When asked about real-world use cases for crypto, you might hear various answers—both current and future possibilities.
One promising scenario that’s already in motion, showing growth prospects and solid market valuation, is Real-World Asset (RWA) tokenization.
But what exactly is RWA, and why should it matter to you? Let’s dive in.
What is RWA?
RWA (Real-World Assets) tokenization is converting physical assets like real estate, bonds, stocks, and private credit into digital tokens on the blockchain.
This makes these assets tradable, more efficient, transparent, and secure. Tokenization validates ownership and simplifies transfers by storing them on the blockchain.
It applies to various assets, both large and small, and the key benefit is that it transforms traditionally illiquid or hard-to-trade assets into easily tradable, fractionalized investments.
RWA on a Roll
RWA tokenization is gaining traction, with major institutions like BlackRock leading the way by incorporating tokenized funds into their offerings. Institutional adoption, long sought after in the crypto space, is now becoming a reality.
Clearpool’s Ozean Protocol has grown significantly, onboarding over 368,000 accounts and processing $650 million in loans in Q4 2024, with a focus on private credit tokenization.
The future of RWA tokenization looks incredibly promising, with projections pointing to massive growth over the next decade.
Adoption by institutional investors and the widespread integration of blockchain technology into traditional finance are driving this growth.
As regulations become clearer and adoption increases, Standard Chartered forecasts that tokenized RWAs could hit an astounding $30 trillion in value by 2034.
RWAs to Trade on BTSE
Rakuza (RKC)
Rakuza blends blockchain technology with the preservation of Japanese animation art, creating immutable ownership records for physical animation cels.
As anime and manga have gained global recognition as major artistic and cultural movements, the value of original artwork has surged at international auctions.
In the past, animation ‘cels’ were commonly used, but with the rise of digitization, they have become rare and increasingly valuable to enthusiasts and collectors.
Due to their fragility and susceptibility to deterioration, special care is required to preserve these cels. Blockchain technology has made ownership more accessible, allowing NFT holders to claim the physical artwork by burning the token, if they choose to do so.
With the Rakuichi (RKC) token, holders enjoy exclusive discounts, access to limited-time NFT auctions, and unique items, along with rewards and periodic airdrops.
Most importantly, not only can anime and manga enthusiasts be able to buy and sell artwork they love, creators will also be able to be properly compensated for their work; a long-standing issue within the art world.
The platform also features a DAO (Decentralized Autonomous Organization) that supports Japanese creators, an immersive gallery, and opportunities to participate in cultural events.
Mantra Chain (OM)
A Layer-1 blockchain designed specifically for real-world assets.
With regulatory compliance being a major hurdle in the world of crypto, Mantra (OM) tackles this issue head-on, with some of their primary offerings specifically to resolve this issue.
Mantra Chain uses the Cosmos SDK, an open-source toolkit for building Proof of Stake blockchains, With this, developers have all the tools needed to help Web3 platforms meet regulatory requirements.
Mantra lets developers set up how tokens are stored, transferred, and more, all within its platform. Mantra Compliance provides essential compliance features like KYC/KYB, KYT, and AML protocols.
Mantra Token Service is an SDK that helps Web3 companies create and manage digital assets (e.g. NFTs) and tokens, with fine-tuned settings to ensure compliance across various regions.
As Mantra Chain utilizes a PoS (Proof of Stake) system, holders of $OM can earn staking rewards through roles as validators and delegators.
Thanks to its decentralized nature, MANTRA community can propose and vote for instances such as governance proposals.
Most recently, MANTRA has launched the RWAccelerator, an accelerator program helping with investments, advising, and more, with support from Google Cloud.
Ondo Finance (ONDO-PERP)
Ondo Finance (ONDO-PERP) is a leader in the real-world asset (RWA) sector, providing tokenized real-world assets and institutional-grade financial products that offer greater transparency and lower risk.
Their mission is to make investment opportunities accessible to more people globally, providing a wider variety of investment options that are typically limited to select groups in traditional finance.
Ondo achieves this by offering tokens backed by trusted assets, such as US Treasuries, and issued by reputable companies like BlackRock. This approach eliminates the need for brokers or middlemen, allowing investments to be bought, sold, and traded with ease.
A key offering from Ondo is USDY (US Dollar Yield), a stablecoin fully backed by US Treasuries and fully compliant with US regulations. USDY offers a unique advantage: it allows non-Americans to access a US-denominated stablecoin that also earns interest.
Unlike traditional stablecoins, which often lack investor protection, USDY provides a more secure and reliable alternative.
For qualified institutional investors, Ondo also offers OUSG, a tokenized form of US Treasury bills. OUSG’s portfolio is primarily based on BlackRock’s BUIDL, or the “BlackRock USD Institutional Digital Liquidity Fund,” providing investors with a secure and regulated investment vehicle.
Ondo’s goal is to make investing more accessible to a global audience, while ensuring all offerings remain within regulatory compliance, giving investors a high level of assurance.
Trade RKC, OM, and ONDO-PERP on BTSE now!
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