As a seasoned analyst with a background spanning traditional finance and blockchain technology, I find the recent growth of Real-World Asset (RWA) protocols within DeFi truly fascinating. Having witnessed the evolution of financial markets over the past few decades, it’s intriguing to see how the integration of real-world assets like real estate, commodities, and bonds is reshaping the landscape of decentralized finance.
Approximately 3.69% of the overall value held within decentralized finance (DeFi) is tied up in Real-World Asset (RWA) protocols.
As per the recent data from the on-chain analysis platform IntoTheBlock, we’re witnessing a significant jump compared to the 1.77% figure recorded in July.
RWA Protocols Expand Presence in DeFi
In essence, the steady expansion underscores the rising incorporation of Real-World Assets (RWAs) into the DeFi sphere, with conventional assets like real estate, commodities, and bonds being more frequently tokenized and utilized as security in decentralized loaning and lending platforms.
ITB’s tweet read,
The proportion of Total Value Locked (TVL) in Real World Asset (RWA) protocols within Decentralized Finance (DeFi) has increased from 1.77% in July to currently 3.69%. This continuous upward trend indicates an increasing involvement of real-world assets within the DeFi sector.
According to CoinGecko’s latest findings, it’s anticipated that the Real World Asset (RWA) market could experience significant growth, potentially expanding from its current value of $118 billion to a staggering $10 trillion by the year 2030.
According to a well-known crypto data provider, the anticipated increase in regulatory clarity and rising institutional investor attention could facilitate tokenization of RWA, thereby potentially unleashing liquidity in sectors like private equity, real estate, and other promising asset classes.
Ripple and MANTRA Lead Tokenization Efforts
Despite initial skepticism, the tokenization of RWAs has seen significant growth in recent years, drawing interest from both individual and institutional players. For instance, blockchain company Ripple partnered with the Axelar Foundation in February this year to boost XRP Ledger’s (XRPL) interoperability, with a strong emphasis on promoting the tokenization of RWAs.
Through connecting with Axelar’s network, the partnership aspires to fortify XRPL’s Decentralized Finance (DeFi) environment by offering crucial liquidity for stablecoins and other valuable assets.
In March, MANTRA, a blockchain platform focusing on Real-World Assets (RWA), secured an investment of $11 million. This funding was intended to boost the company’s efforts in speeding up the process of tokenizing RWAs.
New funds will be directed towards crucial projects, such as setting up regulatory-friendly frameworks that meet international norms, providing developers with resources to create protocols emphasizing RWA on the MANTRA network, and increasing tokenization endeavors in the MENA and Asian regions.
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2024-10-10 14:44