According to CoinDesk, the United States is facing significant challenges in modernizing its outdated infrastructure, particularly in the telecom and broadband sectors. Government initiatives and legacy providers have proven insufficient to bridge the nation's connectivity gaps. The federal Affordable Connectivity Program, which aimed to provide fast and cost-effective internet, is on the brink of shutting down. Additionally, private-sector internet projects have slowed due to high interest rates, leading to bankruptcies and closures. As a result, affordable high-speed broadband options are becoming increasingly scarce for the one-in-four Americans who still lack access.
Traditional methods for expanding connectivity, such as government subsidies and legacy telecom projects, are failing. However, innovative technologies like tokenized real world assets (RWAs) offer a promising solution. RWAs are digital tokens on a blockchain that represent physical and traditional financial assets, enabling more efficient and transparent management, trading, and ownership. Despite some skepticism surrounding crypto, the underlying technology has substantial potential to enhance the development of tangible infrastructure. Boston Consulting Group projects that the RWA market could grow to $13 trillion by 2030.
The transparency and programmability of blockchain technology unlock new ways of managing and funding telecom and other utility networks. This new paradigm, known as “Liquid Infrastructure,” removes barriers for large infrastructure projects to access capital and allows nontraditional investors, smaller companies, and communities to directly participate in building the infrastructure they need. Blockchain facilitates a machine-to-machine payment system that supports automated settlements, promoting dynamic pricing models and automated transactions. This framework empowers small investors and local communities to have a direct stake in infrastructure projects. Liquid infrastructure is designed for maximum flexibility, allowing for single-asset fractionalization and multi-asset distribution. This means that the revenue of several different liquid assets can be automatically distributed to a single set of fungible tokens.
Hawk Networks has tokenized most of its wireless networks and recently used the Liquid Infrastructure platform to build connectivity for a 194-unit veterans housing project in Phoenix, Arizona. This project utilized Althea's payment platform and Liquid Infrastructure to coordinate payments between multiple participants in the funding and operation of the build. In the case of internet infrastructure, RWAs can enable communities to build their own fiber optic networks or harness the power of Starlink to serve entire neighborhoods. The adaptability of RWAs holds extensive benefits for other vital sectors such as the energy grid and physical infrastructure, transforming how these utilities are financed and managed. Liquid infrastructure aims to complement, rather than replace, government and private sector efforts, filling gaps where traditional approaches fall short.
As the nation strives to address critical infrastructure deficits, RWAs provide a unique opportunity to close existing gaps while fostering a more inclusive and equitable framework for future infrastructure development.