In the rapidly evolving Web3 industry, tokenizing Real World Assets (RWA) involves digitizing ownership of physical and financial assets on the blockchain, significantly enhancing their liquidity and enabling partial ownership. This process holds immense potential for redefining value creation. Key players in this field include industry giants like Tether and MakerDAO. The tokenized RWA market is expected to experience rapid expansion, potentially reaching a value of $16 trillion by 2030, signifying a transformative shift in traditional financial and investment practices.
INTO adopts an innovative approach, harnessing the power of RWA to reshape the dynamics of real asset tokenization. By bridging the gap between traditional assets and the decentralized domain, INTO introduces a tangible dimension to RWA in Web3. This enables users to tokenize tangible assets such as real estate, commodities, and even intellectual property. The democratization of investment channels and the expansion of opportunities beyond traditional boundaries are achieved through this process.
Cryptocurrency and Real World Assets (RWA)
In a broad sense, the concept of Real World Assets (RWA) in the digital asset space involves transforming the rights to tangible assets or traditional financial assets (such as government bonds, real estate, or gold) into digital tokens on blockchain platforms like Ethereum. These digital tokens represent ownership or shares in actual physical assets.
Currently, when we talk about RWA, it is more about the cryptocurrency industry’s one-sided value capture from the real world. From the perspective of traditional finance (TradFi), funds tokenized through blockchain and distributed ledger technology can unleash even greater value. RWA enhances the liquidity of assets that are typically challenging to liquidate, such as certain real estate investments. It also promotes partial ownership, enabling more people to invest in assets with higher entry barriers, democratizing investment opportunities traditionally limited to wealthy individuals or institutional investors.
Tokenization, typically the expression of assets on the blockchain after digitization, leverages the advantages of distributed ledger technology for accounting and settlement. Assets tokenized in this manner can include not only financial instruments like stocks, bonds, and funds, but also tangible assets like real estate and intangible assets like music streaming rights. The tokens generated after the tokenization of assets serve as carriers of the asset’s value and credentials for ownership. This innovation and disruption also apply to funds. Tokenizing funds results in Tokenized Funds, where fund shares are digitally recorded on a blockchain distributed ledger in the form of tokens, available for secondary market trading. This sets Tokenized Funds apart from cryptocurrency funds that only invest in primary and secondary markets.
Currently, the tokenized Real World Assets (RWA) market is on a significant growth trajectory. Industry predictions indicate that by 2030, the market value could grow to between 4 trillion and 16 trillion dollars. The future value of RWA loans in this field is estimated to be around 600 million dollars. This growth trajectory highlights the increasing integration of blockchain technology in diversifying portfolios and expanding investment channels across different asset categories. It is not only happening in the digital space but also seamlessly transitioning assets to representation and trading on the blockchain. This not only enhances liquidity but also introduces new levels of transparency and efficiency in transactions.
One of the most exciting possibilities brought by tokenization might not be settlement and issuance based on blockchain, but rather the trading of fund tokens on the secondary market. As the tokenization market matures, the price of fund tokens traded on the secondary market can more accurately reflect the value of the fund. This aids in price discovery, providing a basis for fund pricing rather than relying solely on the disclosed net asset value (NAV) for ETFs. It enables investors to view trades, portfolio valuations, and investment performance in real-time and adjust their risk exposure accordingly. Fund tokens will also be traded based on investor demand, currency trends, and arbitrage, eliminating any price discrepancies between tokenized and non-tokenized versions.
By bridging the gap between traditional assets and the decentralized space, INTO has opened doors to countless possibilities. Using RWA in Web3 introduces a tangible dimension, allowing users to tokenize physical assets like real estate, commodities, and even intellectual property. Furthermore, INTO’s RWA model fundamentally transforms risk management for investors. The backing of physical assets provides an additional layer of stability, mitigating some of the volatility in the crypto space. This reassures investors, providing a safer environment for the growth of decentralized finance (DeFi).
RWA is a crucial component of the INTO ecosystem
INTO’s social ecosystem spans various domains such as daily life, business activities, gaming, and financial transactions, according to the latest data. INTO boasts a registered user base of 5.8 million, with over 590,000 SBT certified users. As a sector within the INTO ecosystem that operates in a trillion-dollar market, RWA is poised to play a pivotal role in the monetization of INTO’s traffic. It also serves as a means to meet the growing demand among INTO’s user base for RWA assets.
Anticipated for the year 2024 is the flourishing development of community operations globally, with urban nodes leading the way. An offline INTOWeb3 social network is expected to be established worldwide, driving the implementation of INTO’s universal basic income (UBI) concept and facilitating large-scale user acquisition through the distribution of TOX to new users. As INTO’s ecological token, TOX can be used for collateralized lending, exchanging for US bonds, stocks, and other RWA assets, enabling compounded growth in returns. With a significant portion of TOX being utilized for the exchange of RWA assets, this is expected to greatly expand TOX’s circulation, providing a solid foundation backed by real-world RWA assets and supporting the continuous growth of TOX’s value.
At the same time, INTO possesses its own RWA assets, providing robust support for it to excel in the fiercely competitive RWA arena. By flexibly leveraging global traffic, INTO can better showcase the unique value of its RWA assets, attracting more attention from investors and users. INTO is not only a dark horse in the RWA race but also a pioneer leading the global free flow of assets.
In summary, in the RWA arena, INTO has secured a unique competitive position with its massive advantage in global traffic. Through collaborations with RWA project platforms, INTO can harness its extensive user base to channel more traffic into the RWA ecosystem. This collaborative model provides INTO with opportunities for mutual benefit with other RWA projects, collectively driving the development of the entire RWA arena.
INTO Leading the Revolution in the RWA Sector
The emergence of the Web3 ecosystem sees the tokenization of Real World Assets (RWA) as a transformative process, connecting traditional asset categories with the efficiency and accessibility of blockchain technology. This innovation not only enhances liquidity, democratizing investment opportunities, but also introduces new dimensions of security and compliance to the digital asset space, opening the doors to a wider range of investors. What was once a market exclusive to the affluent class has now welcomed the participation of more investors.
With INTO gaining prominence, investment is no longer the exclusive domain of a privileged few. This revolutionary change provides an opportunity for a broader range of investors to participate in financial markets that were previously accessible only to a select few. INTO’s philosophy is driving the evolution of the financial sector, making the value of assets more inclusive. This unique fractional ownership model creates more flexible choices for investors while providing more financing possibilities for businesses and projects.
In summary, INTO’s approach to integrating real-world assets into Web3 not only redefines the concept of value but also fundamentally changes the tokenization and trading of assets. INTO’s RWA model introduces a paradigm shift in risk management, promoting inclusivity in financial markets and enhancing transaction security and transparency. As a result, RWA assets backed by real-world assets will become a viable choice for users seeking diversified and stable investments.As we witness the development of Web3, INTO’s foray into RWA will be a key step towards a more robust decentralized future.
About INTOverse
INTO is a pioneering Web3 social protocol, leveraging blockchain and AI technology. It offers features such as crypto wallets, SocialFi, the SoulBound Token (SBT), AI tools, and more. INTO’s mission is to create a globalized Web3 social network, fostering an open, free, engaging, compatible, and secure communication environment for users worldwide.
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