In a recent report by Binance Research examining the current state of real-world assets (RWA) in the crypto sector, findings highlighted that RWA tokenization is a rapidly growing field with huge potential, currently representing the eighth largest DeFi sector.
The combination of traditional finance (TradFi) with digital assets has become prominent as large institutions enter the crypto space. Tokenization of RWA, where off-chain financial assets are included on the blockchain, is an increasingly important component of this integration.
RWA refers to tangible and intangible assets in the physical world (e.g. real estate, bonds, commodities) and their tokenization allows for increased efficiency, transparency and reduced potential for error. of people in asset management. Encrypted RWA is stored and tracked on-chain, allowing for a wide range of possibilities and use cases.
As of September 1, RWA's total value locked (TVL) in DeFi was $1.3 billion, making it the eighth largest sector tracked by DeFi Llama. Additionally, the number of RWA token holders has increased significantly, now exceeding 43,400.
Tokenization of illiquid assets is a lucrative market, with highly regarded organizations, such as the Boston Consulting Group, estimating that by 2030, the tokenization of illiquid assets on globally could bring business opportunities worth $16 trillion. As the RWA market continues to grow, regulatory developments will drive widespread adoption while traditional exchanges facilitate secondary trading of RWA.
The tokenization of real-world assets demonstrates the significant potential of blockchain technology, delivering enhanced transparency and efficiency. As institutions adopt RWA and explore their own blockchains to tokenize assets, this development provides more stable and diverse collateral options in the DeFi space.
