How Tokenization is Redefining the Future of Finance: A Look at RWA Adoption and Potential
In the heart of a financial revolution, a silent transformation is taking place – the tokenization of real-world assets (RWAs). This groundbreaking innovation is poised to reshape the very fabric of finance, unlocking a world of possibilities and redefining the way we interact with assets.
» The adoption of #RWA tokenization is gaining momentum, even in the normie world, with various companies and institutions exploring its potential. Peep the following timeline by @binance Research below:
» Dune Analytics shows the daily growth of securities in particular that have been tokenized across the globe thus far:
→ Boston Consulting Group projects the tokenized assets market to grow from US$310 billion in 2022 to a colossal US$16 trillion by 2030. This forecast is fueling a shift in the industry, with significant players including both blockchain-oriented firms like @avax and traditional giants like @BlackRock, all joining the tokenization trend enthusiastically.
→ BlackRock, the world's leading asset manager, is probing into asset class tokenization to streamline capital markets, enhance investor accessibility, and reduce costs.
→ Similarly, Avalanche has seen U.S. investment giant KKR & Co tokenize a portion of its funds on its platform and recently initiated their Avalanche Vista Program.
→ Avalanche Foundation's newly launched $50 million Avalanche Vista program aims to champion tokenization on their blockchain by investing across various sectors—equity, credit, real estate, and more.
What can we expect to see in the near future?
▪️ RWA Opportunities:
Redefining the securitization process from the ground up
Acting as the bridge for traditional institutional investors
A RWA-backed stablecoin that is decentralized, stable, capital efficient, and backed by quality collateral on-chain
Building and deploying a RWA borrow/lending protocol that is decentralized & has the proper governance in place to adapt to market conditions/developments
Standardizing a Proof-of-Reserves audit where anyone can see a protocol's assets, liabilities, and equity
▪️ Mainstream adoption and innovation:
As RWA tokenization benefits grow more apparent, I can expect broader adoption.
▪️ Standardization and Interoperability:
Standardization will allow different blockchains to communicate and exchange data with each other more easily.
Standardizing financial products on varying blockchains is crucial for wider adoption and benefits as it enhances liquidity and interoperability, while also creating a unified marketplace for tokenized assets.
▪️ New Asset Classes:
Extending beyond real estate and artwork to include other asset classes such as intellectual property and commodities, unlocking new investment opportunities and redefining ownership.
▪️ New Regulations:
Clear regulations will provide old skool investors with confidence and ensure the integrity of tokenized assets. Yes, the SEC can be a pain in the arse, but if they do it right, they can be a force for good.
Jun 19, 2023 • 13 tweets • 5 min read
@binance released a report on LSDfi which covers its landscape, profitability, and risks.
Since LSDfi is one of the most potential narratives that I think will lead the market, there's a quick recap for who found the research TL, DR 😜
🧵 👇🏻
🚀 Rapid development of the $ETH staking market.
With Ethereum's successful transition to PoS and the ability to withdraw staked $ETH after the #Shapella upgrade, staked $ETH has grown rapidly.
Total staked $ETH now exceeds 22.8 million ETH!
Jun 18, 2023 • 18 tweets • 8 min read
In the bear market, as I've always mentioned, it's the perfect time to expand knowledge, accumulate funds, and build a long-term investment portfolio.
So how can we effectively manage your crypto longterm portfolio?
Check out my tips as below:
🧵 👇🏻
📌 This thread will conclude with:
What can we expect to see in the near future?
