Real World Assets (RWA), or tokenized active active ingredients, gradually transform the world of decentralized finance ( DEFI ). A Real World Asset represents a tangible good of the real world - real estate, raw materials, works of art, treasury bills - transformed into digital token. Thanks to this innovation, investors can diversify their portfolios and access assets formerly reserved for traditional financial markets, thus creating digital and more profitable wealth management
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What is a Real World Asset (RWA)?
A Real World Asset (RWA) is an asset from the real economy, which is tokenized , that is to say represented in the form of tokens on a blockchain. For example, a building can be split into several tokens, each representing a share of property. This tokenization makes possible the purchase, sale and transfer of real asset fractions on the blockchain, allowing investors to integrate new asset classes into their wallets.
The boom in the tokenization of real assets
The tokenization transforms a physical asset, such as a building or an obligation, into a digital version in the form of tokens on a blockchain. This innovation increases the liquidity of assets by facilitating their exchange on digital platforms, without going through expensive intermediaries, while allowing wider access to investors.
Thanks to Real World Assets (RWA) , physical assets are more simple to manage and exchange in a digital portfolio. This transformation offers advantages in terms of profitability and heritage management: it improves liquidity, reduces intermediation costs and allows wider access to various assets for investors of all levels.
A key advantage of RWAs is that they allow investors to maintain their investments in a digital environment, which can offer significant tax advantages. For example, if an investor achieves gains on a token property and wishes to reinvest them in bonds, he can do so directly via tokens without converting his assets into a currency , which avoids a new taxation on his earnings.
Take a concrete case: without the RWAs, an investor who sells a property to invest in bonds could be subject to taxation on his capital gains even before reinvesting. With the Real World Assets , he could sell his shares in the building in the form of tokens and directly buy bond tokens, remaining in a purely digital environment. This process eliminates costs and simplifies reinvestments, while optimizing tax efficiency .
Examples of Real World Assets in Crypto
Real World Assets cover a wide range of active ingredients from the real economy. Among the most popular, we find:
- Real estate : projects tokenize real estate properties to allow fractional investments, making access to the property possible even with low amounts.
- Raw materials : Some projects offer the possibility of buying shares of gold, silver or oil reserves in the form of tokens, thus allowing investors to diversify their investments in tangible financial assets.
- Works of art : famous works of art are divided into tokens, which allows several investors to have a share of a high -value table or sculpture, stirring these securities accessible to the general public.
- Treasury bills : these debt titles, considered as secure investments issued by governments and often sought after for their stability, are also tokenized. This approach allows investors to have fractions of state securities, often sought after for their stability and yield potential, while retaining their investment in the form of easily transferable digital assets. The latter generates yields on treasury bills and allows dynamic management of crypto portfolios.
These tokenized assets facilitate access and management of real assets within the crypto ecosystem, making investments in safe values accessible to a wider community.
Crypto projects specializing in Real World Assets
With the boom of Real World Assets (RWA), many crypto platforms now allow tokenize various active assets, thus facilitating the integration of tangible active ingredients in crypto wallets. Here are some notable examples:
Centrifugal : Centrifugal transforms business trade receivables into tokens, thus offering companies the possibility of using these tokens as guarantees to obtain loans on decentralized finance platforms (DEFI). This method reduces costs and widens access to financing, while integrating real assets in the DEFI ecosystem.
Realt : Realt offers tokens representing shares of residential buildings in the United States, allowing investors to acquire fractions of real estate and to perceive rental income in cryptocurrencies. Realt thus allows a large audience to invest in real estate in a fractional and decentralized manner, while taking advantage of the advantages of the DEFI.
Reserve Rights (RSR) and the RTOKENS : the Reserve Rights allows you to create RTOKENS , personalized tokens composed of different proportions of real assets tokenized. Investors can thus diversify their portfolio by choosing RTOKENS backed by a mix of stable and real assets, ranging from real estate to raw materials. This model provides optimal diversification and increased protection against volatility by offering a portfolio of stable assets.
Ondo Finance and the USDY : Ondo Finance launched the USDY, the first token of yield secured by American treasury bills, and entirely without permission. USDY generates daily yields, which users can reach by maintaining their investment, stakant, by borrowing or using it as guarantee in other protocols. This model offers liquidity and continuous yield, while providing additional stability linked to treasury bills.
These platforms show the rapid evolution of RWA in the crypto, opening the door to diversified, stable and accessible investments, while integrating real assets in the DEFI return opportunities.
The tokenization process of a real world asset
The tokenization of a Real World Asset (RWA) follows a set of essential steps to transform a physical asset into an easily exchangeable digital asset:
Creation of a smart contract : a smart contract (intelligent contract) is first created to legally represent the tokenized property. It automates the management of the rights of tokens holders, thus defining the rules and conditions of use or transfer of digital assets.
Use of various tokens, including NFT and other formats : although NFTS (non-fongible tokens) are often used to represent the individual property of specific goods such as works of art or real estate, this is not always the case. For example, the USDY of Ondo Finance, which represents a Real World Asset backed by US Treasury bills, is not an NFT, but a token generating yields without being attached to a single object. This shows that, depending on the nature of the asset, the tokenization can take different forms.
Liquidity of assets : Tokenization makes it possible to split real assets into small parts, facilitating their liquidity. Investors can thus sell or yield their shares more easily, making Real World Assets more accessible and exchangeable than in traditional markets.
Why invest in Rwa?
The Real World Assets (RWA) provide unique advantages to investors, especially for those looking for alternatives during Bear Market :
Accessibility : RWA democratize access to high value assets, such as real estate or treasury bills, which were once reserved for institutional or wealthy investors.
Diversification of the portfolio : By adding physical goods or backed by real assets to their portfolio, investors can balance their placements beyond simple cryptocurrencies or stablecoin s. This diversification can protect heritage against market volatility.
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3. Increased liquidity : RWAs make assets traditionally illiquid, such as real estate or raw materials, more easily exchangeable. If we anticipate a period of Bear Market, it becomes interesting to convert its heritage into RWA generating yields, thus making it possible to obtain continuous profits, rather than leaving its capital immobilized as stablecoin without growth.
RWA regulations in crypto: a challenge to take up
The regulations are essential for the secure development of Real World Assets (RWA). With a legal framework still being developed, projects must comply with local laws to avoid potential sanctions. Take the example of Ondo Finance and its stablecoin backed by US Treasury, USDY. To issue this token, Ondo had to comply with strict regulations on financial securities, because the USDY is supported by assets of the United States Treasury, a highly regulated instrument. Ondo therefore obtained the necessary licenses to operate legally and set up protections for its investors, thus ensuring the legitimacy and transparency of the project.
RWA projects must often comply with AML (Anti-Money Laundering) and KYC (Know Your Customer) standards in order to ensure their legitimacy. This adaptation to the regulatory framework requires significant efforts, but it is essential to establish confidence and attract institutional investors.
The obstacles to be overcome for a massive adoption of Rwa
The massive adoption of Real World Assets (RWA) comes up against several obstacles:
Technical challenges : Guaranteeing scalability and safety of infrastructure is essential, in particular to support a large volume of transactions without compromising performance.
International regulatory compliance : RWA projects must navigate a complex legal environment, as they must comply not only to local regulations, but also to the various international laws. This adaptation to various standards between countries makes the process of compliance expensive and time -consuming, and represents a major challenge for development teams and legal advisers.
Confidence of users : Building solid credibility is essential to attract institutional investors. Projects must prove their legitimacy and transparency to arouse the interest of these key players, often more demanding in terms of security and compliance.
These obstacles require innovative solutions and continuous adaptation to developments in regulations to allow RWAs to reach their overall adoption potential.
The future prospects of Real World assets in the crypto
Real World Assets have enormous potential to transform the economy by integrating physical assets into Crypto markets. By democratizing access to investments and introducing new liquidity, RWAs position themselves as a major innovation for the global economy.
Conclusion
The Real World Assets mark the start of a new era for finance. By integrating physical assets into the crypto ecosystem, they offer unprecedented diversification and access opportunities for investors.
FAQ on Real World Assets in Crypto
What is a Real World Asset?
A Real World Asset is a tokenized physical asset to be exchanged in the crypto universe.What types of assets can be tokenized?
Real estate, raw materials, works of art, among others.What are the most popular projects in terms of RWA?
Centrifugal, Realt, and Aave Rwa are flagship projects.What are the main regulatory challenges?
RWAs must meet strict regulations to ensure safety and compliance.
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Yoann
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
