In its report “Tokenization: Overview and Financial Stability Implications”, the Federal Reserve expressed optimism about future developments:
--The total TVL of physical asset tokenization has surged 60% since July 2021 and now exceeds $1 billion.
-- The search popularity of the term RWA continues to rise and reaches its peak in 2022.
-- RWAs involve various types of underlying assets, which suggests that asset tokenization may take up a large share of the#Cryptoecosystem in the future.
The Federal Reserve emphasizes that the biggest benefit of RWA is that it can "allow investors to enter markets that previously had high investment barriers and were difficult to reach" and improve the liquidity of the market, and it has great potential to reshape asset allocation, management, and trading models.
Currently, most of the RWA demand scenarios in the market are stimulated by U.S. Treasury yields. Other real estate-based and stock-based RWAs are still eager to try, and the user volume is still a question mark.
In terms of certainty, the #RWA track is lower than Layer2; but from the perspective of imagination, I think it is much larger than the L2 track. Figure 2 shows the main categories and leading projects under the current RWA track. It is recommended to keep an eye on it!
