There’s a US $600 trillion opportunity in crypto via TradFi (Traditional Assets). This opportunity can be realized via RWAs.
TradFi, such as real estate, bonds, commodities, securities, artwork, collectibles, etc., lack the agility and inclusivity digital assets offer. Of late, their growth has plateaued, given the limited use cases and monopoly of few.
Real-world Assets (RWAs) hold the potential to overcome TradFi challenges by bringing real-world assets on-chain. According to an article titled – ‘DeFi’s Role in Bringing Real World Assets into the 21st Century’ by NASDAQ, the universe of real-world assets is huge and presents a whopping US $600T market. The crypto market alone is worth US $ 1 Trillion.
RWAs, or real-world assets, can tap into the traditional market to make, for instance, real estate tradeable as tokens on DEXs rather than years spent waiting for price appreciation to sell.
RWAs are the hottest crypto trend. There’s a thesis in the crypto community that describes RWAs as the drivers behind the next bull run. Let’s discuss why.
What’s the Hype Around RWAs?
RWAs are finding brilliant use cases in DeFi – fractionalization, lending, borrowing and trading, rental income, digital twins, art auctions, and more. Stablecoins and NFTs were some of the earliest use cases of RWAs.
RWAs can help remove barriers to entry, remove middlemen, reduce operational costs, add traceability, and bring ownership into the hands of buyers. RWAs bring near-instant settlements, 24/7 markets, and lower costs for users.
Bigger players like Avalanche have launched a program ‘to bring more digital versions of traditional investment products, including equities, credit, real estate and commodities to the layer 1 blockchain.’ Besides Avalanche, Ethereum remains the most popular network for tokenized assets, followed by Stellar, Solana, and Polygon.
Masterworks are tokenizing fine art, and Arcade and Courtyard are doing the same to luxury watches and Pokemon Cards. Landshare is tokenizing real estate and bringing them on-chain to derive multiple use cases.
More on that later. First, let’s discuss the state of the RWA industry.
Industry Outlook for RWAs
RWAs are the 8th largest DeFi subsector today. The TVL of the RWA sector has grown from $750 million to ~$5.97 billion during the bear market. The market for tokenized assets could grow to as large as US $10 trillion in this decade as traditional financial (TradFi) institutions continue to adopt blockchain technology, digital asset management firm 21.co said in a report.
Traditional players such as Siemens, KKR, Goldman Sachs, and Hamilton Lane are already working to bring their assets on-chain. MakerDAO vaults currently have RWAs worth $960 million. According to Coincu, MakerDAO has added $101 million in Real World Assets (RWAs) to the DAI escrow fund, bringing the total to $3.1 billion.
BlackRock CEO Larry Fink says:, “the next generation for markets, the next generation for securities, will be tokenization of securities.”
Tokenized U.S. treasuries, bonds, and cash equivalents have risen from $113 million to $750 million in under a year. Traditional finance giants like Fidelity and BlackRock, and RWA startups like Securitize, and Polymath use blockchain to tokenenize assets, including fine art, real estate, stocks, and bonds.
LandShare: First-ever Property Sold on BNB
Landshare tokenizes real-world properties on the Binance Smart Chain. Doing so is turning these physical, non-agile, zero-yield assets into asset-backed, yield-bearing and fully tradeable asset tokens.
LAND is the native token used to make purchases on the Landshare platform.
Landshare users can start investing with as little as $50 to benefit in many ways, including:
- Immutably-established ownership
- Property Appreciation
- Monthly rental income
- Collateralized loans in BUSD
- Upgrades and repairs in properties via Landshare’s NFT feature
- Staking rewards
- Liquidity farming
- Voting and governance power for LAND holders.
Another notable feature Landshare offers is the auto-compounding of the rental yields to grow your portfolio further.
Landshare is regulated under US laws and has earned the repute of an established RWA project led by a strong team and community. The platform is ready to launch its RWA token LSRWA.
Future Potential
RWAs are backed by real assets and bring real yield. Bringing real-world assets can open up a world of possibilities, value chains, and liquidity lying dormant off-chain.
The rising interest in RWAs isn’t backed by FOMO. RWAs hold long-term potential, offering efficiencies for both TradFi and DeFi. And as Bank of America calls them, RWAs, led by platforms like Landshare, will be the key drivers in the adoption of digital assets.
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