We've already talked about RWA (Real World Asset Tokenization) many times before. Why is it said that in the future cycles, the RWA sector is very likely to land first or be the easiest to realize?
Although the technological progress and infrastructure in the crypto industry are becoming more and more完善 (refined), it is still primarily speculative. The payment of stablecoins is already quite widespread in Western countries, but other applications have not yet landed on a large scale. The RWA sector is closest to financial assets, whether in terms of imaginative space or capital-driven factors, making it relatively easier to land.
Wall Street capital has pushed Bitcoin and Ethereum ETFs into traditional finance. In less than a year, they have already controlled $100 billion worth of BTC, with large institutions like publicly listed company MSTR purchasing over 400,000 BTC worth $40 billion. The U.S. has completed its dominance and pricing of crypto assets.
Citibank, BlackRock, JPMorgan, and other institutions have long released research reports predicting that the scale of RWA will reach hundreds of trillions of dollars in the next decade. These institutions link cryptocurrencies, traditional bills, stocks, and various derivatives together, gradually forming an extremely large asset package, which has a strong drive for tokenization.
Why tokenize?
Our mainstream asset now is equity, which is securitized; the future is asset tokenization, and only through asset tokenization can we achieve globalization, removing barriers of physicality, culture, belief, language, and national borders. In the great era of token economics, the total amount of crypto assets should be more than 10 times that of the equity era, so the debts and contradictions of the equity era are not significant. The US dollar will also definitely anchor crypto assets to achieve a third rise.
With assets and tools in place, after Trump took office, the policies towards the crypto industry became more friendly, making it easier to land.
The earliest RWA assets are stablecoins, represented by USDT and USDC. Their underlying assets are mainly U.S. dollars, U.S. Treasury bonds, and some short-term bills, which is equivalent to tokenizing U.S. dollars and U.S. Treasury bonds. The scale of stablecoins has reached $200 billion, quickly entering the ranks of the top ten holders of U.S. Treasury bonds. Do you think the U.S. government would not want that? Stablecoins, whether for payment exchange, speculation, or trade settlement, are widely used now, aren't they?
So 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, loans, and even real estate are all being tokenized, but the real leader now is ondo, as it has the backing of BlackRock, allowing users to directly purchase U.S. Treasury bonds through it, achieving a closed loop from issuance, purchase to settlement; mkr is also one of the leaders, but its purpose for 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, polyx, etc., with relatively smaller market capitalizations.
The application of the RWA sector has not yet been rolled out on a large scale; it is still an early opportunity, so pay more attention at the right moment.