RWA Tokenization Could Be Crypto’s Killer App. Is There A place For It In Your Portfolio?
Ever wondered what it would be like to possess something outlandishly expensive and one-of-a kind? Maybe a Picasso, a 10-carat diamond, a limited edition Ferrari? By changing how we understand ownership, real world asset (RWA) tokenization could make the unattainable attainable.
More mundane assets like bonds and real estate are already moving into the DeFi ecosystem at speed. Figures from RWA.xyz show the market cap for tokenized RWAs hit a new all-time high of $20 billion this month – with BlackRock’s recently-launched tokenized U.S. Treasury fund (BUIDL) accounting for more than $2.5 billion.
Greater TradFi adoption seems almost certain. Is there a place for tokenized RWAs in your portfolio?
Understanding Tokenized RWAs
In RWA tokenization, physical assets like art, cash, real estate, or precious metals are used to create virtual investment vehicles on the blockchain.
Rather than use paper for the deed to a house or a certificate of authenticity, proofs of ownership and validity live in the decentralized finance (DeFi) ecosystem. There they can be traded between counterparties or fractionalized and put up for sale, giving many people partial ownership.
Real-world utility and ease of use are key attractions.
RWA tokenizing specialist Ondo Finance claims its onboarding process for …
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