Every day, new projects bring to light solutions to real problems that traditional industry has failed to solve. In this sense, one resource that has been attracting attention is RWA tokens – an acronym for “Real World Assets”.
These assets combine digital with the appreciation of physical goods, such as real estate, works of art, commodities and government bonds. In this case, they are transformed into digital tokens that can be divided, transferred and traded on a Blockchain.
Gaining strength in the market for being less volatile than Bitcoin, as their value is based on real assets, RWA tokens bring more transparency and reliability to the market.
They also enable a more inclusive and efficient financial ecosystem, with increased access to good investment opportunities and simplified wealth management. Furthermore, integrating RWAs into the blockchain reduces barriers to high-value assets and allows partial sales without requiring full liquidation of assets.
Real estate as assets
Considering real estate as a real asset, it is worth noting that Brazil was one of the first countries in the world to see the potential of this sector and, in addition, to incorporate a smart contract into the property registration. With this, the country began to develop innovative financial products based on RWAs.
Imagine, for example, a house represented by tokens. Tokenization allows the property to be divided into several parts, enabling the sale of property tokens or their use as collateral in financial transactions. In Brazil, there are already banks that hold digital assets, allowing a property, or part of it, to be used as collateral for financing. When the financed amount is paid off, the bank returns the tokens corresponding to the negotiated percentage of the property.
Read more: 5 RWA Tokens to Trade in October 2024
Smart contracts
Smart contracts allow a guarantee to be included in the property registration that prevents its sale before the financing is paid off, providing greater security for the bank. In addition, blockchain makes the rules of operations auditable and immutable, increasing security for all involved.
While there is still a long way to go to efficiently integrate assets onto the blockchain, these tokens, in my view, have the potential to usher in an era of greater accessibility and efficiency in investing and managing real and digital assets.
*Eduardo Carvalho is CEO and co-founder of Dynasty Global AG, the first crypto asset company in the world to use the real estate market as a benchmark for issuing payment tokens. With extensive experience in the real estate and technology sectors, he is one of the leading crypto asset experts in Europe.
The article RWA Tokens Could Represent a New Era in the Crypto Market was first seen on BeInCrypto Brasil.
