Today, we're going to talk about Real World Assets #RWA one of the most exciting developments in the crypto world that offers investors new opportunities even in times of #MarketDownturn If, like me, you're looking to improve yourself in this area and seize new opportunities, then this article is for you!

What is RWA and why is it so important?

First of all, I have to say that my introduction to RWA goes back many years. I first bought a piece of Banksy's Love is in the Air, which was launched on the Avalanche Network. When I look at its current value, I wish I had sold it in the early days. It was a failed experience for me. The second was LTO Network, which I met through @DAO Labs #SocialMining . At that time, I was new to social mining and didn't really understand the importance of RWAs. I call it a big misfortune. I really should have done more research and understood RWAs better. Therefore, please review this article carefully.

Real World Assets (RWA), digitize valuable things in the physical world with blockchain technology. Houses, gold, stocks, even bonds and more... It's all available as digital tokens!

RWA's best features

  • Increased liquidity: You can easily buy and sell things that are normally hard to sell.

  • Accessibility: Even we as small investors can invest in big assets.

  • Transparency and security: Blockchain makes everything transparent and secure.

  • Efficiency: Transactions are faster and cheaper.

  • Diversification: Investors can diversify their portfolios more easily.

So How Does This Work?

Let me talk a little bit about behind the scenes:

  • The asset is valued.

  • Special tokens are created for this asset.

  • Smart contracts come into play.

  • Finally, these tokens are traded on exchanges.

What Happens in 2024?

When I started my article, I talked about the consequences of my ignorance, wrong strategy and not researching the topic in detail. The fact that 2024 is a boom year for RWA projects has caused me to miss out on opportunities that I discovered early on but would have caught early on because I didn't do enough research. I am now doing more research on RWA and trying to refresh my knowledge as much as possible. I am sharing the following reports and analyses for your benefit. Please also check the resource links at the end of the article.

  • According to CoinGecko's report, the market capitalization of commodity-backed tokens has reached 1.1 billion dollars. This figure surprised even me! (1)

  • According to CoinDesk, RWAs are performing well despite the volatility in the crypto market. (2)

  • And I read on CoinMarketCap that people's interest in RWAs is growing. (3)

  • ENor Securities will offer Backed's bTokens in Latin America. This is likely to boost tokenization efforts in the region. (4)

  • Germany's state-backed development bank is preparing to issue tokenized bonds. Traditional financial institutions are also following this trend. (5)

  • Franklin Templeton's $420 million OnChain US Government Money Market Fund is expanding into Arbitrum. (6)

  • #Ripple💰 to allocate $10 million in US Treasury bonds tokenized on $XRP Ledger (7)

I thought we should also remember the projects that first come to mind when we think of RWA. Here are investors' favorite RWA projects:

  • #BlackRock⁩ 's BUIDL: A pioneer in digitizing traditional assets.

  • Chainlink ($LINK ): Bridging smart contracts and real-world data.

  • Maker ($MKR ): An important player in the DeFi world. Uses RWAs as collateral.

  • LTO Network (LTO): Used to digitize legal and business processes.

RWAs and Social Mining

During my research on RWA, I came across an article shared by DAOLabs on Reddit that illustrates the compatibility between Real World Assets (RWAs) and social mining.

As DAOLabs puts it, “physical goods and services are the next frontier for the token economy to explore” and social mining can play an important role in this journey of discovery. Please read the full post (https://www.reddit.com/r/DAOLabs/comments/1ev98iw/tokenizing_realworld_assets_is_it_compatible_with/)

In conclusion, I have to say that RWAs are indeed taking firm steps towards becoming the investment vehicle of the future. I think it is not far-fetched for experts to say that by 2030, the market share will reach 10 trillion dollars.

So what do you think? Which RWA projects are you following? Please share with me in the comments.

Note: Remember, this article is for informational purposes only. You should always base your investment decisions on your own research.

Sources:

(1) https://www.coingecko.com/research/publications/rwa-report-2024

(2) https://www.coindesk.com/opinion/2024/07/10/how-tokenized-real-world-assets-are-outperforming-crypto/

(3) https://coinmarketcap.com/community/articles/66b9e4e7bfb67c0b436328ec/

(4) https://www.coindesk.com/business/2024/08/13/tokenized-asset-issuer-backed-to-offer-crypto-rwas-in-latam-with-enor-securities/

(5) https://www.coindesk.com/business/2024/08/12/german-state-owned-development-bank-prepares-for-tokenized-bond-issuance-with-boerse-stuttgart-digital-in-ecb-trial/

(6) https://www.coindesk.com/markets/2024/08/08/franklin-templetons-tokenized-money-market-fund-expands-to-arbitrum/

(7) https://www.coindesk.com/business/2024/08/01/ripple-to-allocate-10m-to-tokenized-us-treasury-bills-on-xrp-ledger/