Real World Assets (RWA), or real world assets, are tokenized assets operating on the blockchain. These include real estate, commodities, government bonds, and works of art. The RWA segment has experienced significant growth since the end of 2021, ranking 6th in total locked funds (TVL) among all DeFi protocol categories.
Chainlink, as a monopoly project in the field of oracles, plays a key role in this trend. Oracles in the blockchain function as a bridge between the digital and real worlds. For example, Chainlink delivers a real-time financial market data stream for DeFi applications, including information on cryptocurrencies, stablecoins, commodities, indices, stocks, fiat currencies, and more.
This is important for the RWA segment, because without a reliable infrastructure and secure communication channels, financial institutions will not tokenize real assets on the blockchain.
Chainlink is not limited to oracles. They recently launched the CCIP protocol, which connects private and public blockchains with banks and payment systems. In addition, Chainlink cooperates with the SWIFT interbank system and other organizations to develop CCIP-based products.
With over 1,000 partners and customers in both crypto and traditional finance, Chainlink is significantly ahead of its closest oracle competitors such as Tellor, Band, UMA and API3 by 10-20x.
