RWA meaning

3BWs...1tkr
2 Jan 2024
8

The best explanation is: RWA means real assest transferred to blockchain.Rights to such are tokenized and represented in the form of computer code.Rwa has many different functions.The technology that always you to buy a share in almost anything.Rwa are used to link the minimum amount of capital that banks have, whit the risk profile of the bank's lending activites.The more risk a bank is taking the more capital is needed to protect depositors. For example; holdings of goverment bonds might be weighted as %0 risky. While unsecured loans maybe weighted as %100 risky, with mortgage loans as %40 risky. RWAs also include statistical calculations of market and operational risk. İt is calculated by multiplying the exposure amount by the relevant risk weight for the type of asset or loan.The total credit risk-weighted assets are calculated by the banks by repeating the above calculation for all of its assets and loans.

BULB: The Future of Social Media in Web3

Learn more

Enjoy this blog? Subscribe to aksaray68

1 Comment