What are RWAs and what are not?
Why do we need them?
What RWAs are onchain now what's on the horizon?
What might the market look like by 2030?
What are the main challenges to global adoption?
What areas look ripe for investment?
I unpack these questions in my new research out now at https://t.co/POxn5sy9rY
Here's the tl'dr 👇
• RWAs are the tokenized representation of anything with value that exists outside of the blockchain, including physical and digital assets.
• Tokenization leverages blockchains for improved trade and management, enhancing liquidity, global reach, and transparency while reducing intermediary costs.
• Right now, the most dominant RWA is by far USD stablecoins (~97%), followed by securities (~1.5%, primary US T-bills), and commodities (~1%, primarily gold).
• Stablecoins hold a unique position in bridging the adoption gap between crypto enthusiasts and ordinary people with their use case extending beyond diversification to hedging against currency debasement and cross-border payments.
• Global interest in tokenized US treasuries skyrocketed in 2023 as investors worldwide were attracted to increasing yield.
$BUIDL dethroned $BENJI 6 weeks after launch!
• There are a number of emerging RWA categories that are intriguing but also highly speculative, including art and collectibles, IP rights, infrastructure financing, impact claims, insurance policies, and agricultural assets.
• Market projections have one thing in common: RWAs will become a huge industry this decade — estimates range from $3.5 trillion in the bear-case scenario to $16 trillion in the bull-case.
• There are a bunch of challenges to realizing these projections — regulatory obstacles, first, and foremost, but also technical and operational risks, valuation challenges, uncertainties around market readiness, economic and social barriers to entry, and category-specific challenges around each RWA category.
• We propose a heuristic guide for identifying investable projects given these risks and challenges that takes into account unlockable liquidity, global demand, yield opportunities, and regulatory clarity.
1/ No-Warm-Intro-Required Investor List by @ybelyayeva
https://t.co/we6BiXIqXW
An air table, filterable database of investors who welcome cold outreach.
Also checkout the guide on cold outreach by Yulia: https://t.co/WXyNYyLXzz
The Terra blockchain has officially halted at block 7607789.
Terra Validators have halted the network to come up with a plan to reconstitute it.
More updates to come.