RWA: The Sustainable Asset Class You Need Amidst Volatility. The Crypto market is seeing numerous pump/dump cycles and manipulation. This is the ideal time for Crypto investors to seek practical and long term investment opportunities through Real World Assets (RWAs). RWA is the future of Crypto.

1/ What is RWA? Real World Assets (RWA) is the process of tokenizing tangible assets (such as real estate, bonds, commodities, etc.) into digital tokens on a blockchain. RWA acts as a crucial bridge between Traditional Finance (TradFi) and Decentralized Finance (DeFi), offering superior benefits like transparency, high liquidity, and global accessibility. With the participation of major institutions, RWA is becoming a primary growth engine for the entire blockchain industry.

2/ RWA Market Size Current Status (2025) • The market size currently stands at $35.78 billion, driven primarily by yield-bearing assets. • The market has seen extremely impressive growth: a 500% increase compared to 2022 ($5 billion). • Stablecoins currently dominate the tokenized assets market with approximately $298.34 billion. Future Forecasts: • The public tokenized market is projected to reach $500 billion - $3 trillion. • Tokenized Private Credit is expected to exceed $200 billion. • Some reports from Standard Chartered predict the market size could reach $30 trillion by 2034. Given that the current global asset size is approximately $500 trillion, even a small fraction being brought onto the blockchain will genuinely accelerate the growth of the entire industry.

3/ How Great is the Potential of RWA? RWA has enormous potential due to its ability to expand global finance and increase efficiency. It transforms illiquid assets, such as real estate and artwork, into digital assets that are easily traded 24/7, opening up opportunities for all investors. The RWA market is forecast to reach $10 - $16 trillion by 2030 thanks to the convergence of TradFi/DeFi. Driving factors include clear regulation and the demand for stable yield. RWA has the potential to transform $950 trillion in traditional assets.

4/ Only RWA Can Solve TradFi’s Problems. • Liquidity: Transforms illiquid assets (e.g., real estate) into instant transactions. Transaction time can be reduced from months to seconds. • Cost/Risk: Eliminates intermediaries, reducing transaction fees and settlement risks. • Transparency: Blockchain records every transaction, increasing trust between the buyer and the seller. Furthermore, for unique assets like artwork, watches, RWA helps mitigate the risk of purchasing counterfeit products. • Access: Fractional Ownership allows small, individual investors worldwide to invest in large assets that were previously inaccessible to them through TradFi.

5/ Why Institutional Investors Are Interested in RWA? Given the issues that RWA solves, as mentioned above, we can see that RWA helps investors own and profit from traditional assets more quickly and easily. ➥ This is why Institutional Investors are highly interested in RWA. Since they are already familiar with DeFi, RWA helps them optimize their existing advantages. Tokenized assets grew by 60% to $13.5 billion by the end of 2024. The participation in ETF funds and the tokenization of government debt reinforce this trend.

6/ Notable Segments in RWA Besides stablecoins (the largest segment) and Private Credit, tokenization is the main tool we need to pay attention to. okenization is what will help investors access not only government bonds (the way Ondo is currently implementing with $USDY and $OUSG), but also assets that will be expanded to include: - Tokenized stocks - Commodities like gold, silver, and precious metals - Further down the road, potentially real estate and apartments... However, the closest and most feasible development is bringing stocks onto the blockchain. If this takes place and the US leads the way, it could help American companies receive substantial capital flow from investors around the world. Stocks would also be traded 24/7 with the transparency and convenience that the old system currently fails to provide. And RWA will explode even further if stocks can be used as collateral in lending protocols, increasing capital utilization. This is perhaps the most obvious and feasible scenario that institutions may consider as blockchain infrastructure gradually becomes more secure.

7/ Some Noteworthy Projects: • Ondo Finance (ONDO): The King in the Tokenized sector. It is a leading RWA project specializing in tokenizing institutional grade TradFi assets, such as US Treasury Bonds ($OUSG), to bring them into DeFi. • Centrifuge (CFG): A pioneer in the Private Credit sector. It is a pioneering DeFi protocol that allows businesses to tokenize Real World Assets (RWAs) like invoices into NFTs and use them as collateral to access on-chain liquidity. • Chainlink: Oracles help bring off-chain data onto the chain for all tokenized products, a piece of the pie that every protocol desires.

In addition to observing native projects in the Crypto market, we need to closely follow the actions of major institutions like BlackRock, Goldman Sachs, and Franklin Templeton. Despite its potential, transitioning RWA from theory to practice still requires overcoming numerous challenges related to technology and regulation. Furthermore, before being deployed in the real world, these solutions need a sufficiently long testing phase to ensure everything operates smoothly.