While real world assets otherwise know as RWA for short have been around for a while now on the blockchain they never really gained a real footing. However as 2024 rolls around it seems as if RWAs will become more and more mainstream.
The current market cap of RWA on blockchains has already reached over 100 billion dollars in value and is expected to reach 10 trillion by 2030 as massive jump from now until then.
Types of Real World Blockchain Assets
These RWA currently reside in debt, private equity and tokenized treasuries such as the US treasury bonds and other bonds.
One of the biggest pushers in this area if JPMorgan on the Onyx network. Now over a trillion dollars in national collateral value.
Other RWAs that could most likely be included in this umbrella would be stable coin such as UST and USDC. We saw some recent drama of USDT (tether) freezing accounts for the DOJ and other law enforcement. Not so decentralized anymore is it?
These will most likely be the cornerstone of RWAs and will become a digital age where everything is digital and tracked on the digital level with very little physical oversight.
The Demand Is Real
Right now these types of RWAs often takes days, weeks and sometimes even months to transact from one person to another. The physical paper trail, notary signatures and more lots of other processing and transaction fees on top of it. I mean have you bought a house recently? A ton of money is wasted in banking fees and all that junk.
The demand for this is from every day people and investors who want faster transactions and lower fees involved with those transactions. Now what took takes can take hours or in many cases be near instant.
Expect Increase AML and KYC
It's clear now that there's an aggressive push and one that's going to be required if crypto and the government/fiat world are going to become a thing that so many asked for.
Expect increasing demand for KYC across all platforms and AML anti-money laundering which seems to be a hot topic as of late. The only plus side of this is it would remove any excuse the SEC and other agencies have against crypto and usher in floods of money from wealthy investors. Such a move is expect to raise the market cap upwards of 10 trillion dollars.
Another area where we could see this move happen would be on the stock level and buying up and owning shares of companies. It may also usher in new avenues of investing into companies such are real particle shares of the company where you're divided out the profits of the company over trust a dividend which is always hit or miss. Votes would also become more transparent and everyone would be able to view the results of them in real time almost like a DAO system but more centralized to a company or business.
It's clear that this aspect of blockchain and real world assets will only continue to grow and also evolve into new investment vehicles which might not have even been thought up of yet.