Only a few players will emerge as winners.
Written by: DeFI Saint
Compiled by: Kate
Note: This article comes from @TheDeFISaint’s Twitter account, which is a crypto KOL. The original tweet content is compiled by MarsBit as follows:
The next wave of RWA narratives is starting to pick up steam again.
Only a few players will emerge as winners.
The underlying technology is set up to connect different RWA protocols.
To seize this opportunity early, let’s take a closer look:
Coinbase’s report says tokenized assets could be a catalyst for DeFi growth.
Real World Assets (RWAs) are physical assets that can be tokenized and represented as digital tokens on the blockchain.
Since blockchain is easily accessible, tokenizing assets on it makes it very efficient.
Thanks to tokenization, investments in real-world yield assets start from as low as $50, removing high barriers and allowing everyone to earn profits through sustainable business models.
With the rapid development of the web3 industry, tokenized RWA has reached 16.9 billion US dollars and will reach 16 trillion US dollars by 2030.
According to DeFILlama, RWA TVL is now ranked 12th, having previously been ranked 22nd
S&P 500 companies are early adopters of tokenization: Google, Mastercard, Visa, Fiserv, Inc., Micro Focus, American Express, and many more.
According to Blockworks, BlackRock CEO Larry Fink said, “The tokenization of real-world assets is an attractive use case because it points to opportunities to increase capital market efficiency, shorten value chains, and improve investor costs and access.”
Mastercard and Google have launched tokenization to provide secure Mastercard payments to Google Pay users.
Additionally, there are rumors that Amazon’s new NFT is related to RWA.
Not only that, Siemens also issued 60 million euros of bonds on Polygon.
The Monetary Authority of Singapore is also testing asset tokenization through Project Guardian.
Goldman Sachs also launched GS Dap to tokenize traditional assets.
So many interesting points about RWA.
It is only a matter of time before RWA takes over cryptocurrencies as Circle’s CEO equally believes in the future of RWA.
https://twitter.com/jerallaire/status/1641103383229595658
When it comes to tokenized RWAs, everything is transparent and clear enough that no one will argue.
Shares of a company move on-chain. Even in a bear market, some companies admit that tokenization will bring them more benefits than any other enabler.
RWAs come with many benefits, such as earning a fixed income on your assets, which is useful for users who want to minimize their exposure to market fluctuations.
900 trillion dollars will be tokenized, any asset can be tokenized, and it is very possible, imagine all assets are decentralized and fully on-chain. What a great economy we will have! Stocks, real estate, bonds, art, etc.
RWA is the gateway to mass adoption of DeFi, as businesses move online, commerce becomes faster and more efficient. Likewise, as asset ownership moves to the blockchain, new markets will be created and commerce around them will become more efficient.
RWA will power DeFi for the next million users, and the best way to benefit from this narrative early is to leverage the protocols that are building RWA’s future.