What is RWA?

RWA (Real World Assets) are assets that have their value tied to tangible items such as real estate, cash, and metals through tokenization. These assets are very illiquid. By introducing on-chain asset tokenization technology, this market is expected to grow exponentially.

opportunity

The market for these assets is large and rapidly expanding. According to a report by the Boston Consulting Group BCG, it is expected to grow to US$16 trillion by 2030. This is equivalent to 12 times the current total market capitalization of the cryptocurrency market. Here are 10 protocols worth watching:

maplefinance

Maple established the RWA currency market and implemented on-chain lending services supported by real-world assets. Lenders deposit funds into the pool and earn interest on the pool’s liquid assets. The protocol is built by professionals and is designed for institutional adoption.

MPL has a circulating market capitalization of $70.6 million. However, the market they are targeting is much larger than currently valued. The U.S. bond market alone is a $46 trillion behemoth. By improving capital efficiency, MPL is poised to reap huge returns in the future.

RIO (real)

Realio is a network built on the Cosmos SDK with a focus on issuance and management of cryptocurrencies and RWA (real world assets). Unlike other applications, the network is governed by validators and provides a range of Dapps to enhance network functionality.

CFG(Centrifuge)

With over $200 million in total value locked (TVL), Centrifuge provides an open market for real-world assets through an asset pool. Their goal is to reduce borrowing costs for businesses and provide revenue opportunities for liquidity providers, while ensuring legal remedies are in place in the event of default.

OUSG (OndoFinance)

Ondo focuses on introducing tokenized ETFs and short-term securities. They currently offer four products for different risk profiles and objectives: OMMF OUSG OSTB OHYG

has been extremely successful in attracting liquidity through its OUSG repository, the world’s first project to tokenize U.S. Treasuries. In the past two months, OUSG's assets under management have exceeded US$100 million.

DEXTF(DomaniProtocol)

Domani is an asset management protocol that allows anyone to mint, trade, redeem and provide liquidity on non-custodial, oracle-less tokenized portfolios, or XTF. DEXTF allows users to earn income from fees incurred in various investment portfolios.

BackedFi

BackedFi is introducing a range of fully supported RWAs via “bTokens” including bonds, stocks and ETFs. These bTokens are fully collateralized, composable, and require no escrow. Their total value locked (TVL) is $12 million and their mission is to create fairer capital markets.

Credix_finance

Credix is ​​providing liquidity to institutional borrowers through the RWA lending protocol. They are committed to creating attractive risk-adjusted investment opportunities for institutional investors, credit funds and qualified investors, addressing an $800 billion market.

GFI(Goldfinch)

Goldfinch aims to bring global credit activities to the blockchain, enable collateral-free cryptocurrency lending, and expand access to cryptocurrency capital. With a loan value of $101 million, it is one of the largest RWA projects to date.

GFI tokens serve three purposes: governance, participant incentives, and community grants. Goldfinch’s staking and utilization for auditor voting could drive demand as the token’s price has fallen significantly since its launch.

LNDX(landxfinance)

LandX Finance is committed to introducing tokenized agricultural products to create income strategies in the form of “x-assets”. These assets are liquid, provide access to otherwise illiquid markets, and generate income from crop holdings.

RealTPlatform

RealToken is bringing the real estate market to the blockchain and making the real estate market accessible to everyone. This allows individuals to make diversified and hassle-free investments in real estate, providing them with the opportunity to unwind such assets.

In the next bull market, large players will flood the market with liquidity. They will seek fixed interest rates from on-chain assets. RWA is in a good state of development. They can provide significant, stable and higher returns while addressing a multi-trillion market.