Could Real World Assets (RWAs) be the next big thing in crypto and DeFi?

RWA is the hot narrative of 2023.

According to BCG, the tokenization of real-world assets is projected to hit $16T by 2030

RAWs are already growing at an outstanding pace, almost surpassing $500m in TVL recently.

What are RWAs? 

RWAs - or Real World Assets - are tokenized assets that derive their value from tangible goods like real estate, cash, and metals. These assets are highly illiquid. The introduction of on-chain asset tokenization could grow this market exponentially.

What's the market size?

The RWA market is massive and rapidly expanding. It is projected to grow to over $16 trillion by 2030, according to a report by @BCG. This is 12x the current market capitalization of the crypto markets.

Let's look at the top RWA-focused protocols to keep on your radar:

• @maplefinance $MPL 

• @realio_network $RIO 

• @centrifuge $CFG 

• @OndoFinance $OUSG 

• @DomaniProtocol $DEXTF 

• @realestatebrick $BRICK 

• @goldfinch_fi $GFI 

• @landxfinance $LNDX

Maple Finance

Maple has built the RWA money market, enabling on-chain loan businesses backed by real-world assets.

Lenders deposit into a pool to earn interest in the pool's liquidity assets.

The protocol is built by professionals for institutional adoption.

Realio

Realio, built on the Cosmos SDK, is a network that prioritizes the issuance and management of cryptocurrencies and RWAs.

Unlike other applications, this network is governed by validators and offers a range of dApps to enhance the network.

Centrifuge

Centrifuge has a $200M+ TVL, offering an open marketplace for real-world assets via asset pools.

Their goal: reduce borrowing costs for businesses and provide liquidity providers with yield opportunities, all while ensuring legal recourse in case of default.

Ondo

Ondo is focused on bringing the world of tokenized ETFs and short-term securities.

They currently offer four products for different risk profiles and goals:

• OMMF

• OUSG

• OSTB

• OHYG

Domani

Domani is an asset management protocol that allows anyone to mint, trade, redeem, and provide liquidity on non-custodial, oracle-less tokenized portfolios or XTFs.

The $DEXTF allows users to accrue fees generated from the various portfolios.

Realestate.exchange

Realestate.exchange is a DEX with both an AMM and order book, 100% focused on security tokens that holds real estate assets.

$BRICK will be the exchange token, and have received grants from Balancer to deploy pools on their AMM!

Goldfinch

Goldfinch is aiming to bring global credit activity on-chain, enabling crypto loans without requiring collateral and expanding access to cryptocurrency capital.

With more than $100M in loan value, it is one of the largest RWA projects to date.

LandX Finance

LandX Finance is dedicated to bringing tokenized agricultural commodities, in the form of "x assets," to create yield strategies.

These assets are liquid, granting access to an otherwise illiquid market and generate yield from the crop assets held.

RWAs are prone to be one of the big narratives in the next cycle. Make sure to give the projects above to stay on top of the projects operating in the RWA space. We'll make sure to keep close eyes on the RWA developments.