The Bigger Picture : Real World Asset Yields
Imagine the endless possibilities you could achieve on your journey with us in the next 5 or 10 years.
Last updated
Imagine the endless possibilities you could achieve on your journey with us in the next 5 or 10 years.
Last updated
To help you understand what we aim to achieve in the coming years, let's first try to understand how Real World Assets (RWAs) work and how they could revolutionise the industry completely.
Real World Assets (RWAs) refers to the tokenisation of tangible assets that exist in the real world, that are brought on chain. They also include the growing issuance of capital market products on-chain, where digital securities are tokenised and offered to retail customers.
Imagine you're interested in investing in Dubai's hot real estate market. But the cheapest condo there costs a whopping $500,000. With only $10,000 to invest, buying a whole place on your own seems impossible, right?
This is where tokenisation with RWAs comes in! By tokenising this $500,000 condo, you can buy a portion of it for just $10,000. This gives you a share of ownership in the property, and here's the best part: you'll still earn your proportional share of the rent, just like if you owned the entire condo. And if the property value increases, you'll benefit from that too!
So, with RWAs, you can invest in assets that were previously out of reach, all from the comfort of your own device.
The potential applications of RWAs are still being explored, but the possibilities are vast. We could see:
Fractional ownership: Invest in a piece of a company you believe in, a rare diamond, or even a historical artifact.
Frictionless transactions: Eliminate the need for intermediaries, streamlining the investment process.
Democratisation of finance: Open up a world of investment opportunities to a wider range of participants.
The current crypto market cap of $2.69 trillion is dwarfed by traditional asset classes like real estate ($379.7 trillion) and gold ($15.856 trillion). This suggests a vast potential for RWAs to attract new capital and inflate the crypto market cap. However, it's unlikely to be a straight 100x increase. RWAs likely won't replace traditional markets, but rather act as a bridge, attracting a portion of that wealth into the crypto space.
RWA is growing in the crypto space, as seen in the DefiLlama chart below, with a TVL of over $4 billion in May 2024.
The beauty of RWAs lies in their ability to break down barriers. By tokenising assets, they make them more accessible to a wider range of investors. Imagine buying a sliver of a Manhattan skyscraper or a piece of a rare Andy Warhol – all from your phone! This ease of investment could lead to a significant increase in market participation, boosting the overall market cap.
Think of a world where your gold magically generates a little more gold each year. Sounds too good to be true, right? Well, with tokenised assets, something similar might be possible in the future. That's the future we're building! The future of finance is dynamic, accessible, and built around your needs. Join us as we pave the way for a world where your digital assets work as hard as you do.
