Blackrock (貝萊德), one of the largest investment management firms, has announced its entry into the Real World Asset (RWA) space. Following the introduction of Bitcoin ETFs, RWA is likely to be the next area where traditional finance (Tradfi) institutions will invest heavily in the crypto market.
Here are six RWA projects that are worth paying attention to:
1. MakerDAO: MakerDAO has gradually transitioned from crypto collateral lending to become an RWA protocol since its Endgame plan was proposed in March last year. Around 20% of DAI’s reserve assets are now in RWA. MakerDAO also earns revenue from its RWA activities.
2. Ondo Finance: As the leading player in the RWA space, Ondo Finance ranks first in terms of market capitalization for tokenized securities protocols. Their USDY investment in US government bonds and commercial paper generates a 5.1% yield, while OUSG, which invests in short-term US government bonds, has a yield of 4.96%. Their OMMF investment in US money market funds yields 4.73%.
3. Xend Finance: Xend Finance, backed by investors such as Hashkey, Binance, and Google for Startups, integrates on-chain and off-chain financial assets into a one-stop platform. It provides services such as yield aggregation and multi-chain wallets on-chain, while also facilitating asset tokenization off-chain.
4. Realio Network: Realio Network focuses on the issuance and management of RWA assets within the Web3 ecosystem. It consists of multiple interconnected Layer1 networks.
5. LandX: LandX tokenizes agricultural crop yields, ensuring that crops are produced reliably. This allows farmers to earn stable income while providing access to raw material yields for crypto investors. Although raw material yields may not make people rich overnight, history has shown that they can effectively combat inflation.
These are the RWA projects that I believe are worth watching closely.
Blackrock’s recent entry into the RWA space is seen as a significant indicator of traditional finance entering the crypto market, just like when they launched the Bitcoin ETF. Their recent launch of BUIDL, the world’s first tokenized fund, is expected to attract other institutions to follow suit, further promoting the growth of the RWA narrative.
According to @21co__, the total market value of tokenized assets is predicted to reach $10 trillion by 2030, while the current market value of the RWA space is less than $5 billion, indicating significant growth potential. With the widespread adoption of tokenization technology in Tradfi assets, reaching a market value of hundreds of trillions is not a far-fetched idea. Just the global real estate market alone is valued at $280 trillion, not to mention stocks, commercial bills, and other financial products.
RWA, short for Real World Asset, refers to the tokenization and blockchain integration of real-world assets. It ensures the secure storage of asset certificates and reduces transaction restrictions, allowing assets to be traded 24/7 worldwide.
In conclusion, the RWA space is poised for significant growth, and with Blackrock’s entry, more institutions are likely to follow suit. The projects mentioned above are at the forefront of the RWA industry and are worth keeping an eye on.