Greetings, fellow crypto enthusiasts! Today, we’ll explore the next big wave in the world of crypto, and it’s as real as it gets: Real World Asset tokenization (RWAs). Over the years, I’ve been pretty accurate in predicting crypto narratives. In 2017, it was ICOs, 2020 saw the rise of DeFi, and 2021 was all about NFTs. The one I missed? Meme coins, which I tend to overlook in favor of more substantial use-case cryptos.
The Real Deal: Real World Asset Tokenization (RWAs)
The next major narrative revolves around the tokenization of Real World Assets, such as financial securities. Prominent figures like Larry Fink, CEO of financial powerhouse BlackRock, have highlighted the importance of tokenizing next-gen markets, including financial securities.
Leaders in the Space
- BlackRock, in partnership with JP Morgan and their blockchain Onyx, is venturing into tokenizing money market funds.
- Franklin Templeton, a global investment firm, dived into tokenization back in 2019 by announcing the tokenization of a government money market fund on the Stellar blockchain.
Franklin Templeton’s Journey
While it took some time, this project eventually launched in April 2021. The fund initially had over 100 million in tokenized government treasuries on Stellar and has since tripled to over 323 million AUM. They continue to dominate the space alongside Stellar.
Expanding the Horizon: Ethereum Layer 2
In addition to Stellar, Franklin Templeton expanded to the Ethereum Layer 2 Polygon blockchain. While the performance on Polygon has been modest, Franklin Templeton’s presence in the world of tokenization is undeniable.
Other Players in the RWA Space
Another major player in tokenizing financial securities is Ondo, tokenizing short-term US government bonds on Ethereum’s Layer 1. Their AUM has witnessed substantial growth this year, reaching 158 million.
Airdrop Speculations with Ondo
Ondo, currently without a governance token, might follow the recent trend of airdrops, especially given the success of projects like Celistia ($TIA). Their documentation suggests the possibility of an airdrop as part of their token distribution strategy.
Beyond Financial Securities: Real World Loans
RWAs extend beyond financial securities to real-world loans. Leaders in this space include Maple Finance, TrueFi, and Centrifuge, collectively issuing billions in loans.
Maple Finance’s Coinbase Integration
Maple Finance recently expanded to Coinbase’s basechain. This development hints at an exciting partnership behind the scenes, and it’s a sign that significant developments are on the horizon.
Maple Finance as a Buy Opportunity
With Maple Finance facilitating over 1.7 billion in loans and a market cap of only 53 million, it’s a potential buy opportunity. As of now, the Total Value Locked (TVL) in RWAs is double Maple’s market cap.
RWAs: The Next Crypto Bull Cycle Narrative
RWAs are set to be the driving narrative of the next crypto bull cycle. It’s time to embrace the reality and explore the opportunities that lie ahead.
Cheers, and see you in the next update! Namaskar.
The Next Big Wave in The World of Crypto