• The real-world asset sector (RWA) is a new sector of the cryptocurrency industry that is set to explode in growth terms. According to Edgy, this sector could reach a market cap of $16 trillion by 2030.
• Tokenization involves converting ownership of assets into digital tokens, which can be traded on blockchain-based platforms. Amazon’s NFTs and Goldman Sachs’ GS Dap are examples of companies tokenizing traditional assets.
• Siemens recently issued a $60 million bond tokenized on the Polygon Network, showcasing the potential of real-world asset tokenization.
Real-World Asset Sector: The Next Frontier
The world of crypto assets has seen significant growth in recent years, with the total market capitalization reaching over $3 billion in November 2021. A new sector within the cryptocurrency industry is poised to continue the trend and explode in growth terms –the real-world asset sector (RWA). According to decentralized finance expert under the pseudonym “Edgy,” this sector could reach a market cap of $16 trillion by 2030, catalyzing cryptocurrencies into the mainstream.
What Is Real-World Asset Tokenization?
Real-world asset tokenization involves converting ownership of physical assets into digital tokens that can be traded on blockchain-based platforms. Tokenizing an asset creates a digital representation of it which is then divided into smaller units or tokens that investors can buy and sell. This makes it easier for investors to access these types of investments as they don’t need to purchase whole items or properties outright but instead just purchase fractions or tokens representing them. Examples of traditional assets that are currently being tokenized include real estate, commodities and other physical goods.
Catalysts For RWA Growth
Edgy suggests that certain factors could act as “catalysts” for propelling RWA’s growth towards its target market cap by 2030:
• Amazon’s NFTs: Rumors suggest that Amazon will launch its own NFT platform which may be tied to real-world assets;
• Goldman Sachs’ GS Dap: A blockchain based platform launched by leading financial institution allowing traditional assets like loans and bonds to be tokenized;
• Siemens’ Bond Issuance: The technology company issued a $60 million bond tokenized on the Polygon Network – demonstrating potential for real world asset tokenization..
Implications Of RWA Growth
The rapid growth in RWA could have far reaching implications for both institutional and retail investors alike as more investments become accessible via blockchain technology tailored specifically for different investor profiles and risk appetites . This opens up investment opportunities previously only available through traditional channels such as stock markets or venture capital funds to those who may not have been able to participate due to geographical limitations or lack of expertise required when dealing with complex financial instruments..
Conclusion
The potential scale up in value through RWA coupled with technological advances driving greater accessibility should make this an extremely exciting area to watch over coming years – one sure to bring huge opportunities for investors worldwide!
