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RWA Report: The Deep Dive into 2023 Market

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RedStone Research, 31st August 2023

Key Takeaways

  • Real World Assets (RWA) protocols bridge traditional financial markets with DeFi, creating new use cases and opportunities. Asset tokenization enhances efficiency, transparency, and accessibility in the financial sector.
  • Institutions such as JP Morgan, Goldman Sachs, and Hamilton Lane are exploring real-world asset tokenization. MakerDAO incorporates RWA in DAI collateral, Centrifuge leads in RWA lending, while Ondo Finance and Matrixdock play the first fiddle in tokenizing exposure to the short-term U.S. Treasuries.
  • Gold is the second most tokenized asset regarding market capitalization in crypto, following USD, which is the leader. The debt market takes third place.
  • Tokenization technology has the capability to transfer tangible and intangible assets on-chain. Apart from established classes such as real estate, precious metals, and financial products, RWA tokenization extends to intangible assets like intellectual property, expanding the possibilities for creators and innovators.
  • Oracles are important cogs in the RWA tokenization mechanism. They provide data feeds, which are utilized to price RWA-backed tokens on various platforms and dApps. Secondly, they ensure accurate collateral valuation for CDPs and internal redemption mechanisms of RWA protocols, which ensures fair trading.
  • Collaboration between traditional finance and decentralized projects is at levels never seen before. Further adoption faces challenges, including regulatory uncertainty, however, their cooperation can address emerging issues.

Featured RWA Projects

About RedStone

RedStone is revolutionizing the Oracles industry by implementing novel modular design and 3 tailor-made data consumption models. You can build the new generation of DeFi & Web3 protocols based on RedStone’s versatile data offering of long-tail, LP, LST, and Ecosystem-native tokens, as well as Real World Data and custom feeds.

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