In the rapidly evolving landscape of blockchain technology, the tokenization of Real World Assets (RWA) has emerged as a revolutionary force, ready to reshape the financial industry. From gold and securities to luxury items and bonds, the implications of bringing tangible assets onto the blockchain are massive and carry significant real-world value.
I continue to believe this sector will be one of the biggest winners of the current crypto cycle. Not only because it’s new and exciting but because it’s coming at the right time. When we consider where we are in the 18.6 year cycle we should expect to see a lot of financial innovation as we approach the peak.
I’m not saying this will end well or that everything is going to be done on the blockchain in two years, but what I am saying is that this is shaping up to create a speculative mania like never before.
The pending ETF approval is about more than what it can do for the price of cryptos. What it really signals, is a monumental turning point in the adoption of this industry as traditional finance begins to embrace crypto. New financial instruments will be created to facilitate lending, borrowing, and liquidity across traditional markets using the blockchain. This will set off a frenzy around RWA which will be seen as the bridge between Tradfi and DeFi.
Larry Fink, the CEO of BlackRock, one of the largest asset managers in the world recently stated publicly that he believes all stocks, treasury bills, etc will move towards complete tokenization.
The RWA revolution is projected to soar to an astonishing $16 trillion by 2030, as indicated by Boston Consulting Group. To put this into perspective, the entire crypto market is currently valued at just over $1.3 trillion. The current market cap for all RWA tokens stands at approximately $2 billion, quickly becoming one of the fastest growing areas of crypto.
Today, we are adding another project that will be a huge beneficiary of this movement. The other day on twitter I said to look out for new concepts with novel technology. In 2017 we had Defi. In 2021 we had NFTs. Now we have RWA, Desci, DePin, etc but these are not necessarily new technologies they are just the same standard applied to new industries. Defi was a completely new technology in 2017 with the ERC-20 token standard. NFTs were a totally new concept in 2021 with the ERC-721 token standard. The project we are looking at today is not a necessarily a new concept but they have once again pioneered a new token standard in a new and emerging sector.