❓RWA?

RWA (Real World Asset) tokens are real-world assets, such as government bonds, treasuries, stocks, and real estate, that are tokenized using blockchain technology.

1. The concept of RWA

On-chainization of off-chain assets, Source

RWA allows real-world assets to be digitally tokenized and traded on the blockchain. Traditional financial assets such as real estate, stocks, bonds, and derivatives can be converted into blockchain tokens using distributed ledger technology (DLT), and the tokenized assets can be traded directly linked to the value of the physical asset. RWA addresses the inefficiencies of traditional physical asset markets, such as low liquidity and high barriers to entry.

2. RWA vs STO ?

Security Token Offerings (STOs) are similar to RWAs in that they tokenize assets. However, while RWAs are an attempt to make all real-world assets, including securitized assets, tradable on-chain, STOs are limited to assets that are securities under the Capital Markets Act and are therefore directly regulated by financial authorities. RWAs operate primarily on public blockchains and are highly decentralized with a DeFi background. STOs, on the other hand, operate primarily on private blockchains. They are backed by institutionalized financial infrastructure and are characterized by being more institutionalized and centralized. In other words, while RWAs have a decentralized and public approach that encompasses a wide range of real-world assets, STOs focus on securitized assets within a centralized financial system.

cSource: https://academy.gopax.co.kr/rwa-real-world-assets-silmuljasan-tokeunhwa-ihae/

3. The growth of the RWA market

Tokenized asset market size forecast for 2030. Source=21.co

The real-world asset (RWA) market could grow to $10 trillion ($1.35 trillion) in 10 years, according to an analysis.

cA report by digital asset management platform 21.co said the RWA market could reach $10 trillion in a bull market and $3.5 trillion in a bear market within 10 years.

"The convergence between traditional assets such as cryptocurrencies, fiat currencies, stocks, and government bonds is experiencing unprecedented growth," said 21.co, "and the value of the RWA market is set to explode by 2030." Earlier this year, a report from The Boston Consulting Group predicted that the RWA market could grow to $16 trillion (roughly $168 trillion).