PELANOR | The Lab
Jun 5, 2023
Real World Assets / Blockchain
Real World Assets (RWA) and blockchain technology converge to create a transformative force in the financial landscape. According to a recent report by the Boston Consulting Group, the on-chain RWA market is projected to reach a staggering $4 to $16 trillion by 2030. This growth potential demands attention and offers unprecedented opportunities.
While popular cryptocurrencies dominate discussions, RWA has emerged as a driving force for adoption. Key players in finance, including JP Morgan, Citi, Boston Consulting Group, and Blackstone, emphasize its importance. A broader audience must grasp the dynamics of this evolving field to stay ahead.
Blockchain-native assets like Bitcoin and Ethereum derive value from protocol utilization. In contrast, RWA integrates on-chain databases to track real-world assets with valuation and performance outside the blockchain ecosystem. Tokens representing equity in real estate or investment funds operate on blockchains while assets and payments reside in the tangible world.
RWA tokens differ from volatile cryptocurrencies. They represent non-blockchain-native assets and can be programmable with features like lockup periods and investor requirements. Public blockchains store data transparently and efficiently, allowing seamless asset distribution and facilitating liquidity through on-chain marketplaces.
By leveraging self-custodial wallets and decentralized finance (DeFi) protocols, RWA tokens empower individuals to maintain control over assets and utilize them as collateral. This revolutionizes value management and fosters a more inclusive financial ecosystem.