From time to time, we can witness remarkable performances of RWA tokens on #Binance . So, what does RWA mean? As someone who is involved in #SocialMining , those who are active in this field like me know that social miners closely follow the developments of companies that cooperate with @DAO Labs and search for innovations that arouse interest in the market. Therefore, I wanted to learn more about #rwa and I would like to share what I have learned with you.
Real World Assets also (RWA) imply the implementation of an individual’s physical and financial property into the digital environment. These include tangible fixed assets such as land and buildings, artworks and metals, and securities for example shares and bonds. The strategy of RWA is to make these assets easily tradable in safe, efficient and transparent ways through #Blockchain . Hence, these assets will be able to access the global market, obtain liquidity and extend the audience of investors. In other words, RWA creates a connection between the existing financial markets and the new world of digital technology in the context of making financial services available to everyone.
The concept of RWA tokenization can be applied to different fields and thus can produce drastic shifts in the sphere of finance. Here are some of the use cases:
Property Tokenization: Real estate, when digitized, can offer owners liquidity and enable investors to place small capital. Besides, these investments go global.
Artworks and Collections: These, together with paintings and other valuable items, can be tokenized and transformed into digital assets. This enables the investors to get closer to the art markets and buy stakes in the form of artwork in small quantities.
Natural Resources and Mining: Commodities like mineral deposits and energy sources, for instance, can be tokenized and sold in Token sales. This offers funding to the owners of the resources and portfolio to the investors.
Social Responsibility Projects: Tokenising RWA on climate change and clean energy means that investors can support such projects.
Financial Instruments and Bonds: Many traditional financial instruments can be tokenized and built on blockchain to present a more trust-based investment approach.
#mantra ($OM ) is an example of a promising Layer 1 blockchain platform that debuted in the field of RWA tokenization. Mantra, which was funded by an $11 million round led by Shorooq Partners, plans to further RWA tokenization. With this capital, Mantra will be able to construct compliant frameworks, empowering developers to create RWAs and genuine RWA-focused protocols, as well as extend tokenization services. Mantra has set its goal of investing in a less complex process, especially in the Middle East and Asia. The OM token is utilized as the management and usage token within the Mantra Chain, and its staking can provide passive income, in addition to providing action on the management of multiple products. Mantra is not just trying to fix the scalability flaws that are inherent in RWA tokenization but also trying to pave the way for a vast global financial infrastructure. It is to make the necessary operations with assets and to contribute to the emergence of new objects of investment, development of businessmen’s initiatives, and increase in circulation.
RWAs are growing fields that hold promises of generating new ideas in the world of finance. There is also a possibility that digitalization and tokenization might deepen financial markets in the future with additional choices for investors.
