We need to talk about real assets (RWAs)

TL; DR

• There have been a total of twelve ETF filings, and people think the SEC will approve them all at once – so it doesn’t seem to be a favorite.

• It doesn’t really matter. Because of two reasons.

  1. Bitcoin’s price can rise just as effectively due to a rumor than it can due to real, verified news – and it could (check out the header image)!

  2. Approval tomorrow, or approval next year… as long as it’s on its way, we’re happy.

Full story

Ultimately, the financial markets are just gossip circles where money is made.

A rumor spreads → some people bet on the outcome → money is made/money is lost.

The crypto markets are no exception.

And right now the crypto gossip circles are whispering three little letters:

RWA (Real World Assets).

So we should probably talk about them and discuss them: what they are, why they’re worth being excited about, and where they have an advantage.

1. What are they?

   RWAs are (you guessed it) real-world assets represented on a blockchain.

   For example, buy an NFT → it gives you ownership over a house/vintage wine/watch/whatever.

2. Why are they worth being excited about?

   RWAs aren’t new – in fact, they were around during the last bull run – but the interest in the technology and market wasn’t quite there yet.

   This time, it seems like the market is ready for RWA adoption (at least that’s what the market rumors suggest – people won’t shut up about it).

   And this level of chatter/excitement often leads to investment and development.

3. Where is the advantage?

   Speed ​​and access make these RWAs easier to trade, attracting more buyers and growing the market. Imagine buying and selling a series of apartments, single-family homes, and commercial properties (all individually) several times a day (the same way you would if you were trading stocks every day).

   That does not happen in the current system.

   To buy/sell a property you have to deal with public/private auctions, brokers, agents, lawyers etc for several days/months.

   RWAs can hyper-contract the time and effort required to trade these physical “things” by representing the ownership of each asset as a token on a blockchain – allowing people to trade them at the speed of a crypto transaction.

…and it looks like the adoption has already started, for example: Courtyardis giving away a storage platform for collectible cards ‘tokenized mystery packs’.

That is, Mystery Packs consisting of tokens representing real Pokemon cards, which are stored at Courtyard (no packaging/shipping required).

Pretty neat!