Original title: (WOO X Research: Can RWA become the next wave of wealth growth?)
Original source: WOO X Research
Narrative:
RWA (Real World Assets) literally means real-world assets. Its value lies in building a bridge between traditional assets and the web 3 world to realize the digital presentation of real assets, which can effectively utilize or dispatch real assets (such as real estate, artworks, etc.) and improve the liquidity of assets. And with the combination of RWA and blockchain technology, RWA can transcend geographical restrictions. Regardless of geographical location, monetary system or other influencing factors, through the combination of the two, users can easily complete transactions or other uses of assets. When it comes to RWA, people often think of real estate, stocks, etc., and from the basic characteristics of RWA tokenization, stablecoins are also products in the RWA track. It seems that RWA is closer to us. This is also another level of narrative of RWA, namely "inclusiveness", which can enable investors who do not have enough capital to enter the high-value market to invest in the high-value market in disguise by investing in the corresponding high-value RWA tokenized products.
What does the future hold?
In the past year, the overall TVL of RWA has fluctuated upward. In this cycle, RWA, AI, MEME, etc. are all relatively popular tracks. RWA has always been one of the more popular tracks.
Image source: https://defillama.com/protocols/RWA
In the future, RWA is likely to continue its trend, and the combination of RWA and DeFi may attract more and more investors. In fact, similar high-value assets such as real estate and commodities face settlement difficulties in transactions, and the relevant laws and regulations of each country are also different. It is very likely that projects related to this type of high-value assets will be constrained by implementation and supervision. Therefore, if this type of project in the RWA track wants to achieve better development, before that, there must be greater progress in PayFi or cross-border settlement supervision and RWA asset certification, rather than entrusting third parties from all over the country to help with liquidation or certification as most of them do now.
In addition, the RWA projects on stablecoins are relatively stable. Basically, the mainstream market may still be dominated by the US dollar, followed by the euro. However, in the future, this type of project may be differentiated by country/region, that is, "investors in a certain country/region basically choose a certain type of stablecoin." In this case, stablecoins that have obtained local regulatory licenses can take the lead in the market. The last one, which should also be a relatively large trend in the future, is that the anchor value objects of stablecoins are bonds, securities, stocks, or funds and other assets. There may be more products and projects in the future. The reason is that the settlement and supervision mentioned above have better advantages than assets such as real estate. However, for this type of project, in the early future, only related projects with institutions that have a certain voice in the traditional financial world (such as BlackRock) may have a considerable wave of economic benefits. After that, projects involving some institutions/organizations with more voice in the web 3 world may have more community cultural characteristics.
project
Below is an overview of the projects that have received recent financing, which is only used for discussion from an objective perspective.
OpenTrade
OpenTrade was founded at the end of 2022 and is headquartered in London, UK. Its investors include a16z CSX, Circle, Draper Dragon, CMCC Global, Ryze Labs, Polygon and Kronos Ventures. The total financing has reached US$8.7 million.
Four products are currently available:
1. U.S. Treasury Vaults: Regular; fixed-term, fixed-rate USDC returns, secured by U.S. Treasury bonds;
2. USDC Vault: USDC with a variable yield. Secured by short-term U.S. Treasury bills, money market funds and other cash equivalents;
3.EURC Vault: Demand; variable-yield EURC, secured by euros and short-term eurobonds, money market funds and other cash equivalents;
4. Rate+ Vault: Regular; secured by investment-grade corporate bonds, commercial paper, emerging market bonds, etc.
Use Vault tokens as metrics in operations such as accounting.
USUAL - Government Bonds
It has currently raised a total of US$8.5 million and is a Binance Launchpool project.
Overall, it revolves around three types of tokens:
1. USD0: This is a permissionless and fully compliant stablecoin backed 1:1 by real-world assets (RWA), aggregating various US Treasury tokens.
2. USD0++: It is an enhanced treasury bond that locks the principal in USD0 as collateral and uses USUAL as an incentive.
3. USUAL is its governance token.
Token economics: total 4 billion, initial circulation ratio 12.37%.
Image source: https://docs.usual.money/usual-products/usual-governance-token/usual-tokenomics/distribution-model
The token distribution is as follows:
They are Finance
The total financing is currently $46.3 million, and the co-founder is Chinese. In general, it is a PayFi lending project. The latest round of financing includes $10 million in equity investment and $28 million in physical assets investment in the Huma platform. Distributed Global led the investment, with participation from Hashkey Capital, Folius Ventures, Stellar Development Foundation, etc. On April 17, 2024, it merged with Arf and focused on PayFi related to the tokenization of real-world assets.
Use Huma Points to track contributors to the protocol. Currently provides cross-border payment financing and digital asset-backed credit cards. This is done through some funding pools, such as Arf-Cross-border Payment Financing Pool (based on USDC instant settlement, simplifying cross-border payments); Rain Accounts Receivable Pool (helps entities such as DAOs manage expenses through payroll cards); Jia Pioneer Fund Pool (provides decentralized financing for small businesses, rewards borrowers who repay with ownership. That is, "small business credit") and other funding pools to help achieve cross-border payment financing.
This article is contributed by a contributor and does not necessarily represent the views of BlockBeats.
Welcome to join the BlockBeats official community:
Telegram subscription group: https://t.me/theblockbeats
Telegram chat group: https://t.me/BlockBeats_App
Official Twitter account: https://twitter.com/BlockBeatsAsia
