The Real World Assets sector is becoming one of the hottest topics in the crypto world, and for good reason.
This might be the next big breakout trend, with reputable firms like BlackRock and Franklin Templeton jumping in and tokens like $OM and $ONDO producing gains.
An X thread by Axel Bitblaze (@Axel_bitblaze69) breaks it all down, highlighting why RWA is gaining traction and naming the top projects to keep an eye on. Here’s a closer look at what makes RWA so exciting, how it works, and which tokens might be worth watching.
What you'll learn 👉
What Are RWAs and Why Do They Matter?
RWAs refer to physical or electronic assets. These are like real estate, gold, carbon credits, or bonds that are tokenized and brought onto blockchain networks.
Essentially, RWA tokenization makes these traditionally hard-to-access assets easier to trade and manage by turning them into digital tokens.
The process usually follows three steps:
- Verification: Confirming ownership, value, and legal rights for the asset.
- Tokenization: Creating digital tokens that represent ownership, often using smart contracts and oracles to sync real-world data with the blockchain.
- Trading: Listing these tokens on digital marketplaces where they can be easily bought, sold, or traded.
What makes this approach stand out is its potential to unlock liquidity for traditionally illiquid markets. Think about how long it usually takes to sell real estate. Tokenization speeds this up, giving investors access to fractionalized ownership and global markets.
Big Institutions Are Betting Big on RWA
Some of the biggest players in traditional finance are already investing heavily in RWA projects. BlackRock, for instance, launched its tokenization fund, BUIDL, earlier this year.
With over $500 million in total value locked (TVL) and operations spanning multiple chains like Ethereum, Aptos, and Avalanche, it’s clear they’re serious about this space.
Franklin Templeton isn’t far behind. Their Franklin OnChain U.S. Government Money Fund is now worth over $410 million and is also expanding across blockchains. Other heavyweights like JPMorgan, Citibank, and Fidelity are starting to explore similar opportunities, recognizing the potential of tokenized assets to reshape markets.
Despite these big moves, RWA remains a relatively small slice of the crypto market, with just $18 billion in market capitalization. For comparison, Dogecoin alone has a market cap of $60 billion. However, forecasts are optimistic.
Reports suggest the RWA sector could grow to $2 trillion by 2030, with a best-case scenario reaching $30 trillion—a massive leap from where it stands today.
Read also: Does KAS Still Have Time to Pump? Kaspa Price Prediction
Expert’s Top RWA Projects to Watch
Axel Bitblaze shared his top picks for RWA tokens poised for success. Here are the highlights:
1. $CPOOL
$CPOOL is focused on tokenizing private credit and already boasts $90 million in TVL. With partnerships like Hex Trust and Helix Finance and over $650 million in loans issued, this Ethereum-based protocol is emerging as a key player.
2. $OM
As one of the largest RWA protocols, $OM is gaining traction thanks to its staking features and partnerships. Recently, the project raised $11 million and added liquidity pools and in-wallet swaps, enhancing its usability. Collaborations with Soma Finance further its efforts to bring real-world assets on-chain.
3. $LINGO
Launching on December 12, $LINGO is building a rewards ecosystem powered by RWA. It already has a user base of over 8 million, making it a project to watch as it establishes itself on Base and Solana.
4. $CHEX
Dubbed the “Shopify of RWA,” $CHEX focuses on compliance and tokenizing real estate. With all of its token supply in circulation, there’s no risk of dilution. It’s also working on tokenizing virtual power purchase agreements, with the market for these agreements already valued at $17 billion in 2023.
Why RWA Could Be the Next Big Thing
Unlike meme coins or speculative tokens, RWA projects bring tangible assets onto the blockchain, offering investors a new way to diversify. By solving issues like limited market accessibility, illiquidity, and high transaction costs, RWA tokenization could become a cornerstone of both crypto and traditional finance.
Axel Bitblaze predicts that RWA could be a top 10 crypto sector by the next market cycle peak, with some tokens reaching valuations of $10 billion or more. With big institutions already laying the groundwork, the sector is primed for rapid growth.
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