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Dear unbanked people,
that RWA this, RWA that Recently in various fields of cryptocurrency.
Are you just catching up here? Well, RWA stands for “Real Assets.”
Everything from U.S. T-bonds to Pokemon cards is created when “off-chain” objects are tokenized on blockchains like Ethereum to unlock borderless liquidity, 24/7 markets, non-custodial ownership, and more.
Of course, NFTs is Ideal for representing non-fungible assets on-chain, it signals a future where widespread RWA adoption means widespread NFT adoption.
Let’s go over the basics in today’s post!
-WMP
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Broadly speaking, there are two types of RWAs: financial Financial products (bonds, real estate, stocks, etc.) and products representing them classic Objects (baseball cards, Pokemon cards, etc.).
In both cases, more people and groups are taking the “off-chain” and taking it “on-chain” to take advantage of the unique capabilities that networks like Ethereum can offer. Think of the non-custodial borrowing power of DeFi or the public and global auction infrastructure through NFTs. Essentially making the illiquid more liquid.
However, RWA is not new in the cryptocurrency space. For example, Maker, the first DeFi protocol to gain significant adoption, The Dai stablecoin is increasingly backed by RWA. Other DeFi projects such as Canto, Frax, Maple, and Polygon have also recently We have moved deeper into the RWA space..
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But if you zoom in here, the dominant approach on the DeFi side to date has been similar to Maker. That is, tokenizing RWA through a pool. fungible ERC-20 token. As can be seen from how RWA is currently being used, it has worked well, at least so far. most sponsored Behind the die.
Conversely, from a cultural perspective, NFTs were chosen as the tokenization tool because they lend themselves to 1:1 mapping to distinct collectibles. For example, the first edition “mint condition” Charizard card is Not like that 2nd edition “Very good condition” Can be replaced with Charizard etc.
One of the biggest projects to watch here and now is Courtyard.iohas become very popular thanks to the recent release of Pokemon cards by Polygon.
All tokenization services and Marketplace, Courtyard Allows Collectors Storage and Tokenization Your own level trading cards or buy and sell cards Other people have already put it on the chain. Packs cost just $5 each. casting in secondsAnd one pack opener recently received a new product “Mario Pikachu” card worth ~$6,000 USD!
All cards on the platform are verified and then stored in an insured safe. BrinksValuables management large companies have integrity and repayment possibility Always relevant NFT’s
But that’s not all every Fun and games at the NFT x RWA intersection. Some finance-focused use cases are also starting to gain initial traction.
for example, Roofstock onChain A handful of houses have already been resold in the real world via NFTs on OpenSea, with the highest sale price to date being 218,000 USDC.
Over time, as more individual financial assets come on-chain and more innovation around NFTs continues to become possible, we expect to see more and more DeFi projects adopting the NFT approach to tokenization. .
Indeed, both culturally and financially, we have reached new possibilities: possibilities of inclusion and composition. For example, now you can put in another token. Inside RWA NFT via ERC-6551same “gas pass” or put your RWA NFTs into another on-chain such as: On-chain game engine.
That kind of thing may sound absurd at the moment, but this is the power of RWAs and why they will be attractive going forward. In other words, magic is what opens the way to perform tasks on-chain that cannot be done anywhere else.
However, the current RWA scene remains a fairly experimental and pioneering space as frontiers are being built here. There remains a lot of work to be done, including the lack of regulatory clarity for cryptocurrencies in general, keeping companies and major financial institutions on standby.
As time goes by and it becomes clearer, eventually every Financial instruments and many cultural assets will be issued on-chain, so what do I think is most important? If that future is realized, NFTs are ready to play a role in: big The role that makes everything possible!
An unbanked citizen ⚑ turned $264 into $6,077 last year. 22x ROI in a bear market 🚀!
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It is not financial or tax advice. This newsletter is strictly educational and does not constitute investment advice, a recommendation to buy or sell any asset, or a recommendation to make any financial decisions. This newsletter does not constitute tax advice. Consult your accountant. Do your own research.
expose. Occasionally I may add links to products I use in this newsletter. If you purchase through one of these links I may receive a commission. Bankless authors also hold cryptocurrency assets. see us Investment disclosure here.
