Real World Assets / RWA / Real Assets
are highly underestimated in DeFi, so now is the right time to study in more detail what is happening in this area.
Recent a study by the Boston Consulting Group showedthat the tokenization of global illiquid assets could be a huge business opportunitywhich will bring up to $16 trillion by 2030. In addition, several large research companies such as Blockworks, Messari And Binance Research, consider tokenization of real assets one of the key topics for 2023.
What is RWA?
As the name suggests, RWA - This tangible assets (real estate, goods and art)that exist in the physical world. They also include an increasing number capital market products, where digital securities are tokenized and offered to retail investors. Another plus, the digital transformation of real assets allows them to be fragmented into smaller parts, which gives people the opportunity to invest in them even with lower budgets. In simple terms, RWA aims to represent assets from traditional finance and physical assets as digital tokens on the blockchain. This is a very interesting vertical with a lot of potential given how big the traditional finance market is.
Real assets are a significant part of global financial value, with with a capitalization of hundreds of trillions of dollars. However, they have been little used in the DeFi world so far, which opens up opportunities for tokenization and integration into the DeFi industry. This may lead to increase in available liquidity and providing DeFi participants new asset class to generate investment income. It is important to note that investing in real assets can reduce dependence on the volatility of cryptocurrencies.
In addition to the tokenization of real assets, the DeFi market is seeing significant growth release of capital market productssuch as asset management using digital securities. For example, Mitsui provides an investment opportunity into sustainable real estate and infrastructure for retail clients through digital securities that tokenized with LayerX and are issued on a network owned by consortium of SBI and Nomura. The company currently manages assets worth about 2 trillion yen.
One more example. Recently Blocktower Capital and MakerDAO have merged their efforts in the fund on $220 million to invest in RWA through the platform Centrifuge, which is one of the most interesting projects on the blockchain platform Polkadot. It is interesting to note that CFG token holders may be among the winners of this event. Near 75% income MakerDAO are now generated from RWA, including USD rewards.
While the use of real assets in DeFi provides a number of benefits, such as increased diversification opportunities and higher returns, risks must be taken into accountassociated with possible default, which is an important problem that only needs to be solved in the future.
Multiple projectswho clearly see their future and strive to develop the RWA industry:
- LandX. Twitter Site
- goldfinch. Twitter Site
- LABS Group. Twitter Site
- maple. Twitter Site
- Polytrade. Twitter Site
- TrueFi. Twitter Site
- Defactor. Twitter Site
- StrikeX. Twitter Site
- Centrifuge. Twitter Site
Based thread: Evaneskate
