Crypto4light

RWA sector. Why real world assets its a future?

Education
KUCOIN:ONDOUSDT   Ondo / Tether
Real World Assets (RWA) or "real world assets" is a relatively new trend and term in crypto, in simple words meaning the tokenization of traditional financial instruments and values from the real world on any blockchain.
The concept means that you have the opportunity to tokenize any values.

A classic example of RWA is securities or real estate.
The infrastructure for RWA tokenization and trading is provided by dozens of blockchain platforms.

According to many platform which provide stats, this sector includes 25 protocols with a total TVL of more than $2 billion.
RWA is a bridge between TradFi and DeFi that can transform the landscape of the crypto market by providing new sources of capital, liquidity and profitability.

Theoretically, any asset whose information can be formalized and fixed in the form of a code is subject to tokenization. These can be both tangible (precious metals) and intangible (copyright) goods.
The development of RWA is also facilitated by the adoption of blockchain in the banking and financial environment, which has been observed in the last few years.

RWA of the real estate sector allows you to tokenize and trade ownership rights to residential or non-residential buildings, as well as receive income from rent, proportional to the ownership share. Both interchangeable tokens and NFTs are actively used in this sector.

Its not a local trend, or sector with temporary hype around, no, believe you or not but year after year blockchain will be part of our life, and RWA its just a logical next step in human progress.

RWA problems
Tokenization and the transfer of traditional assets to the blockchain are associated with a number of difficulties that this young segment of the market will need to overcome for further expansion. The main ones:

legal basis;
- technical limitations;
- safety of storage.
The regulation of RWA is generally more specific than cryptocurrency, since the underlying asset is already integrated into the regulatory framework of one or another jurisdiction. However, if securities are traded on controlled and transparent platforms, then everything is more difficult with their tokenized versions, since they actually form a new market.

To protect the rights of investors in the industry, a regulated procedure for the issuance, repayment and turnover of RWA is required, and similar rules have not yet been established in all key jurisdictions.


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