Valereum Plc (AQSE:VLRM), the Gibraltar-based fintech company, has made a strategic move into the burgeoning real-world asset (RWA) tokenization market through a new collaboration with DigiShares and ZIGChain .

Valereum Targets $24 Billion RWA Market with Strategic Tokenization Partnership

The partnership represents Valereum’s latest effort to capitalize on what has become one of the fastest-growing sectors in digital finance, with the tokenized RWA market reaching over $24 billion in 2025, representing a staggering 308% growth over three years .

The Strategic Alliance: Addressing Core Market Barriers

According to Mark Mariampillai, Valereum’s business development lead, the collaboration is designed to tackle the three fundamental challenges plaguing the RWA tokenization sector: access, liquidity, and compliance . “The one key problem with RWA tokenisation is liquidity. And we try to solve the three biggest problems that are holding back tokenisation, which are access, liquidity and compliance,” Mariampillai explained .

The partnership combines Valereum’s regulatory compliance expertise, DigiShares’ white-label platform technology, and ZIGChain’s blockchain infrastructure to create what the company describes as an institutional-grade tokenization solution . This multi-pronged approach reflects industry best practices, as successful tokenization platforms require seamless integration of regulatory frameworks, user-friendly technology, and robust blockchain architecture.

Geographic Strategy: MENA and Latin America Focus

Valereum’s strategic decision to target the Middle East, North Africa (MENA), and Central and South American regions first appears well-calculated given the regulatory landscapes in these markets. The MENA region, in particular, has emerged as a tokenization hotspot, with the UAE and other Gulf states implementing progressive regulatory frameworks that encourage digital asset innovation .

The company’s emphasis on real estate tokenization in these regions aligns with market demand, as Mariampillai noted that real estate developers in the MENA region are already in discussions to issue tokens for both new and existing properties . This focus on real estate is strategically sound, as property tokenization offers clear value propositions including fractional ownership, enhanced liquidity, and reduced transaction costs.

Valereum’s Evolution: From Mining to Tokenization

Valereum’s entry into RWA tokenization represents a significant strategic evolution for the company. Founded in 2012 as Valereum Blockchain Plc, the company rebranded to Valereum Plc in January 2022 to reflect its broader fintech ambitions . The company’s journey has included several strategic pivots, including the divestment of bitcoin mining assets in August 2022 and the acquisition of the GSX Group in January 2024, which brought the GATENet blockchain-based financial markets infrastructure into its portfolio .

This evolution positions Valereum within the growing ecosystem of companies offering regulated digital asset services. The company operates VLRM Markets, a licensed Digital Asset Service Provider (DASP) in El Salvador, and has developed V-Wallet for digital asset storage and transfer .

Market Opportunity: Riding the Tokenization Wave

The timing of Valereum’s RWA tokenization push coincides with explosive market growth. The tokenized RWA market, excluding stablecoins, reached $15.2 billion by December 2024, representing approximately 85% year-over-year growth . When including stablecoins, the total tokenized market reached $217.26 billion in 2024 .

Several factors are driving this growth:

Institutional Adoption

Major financial institutions have embraced tokenization, with BlackRock’s BUIDL Fund reaching $2.88 billion in tokenized U.S. Treasuries assets under management , and Figure Protocol leading the private credit space with $10.6 billion in tokenized assets . This institutional validation has provided credibility and momentum to the sector.

Asset Class Diversification

The tokenization market has expanded beyond traditional assets. Private credit represents approximately 65% of the tokenized RWA market, with over $1 billion in active loans and average yields of 9.42% . Commodities, particularly gold-backed tokens, have exceeded $1 billion in market capitalization , while tokenized U.S. Treasuries have surpassed $4 billion in value .

Regulatory Clarity

Progressive regulatory frameworks in jurisdictions like Singapore, Switzerland, and the UAE have provided the certainty needed for institutional participation . The U.S. has also made strides with recent legislative efforts, including the Lummis-Gillibrand Act and the Digital Commodity Exchange Act of 2024 .

Competitive Landscape: A Crowded but Growing Market

Valereum enters a competitive market with established players including Blockchain App Factory, BlockchainX, Tokeny, Securitize, and Polymesh Network . The sector’s total value locked (TVL) across major tokenization protocols reached $12.83 billion by mid-2025, up from $7.75 billion at the start of the year .

However, the market’s rapid expansion suggests room for multiple players. The asset tokenization platform market alone was valued at $5.60 billion in 2024, with projections ranging from $2 trillion to $30 trillion by 2030-2034 . This growth potential explains why established financial services companies and blockchain startups alike are investing heavily in tokenization capabilities.

Beyond Real Estate: Expanding Asset Classes

While Valereum’s initial focus on real estate tokenization makes strategic sense given the asset class’s size and investor familiarity, Mariampillai indicated broader ambitions. The platform will target “royalties, private companies, and fund structures” beyond property . This diversification strategy aligns with market trends showing tokenization expanding into intellectual property, carbon credits, and even future earnings .

The company’s partnership approach also positions it to leverage specialized expertise across different asset classes. DigiShares’ white-label platform experience and ZIGChain’s blockchain technology provide the foundation for scaling across multiple tokenization use cases.

Regulatory Compliance: A Critical Differentiator

Valereum’s emphasis on regulatory compliance as a core value proposition reflects the sector’s most significant challenge. Despite rapid growth, the tokenization market faces fragmented global regulations that create compliance complexity for cross-border projects . Many tokenized assets are classified as securities, requiring strict adherence to registration, disclosure, and reporting standards .

The company’s Gibraltar base provides several advantages, as the jurisdiction has developed crypto-friendly regulations while maintaining high compliance standards. Gibraltar’s regulatory framework for distributed ledger technology (DLT) providers offers a pathway for compliant tokenization services within European markets.

Challenges and Risk Factors

Despite the market opportunity, Valereum faces significant challenges in executing its tokenization strategy:

Liquidity Constraints

While tokenization promises enhanced liquidity, secondary markets for many tokenized assets remain nascent . Creating genuine liquidity requires not just the technical infrastructure but also market makers, institutional buyers, and retail investor participation.

Technical and Security Risks

Smart contract vulnerabilities can lead to hacks or unauthorized transfers, raising concerns about asset safety and investor recourse . The company must invest heavily in security audits and infrastructure to maintain institutional confidence.

Legal Recognition

Legal recognition of tokenized ownership, especially for hybrid or off-chain assets, remains unclear in many jurisdictions . Courts and legal systems may not yet accept blockchain records as definitive proof of ownership, creating potential disputes.

Market Education

Success requires educating both issuers and investors about tokenization benefits and risks. This educational burden can slow adoption and increase customer acquisition costs.

Financial Performance and Market Position

As a publicly traded company on the Aquis Stock Exchange, Valereum’s financial performance will be closely watched as it executes this tokenization strategy. The company’s previous strategic pivots, including the bitcoin mining divestment and GSX Group acquisition, suggest management’s willingness to adapt business models based on market opportunities.

However, investors should note that the tokenization sector, while promising, remains in early stages. Many companies in the space are still developing revenue models and achieving profitability. Valereum’s success will depend on its ability to capture market share quickly while managing the costs of building compliant, institutional-grade infrastructure.

Outlook: Positioning for Long-Term Growth

Valereum’s move into RWA tokenization positions the company within one of fintech’s fastest-growing sectors. The partnership structure with DigiShares and ZIGChain allows the company to leverage external expertise while focusing on its regulatory and market development strengths.

The phased geographic approach, starting with MENA and Latin American markets, provides a focused strategy that could enable rapid market penetration before expanding to more competitive developed markets. Success in these initial markets could provide the track record and capital needed for global expansion.

Long-term projections for the tokenization market remain bullish, with some analysts projecting the market could reach $30 trillion . While such estimates should be viewed with appropriate skepticism, the underlying trend toward digitization of financial assets appears irreversible.

The key question for Valereum will be execution: can the company build the institutional relationships, technological infrastructure, and regulatory expertise needed to compete with well-funded competitors while navigating the complex challenges of asset tokenization?

For investors, Valereum’s tokenization strategy represents both significant opportunity and substantial risk. The market potential is enormous, but success will require flawless execution in a rapidly evolving and highly competitive sector.