Real World Assets — A Dormant Narrative

RWAs are designed to tokenize and integrate real assets into the DeFi ecosystem. They include tokenization of capital gains from credit lines, corporate borrowing and lending, income-based financing, mortgages, and other similar assets.

Rwa’s Advantages Over Traditional Markets

Among the benefits that RWAs offer to traditional markets are:

• greater transparency

• lower costs

• improved liquidity, market efficiency

• new markets and participants

Current State of RWA Implementation

While everyone is snoozing, Maker DAO is already earning 80% of their commissions through RWAs. The company has earned $13.5 million in just one year.

BlackRock is looking in that direction as well. In a letter to shareholders, CEO Larry Fink wrote that asset tokenization offers the prospect of more efficient capital markets. Now, BlackRock is actively exploring the tokenization of stocks and bonds.

The Most Interesting Real World Assets Projects

Centrifuge

The first project worth mentioning is Centrifuge, which opens up economic opportunities for everyone by bringing people together to borrow and lend money transparently and cost-effectively. Centrifuge works with a wide variety of assets from real estate to microloans.

All real assets placed on Centrifuge are fully collateralized and liquidity providers have recourse in the event of default.

Centrifuge's TVL is now around $438 million, having spiked up 161% over a year. Most of the growth is due to increased demand for institutional lending, its share being $127 million.

The project's capitalization is $110 million. And over the past month, the CFG token has risen nearly 70%.

Maple

Maple provides capital to institutional borrowers through globally available fixed-income opportunities.

Maple is regulated by MPL and xMPL holders, who can earn a share of commissions from the proceeds and use the tokens to provide liquidity to lending pools to earn additional income.

The project's TVL is holding at $120 million, its capitalization is $44.33 million, and the MPL token has been stable at around $6 for many months.

Goldfinch

Goldfinch, once a highly publicized project, allows issuing loans in cryptocurrency without collateral, as well as borrowing digital assets on credit. The unique model involves verifying the borrower's creditworthiness by collectively assessing their capabilities by other network participants. The protocol expands access to real capital for people from all over the world.

The project's TVL is holding at $105 million, with a capitalization of $22 million, and the GFI token is up 27.2% in the last month.

All of these projects work with traditional financial companies by lending to them. It is very important to note that the demand for RWAs amongst institutional players is growing very strongly. This is a green flag for the future of this narrative.