The next crypto ecosystem, RWA is worth paying attention to!

In this round of altcoin launches, the RWA sector has attracted much attention. Analysts at StarEx Exchange believe that in future cycles, the RWA (tokenization of real-world assets) sector is very likely to be the first to be implemented or the easiest to achieve.

In recent years, with the rapid development of blockchain technology, the technical progress and infrastructure construction of the crypto industry have become increasingly perfect. However, the mainstream trend in the industry is still dominated by speculation, and real large-scale landing applications have not yet been popularized. The payment and circulation of stablecoins have been widely promoted in Western countries, and the RWA sector is the closest to the combination of financial assets, which makes it have great potential and feasibility.

The integration of traditional finance and crypto assets: RWA’s natural advantages, capital-driven: Wall Street’s embrace

Wall Street is rapidly advancing the mainstreaming of crypto assets. For example, Bitcoin and Ethereum ETFs have successfully entered the traditional financial market. In less than a year, these ETFs have controlled about $100 billion in Bitcoin liquidity. What's more, large institutions such as MicroStrategy (MSTR) alone hold more than 400,000 Bitcoins, worth up to $40 billion. StarEx exchange analysts believe that the United States and traditional financial institutions have firmly grasped the dominance and pricing power of crypto assets.

Traditional financial giants such as Citibank, BlackRock, and JP Morgan have repeatedly mentioned in reports that the scale of the RWA market may reach tens of trillions of dollars in the next decade. These institutions are trying to deeply connect cryptocurrencies with traditional bills, stocks, and derivatives to form a huge asset pool. Such a huge asset scale makes these assets have a strong demand for tokenization.

Tokenization is essentially an innovation of the traditional securitization model. Although traditional securitized assets such as equity and bonds have achieved global circulation in the capital market, they are still restricted by physical boundaries, cultural differences, belief differences and language barriers. Tokenization can achieve truly borderless circulation based on blockchain technology. This change has greatly improved the efficiency of global asset management while reducing liquidity costs.

StarEx exchange analysts believe that from a macro perspective, the token economy will be the core driving force of the next economic wave. The scale of crypto assets can theoretically reach 10 times or even more than that of the traditional equity era. In such an era, the debt contradictions and capital disputes in the current equity era will be gradually diluted, and the US dollar is also very likely to achieve the third rise of its global monetary system by anchoring crypto assets.

The earliest RWA assets are stablecoins, represented by USDT and USDC. Their underlying assets are mainly US dollars, US Treasury bonds and other short-term notes. This has actually completed the tokenization of US dollars and US Treasury bonds. The market size of stablecoins has approached 200 billion US dollars, gradually becoming one of the top ten holders of US Treasury bonds. The US government is naturally supportive of this trend, because stablecoins have shown a wide range of application scenarios in payment, exchange, trade settlement and even speculation.

Compared with stablecoins, the tokenization of other assets in the RWA field is still in the exploratory stage. The current leading projects include:

Ondo Finance: With the support of BlackRock, Ondo Finance has become a benchmark project in the RWA field. Its users can directly purchase US bonds through the platform and complete the complete closed loop from issuance, purchase to settlement. This model undoubtedly provides a model for improving the efficiency of the financial market.

MakerDAO (MKR): Its core goal is to provide collateral for minting its own decentralized stablecoin by purchasing U.S. bonds. The practice of MKR further broadens the scope of application of RWA.

Synthetix (SNX): As a synthetic asset protocol, SNX is more inclined towards the DeFi field and provides innovative solutions for the liquidity of financial assets.

In addition, there are some projects with relatively small market capitalization but unique concepts, such as CFG, RSR, POLYX, etc. These projects play an important role as explorers in the RWA sector.

StarEx Exchange analysts believe that after Trump returns to power, the US policy on the crypto industry is expected to become more relaxed and friendly, which will further accelerate the implementation of the RWA sector. With the support of the policy environment, the difficulty of promoting RWA has been significantly reduced, and it is expected to usher in an explosion of applications in the next few years.