This article explains what RWA is and the corresponding tokens in that sector; please give it a like for support!
What is RWA?
In cryptocurrency, RWA stands for 'Real-World Assets'. This refers to assets that have a physical presence and economic value, aside from cryptocurrencies, also known as real-world assets.
For example, real estate, gold, stocks, bonds, etc., can all be considered as physical assets.
In DeFi (Decentralized Finance), physical assets (RWA) are being used as collateral for loans. This is an innovative approach as it combines traditional financial elements (such as real estate or stocks as collateral) with cryptocurrency loans.
For example, someone may own a large amount of real estate but does not want to sell it for cash. Using DeFi, they can convert these physical assets into digital tokens and use them as collateral for loans, thus obtaining cryptocurrency loans to use when liquidity is needed.
This sector has been discussed by many prominent figures in SPACE since the beginning of last month.
At the end of last month, after the launch of the exchange EDX Market initiated by financial giants like Charles Schwab and Fidelity, asset management giant BlackRock applied for a Bitcoin ETF, Deutsche Bank applied for a digital asset license, and Fidelity is considering acquiring Grayscale; a series of messages indicate that traditional financial institutions are once again entering the Crypto field in a different manner.
In addition, several banks in Singapore and European countries are exploring the tokenization of government bonds and their use with CBDC in some DeFi scenarios.
It indicates that bringing traditional world assets on-chain will boost the development of the RWA track, which is worth paying attention to.
One of the best-performing tokens this week, #COMP, is due to its founder Robert Leshner announcing the birth of his new company Superstate, which creates regulated financial products that connect traditional markets with the blockchain ecosystem, differing from DeFi that is limited to the cryptocurrency circle, and this will elevate the connection between reality and virtuality.
Vitalik Buterin also mentioned in an interview that for RWA physical assets, he believes there is a certain reasonableness in this design space, but careful engineering design is needed to ensure a wide distribution of supported assets and stable governance.
In summary, in the subsequent market trends, focus on the development of this track, as each round requires a narrative hotspot to create volatility, which may be a point of favor for future funding.
The tokens in the figure below are all related to this sector, but notable ones include the DEFI trio #COMP, #Mkr, #AAve, as well as #ondo, #MPL, #TRADE, #Polyx, #Om, etc.; it is recommended to focus on those with high market capitalization and liquidity.
