The Hard Part of RWA
The easy part of RWAs is creating the token.
The hard part is everything that happens after.
How is it valued?
How is the loan structured?
What happens if the borrower defaults?
And most importantly:
How does the lender actually recover value?
That last question becomes difficult when the underlying asset has limited liquidity.
This is why I find @TermMax worth watching.
Its physical delivery mechanism suggests that collateral recovery doesn’t necessarily have to depend entirely on selling the asset into a thin market.
That could become particularly interesting as lending moves beyond highly liquid crypto assets.
RWAs need more than tokenization.
They need infrastructure that understands the reality of the assets underneath.
That’s the bigger opportunity I see.
@TermMax x #termmax
The easy part of RWAs is creating the token.
The hard part is everything that happens after.
How is it valued?
How is the loan structured?
What happens if the borrower defaults?
And most importantly:
How does the lender actually recover value?
That last question becomes difficult when the underlying asset has limited liquidity.
This is why I find @TermMax worth watching.
Its physical delivery mechanism suggests that collateral recovery doesn’t necessarily have to depend entirely on selling the asset into a thin market.
That could become particularly interesting as lending moves beyond highly liquid crypto assets.
RWAs need more than tokenization.
They need infrastructure that understands the reality of the assets underneath.
That’s the bigger opportunity I see.
@TermMax x #termmax