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McQueen Labs Inc. (trading as MCQ Markets) is a platform for investing in iconic automobiles that partners with blockchain technology companies to provide transparency to the integrity of these high-value assets. Founded with the mission to democratize access to luxury collectibles, MCQ Markets wants to make it easy for anyone to gain exposure to iconic assets they might otherwise not have had access to. 

Their structure allows the company to segregate the assets and liabilities of each platform series, offering a unique investment opportunity while minimizing risk. The company’s core offerings include luxury automobiles and motorsport memorabilia, all of which are made available to a broad audience through fractionalized ownership through SEC-qualified offerings.

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Movement Towards Tokenization

It is no secret that one of the most widely shared views in Web3 is that the tokenization of real-world assets (RWAs) will continue at a blistering pace. It is estimated that the tokenization of RWAs could be valued at well over $800 trillion - a truly ridiculous number but one that encompasses everything from real estate to car deeds. Regarding short-term valuations, groups like the World Economic Forum (WEF) have suggested that by 2027, upwards of 10% of global GDP (~ $24 trillion) could be tokenized.

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This shift has captured the attention of financial powerhouses such as Microsoft, BlackRock, Vanguard, and Deloitte, all of whom are exploring tokenization as a vehicle for enhancing liquidity, efficiency, and transparency. Tokenizing illiquid markets, such as private credit, has begun to gain popularity. Tokenization is powerful because it can take what are otherwise traditionally highly illiquid markets and make them highly liquid and transferable. For a market like private credit that grows at roughly 17% annually, only around $500 million in market value has been tokenized so far. This leaves unbelievable room for growth ahead.

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Tokenization’s disruptive potential extends across all asset classes, with Boston Consulting Group (BCG) calling it “the third revolution of asset management.” By 2030, tokenized funds could manage over $600 billion—or roughly 1% of global mutual fund and ETF assets. Stablecoins and tokenized deposits are expected to support this evolution, offering regulated on-chain solutions for a wide variety of financial applications.

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Ultimately, this entire movement was kickstarted by stablecoins, which pioneered tokenized finance by simply turning off-chain fiat currencies like the USD into blockchain-compatible assets. With a combined market capitalization of over $158 billion in 2024, stablecoins like Tether (USDT) and USD coin (USDC) deliver near-instant settlement, cost savings, and smart contract integrations. They have truly paved the way for the broader adoption of tokenized assets, proving the viability of the technology in general.

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The success of stablecoins spurred further innovation in tokenizing other assets, such as gold and U.S. Treasury securities. Tokenized gold, shown in projects like Tether Gold (XAUt) and PAX Gold (PAXG), enables flexible, on-chain commodity investing even during geopolitical uncertainty. These projects collectively hold over $1 billion in market capitalization and offer a glimpse of how tokenization can address high-demand, real-world commodities.

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Beyond fiat and government bonds, tokenization is finding footholds in credit products, real estate, and private equity. Blockchain-based credit pools deliver yields oftentimes exceeding 10%, while tokenized real estate platforms enable fractional ownership for investors worldwide. Although many of these applications are in their infancy, they demonstrate the versatility of tokenization and its potential to democratize access to traditionally exclusive markets.

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Overall, tokenization represents the most obvious intersection between on-chain markets and the rest of the global financial world. With huge markets, like the $26 trillion U.S. Treasury securities market and the $46 trillion global loan market, readily open for disruption, there is no telling what the upper limit of tokenization may be.

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RWA Market Today

The on-chain RWA market is one of the best examples of how traditional finance can mesh with blockchain markets. In this instance, it works to tokenize physical assets like real estate into digital goods. By representing these assets with digital tokens, RWAs unlock something not possible in traditional finance: democratized global access and distributed ownership of physical assets. 

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This has led the RWA market (excluding stablecoins) to reach a total value locked (TVL) of over $90 billion in 2024. This value is even more impressive across nearly 100 different on-chain products and held by over 66 million cumulative users. It's worth noting, however, that most of this value stems from tokenized fiat-collateralized stablecoins, meaning that other aspects of RWAs (like luxury goods, real estate, etc.) still have parabolic growth potential going forward.

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While there are many different kinds of RWAs, they can all be classified into two primary categories:

• Yield-Bearing Assets
• Non-Yield-Bearing Assets

Yield-bearing assets include tokenized loans, bonds, and treasuries, which generate income through interest or dividends. They account for approximately 84% of the sector's TVL. Projects like Ondo Finance and MakerDAO have pioneered these use cases, providing investors with stable yields and a hedge against crypto volatility.

In contrast, non-yield-bearing assets include tokenized real estate, art, and luxury goods (like collector vehicles), which offer fractional ownership opportunities. By lowering the barriers to entry for scarce and high-value investments, these assets are making markets more inclusive and accessible.

The adoption of RWAs so far has been driven by the demand for verifiable ownership and transparency in asset management. The great thing about blockchain tech is its ability to offer an immutable, decentralized platform on which to transact. This is fantastic for peer-to-peer marketplaces and represents real authenticity and verifiable ownership of assets. Thanks to this interest these principles have generated, many projects have begun to try onboarding RWAs, with platforms like MakerDAO, Ondo Finance, and Solv Protocol as examples.

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For example, MakerDAO has integrated tokenized U.S. Treasury bonds as collateral for decentralized loans, enabling investors to gain yield on government-backed securities through blockchain platforms. Ondo Finance has similarly embraced RWAs by creating tokenized treasury products that offer stable returns, leveraging on-chain infrastructure to simplify access and improve liquidity.

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Major Blockchains Powering the RWA Market

Several blockchains are playing critical roles in supporting RWA tokenization. To no one’s surprise, Ethereum is by far the most prominent network for RWAs, thanks to its large DeFi ecosystem and huge user base. Outside of Ethereum, other blockchains are beginning to catch up, including chains like:

• Avalanche
• Polygon
• Stellar
• Solana

Among these, Avalanche recently made headlines for its efforts to onboard traditional finance institutions and other entities. For instance, the California DMV has even leveraged Avalanche for one of its pilot programs tasked with tokenizing vehicle titles. Projects like Stellar have excelled in focusing on cross-border transactions, making it a natural fit for tokenized assets thanks to the global interest coming from emerging markets like Latin America.

However, Solana has seen inarguable growth compared to some of its L1 peers. The Solana ecosystem is emerging as a leading platform for real-world asset (RWA) innovation, underpinned by its low transaction costs and remarkable speed. These attributes make Solana particularly well-suited for hosting tokenized assets like stocks and forex, where efficiency and cost-effectiveness are critical. With the ability to handle high transaction volumes at minimal cost, Solana enables the frequent trading necessary for tokenized assets to thrive in a blockchain environment.

A robust and specialized infrastructure is central to the growth of RWAs on Solana. This includes a range of tools and platforms tailored to support tokenization, trading, and financing. Bridgesplit, for example, has shifted its focus from tokenizing off-chain assets as NFTs to enabling RWA financing. By facilitating asset tokenization and providing infrastructure for marketplaces and custodians, Bridgesplit plays a pivotal role in the RWA ecosystem. Furthermore, decentralized exchanges such as Jupiter, Raydium, and Orca, alongside oracle services like Pyth and Switchboard, provide the liquidity and real-time data essential for managing RWAs effectively. Meanwhile, tools like Wormhole enable cross-chain interactions, fostering a multi-chain ecosystem, and on/off-ramp solutions ensure seamless transitions between fiat and cryptocurrencies, supporting broader user adoption.

Despite these advancements, significant challenges remain. One of the primary obstacles is the lack of standardized representation for non-blockchain-originated tokens (NBOs), which encompass tangible and intangible assets governed by legal property rights. This fragmentation leads to inefficiencies and interoperability issues, hindering the widespread adoption of RWAs. Addressing this, the Medici Framework offers a modular, flexible solution for standardizing NBOs. Developed by Bridgesplit and Homebase with support from the Solana Foundation, the framework incorporates components like an Asset Management Controller, Policy Engine, Identity Registry, and Asset Data Registry. By aligning with existing blockchain standards, it ensures that diverse asset classes, from real estate to intellectual property, can be effectively represented and traded on Solana.

Among the key players in Solana’s RWA ecosystem are platforms like Parcl and Homebase, which demonstrate how blockchain technology can revolutionize traditional asset markets. Parcl focuses on digital real estate investment by tokenizing geographic real estate markets and transforming property values into tradable commodities via its proprietary Parcl Price Index. This innovative model allows investors to speculate on property value trends without the burdens of ownership or the high costs of traditional real estate transactions. With no minimum investment requirements, Parcl democratizes access to lucrative property markets, enabling investors of all sizes to participate in high-growth areas.

Similarly, Homebase leverages the Solana blockchain to tokenize real estate assets, making fractional ownership accessible to a broader audience. In March 2023, Homebase successfully tokenized a single-family rental property in South Texas, raising $246,800 from 38 investors within two weeks. By lowering the investment threshold to just $500 and enhancing market liquidity through a streamlined trading process, Homebase broadens participation and challenges traditional barriers to entry in the real estate market. Additionally, its commitment to regulatory compliance—through KYC enforcement, escrow mechanisms, and token lockup periods—sets a standard for transparency and legal adherence in the RWA space.

The Solana network’s low fees, high throughput, and growing suite of infrastructure tools position it as a leader in the RWA sector. By addressing challenges such as interoperability and standardization while fostering innovation through platforms like Bridgesplit, Parcl, and Homebase, Solana is democratizing access to traditionally exclusive investment opportunities. As the ecosystem continues to evolve, it holds the potential to transform how tangible and intangible assets are represented, traded, and owned on the blockchain.

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RWA Funds

Why a Fund? What’s the Benefit?

While fund structures are often lauded for their potential to democratize access to investment opportunities and reduce individual risk, their true value lies in a set of more nuanced benefits that provide long-term advantages to investors. Active management is a cornerstone benefit, where a professional investor or team oversees the fund’s assets. This expertise ensures that decisions are driven by deep market knowledge, strategic analysis, and a focus on maximizing returns. For niche markets, such as collectibles or alternative assets like classic cars, having a professional in charge can be particularly valuable, as these assets often require a specialized understanding of market trends, valuation, and timing.

Another key advantage is diversification, which reduces risk and broadens the investment scope. Rather than investing in a single high-value asset, funds allow investors to gain exposure to a portfolio of assets. For example, in a classic car fund, this could mean owning fractional shares in a range of vehicles with varying historical, aesthetic, and cultural significance. Diversification mitigates the impact of underperformance or depreciation in any one asset, creating a more balanced and resilient investment strategy.

Additionally, fund structures offer liquidity and cost efficiencies, making them more practical compared to individual ownership. Liquidity allows investors to enter or exit positions with relative ease, a notable advantage over the illiquid nature of directly owning high-value assets like classic cars. Meanwhile, economies of scale in insurance, maintenance, and storage significantly reduce the per-unit cost of managing assets, enabling investors to benefit from collective ownership without shouldering the full financial burden individually. Together, these features make fund structures a compelling choice for accessing niche markets while optimizing risk, cost, and convenience.

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Another significant benefit is liquidity. Traditionally, RWAs like real estate or rare goods are illiquid investments, requiring long holding periods and complex sale processes. Funds improve liquidity by offering fractional ownership through shares or tokens that can be traded on secondary markets. This flexibility allows investors to easily enter or exit positions, making these traditionally inaccessible asset classes more practical for a wider range of investors. Coupled with reduced costs through shared operational expenses and simplified compliance under-regulated structures like Reg A offerings, funds are well-positioned to unlock the full potential of the RWA market for both retail and institutional participants.

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Real Estate

As far as non-yield-bearing RWAs go, real estate is the most well-known. Tokenized real estate benefits from the blockchain by fractionalizing ownership, opening new opportunities for a diverse range of investors. There are many examples of platforms catering to this market, including projects such as:

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• Lofty
• RealT
• HouseBit

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Each of these projects allows individuals to purchase fractional shares of properties. This is generally represented through tokens, with each token representing a certain percentage of ownership, depending on the exact model the project uses. It opens up the possibility for individuals who would otherwise be unable to own property in appealing but expensive real estate markets like London, New York, or San Francisco.

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By fractionalizing the ownership of individual properties, participating investors all benefit from the value capture of that property through long-term appreciation and rental income. This is quite different from typical Real Estate Investment Trusts (REITs), which pool together large portfolios of properties and offer general market exposure to investors. Instead, tokenization offers investors direct ownership of the properties themselves (and their associated revenues).

On many platforms, investors can even be as specific with their participation as they choose, down to the individual rental home in a certain neighborhood. Everything is generally far more customizable, something that is impossible to find outside of basic home ownership or without being a high-net-worth accredited investor in traditional real estate.

Now, with this in mind, tokenization in real estate isn’t foolproof. In 2024, this is still a very novel, niche concept. The process of tokenizing these properties is relatively straightforward, but the markets and the regulatory environments are anything but. Selling and moving tokens can still be difficult for real estate RWA tokens due to the low trading volume. As for regulations, they can differ dramatically by country (and even by city), depending on where the project (and property) are based.

Of course, this hasn’t stopped major financial institutions from at least taking note of tokenization efforts. Asset managers like BlackRock, Fidelity, and JP Morgan have all begun actively exploring real estate tokenization for institutional portfolios. This has come on the heels of numerous Bitcoin and Ethereum ETFs being approved, creating an “open season” for financial institutions to explore opportunities on the blockchain further.

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Classic Cars as RWAs

The global classic car market is valued at over $80 billion, with vintage cars alone increasing ~185% in value over the last decade. Unlike other luxury assets, collector cars are quite resilient to challenging economic conditions as they generally blend qualities like historical significance, design excellence, and rarity. This helps to capture the attention and demand of high-net-worth individuals who fuel rising prices for iconic brands like Ferrari, Lamborghini, and Porsche. 

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Thanks to these qualities, classic cars are actually quite appealing as potential RWAs to bring on-chain—and there is market data to back it up. For instance, the Hagerty Price Guide Index, a well-known benchmark for used car valuations, has tracked significant appreciation in collector cars over the years. With changing cultural norms come changes in engineering practice, design, and functionality. 

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This is why classic cars like the Ferrari 250 GTO or Porsche 911 Carrera RS are such sought-after vehicles. Many of these types of cars have experienced exponential value increases. Just think—many of these vehicles, especially the supercars like Ferrari, often have production numbers in the hundreds or fewer, adding pretty significant exclusivity to ownership.

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This is even becoming true in more recent model years, with cars from the early 2000s fetching 5-10x valuations over the original MSRP in some circumstances due to many manufacturers moving away from the traditional big block V8s and muscle cars to more refined hybrid / electric engines. In other words, some manufacturers discontinue popular models altogether, contributing to these vehicles' rising prices.

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Despite economic fluctuations, the classic car market remains robust. While reports like the 2024 Art Basel and UBS market overview noted a modest 4% decline in overall sales volumes for collectibles, the enduring demand for high-quality vehicles has kept the market’s core strong. As an investment class, classic cars offer a tangible connection to automotive history while providing portfolio diversification—characteristics that resonate with traditional investors and those exploring RWAs for the first time.

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MCQ Markets

MCQ Markets is a first-mover in adopting and building out the infrastructure to capture market growth for high-value, illiquid assets through its fractional ownership offering in luxury items like rare classic cars, fine art, and other collectibles. Until fractionalization, these markets have been completely dominated by ultra-wealthy individuals. However, thanks to MCQ Markets, anyone can participate and become a partial owner of the most sought-after luxury vehicles and items available.

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By empowering smaller investors to participate in these markets, and eventually, through the use of tokenization, MCQ Markets will be able to offer significantly improved market liquidity and participation where it otherwise wouldn't exist. The MCQ Markets platform will operate through a series-based structure, where each series represents a specific luxury asset or collection. For example, one series might link to a specific Lamborghini model while another links to a specific Ferrari. Each series will issue its own Class A units (i.e., how MCQ Markets fractionalizes its cars), which investors can then trade, providing the flexibility of a secondary marketplace.

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Platform Revenues

MCQ Markets generates revenue through several streams. First, the company charges an acquisition fee when it purchases an asset for a series, typically a percentage of the asset’s value. This fee covers the costs of sourcing, appraising, and acquiring the asset. 

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These fees are either paid in cash or through the issuance of additional Class A Units. When an asset is eventually sold, MCQ Markets also takes a percentage of the sale price as a performance fee before distributing the remaining proceeds to investors while also cutting the increased value of the asset sold. MCQ Markets’ revenue model is heavily tied to the appreciation and eventual sale of the underlying luxury assets. Still, it also benefits from an increasing number of real-world assets brought onto blockchains. 

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By carefully selecting and managing high-value assets, the company aims to generate substantial returns for its investors. The platform also benefits from the trading of fractional shares on secondary markets, where it may charge transaction fees for facilitating these trades.

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Secondary Offerings

The role of MCQ Markets in the luxury asset market extends beyond offering fractional ownership. Beyond simply investing in cars, the business is much more than purchasing vehicles and waiting for a return on investment—some companies service luxury car markets, motor racing collectibles, restoration deals, specialty engineering capabilities, and many other verticals MCQ Markets can tap into.

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The company is also involved in actively managing these assets, ensuring that they are preserved, insured, and maintained to the highest standards. While it would be nice to simply put all of these RWAs on-chain and enable easier acquisitions, significant infrastructure needs cannot be ignored. MCQ Markets is aware of this and provides that level of safety and security, letting its investors feel safe despite the often challenging act of transacting on a blockchain for the first time.

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This security guarantee is very important in markets like classic cars, where the condition and provenance of the asset significantly impact its value. By taking an active role in managing these assets, MCQ Markets not only protects the value of the investments but also enhances the potential for appreciation over time.

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MCQ Markets will store valuable information about a car on NFTs for its investors, including mileage, maintenance records, VIN, and the engine, chassis, and gearbox numbers of classic cars.

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McQueen’s RWA Offering: Mushman Fund

While many blockchain projects claim to be expanding into RWAs, most are focused on products like tokenized treasuries or high-yield stablecoins backed by fiat reserves. Others are targeting heavily saturated markets like real estate, where competition grows fiercer with each passing quarter.

Mushman is taking a different path, breaking into the classic cars market (and other luxury goods) as a first mover and major industry disruptor. This innovative approach—essentially untouched by other projects—gives Mushman’s tokenized RWA fund a significant advantage. By pioneering the tokenization of the $80 billion+ classic car market, Mushman is bringing a highly desirable and unique RWA product on-chain, offering millions of blockchain users and investors a fresh, exciting opportunity.

Here's how it works:

1. Sourcing High-Value Assets: McQueen uses its network of car dealers and collectors, along with a proprietary selection process, to identify valuable and investment-worthy assets. Their experienced team carefully curates each asset to ensure quality and potential value appreciation.
2. Making Assets Investable: Each asset is housed in a separate legal entity (a series under a Series LLC structure). McQueen files an offering circular with the U.S. Securities and Exchange Commission (SEC) under Regulation A. Once approved, McQueen offers fractionalized shares associated with the asset, allowing investors to own a piece of the asset without buying it outright.
3. Management and Sale: McQueen manages the asset throughout its lifecycle. If or when the management decides to sell the asset, it may be sold through auctions or private transactions. Any proceeds from the sale (net of taxes and fees) are distributed to investors based on their ownership shares, as detailed in the offering circular.
4. Fee Structure: McQueen charges fees to manage and administer the assets. These include:
   
   • An acquisition fee of approximately 11% of the asset’s value.
   • A maintenance fee of 1.5% per annum, paid in-kind, to cover upkeep and Series LLC administration.
   • A success fee of 20% of the profits from the eventual sale of the asset.
   • Fees for secondary trading on the platform, along with potential additional commissions if sales bypass third-party brokers.
5. Regulatory Oversight and Partnerships: Investments are regulated by the SEC, ensuring transparency and compliance. Rialto Markets LLC, a registered broker-dealer, acts as a placement agent for equity offerings, adding another layer of professionalism and oversight.

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SOL Global Investment Partnership

SOL Global Investments Corp. recently announced an increase in its stake in McQueen Labs Inc. (MCQ), the operator of MCQ Markets. As part of its strategy, MCQ is introducing a series of collectible tokens (NFTs) linked to each vehicle listed on its platform. These tokens will securely store critical information such as vehicle identification numbers (VINs), mileage, and acquisition dates on the Solana blockchain. By leveraging blockchain’s immutable and transparent nature, MCQ ensures tamper-resistant records, fostering greater trust and confidence among investors.

The company recently minted its soon to be released first tokenized asset: a 1986 Lamborghini Countach 5000QV, marking a milestone in its journey toward tokenized ownership. By leveraging the Solana blockchain, MCQ aims to enhance its inventory's authenticity and provenance and unlock new opportunities for digital collectibles, fractional ownership, and other innovative applications in the RWA space.

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Conclusion

MCQ Markets is at the forefront of bridging the gap between traditional luxury asset investments and blockchain technology. By offering fractional ownership of high-value assets like classic cars, artwork, and motorsport memorabilia, MCQ is democratizing access to markets historically reserved for the ultra-wealthy. Its innovative approach leverages blockchain’s power to tokenize these assets, enhancing liquidity, accessibility, and transparency.

Additionally, the potential for growth in tokenized real-world assets (RWAs), like the classic car Mushman Fund, is enormous, with markets projected to reach trillions in value over the coming years. Mushman’s focus on a niche yet highly desirable sector—luxury and collectible cars—positions the company as a first mover in a relatively untapped segment. Coupled with its robust regulatory framework under SEC oversight and an infrastructure designed to maintain and enhance asset value, the Mushman Fund offers investors a compelling entry into the RWA space.

While the promise of tokenization is transformative, it is not without risks. Illiquid markets, evolving regulations, and high management fees are considerations investors must weigh. However, Mushman’s careful asset selection, active management, and commitment to security mitigate many of these challenges, making it a standout in the rapidly evolving landscape of tokenized investments.

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Disclaimer: This report was commissioned by MCQ Markets. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.