What is RWA? Is RWA a replacement for last season's NFT trend? Why will RWA be a main trend this season along with AI Meme?
Today I will explain in the shortest way so you can understand
1. What is RWA? RWA is the tokenization of real-life assets (like NFTs) such as houses, vehicles, bonds, stocks, fund certificates, precious metals... All will be tokenized. RWA is divided into 2 types:
- Physical assets: Houses, vehicles, precious metals...
- Non-physical assets: Government bonds, stocks, fund certificates, savings books...
2. Main effects of RWA:
🌈Reduce intermediary costs: When an asset such as a stock is tokenized, it will be traded faster, eliminating intermediaries such as brokers or depository centers => It can be understood that you bring technology into Asset management reduces the layer of human intermediaries, thereby reducing costs.
🌈Increase liquidity: When an asset is tokenized, it will reach a large number of crypto users who want to buy that asset with coins or stablecoins like USDT. Cross-border transactions when you can easily buy and own stocks, fund certificates... in another country
🌈Bridge between traditional financial markets and crypto: Makes buying and selling loan transactions between crypto and real assets easier. For example: If you want to mortgage your house to borrow money instead of going to the bank with many cumbersome procedures, you can put your assets on mortgage protocols and receive stablecoin USDT or USDC in return, or help young startup projects. can access crypto capital more easily.
There are many more effects such as increasing asset transparency and easy asset tracking....
🕵🏻♂️ I analyze the above effects to show you that this is an area with much higher practical applications than last season's NFT drawing. Last season's NFTs had numbers x100 or even several hundred times x. However, RWA is a trend that can be invested in for a long time throughout the season due to its high practical application, so it is certain that RWA can explode more than NFT last season.
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