The RWA sector is on the rise, with the leader ondo being sought after again.

We have discussed RWA (Real World Asset Tokenization) many times before. Why do we say that the RWA sector is very likely to be the first to land or the easiest to implement in the next cycle?

Although the technological advancements and infrastructure in the cryptocurrency industry are becoming increasingly robust, speculation remains the primary focus. Stablecoin payments are already quite widespread in Western countries, but other applications have not yet been rolled out on a large scale. The RWA sector is closest to financial assets, making it relatively easier to implement due to both imaginative space and capital drivers.

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 like the publicly traded company MSTR have purchased 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 published research reports predicting that the scale of RWA will reach several 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 current mainstream asset is equity, which is securitized; the future will be asset tokenization, as only asset tokenization can achieve globalization and eliminate barriers of physicality, culture, belief, language, and national borders. In the grand era of token economies, 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 dollar will also surely anchor crypto assets to realize its third rise.

With assets and tools in place, the policies for the cryptocurrency industry became more favorable after Trump took office, 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 Treasury bonds. The scale of stablecoins has reached $200 billion, quickly making its way into the top ten holders of U.S. Treasury bonds. Do you think the U.S. government is not willing to? Stablecoins are widely used now, whether for payment exchange, speculation, or trade settlement.

Thus, for TRX and ETH, early stablecoins played a decisive role in their development.

However, stablecoins do not have speculative value. In the RWA sector, there are stocks, bonds, loans, and even real estate being tokenized, but the true leader right now is ondo, as it has the backing of BlackRock. Users can directly purchase U.S. Treasury bonds through it, which constitutes 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 represents synthetic assets, leaning more towards DeFi. Additionally, there are smaller market cap conceptual tokens like CFG, RSR, and POLYX.

The application of the RWA sector has not yet been rolled out on a large scale; it is still an early opportunity, so keep an eye on it when the right time comes.