We've talked about RWA (Real World Asset Tokenization) many times before. Why do we say that the RWA sector is very likely to land first or be the easiest to achieve in the future cycle?
Although the technological advances and infrastructure in the crypto industry are becoming increasingly refined, it is still primarily speculative. The payment of stablecoins is already quite widespread in Western countries, but other applications have not yet been deployed on a large scale. The RWA sector is closest to financial assets, and both the imaginative scope and capital drive make it relatively easier to land.
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 worth of BTC. Large institutions such as publicly traded company MSTR have bought over 400,000 BTC, worth $40 billion. The U.S. has completed its dominance and pricing of crypto assets.
Institutions like Citibank, BlackRock, and JPMorgan 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 notes, stocks, and various derivatives together, gradually forming an extremely large asset package, and these assets have a strong motivation for tokenization.
Why tokenize?
Our mainstream asset now is equity, which is securitized; the future is asset tokenization, and only asset tokenization can achieve globalization, removing barriers of physicality, culture, belief, language, and national 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 insignificant. The US dollar will also anchor to crypto assets to achieve its third rise.
With assets and tools in place, after Trump came to power, the policies in the crypto industry became friendlier, making implementation easier.
The earliest RWA assets were stablecoins, represented by USDT and USDC. Their underlying assets mainly consist of U.S. dollars, U.S. Treasury bonds, and some short-term notes, 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 is unwilling? Whether in payment exchange, speculation, or trade settlement, the current applications of stablecoins are widespread, aren't they?
Therefore, for TRX and ETH, early stablecoins played a decisive role in their development.
However, stablecoins do not have speculative value. In the RWA sector, stocks, bonds, lending, and even real estate have been tokenized, but the real leader now is ondo, as it has the backing of BlackRock, allowing users to purchase U.S. Treasury bonds directly through it, thus achieving a closed loop from issuance, purchase to settlement; mkr is also one of the leaders, but its purpose of purchasing U.S. Treasury bonds is to mint its own stablecoin; SNX is a synthetic asset that leans more towards DeFi. Additionally, there are concept tokens like cfg, rsr, and polyx with relatively smaller market capitalizations.
The application of the RWA sector has not yet been deployed on a large scale; it is still an early opportunity. Keep an eye on it when the right time comes.
