Are Real-World Assets the Future of Crypto?
BlackRock, the largest asset manager in the world, has expressed its interest in the tokenization of “real-world assets” (RWAs) on the blockchain. This innovative field comprises a range of assets, such as commodities, artworks, property, and debt securities that can be brought on chain. The crypto industry projects that RWA will reach $10 billion by the end of 2021 and $16 trillion by the end of the decade. Institutional deFi investors are showing tremendous interest in the RWA space, which has the potential to offer sustainable yields and almost zero risk. By enabling fractional ownership, global liquidity, and greater transparency, RWA could give rise to unprecedented investment opportunities and revolutionize the future of crypto.
Potential Investment Opportunities
The RWA niche offers an addressable market of up to $16 trillion by the end of this decade, and institutional money managers are showing 91% interest in this field. Due to advancements in DeFi protocols and innovations, infrastructure is now in place for real-world asset projects to take off in the crypto world, creating exciting investment opportunities for investors. One of the most significant advantages offered to investors is the ability to trade RWA assets globally on a 24/7 basis.
Successful Tokenization of Real-World Assets
The tokenization of real-world assets has already proved to be successful in several cases. For example, a French investment bank used mortgage bonds as collateral for a stablecoin loan. In addition, the Monetary Authority of Singapore conducted currency swaps using tokenized Singaporean dollars and Japanese yen. These practical examples demonstrate the potential for success in the RWA niche.
Revolutionizing Hardware Wallet
One significant advantage of RWA tokens is that they can be stored in a Tangem card that revolutionizes the hardware wallet experience. Tangem’s card secure and lacks seed phrases, but it contains the private key and is protected by an access code. The Tangem card has a hyper-secure chip and is capable of supporting all three thousand coins.
Special Securitization Process
The Centrifuge protocol offers a unique securitization process that puts real-world assets on-chain and ensures full collateralization. Locktower and MakerDAO have already funded over $200 million worth of RWAs using the platform, creating a foundation for emerging use cases in the future.
Projects in the Blockchain Space
The video highlights the latest RWA blockchain projects, including Ondo Finance, Securitize and BlackRock. The first two have their own tokens, while BlackRock doesn’t. Additionally, Goldfinch, TrueFi, and Polymesh are concentrated on unsecured lending, on-chain credit ratings, and permissioned blockchain for securities tokens.
Earning Potential amidst Risk
Investing in RWA tokens can be highly risky due to their early stage and small market cap but could also lead to significant earning potential under the sub-niches of custody, liquidity, and tokenization. To succeed in this emerging asset class, there is a need for regulatory guidance, strong practices of KYC, and risk management.
Join BlackRock’s Bullish Stance
If you are optimistic about the prospect of tokenization of real-world assets like BlackRock, the RWA niche offers the potential of remarkable investment opportunities. To get started on this thrilling journey, use the discount code “Tangent” to store your RWA tokens in Tangem’s super-secure card.
Watch the full video
Caroline wrote this article after watching the video ‘BlackRock Just Chose Their Crypto Niche (MASSIVE Opportunity)’. All the images above are screenshots from the original video. Source: Youtube.
