Unlock Trillions with Real-World Assets

When Larry Fink speaks, the world listens. 

As the CEO of BlackRock, Fink's insights and actions shape global financial landscapes. 

So, it’s no wonder that talk around Bitcoin (BTC, “A”) spot ETFs took on a more serious tone when BlackRock entered the equation.

And now, BlackRock is changing the conversation around another crypto sector: real-world assets, or RWAs.

This groundbreaking move bridges the worlds of traditional and decentralized finance and unlocks easier access, near-instant settlement and radical transparency compared to antiquated financial rails.

Let me explain …

The Dawn of a New Financial Era

Imagine a world where you can own a stake in prime Manhattan real estate, diversify your portfolio with masterpiece artworks or earn yields from corporate debt.

Now imagine being able to do all that … from the crypto wallet on your phone. 

This isn't a pipe dream. It's the emerging reality of RWAs, tokenized physical assets that can be traded and owned on the blockchain.

The rise of RWAs represents a significant shift in the financial industry, bringing together TradFi and DeFi in a fusion that creates a new, more inclusive and efficient financial paradigm. 

And now, major players like BlackRock are leading this movement, indicating a future where investing is based on blockchain technology.

Back in March, BlackRock launched the first tokenized fund issued on a public blockchain, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum (ETH, “A-”) network. It recently reached $473 million in assets under management.

“This is the latest progression of our digital assets strategy,” said Robert Mitchnick, BlackRock’s Head of Digital Assets. “We are focused on developing solutions in the digital assets space that help solve real problems for our clients.”

This signals a significant change in the world of finance. 

“Tokenization of securities could fundamentally transform capital markets,” says Carlos Domingo, the co-founder and CEO of Securitize, BlackRock’s partner in operating the BUIDL fund. According to him, the launch of BUIDL “demonstrates that traditional financial products are being made more accessible through digitization.”

My colleague Jurica Dujmovic spoke specifically about tokenized real estate recently. But in fact, the sector is much bigger than just real estate.

So, no wonder RWAs are the No. 4 sector based on performance in Q1 of this year.

Click here to see full-sized image.

 

$10 Trillion - $70 Trillion Opportunity

As an investor, however, you should be looking ahead, rather than behind. And that’s where the true value of RWAs is. 

At the time of writing, the RWA market cap has ballooned to over $6 billion from just $150 million last August. And it’s nowhere near done. 

In fact, that market cap could skyrocket an astonishing $10 trillion during a bull market … or even $3 trillion in a bear market, according to digital asset manager 21.co.

Even those impressive projections are just the beginning. This market is mostly early adopters at this time. 

But as adoption increases, the RWA market could grow as much as 10% of the global GDP to reach about $68 trillion — by 2030 according to a report from BCG Analysis.

Click here to see full-sized image.

 

How to Play the RWA Narrative

Naturally, BlackRock’s BUIDL is dominating headlines for being an early institutional player in this sector.  But RWA tokens were outperforming much of the market well before BUIDL was launched. 

In fact, with BlackRock’s announcement and launch of BUIDL, some existing RWA protocols have gained up to 500%, clearly showing the market has hooked onto the RWA narrative. 

Let’s take a closer look at five innovative RWA leaders:

Ondo Finance (ONDO, Not Yet Rated) offers tokenized versions of popular funds, like the Vanguard Total Bond Market Index Fund (BND) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), allowing crypto-native investors to access traditional fixed-income assets. 

Its token, ONDO, is trading near $1.20 at the time of writing and it is listed on Coinbase and Kraken, as well as decentralized exchanges. 

Maple Finance (MAPLE, Not Yet Rated) revolutionized the debt capital market with its on-chain corporate lending platform. It provides undercollateralized loans to institutional borrowers and tokenizes them as NFTs for a secondary market. 

The MAPLE token is listed on Coinbase and is trading near $14.68 at the time of writing.

Centrifuge (CFG, Not Yet Rated) enables businesses to tokenize assets like invoices and real estate, offering investors a chance to earn yields on these tokenized assets. CFG is trading around 70 cents and is available on Kraken.

Goldfinch (GFI, Not Yet Rated) provides crypto loans to emerging market fintech, local businesses and consumers. Meanwhile, its investors earn a share of the interest from these loans.

Its token is trading near $3.29 and is available on Coinbase.

Embrace the RWA Revolution

The RWA space is more than just an innovative financial sector. It is a testament to the evolving nature of investment and asset management in the digital age. 

As traditional finance intertwines with decentralized finance, the opportunities presented by RWAs are vast and varied. Staying informed and agile in this rapidly changing landscape is critical.

That’s why I suggest you keep checking back in with us here at Weiss Crypto Daily. 

Our team of experts will keep you up to date with not only this quickly developing sector, but opportunities across the crypto markets.

I also suggest you check out my colleague Juan Villaverde’s Weiss Crypto Investor. In it, he guides his members through the ever-changing crypto landscape, sending specific “buy” and “sell” alerts for the top performing assets in each sector. 

To learn more, just click here.

Best,

Mark Gough

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