Real-World Assets (RWAs) represent one of the biggest growth opportunities and potential use cases for decentralized finance (DeFi) and the cryptocurrency industry. Bringing tangible assets like real estate and high art opens doors for fractional ownership and new investment opportunities.
It’s a win-win for everyone. RWAs bring traditional finance on-chain, lowering the barrier to entry and making historically illiquid assets more fluid. The DeFi ecosystem enjoys wider adoption, deeper liquidity and gives people the opportunity to invest in asset classes that were previously unavailable to them.
But how does tokenizing Real-World Assets even work? Is this a breakthrough for blockchain technology, or just a speculative pipedream in an emerging market?
What are Real World Assets in Crypto?
Real-World Assets are physical, tangible assets in traditional finance and the world around us. These assets represent a significant portion of TradFi (Traditional Finance) and have been used for decades in the financial system as collateral for lenders and borrowers.
Before the onset of blockchain technology and digital tokens, ownership of these real-world assets was recorded on paper, and…
