Real World Assets (RWAs)

Real World Assets (RWAs) are off-chain assets tokenized and brought into DeFi to provide sustainable yields, increase liquidity, and bridge the gap between traditional and decentralized finance. RWAs represent tangible and intangible assets, making DeFi more accessible to a wider range of investors, particularly in the fixed income market.

The tokenization of real-world assets can include a number of different use cases, such as trade finance, tangible assets, carbon credits, real estate.

Let's explore some of RWA protocols:

Polytrade Finance

Polytrade Finance is a technology-driven company focused on revolutionizing finance through blockchain technology. They are actively contributing to the Real World Assets (RWA) space by introducing innovations like tokenized invoice pools and a new tokenization standard (ERC-6960). Their vision is to lead the transformation of financial systems through blockchain, creating a more efficient and dynamic landscape for users, investors, lenders, and borrowers.

Also Polytrade Finance, one of the 6 crypto projects participating in Mastercard’s Start Path Blockchain and Digital Assets program, which has proven its mettle in the Real World Assets (RWA) space and is led by a team with a long history in FinTech.

Probably nothing!

Maple

Maple is an institutional capital network that facilitates on-chain lending businesses by connecting institutional lenders and borrowers. It merges traditional financial industry standards with the transparency and efficiency of blockchain technology and smart contracts. Maple acts as a bridge for financial institutions, pool delegates, and companies looking to access capital through blockchain, revolutionizing capital markets in the process.

TrueFi

TrueFi is a blockchain infrastructure for on-chain credit, connecting lenders, borrowers, and portfolio managers through TRU token-based smart contracts. Since its November 2020 launch, it has facilitated over $1.7 billion in loans to 30+ borrowers and paid out over $40 million in interest. Borrowers include crypto-focused and traditional financial institutions. TrueFi streamlines secure and transparent blockchain-based lending.

Goldfinch

Goldfinch is a decentralized credit protocol aiming to bring global credit activity onto the blockchain and expand access to capital. It enables crypto loans without the need for crypto collateral, relying on consensus-based trust. This approach creates on-chain credit history, addressing a crucial gap in lending for emerging markets. Goldfinch revolutionizes lending by promoting accessibility and transparency.

Horizon Protocol

Horizon Protocol, a DeFi platform, enables on-chain trading of synthetic assets representing the real economy. Derived from Synthetix, it integrates a proven derivative liquidity protocol, enhancing DeFi with interoperability, scalability, and a diverse range of tradable real-world derivatives. Rooted in the Binance ecosystem and natively implemented on BNB Chain, it ensures speed and reliability often missing on Ethereum, offering secure, efficient trading of real-world asset exposures through smart contracts.

Realio Network

Realio Network is a platform that offers access to exclusive private equity investments, removing traditional barriers for investors. Their team sources prime opportunities, and they provide liquidity solutions and P2P trading infrastructure. This bridges the gap between traditional finance and blockchain-powered private equity.

Polymath and Polymesh

Polymath Network is a blockchain platform that simplifies the issuance and management of security tokens. It helps businesses tokenize assets like real estate or stocks while ensuring compliance with regulatory requirements. The goal is to make it easier for companies to access global capital markets and for investors to trade security tokens securely and legally. Polymath acts as a bridge between traditional financial markets and blockchain technology.

Polymesh Network is a highly specialized permissioned blockchain designed for regulated assets. It addresses critical technical aspects like governance, identity verification, regulatory compliance, data privacy, and efficient settlements. Beyond streamlining existing processes, Polymesh also enables the creation of new financial instruments, promising a transformative impact on traditional asset management.

Centrifuge

Centrifuge is a blockchain infrastructure for decentralized financing of real-world assets, eliminating intermediaries. It ensures collateralization, legal recourse, and supports various asset classes. Its goal is to reduce borrowing costs for businesses and offer stable yields for DeFi users. By bringing the structured credit market on-chain, Centrifuge aims to create a transparent, affordable, and versatile financial system.

Bytom

Bytom is a sophisticated blockchain protocol designed for managing a wide range of assets, both digital and real-world. It enables the registration, exchange, and complex interactions of these assets through smart contracts. By connecting the digital and real worlds, Bytom facilitates the seamless transfer and utilization of assets between them. Its ultimate aim is to create a diverse asset ecosystem and a programmable economy using blockchain technology, offering versatile asset management and smart contract-based interactions.

Creditcoin

Creditcoin is a decentralized credit network that facilitates blockchain-based lending transactions. Validators and nominators earn Creditcoin rewards, and the network emphasizes decentralization of credit history and penalties for defaults. It leaves related services like identification and credit scoring to third-party platforms while promoting versatility through user creativity and blockchain network integration.

Propy

Propy is a real estate platform leveraging Web3 technology and Ethereum Blockchain. It allows users to purchase real estate with legally binding smart contracts, and each property is represented as an NFT asset, proving ownership through blockchain-based smart contracts. Propy's goal is to decentralize the real estate market by utilizing Ethereum Blockchain, eliminating intermediaries and offering fast, cost-effective transactions for property ownership.

Boson Protocol

Boson Protocol's versatile smart contracts support diverse off-chain actions, initially focusing on decentralized commerce (dCommerce). It connects Web3 and real-world commerce, ensuring secure off-chain transactions with payment and asset receipt guarantees. Boson's goal is to create a unified digital marketplace for physical goods, akin to 'Uniswap for e-commerce,' powered by decentralized infrastructure and the Boson token for equitable value distribution. It tackles challenges like trust in digital asset representation, fair exchanges, and digital representation of physical items.

Clearpool

Clearpool is a DeFi ecosystem featuring a unique permissionless marketplace for unsecured institutional liquidity. It allows institutions to raise short-term capital through single-borrower pools while providing DeFi lenders opportunities for returns based on market-consensus interest rates. Clearpool also offers a fully permissioned platform to meet compliance requirements for digital asset borrowing and lending by institutional participants, offering flexibility and regulatory adherence.

Swarm Markets

Swarm Markets is revolutionizing blockchain-based token transactions, offering compliant trading across various assets in the DeFi space. They merge DeFi protocols with regulatory licenses, enabling users to trade cryptocurrencies and real-world assets within a unified market infrastructure, all while ensuring regulatory compliance and institutional engagement.

Conclusion

The rise of Real World Assets (RWAs) in the crypto space signifies a merging of digital and physical assets, promising increased accessibility and security in finance. With financial giants getting involved and growing token popularity, the RWA narrative gains momentum, potentially leading to greater financial inclusion and transparency. Stay tuned for exciting developments! If you've read this far, please like, repost, and follow! 🤗

This is not a financial advice, DYOR!