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Tokenization of Real-World Assets: A Growing Trend in DeFi

Tokenization of Real-World Assets: A Growing Trend in DeFi

Tokenization of Real-World Assets (RWA) Gaining Traction in DeFi

Tokenization of real-world assets (RWA) has seen significant growth in recent years, becoming the 10th largest sector in DeFi according to a new study by Binance Research. This rise in popularity is attributed to the increasing adoption of RWA protocols and the introduction of stUSDT. The Ethereum blockchain currently has over 41.3K RWA token holders, a 130% increase from the beginning of the year. Tokenized US Treasuries have also gained prominence in the RWA sector, offering higher yields compared to DeFi. The tokenized treasury market is valued at approximately $603 million, with investors earning around 4.2% APY by lending to the US government.

$16 Trillion Market Predicted for Tokenized Assets

A study conducted by the Boston Consulting Group predicts that tokenized assets will become a $16 trillion market by 2030, equivalent to 10% of the global GDP. This projection takes into account both on-chain asset tokenization and traditional asset fractionalization. Experts believe that the adoption of RWA will be driven by the emergence of Central Bank Digital Currencies (CBDCs), tokenized assets in gaming, and blockchain-based payments on social media. Fractional ownership is seen as a key proposition for the widespread adoption of RWA.

Hot Take: Tokenization of real-world assets is becoming a significant trend in the crypto space, with DeFi protocols and tokenized US Treasuries leading the way. The market for tokenized assets is projected to grow exponentially in the coming years, driven by various factors including the adoption of CBDCs and fractional ownership. This opens up new opportunities for investors to access real-world yields through blockchain-based investments.

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Tokenization of Real-World Assets: A Growing Trend in DeFi