The potential of Real World Assets (RWA) in crypto

The field of Real World Assets (RWA) is receiving increasing attention in the cryptocurrency and blockchain world. This sector could constitute a preponderant narrative on the crypto market in the years to come.

The potential of Real World Assets (RWA) in crypto

Table of contents




RWA, what is it?

Real World Assets (RWA) involve the tokenization of real assets, representing ownership rights to tangible objects such as art, commodities, real estate, and other tangible goods in the form of digital tokens on a blockchain. This procedure aims to create virtual investment vehicles linked to tangible assets on the blockchain. Tokenization of RWAs offers a simple and efficient way of representing ownership of physical assets, such as real estate, by enabling tokenized fractional ownership, where tokens represent either full ownership or fractions of ownership.

Sector potential

Much of the interest in RWAs is due to their potential to transform the traditional financial landscape. By representing these assets on a blockchain, we can improve their liquidity, accessibility and transparency. This could open up new investment opportunities and make the financial market more inclusive.

According to some estimates, the size of the RWA market could reach $16 trillion by 2030. This reflects the massive growth potential of this field, which is still relatively new and developing.

  1. BlackRock, one of the world's largest asset management companies, recently entered the RWA sector with the launch of a tokenized fund called "BUIDL", which already has over $275 million in capitalization. This move is seen as a strong signal of the legitimacy and potential of this field. BlackRock's entry could also encourage other institutional players to explore the opportunities offered by RWAs, which could help stimulate market growth.
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Practical example

A concrete example of RWA tokenization is RealT, which specializes in the tokenization of real estate. In the real estate context, tokenization facilitates investment by enabling the tokenized fractionalization of a home. Investors can either own a whole token, equivalent to the entire property, or hold a fraction represented by one of several tokens, collectively forming the property.

RWA-related projects

Pendle (PENDLE): Pendle is a protocol deployed on Ethereum that simplifies asset tokenization through a fixed-rate loan market.

Centrifuge (CFG): Centrifuge is an institutional ecosystem dedicated to on-chain credit, focused on integrating tangible assets into blockchain.

Mantra (OM): Mantra is a security-focused Layer 1 RWA blockchain, ensuring compliance with real-world regulatory requirements for institutions and developers.

Maple (MPL): Maple offers decentralized corporate credit markets for transparent on-chain financing and sustainable returns for liquidity providers through loans to premium crypto institutions.

Propbase (PROPS): Propbase is an ecosystem dedicated to real assets and PropTech solutions, offering tailored blockchain solutions that meet the specific needs of RWAs and PropTechs.

Propchain (PROPC): Propchain is both a marketplace and an ecosystem specialized in real estate investment and trading.

Artrade (ATR): Artrade is the first NFT platform dedicated to real art assets, running on Solana.

Blocksquare Token (BST): Blocksquare is a blockchain platform enabling the tokenization of real estate assets, paving the way for fractional ownership and investment in these assets.

Realio Network (RIO): Realio removes barriers to investment, trade and leverage in real estate, private equity and other tangible real-world assets through decentralized finance (DeFi).

  1. For an overview of all RWA-related projects, visit the RWA category on Coinmarketcap and Coingecko.
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Conclusion

In summary, RWAs represent an exciting and fast-growing field in the cryptocurrency and blockchain world. Their potential to transform the financial landscape and their projected market size make them a key narrative for the cryptocurrency market's next bull run.


  1. Sources:
  2. https://coinmarketcap.com/watchlist/6410b0a74636c002d96096cf/, consulted on 27.04.24
  3. https://www.coingecko.com/fr/categories/real-world-assets-rwa, consulted on 27.04.24
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