Plume Network (PLUME): Building a Demand-Driven RWA Ecosystem
Real-world assets (RWAs) are a relatively new area within the blockchain industry. The niche of RWAs has seen some serious growth over the past two years, driven by the expectations of leveraging these assets to connect the worlds of traditional finance (TradFi) and decentralized finance (DeFi). The use of RWAs is currently evolving from pure tokenization into more active applications within the broader crypto finance field. Several RWA-focused blockchain projects have been launched with the aim of putting these assets into active use on DeFi protocols.
Among the new projects in this area is Plume Network, a modular Layer 1 blockchain that aims to create a demand-driven RWA ecosystem. Plume is committed to creating an environment in which physical and digital assets can easily be tokenized, compliance-checked and further used on DeFi platforms for yield generation, lending, borrowing and collateralization. By offering features like streamlined tokenization, smart wallets with advanced RWA management functions and data enrichment from external sources, Plume aims to become a leader in composable RWA use on-chain.
Key Takeaways:
Plume Network (PLUME) is a Layer 1 blockchain designed to provide secure, streamlined tokenization of RWAs and their further use within the DeFi ecosystem.
Its native cryptocurrency, PLUME, is used for gas fee payments, governance, liquidity-focused DeFi operations, staking and stake delegation.
Plume can be bought on Bybit as a USDT Spot pair.
What Is Plume Network?
Plume Network (PLUME) is a modular, secure Layer 1 blockchain designed for streamlined tokenization and applications of RWAs. Plume offers the infrastructure to tokenize RWAs, have them automatically checked for compliance and further utilize the assets within DeFi protocols for lending, borrowing, collateralization and other common crypto finance functions.
Plume's tokenization engine, Arc, lets asset owners simplify the process of moving physical and digital assets on-chain. Smart wallets offered by the platform allow these tokenized assets to be further used and managed on external DeFi protocols. Additionally, Plume supports RWAs by integrating external liquidity and data enrichment sources. In short, the platform provides a comprehensive solution for asset owners to manage their RWAs, from moving them on-chain to actively deriving monetary value from their use within the DeFi industry. The project calls this active application of RWAs within the DeFi framework RWAfi, underscoring the tight integration of these assets with the world of crypto finance.
Plume Network launched its testnet in July 2024 after successfully raising $10 million in a seed-funding round. Within eight weeks of its testnet launch, Plume had attracted close to 3.8 million users and processed 265 million transactions.
As of the time of this writing in mid-January 2025, the Plume blockchain continues to operate in testnet mode, with its mainnet expected to be launched soon. Plume’s road map for 2024–2025 focuses on the active development of the infrastructural foundations of the platform — its system of smart contracts and an asset tokenization engine. From 2025 to 2026, the project team plans to expand the platform's ecosystem of RWA classes and yield generation sources. After that, Plume envisions collaborations with TradFi entities to bridge the gap between them and the universe of DeFi.
The Plume project was founded in 2023 in San Francisco, California, by Chris Yin, Teddy Pornprinya and Eugene Shen.
How Does Plume Network Work?
Plume Network users can take advantage of a secure, streamlined process to bring their assets on-chain. Using a network of compliance verification partners, Plume conducts all the necessary regulatory and anti-money laundering (AML) checks relevant to each asset type. This optimized verification process gives RWA owners the certainty and confidence that their assets comply with all relevant regulations. Additionally, Plume uses ongoing transaction monitoring to identify suspicious or fraudulent activities related to RWAs to protect its users and the entire ecosystem.
Both physical and digital assets can be tokenized on Plume and converted to composable RWAs. “Composability” implies that the assets can be flexibly used in DeFi protocols without the need to re-tokenize them to fit the format of each individual protocol.
As Plume Network gears up for its mainnet launch and further infrastructure development, its project is in active discussions with several on-ramp and off-ramp providers to help realize its ambition of becoming a leading RWA platform. “On-ramping” refers to the functionality that lets users convert fiat currencies to blockchain-based assets. In contrast, “off-ramping” is the reverse process — the ability to convert crypto assets into fiat currencies for the purpose of taking funds off-chain. Both on-ramping and off-ramping are critical for supporting the tokenization of RWAs, their use within the crypto ecosystem and their possible conversion back to off-chain formats.
With the planned network of on-ramp and off-ramp service providers, Plume will enable its users to achieve greater flexibility in monetizing and managing their RWAs.
Following the tokenization process, Plume ensures that liquidity sources are available to leverage the newly tokenized RWAs. The project has partnered with numerous liquidity providers to help asset owners immediately use their RWAs. These partner liquidity providers allow Plume Network to leverage RWAs for staking, lending and other yield-generation activities.
What Is Plume’s RWA Chain?
Plume’s RWA Chain is the infrastructural backbone of the platform, designed to make the process of RWA tokenization and monetization as effective as possible. The chain is an Ethereum virtual machine (EVM)–compatible Layer 1 network, with high levels of modularity and a consensus model — PlumeBFT — designed to optimize high-value, RWA-based transactions.
Specific details of PlumeBFT have yet to be released by the project team, but its name suggests that it’s a variation of the Tendermint Byzantine fault tolerant (BFT) consensus model, which typically supports transaction processing and network security even in the presence of some maliciously acting validators. BFT-based models are generally regarded as highly fault-tolerant, a property that’s undoubtedly important when dealing with high-value RWA transactions.
Source: Plume
Arc (Tokenization Engine)
Arc is Plume RWA Chain’s tokenization engine. It’s a full-stack, open-source engine that lets businesses tokenize their assets in full compliance with U.S. securities regulations. Arc features components for tokenization, on-ramping and off-ramping, identity verification, AML monitoring and secondary market trading.
As of January 2025, Plume Network provides early access to developers and asset owners to Arc, with the public release expected later in Q1 2025. In the early-access mode, issuers with yield-bearing assets over $1 million can use Arc for free.
Subject to third-party checks and regulatory approvals, Arc can be used to tokenize diverse assets, including public equities, ETFs, bonds, bank loans, carbon credits, private credit, corporate debt and more.
Plume Passport (Smart Wallet)
Plume Passport is a smart crypto wallet that allows asset owners to easily manage their RWAs. It comes with various features, such as built-in compliance monitoring, gasless transactions for certain core operations, and access to around 20 DeFi protocols. As an RWAfi wallet, Plume Passport lets RWA owners directly leverage yield-generation and trading opportunities on partnering DeFi platforms.
Nexus (Data Highway)
Plume Nexus is the platform’s component for enriching on-chain data with information from external sources. Using a group of partnering oracle service providers (Seda, OpenLayer, Supra and Stork), Nexus sources data on financial and economic indicators, social trends and even weather patterns to provide richer insights to users of Plume Network.
Thanks to Nexus, Plume isn’t just a blockchain for tokenizing assets, but also an environment with comprehensive real-time analytics support for RWA users.
Plume Network Key Features
Plume USD
Plume USD is the blockchain’s USD-pegged stablecoin, indirectly backed by the market’s two leading stablecoin assets, USDC and USDT. Users can mint Plume USD by depositing these two stablecoins. Whenever required, they can reclaim their original deposits by converting Plume USD into these well-established stablecoins.
Plume USD is envisioned to support various applications via partnering DeFi platforms. These applications may include earning yield from RWAs, placing wagers within betting protocols, lending and borrowing against RWAs and more.
Nest
Nest is a staking protocol on the Plume blockchain that creates yield-earning opportunities for RWA owners. Using Nest, users can earn institutional-grade yields collateralized with RWAs. As of January 2025, the Nest protocol is a work in progress. The first set of yield-bearing vaults is expected to be launched soon.
What Is Plume Network Token (PLUME)?
Plume’s native token, PLUME, was launched on Jan 21, 2025. PLUME supports a variety of functions on the platform, namely:
Gas fee payments. The PLUME token will be used to pay transaction fees on the Plume mainnet, similar to the way that Ether (ETH) is used on the Ethereum blockchain.
Governance. PLUME holders will be able to participate in governance votes to decide on any changes to (and the future direction of) Plume.
Staking and stake delegation. Validators will use PLUME to help secure the network and earn staking rewards. Other users of the platform will also be able to delegate their PLUME funds to a preferred validator and earn a portion of the staking rewards.
Liquidity provision. The token is also envisioned to support various liquidity-focused use cases, including asset collateralization.
The PLUME token is a deflationary cryptocurrency, with a total and maximum supply of 10 billion. Upon launch, 20% of the total supply (2 billion) was released into circulation. The token's supply distribution shares are shown in the chart below.
Source: Plume
PLUME Airdrop
Plume has announced an airdrop scheduled to coincide with its native token launch. In mid-January 2025, users had a four-day time window to register their claims, with PLUME tokens to be distributed upon the crypto’s launch, i.e., starting Jan 21, 2025. An additional 33% boost to the tokens airdropped at the token generation event (TGE) will be available to eligible users during the mainnet launch.
Users who qualify for the TGE airdrop include testnet users with loyalty miles, pre-deposit stakers and user communities of several partner DeFi platforms — Polymarket, Ondo (ONDO), World Liberty Financial (WLFI), AIXBT by Virtuals (AIXBT) and some users of Backed Assets, Dinari and Swarm X.
Where to Buy PLUME
The PLUME token is available on Bybit’s Spot market as a swap pair with the USDT stablecoin. You can also take advantage of the PLUME Token Splash campaign to grab a share of the 40 million PLUME prize pool.
Under the terms of the campaign, new users who complete basic identity verification can earn PLUME rewards by accumulating a deposit volume of at least 3,000 PLUME, or by depositing 100 USDT and trading 100 USDT worth of PLUME via their first trade with Bybit. Existing users can also qualify for rewards by trading at least 500 USDT worth of PLUME on Bybit’s Spot market. The campaign is valid through Feb 3, 2025, 9 AM UTC.
Closing Thoughts
By streamlining the tokenization of diverse real-world assets (RWAs) and building a network of financial infrastructure partners, Plume Network is creating an inclusive financial ecosystem for RWA issuers and traders. The demand-driven integration of RWAs will undoubtedly lead to rapid adoption of these assets within the crypto industry.
Plume’s ecosystem isn't just a blockchain to tokenize RWAs — it's a comprehensive environment with compliance providers, liquidity partners and a versatile tokenization engine. With all these features on offer, Plume is gearing up to become a leading blockchain RWA enabler. Following the recent launch of the PLUME token, all eyes are now on the project's imminent mainnet debut.
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