We've already discussed RWA (Real World Asset Tokenization) many times before. Why do we say that in the future cycles, the RWA sector is likely to be the first to be implemented or the easiest to achieve?

Although the technological progress and infrastructure of the crypto industry are becoming increasingly sophisticated, it is still primarily speculative. The use of stablecoins for payments is already fairly widespread in Western countries, but other applications have not yet been implemented on a large scale. The RWA sector is closest to financial assets, making it relatively easier to realize both in terms of imaginative space and capital drive.

Wall Street capital has pushed Bitcoin and Ethereum ETFs into the traditional financial sector, and in less than a year they have already controlled $100 billion in BTC. Large institutions such as listed company MSTR have purchased over 400,000 BTC, worth $40 billion. The U.S. has completed the dominance and pricing of crypto assets.

Citibank, BlackRock, JPMorgan, and other institutions have long published research reports predicting that the scale of RWA will reach tens of trillions of dollars in the next decade. These institutions link cryptocurrencies, traditional bills, stocks, and various derivatives together, gradually forming an extremely large asset package, and these assets have a strong motivation to be tokenized.

Why tokenize?

Our mainstream asset now is equity, which is securitized; the future is asset tokenization. Only asset tokenization can achieve globalization, removing barriers of physicality, culture, belief, language, and borders. In the era of token economy, the total amount of crypto assets should be more than ten times that of the equity era, so the debts and contradictions of the equity era are negligible. The U.S. dollar will also anchor crypto assets to realize its third rise.

With assets and tools in place, after Trump took office, the policies for the crypto industry became more friendly, making implementation easier.

The earliest assets in RWA were stablecoins, represented by USDT and USDC. Their underlying assets are mainly U.S. dollars, U.S. Treasury bonds, and some short-term bills, which is equivalent to tokenizing U.S. dollars and U.S. Treasury bonds. The scale of stablecoins has reached $200 billion, quickly approaching the top ten holders of U.S. Treasury bonds. Do you think the U.S. government would not want that? Whether for payment conversion, speculation, or trade settlement, stablecoins are now widely applied, right?

Therefore, for TRX and ETH, early stablecoins played a decisive role in their development.

However, stablecoins lack speculative value. In the RWA sector, there are stocks, bonds, lending, and even real estate that are being tokenized, but currently, the real leader is Ondo, because it has the endorsement of BlackRock. Users can directly purchase U.S. Treasury bonds through it, which creates a closed loop from asset issuance, purchase to settlement. MKR is also one of the leaders, but its purpose of buying U.S. Treasury bonds is to mint its own stablecoin. SNX is a synthetic asset and leans more towards DeFi. Additionally, there are smaller-cap conceptual tokens like CFG, RSR, and POLYX.

The application of the RWA sector has not yet been widely developed; it is still an early opportunity, so pay attention when the right time comes.