In the previous article, we mainly shared some projects in the field of AI. In addition to AI, RWA (real world assets) is also a key area that we have paid more attention to this year, and we have always believed that RWA may become one of the leading factors in the bull market. In the past year alone, we have mentioned the concept of RWA 62 times in articles on our official account. As shown below.
Of course, there are many reasons why we are optimistic about the field of RWA, such as:
1. RWA is easy to understand for traditional institutions. RWA is an off-chain asset tokenized for DeFi, converting its value into a digital token on the blockchain. In fact, our common stablecoins are a common example of RWA, because they are tokenized representations based on legal currency.
2. At present, many large institutions have made heavy bets on RWA (that is, they have made in-depth arrangements). At the same time, encryption projects such as Chainlink are also cooperating with the world’s largest TradFi institutions (such as SWIFT, DTCC, Euroclear, Citibank, BNP Paribas, ANZ, etc.) are collaborating to introduce industrial-scale tokenization of RWA to the chain. As shown below.
3. In terms of TVL, RWA is also one of the fastest growing areas. TVL has increased more than 8 times, from US$700 million at the beginning of the year to US$5.7 billion. As shown below.
4. RWA is creating a financial ecosystem where digital tokens represent tangible assets that are more accessible than ever before, while the accessibility of their assets extends to the public, not just privileged investors. or institutional investors.
In short, the tokenization of real-world assets will have the power to revolutionize the financing, trading, and management of assets. RWA is a relatively large concept. If we further subdivide it, it can also be divided into various categories such as private credit, treasury bonds, real estate, commodities, stable coins, insurance, etc. The specific classification has been introduced in Li Huawai's previous related articles. Interested friends can search for historical articles for reference. Moreover, conservative estimates suggest that the total market value of tokenized assets could exceed $10 trillion by 2030.
Next, we will follow this topic and continue to share with you some recent RWA-related projects that are worthy of attention.
The first project is Centrifuge
Centrifuge is a decentralized asset financing protocol that connects decentralized finance with RWA, which can reduce the cost of capital for small and medium-sized enterprises (SMEs) and provide investors with a stable source of income. CFG tokens are primarily used to pay transaction fees, for staking or to participate in the governance of the Centrifuge blockchain.
The second project is Landshare
Landshare enables the transformation of real-world properties into asset-backed, yield-generating, and fully tradable asset tokens on the BSC chain. LAND tokens can be used as a payment method to purchase various features across the platform, and can also be used for staking.
The third project is Polymesh
Polymesh is a regulated platform designed to help institutions streamline processes and enable new financial instruments by solving the challenges of public infrastructure governance, identity, compliance, confidentiality and settlement. POLYX tokens are primarily used to pay transaction fees on the network and to issue new security tokens.
The fourth project is TrueFi
TrueFi is a decentralized finance protocol that uses on-chain credit scores for unsecured lending. We can simply understand it as a protocol that creates an interest-bearing pool with a high annual interest rate for liquidity providers, mainly through the use of the utility and reward mechanism of TrustTokens (TRU), and rewards participants for maintaining stability , higher annual interest rate. TRU tokens are mainly used for staking and governance on the TrueFi protocol.
The fifth project is Boson Protocol
The Boson network integrates a series of technologies to promote the tokenization of on-chain and off-chain assets. Its goal is to allow users to tokenize any real-life thing or object and conduct transactions in the metaverse. In addition, staking BOSON tokens can reduce transaction fees for buyers and sellers. At the same time, token holders also have the power to provide governance for the operation of Boson Protocol and dCommerce DAO fund usage decisions.
The 6th project is Clearpool
Clearpool is a decentralized ecosystem that includes the first permissionless marketplace for unsecured institutional liquidity, currently distributing over $460 million in loans. CPOOL tokens are mainly used for staking and earning compound interest.
The seventh project is Galileo Protocol
Galileo allows the creation of “pNFTs” that represent physical goods, are issued on multiple chains and can interact with any blockchain, DLT and network. Simply put, it is an NFT tokenization platform bound to physical assets in the asset tokenization market.
The 8th project is Propchain
Propchain mainly focuses on the real estate market. Currently, our applications have connected more than 700 institutions and individuals on the chain. At the same time, they also seek to create a lasting legacy by unlocking the possibilities of home ownership and investment solutions.
The 9th project is Ostium
Ostium is able to apply RWA to commodities and FX markets or any form of long tail asset. They have also created a decentralized exchange to meet such needs in the market.
The 10th item is Entangle
Entangle mainly wants to bridge the gap between off-chain and on-chain data from a scalability perspective through its SDK, that is, developers can directly integrate their code and then leave the rest of the work directly to EntangleFi.
The 11th project is Realio
Realio is a protocol for a comprehensive SaaS platform for digital securities and crypto assets based on L1 technology. It integrates DEX with issuance/investment platforms, effectively integrating blockchain and crypto asset solutions with institutions.
The 12th project is AllianceBlock
AllianceBlock is using blockchain technology to connect traditional financial markets with DeFi. It mainly acts as a bridge between DeFi and TradFi, providing a decentralized trading platform that simplifies the tokenization process.
The 13th project is Revest Finance
Revest adopts NFT as a financial instrument, enabling users to contribute any ERC20 to FNFT and set their own unlocking conditions. Their model can solve some of the shortcomings in the encryption field to a certain extent, including KPI-based token supply, derivatives and lending.
The 14th project is LandX
LandX is a protocol designed to tokenize crop yields for users looking to diversify their investments in the market. That is, they sign agreements with farmland owners and use their xToken system to tokenize the income from farmland. The xToken system is a vault connected to farmland assets, where yields are derived from contracts for crop shares, while liens are represented as NFTs and provide transparent on-chain record-keeping. Each xToken is backed by real-world agricultural products.
The 15th project is Dusk
Dusk is a protocol mainly focused on the digital securities field. It utilizes POS and adopts zero-knowledge proof transactions to enhance privacy, while providing support for multi-functional smart contracts.
The 16th project is TokenFi
TokenFi aims to change the crypto asset landscape by being as user-friendly as possible, allowing users to easily create tokens and tokenize assets without coding skills. The core products of the project include Token Launcher, QuickLaunch Bot, LaunchPad, and TokenFi Generative AI.
The 17th project is Blocksquare
Blocksquare is the flagship project in the Oceanpoint ecosystem focused on providing infrastructure for RWA tokenization. Its BST token is the primary governance token that empowers voting and revenue sharing, and can also be used for staking to generate yield.
The 18th project is Florence Finance
Florence bridges the gap between real returns from European SME loans and on-chain DeFi users, with the goal of providing stable and non-crypto asset related returns on stablecoins in a decentralized and composable way.
The 19th project is Maple Finance
Maple is an innovative network of institutions seeking to transform capital markets through RWAs, which provide unsecured loans to borrowers while providing income opportunities to lenders.
The 20th project is Propbase
Propbase is an innovative real estate investment platform and they are leveraging RWA technology to transform real estate into a modern, liquid asset class. One of the main features of the project is its emphasis on fractional ownership, which allows users to invest in real estate for as little as $100, thus reaching a wider audience.
Of course, we have only listed some of the projects above. If you are also interested in the field of RWA, you can also learn more about related projects through some on-chain data platforms. As shown below.
In general, the bull market has begun, and every bull market will introduce some new elements, just like the previously popular DeFi, GameFi or NFT concepts. Relatively new concepts in this bull market, such as AI, RWA, BRC20, etc., will certainly continue to attract more and more topics and participation. But compared to concepts that only have hype value, fields that already have value, such as RWA and AI, will definitely be more worthy of attention and expectation in the long run.
Of course, as far as the field of RWA is concerned, there may be a regulatory issue. We have also talked about this issue several times in previous articles. Moreover, as the tokenized asset market becomes more and more popular, Regulation will definitely follow in the future, but this is not a bad thing for the long-term development of the market. On the contrary, it can open up a new situation and bring more liquidity and opportunities. In 2024, we will most likely see more and more multinational financial institutions launch tokenized products to embrace the rapid development of blockchain.
Well, we will share today’s content here for now, and we will continue to bring you more related sharing later. Interested friends can view and learn more through the Hua Li Hua Wai public platform.
Note: The above content is only a personal perspective and analysis. It is only used for popular science learning and communication and does not constitute any investment advice. The crypto market is an extremely high-risk area. Please treat it rationally, increase your awareness of risk prevention, and abide by the relevant laws and regulations of the country and region where you are located!