settling securities transactions.

This development signifies a major advancement in bridging traditional finance and decentralized systems, granting Plume the regulatory authority to oversee tokenized securities under U.S. law.

As previously reported by Cointelegraph, Plume secured $20 million in funding last December from investors such as Brevan Howard Digital, Huan Ventures, and Galaxy Ventures, aiming to expedite the growth of its tokenization platform. The company now claims to have facilitated over $62 million in tokenized assets through Nest Credit, its vault dedicated to institutional investors.

Institutional RWAs: Addressing the Adoption Gap

While estimates place the market value of tokenized RWAs at approximately $33 billion, indicating the total value of financial assets currently represented onchain, Chris Yin, co-founder and CEO of Plume Network, highlights that institutional involvement is far less than these figures may imply.

Yin remarked, “These things move incredibly slowly — you must demonstrate value and foster adoption first” during a discussion with Cointelegraph at Token2049 in Dubai, comparing the current progress of RWA development to Bitcoin’s early years.

He noted that most current tokenized activities focus on U.S. Treasury bills and select private credit products, reflecting broader industry trends that show RWAs mainly consist of low-risk, yield-generating instruments.

According to Yin, the true potential of tokenization surpasses short-term yield products. “It offers an entirely new mechanism for fundraising, investor engagement, and cap table transparency,” he stated.

Interest in tokenized equities is also growing, as platforms like Robinhood and Kraken launch products featuring tokenized stocks. Furthermore, the SEC is reviewing regulatory amendments that may allow traditional equities to be tokenized and traded on crypto exchanges, a paradigm shift that could accelerate institutional adoption.