π΅ What is RWA?
Real World Assets are real world assets that have been tokenized and flooded into the crypto market.
The most popular example that you are definitely familiar with is tokenized dollars, which are also called stablecoins.
In fact, stablecoins are not only USDT, USDC and similar tokens, but also any other tokens pegged to the price of some asset. For example, PAX Gold (PAXG) and Tether Gold (XAUT) are also stablecoins, but they are pegged not to the dollar, but to gold.
Messari, Binance Research, Boston Consulting Group and other top analytics firms believe that RWA will be the next powerful trend that will attract huge amounts of liquidity to the crypto.
π Here are some popular protocols from different fields that are actively developing this topic:
β RealT tokenize and sell real estate in the US
β MakerDAO plans to invest in real assets to diversify DAI collateral
β Swarm Markets tokenizes traditional financial assets through Polygon such as TSLA, AAPL and US Treasury bills
β Centrifuge allows companies to mint NFTs representing real world assets. These NFTs can then be used as collateral for a loan.
β GoldFinch provides USDC loans to companies in emerging markets including Africa, Southeast Asia and Latin America
β What are the benefits?
For the DeFi industry, this is an influx of new liquidity into the crypto market and a more reliable supply of tokens.
And for traditional finance, this means savings (blockchain infrastructure is cheaper than traditional), low entry threshold (especially for developing countries), transparency and reliability of the blockchain.
The Boston Consulting Group estimates that the crypto market capitalization will reach $16 trillion thanks to tokenized assets from the real world. And this will become a catalyst for the mass adoption of crypto.
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