Bitcoin Forum

RWA is short for real world assets. BlackRock CEO Larry Fink mentioned in an interview in the Fox news channel that they can create more tokenization of assets and securities. Similar to the other trending storylines of the past, the next big storyline might be for the tokenization of real world assets and there are platforms in DeFi being developed for this already.

https://coinmarketcap.com/view/real-world-assets/

Will some of these coins be 100x gems? Begin the research hehehe!

https://i.ibb.co/f1XD63f/CFFB679-F-7-BB5-484-D-94-E0-04-B3-D6-B3-AE87.jpg

BlackRock (BLK) CEO Larry Fink said crypto, specifically bitcoin (BTC), could revolutionize the financial system in an interview with Fox Business on Wednesday.

“We do believe that if we can create more tokenization of assets and securities – that’s what bitcoin is – it could revolutionize finance,” he said.

Read in full https://www.coindesk.com/business/2023/07/05/blackrock-ceo-larry-fink-says-bitcoin-could-revolutionize-finance/

Real World Asset will make DeFi tokens better. Will those RWA tokens be backed by real assets and will their company treasuries safely audited forever?

I think if a token is backed by real asset, it is safer but it does not eliminate risk of scam. Their company treasuries can be faked and in history, we can see some shocked scams which can more easily happen with cryptocurrrencies.

A big problem with DeFi tokens is, they can not maintain their capital in and out. If capital in drops, their token price will be affected. It will be worse when their tokenomics can not control inflation.

First, you can not have decentralized finance when dealing with real-world assets. There must be a centralized intermediary in between.

Also, I believe you mistook the article's context. What the article is all about, based on what I comprehend, mainly circled on exchange-traded funds (ETFs). Which is to say, that is simply within the traditional market context, they are searching for assets and securities exposures (bitcoin). It has nothing to do with decentralized finance, especially the tokenization of real-world assets that you are referencing.

They are called oracles and presently Chainlink has created their platform giving this type of functionality. Also with Chainlink, institutions can have blockchain connectivity solutions for RWA and interoperability between blockchains. The infrastructure is there, it only needs to be used and it appears in the interview with Larry Fink, Blackrock is very interested.

Also, it is very important to mention again that the next inflow of funds from institutional investors to the cryptospace might go through the tokenization of real world assets like corporate and government bonds. It might not be through altcoins and it will certainly not be through NFTs hehehehe.

It seems that you misunderstood his words, he said that’s what bitcoin is and the whole article talks about bitcoin and being an alternative investment instead of pumping more investments in gold or even in emerging currencies because it is decentralized and not linked to the policy of a particular country.

He means tokenization of assets such as gold and does not mean DeFi because there is already tokenization in the form of the stock market where you buy and sell ownership of part of the company and yet all the assets are there and the management structure is the same and does not change.

DeFi will not find interest with high interest rates and guaranteed money, it was good during Covid as the interest was close to zero and it was easy to get a loan.

Over the past 3-4 years.

I always see some of projects, that are trying to connect (Real Word Asset) through AI or something like that via (Crypto). I'm actually currious, do most of these project successfully bring a asset from our real word through online ?

Sometimes, still not really optimism about the idea.

Maybe it will be a bit of a trend with a lot of scammers. In cryptocurrency there is always a lot of scam where there is a hype. Or it may remain unpopular because the principle of RWA will not be clear to the user. As it was once with IOT projects, which exist now, but are not popular.

Also there's a problem with front running. I am guessing that would be frowned on with traditional assets. And frankly i don't think it's legal.
Large companies with tokenized RWA wouldn't like that their wallet addesses were doxxed and that's definitely going to happen. And when ever they would try to move something, bots with higher tx fees would react and buy or sell the same thing before them.

There are also problem with the fact that regulators would want transactions to be reversable and assets frozen if needed. So at the moment i don't see any solution making the current system any better. I would like that they would solve this but i have been waiting for so long already.

Securities + decentralized? It just doesn't make any sense hehe. Another one of those situations where it's being used as a buzz word to entice unsuspecting investors. They may use smart contracts but we can already assume that it's heavily customized to allow the governing regulatory agencies to intervene.

Each country has rules for trading stocks and securities, and defi assumes that trading will be anonymous and unregulated. It is a great idea to tokenize assets, but projects will constantly face restrictions such as the legal status of the purchased asset and the ability to own it in another country, because such trading may require state registration or reports to government agencies.

Tokenization of real world assets is the future. But it's going to take quite some time before people get used to it. Assets like Gold, Silver, Diamonds, and even real estate, will bought, sold, and even "owned" on the Blockchain. If this become a widespread success, it's likely people won't own anything physical in the future. It will be the dawn of a new digital era.

I think BlackRock wants a piece of the pie of this revolutionary trend. Not only it's getting its hands on BTC, but also on everything Blockchain-related. Could it be possible that corporations will control the world in the future by making use of Blockchain tech? Only time will tell. Who knows when RWAs will take off? Just my opinion :)

I reckon that he might have misunderstood his own words because the creation of more tokenization of real world assets and securities is not what bitcoin is. The creation of bitcoin might be a creation of a new type of asset, however, bitcoin is not the tokenization of certain assets and securities. We should also be careful mentioning something like this because the maximalists might hear us hehehehe.

On your speculation on DeFi, you might be correct. What they might do is tokenize an asset and use their own centralized platforms to create markets for trading and transactions. This is worse than DeFi because they will control all of the gateways. The small minnows might not be allowed through their gateway hehehehe.

Mentioning the name BlackRock (BLK) in any article increases viewership, whether the interpretation of that article is correct or wrong, and even if it is wrong, it is an opportunity for a second, free article in which it is corrected that the statements are true and that they have been misunderstood. Therefore, any statement coming from them must be treated with caution.


DeFi is something that has value when interest rates are low and it is easy to obtain loans without the expense of repaying them, but at the present time it is not normal to pump liquidity into such investments, even if they give you a higher APY, because there are those who will give you a good and more guaranteed return.

Such a scenario may happen, but I do not think it will gain widespread and massive adoption. Considering the true value derived from such hard assets is the physical form, it should not be excessively digitalized. The contrasting problem is what difference it makes with assets that derive their value mainly from digital things/computations like Bitcoin. if it is built to make and own things easier, it would be dependant on the policy and regulation that governs the digitalization of assets, in which consumer protection is truly essential.

It will not only be blockchains and DeFi protocols that will benefit from tokenization of real world assets. I reckon there are other platforms in the cryptospace like Chainlink.

Chainlink has been working with Swift for blockchain interoperatibilty and according to their press release, Chainlink's CCIP protocol has connected Swift's infrastructure to private and public blockchains to transfer tokens. I assume the public blockchains being connected with are with Ethereum and Binance smartchain.



Working with more than a dozen major financial institutions and market infrastructures and Chainlink, a leading Web3 services platform, Swift has successfully demonstrated that it can provide a single point of access to multiple networks using existing, secure infrastructure, thereby significantly reducing operational challenges and investment required for institutions to support the development of tokenised assets.

Source https://www.swift.com/news-events/press-releases/swift-unlocks-potential-tokenisation-successful-blockchain-experiments



If real world assets become a very big market for DeFi, I reckon automated marketmaking platforms with the highest liquidity might be good investments. Projects similar to Curve Finance.

I think that this was also done during the ICO or pre-ICO days. They didn't got much attention but the same as the AI, they could just bloom when we're in the bull run. I don't think that there's still that much to think of for DeFi but with RWA, if a known company starts to do this then that's something that people might look upon with. I remember now, the NFT that's been associated with some known companies like Nike. They got attention but after that, there's nothing interesting anymore. This is like distribution of stocks just as petro oil or any company that will offer a token as their share, I'm not optimistic with this approach though.

@passwordnow. It did not get much attention on 2017 because the cryptospace did not have enough of the infrastructure it presently has today. Also, the interest from traditional finance was only limited towards bitcoin, altcoins and their ICO scamcoins. The cryptospace today is very different and certainly much more ready to accomodate tokenization of real world assets and securities.

I agree, that it has become different today and just like the AI trend there have been those type of projects before but wasn't noticed because the focus were not on those. I guess they were saved for today's time and when we seem to run out with new ideas, they're going to come in. Who knows if they're going to be the next trend and maybe by next year when the market is about to get back to its former shape, the new ideas will come again such as RWA and there might be a smooth transition for its introduction.

The point of VV181 is very comprehensive, a decentralized finance is basically meant to virtual currency not a decentralized currency, and dealing with world what you will use is centralized currency and it's obvious from my perspective, world asset should be basically for centralized currency, as I portray before that anything that deal's with decentralized should be virtual in which you can touch but you can see it.

With governments eager to have control of everything, we should expect physical items to become a thing of the past. You see, it's much easier to restrict/conficate a person's digital possesions than physical ones. This, of course, would happen in a government-controlled "Blockchain network". CBDCs are right around the corner, so it might not be long enough before digitized RWAs become a big hit.

Expect digitized RWAs to develop on decentralized public blockchain networks, before they migrate to centralized blockchain networks (controlled by central banks and governments). This so-called "De-Fi" is nothing but "experimental grounds" of what's coming next. Who knows what the future holds for our society? Just my thoughts ;D

The difference on who will implement the next RWA storylines is it will not be the hustlers and the clowns in the cryptospace. It will be the rulers and the real criminals from traditional finance hehehe. They will bring their trillions and tokenize anything that could be sold to retirement funds and pension funds.

That sounds scary, I feel that many will be missing out again or those who won't are likely to be the real gamblers.
It's gonna be like another trial and error for them for sure, as it goes from the pros in the finance.

Possible that they will be a thing together when the bull run comes, it's like we always need something to push the market up.

@passwordnow. I would agree that the early investors on RWA are gamblers, however, if the inflow of fiat and stablecoins are increasing quickly from $5 billion total value locked to more than $500 billion total value locked, I reckon this would be a gamble that will give you a higher chance of winning if you are early.

Yup, that's true and it's always the first risk-takers that get to have those profits but of course, there's the possibility that they get nothing.
I didn't know that there's much locked value on it and that's for sure going to be provide liquidity if some companies have already started in doing so.

@passwordnow. Agreed, this is why it is called gambling, risk taking or speculating hehe. However, if Larry Fink mentions that they can see a future towards tokenization, we can be quite certain that inflows of funds will certainly go into protocols that implement RWA.

However, another speculation. Where and what blockchains would much of these RWA projects be created? I reckon some people from traditional finance already know.

https://i.ibb.co/n7CGcn8/5-BC31723-6-B06-4-BE3-8-CAB-4-D12-EF77-F453.jpg
Cathie Would

Cathie Wood’s Ark Invest joins VanEck in race for spot Ethereum ETF[/b]

Source https://www.dlnews.com/articles/snapshot/ark-invest-and-vaneck-file-for-ethereum-etf/

I agree. I think this is the new trend that gambling is going to be. Maybe it's still in the early stages but this can only be accessed by those who have capital and expertise in the financial sector. If blackrock says they will tokenize assets in the real world then get ready for major inflation. Because when it is made in the form of a token of course the price can be very high and if this tokenization becomes the future I think there will be a crash of FIAT.

Indeed, people seek conveniences, this will also help people who prefer digitalized things. However, your scenario assumed that the governments have extremely high public trust. In that way, it is very likely most people are using digitized RWAs. But if public perception of the government is low or mediocre, I doubt most people would willingly trade the real asset/commodity with a digitalized version. Certainly, as I said before, a high public trust also means they do have a strong policy and regulation specifically concerning consumer protection. It is because, essentially, a digitalized RWA is a kind of IOU to the government or the centralized entity governing that.

True. They are the ones that make the trend, it makes sense when there's something new and they're implementing that to make everyone FOMO.

I guess that they're able to introduce it not that easy to the market but soon, they're going to make it look like as if it's a new trend that people should be welcoming about. The edge of the companies that are known to the tech and finance industry are higher and better and that's why bbc is right that they're the ones who already aware of that possible trend that's about to come.

Maker is making big moves in RWA tokenization. Another angle that people are not considering is that with DAOs, people can join together and pool resources to invest in RWAs too. Like constitution DAO, where they tried to buy a copy of the US constitution together. I think there will be more of that kind of stuff, likely hosted on Q Blockchain or Ethereum with kali wrappr for legal protection.

I very much disagree. DeFi is open finance. I speculate that it will not only b Blackrock. There will be more institutions from traditional finance that will tokenize different types of RWA and they will be available for anyone who can run a metamask wallet to access DeFi. They expertise needed that you say might be the timing on when to buy or sell, very much similar to trading cryptocoins hehehehe.

I certainly think this latest Ethereum update stengthens my argument for the real world assets storyline which might begin on 2024 or 2025.



The Ethereum community has approved the ERC-3643 standard. This standard is the first-ever designed specifically for compliant tokenization. This new standard improves upon the widely used ERC-20 standard, particularly in securities activities. It enhances ERC-20 tokens with controlled advanced functions and compliance modules.

Source https://cryptobriefing.com/ethereum-community-approves-first-ever-compliant-tokenization-standard-erc-3643/

It's inevitably the future. RWAs are so much better than crappy NFTs with no real use cases (JPEGs, digital art, etc). Everything from Gold to Diamonds and Real Estate will be tokenized on the Blockchain. A good thing for ETH's long-term mainstream adoption. The only problem would be scaling, but that's something the community would need to discuss at a later time (L2 scaling is not a solution to all of ETH's problems).

I guess ETH will further solidify its position as the second-largest cryptocurrency in the world m. I wonder how other chains will catch up? Crypto land is full of surprises, so expect the unexpected. As long as "De-Fi" fulfills its mission of bringing "banking to the unbanked", nothing else matters. Just my thoughts ;D

Honestly, the community has been dealing with that problem of scaling and how many years has it been? It seems that even with that problem. And with the RWAs, we always get something new from the market and compared to NFTs, this is way better if utilized that much.
But after this, I think that we'll get to see another one again or we might see the recycle model of these projects coming from ICO/IEO/STOs. Who knows.

News update.

It appears that Blackrock's Larry Fink might already have a roadmap for their future investments in the cryptospace after the spot ETF for Bitcoin. This will be the tokenization of real world assets in Ethereum as already mentioned and an application for a spot ETF for Ethereum. Blackrock will put money to go inside the money then to produce more money hehehehe.

https://i.ibb.co/bszs0HJ/B1453-D34-2-CEA-4-AC0-994-A-65-A24-E48-A21-D.jpg

BlackRock CEO Larry Fink said today on CNBC that he sees value in having an Ethereum exchange-traded fund (ETF), fueling speculation a spot ETH ETF will trade next after the record-breaking launch of spot Bitcoin ETFs.

“I see value in having an Ethereum ETF,” Fink said in an interview Friday.

Fink said he believes all securities will be tokenized.

“These are just stepping stones towards tokenization,” he said, adding that the technology to tokenize everything already exists.

Source https://thedefiant.io/blackrock-ceo-larry-fink-sees-value-in-an-ethereum-etf

When there's hype, you can expect even "dead projects" to come back to life. Scaling would not be an issue if there's money to be made. Whales are the ones who dictate the rules of the game. Whereas now NFTs are popular, tomorrow they will be forgotten as people move on to the next big thing in crypto. RWAs, SBTs, and even AI-based tokens will take the crypto world by storm.

The craze will never end to be honest. You'd need to take advantage of the opportunity when it strikes to profit in return. As long as you don't spend everything you have into these risky digital assets, there should be nothing to worry about. ;)

The "big boys" always get what they want I guess? It may not be in an instant because of the oppositions but they end up winning eh? The ETF would definitely open up more doors for the Ethereum ecosystem and RWA could be a huge beneficiary. If these big boys are already looking at tokenized securities then that is likely to happen.