How RWAs Could Revolutionize Finance
A new report by Rebank, a fintech analytics firm, explores how Real World Assets (RWAs) could transform the financial system. Think of RWAs as the email to customary finance’s paper mail.
Tokenized assets are still tiny compared to traditional markets. However, their growth is speeding up. The main advantage of RWAs is their programmability and composability. Unlike traditional assets, RWAs can move instantly without intermediaries. This is similar to how email replaced paper mail, making transactions faster and more efficient.
Traditionally, assets were locked in separate databases, requiring intermediaries for transfers. RWAs change this. They allow instant and direct exchanges,cutting out the middleman. This shift is important. For example, you can swap tokenized Treasuries for stablecoins or use tokenized loans as collateral in DeFi, all without needing a third party.
Composability is key.It lets you swap assets like tokenized Treasuries for stablecoins or use loans as collateral in DeFi. This is a game-changer. Imagine sending money without banks in the middle. Its like email replacing snail mail.
Rebank’s report, Rebank sees RWAs as the future.
While RWAs are small now, their growth is notable. By 2025, tokenized U.S. Treasuries will be worth billions. This is tiny compared to the $20 trillion U.S.Treasury market. But it’s growing fast, like ETFs did in the 2000s.
- Tokenized assets are growing quickly.
- They offer instant, direct exchanges.
- They could reshape finance like email did for mail.
