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The fund is part of the growing RWA tokenization sector, which refers to financial and other tangible assets minted on the immutable blockchain ledger.
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R3 Sustainability has partnered with Chintai to launch a new sustainable, blockchain-based investment fund.
R3 Sustainability will leverage Chintai’s layer-1 (L1) blockchain for the development of a $795 million real-world asset (RWA) tokenization fund focused on environmental, social and governance (ESG) investing.
The fund is part of the growing RWA tokenization sector, which refers to financial and other tangible assets minted on the immutable blockchain ledger, increasing investor accessibility and trading opportunities.
Tokenization creates more “direct, efficient and scalable ways to access liquidity,” according to Josh Gordon, managing director of Chintai.
By reducing investment costs, the fund aims to open new infrastructure financing opportunities to broader audiences, Gordon told Cointelegraph, adding:
“This isn’t only about ESG — it’s about fundamentally transforming how capital flows into industries that have been dominated by expensive investment banks for decades.”
The $795 million fund comes during growing interest in the RWA sector, a day after onchain RWAs hit a new record high of $17.1 billion across 82,0000 total asset holders, excluding the value of stablecoins, according to data from RWA.xyz.
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Fund may be a “game-changer” for US sustainable utility infrastructure
Sustainable utility infrastructure is a “massive and growing investment sector in the US, largely driven by increased onshoring of manufacturing,” according to Kyle Granowski, founder of R3 Sustainability.
Granowski told Cointelegraph:
“These projects typically require multiple rounds of investment to reach completion — an area where blockchain and tokenization provide significant advantages.”
The fund contains four major sustainability programs, including a $50 million energy-efficient remote workforce housing program, with near-term expansion opportunities for $150 million of capital.
Second, a $165 million early-stage development fund for industrial projects and a $180 million fund for a reverse osmosis desalination plant focused on serving a large industrial complex in Texas.
Lastly, the RWA fund will set aside $300 million for a resource efficiency program focused on converting wastewater solids from a chemical manufacturing complex into a fertilizer product for North America.
Related: Transak, Uranium.io partnership lets users buy tokenized uranium with crypto
The RWA fund’s opportunity lies in the scale and investment characteristics of the utility infrastructure, Granowski explained, adding:
“The ASCE estimates a $105 billion funding gap in US water and wastewater infrastructure, a figure that only grows with the rise of data centers and industrial complexes. These assets often have contract durations of 20 to 40 years, making secondary markets a game-changer for liquidity and investment flexibility.”
Some of the largest financial institutions and business consulting firms predict that the RWA sector will see an over 50-fold growth by 2030 to reach between $4 trillion and $30 trillion.
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This article first appeared at Cointelegraph.com News
