Introduction
An ever growing movement in the world of Web3 is that of the tokenization of real-world assets (RWAs). The emergence of this movement has caught the eyes of individuals and companies alike, and has helped in a transition between traditional and decentralized finance in a way that bridges a gap.
Real-World Assets
At its core, real-world assets are tokens that represent digital assets, thus tokenizing, assigning some random identifier to an asset, anything not on the chain, such as rights to the deeds of buildings or ownership of stock, and bringing it onto the blockchain. By doing so, data that in the status quo is not readily available now becomes more transparent with it being on the ledger, further increasing transparency in the financial market (among other places). However, despite transparency, sensitive information remains confidential via the unique tokenization process, eliminating cause for concern. Furthermore, RWAs bring about more benefits such as the coming of enhanced and greater liquidity, allowing more people to have greater access to more assets; this is done so through the ability to fractionalize assets. Just as companies have individual shares of their stock, assets such as commercial properties can be fractionalized into pieces during the tokenization process, changing the dynamic of transactions down the road.
Scale
Considering the wide array of options for what can be tokenized is constituted by anything not already on the blockchain, it makes sense that the world on RWAs is open to vast growth. However, with its upside comes its downside, which includes difficult logistics to bring a high volume of RWAs onto the chain and the protocols that follow it. Thus, many groups have stayed away from it until recently, where momentum from Bitcoin and other Web3 movers has opened the floodgates, signaling a new era that companies now look to capitalize on. For example, financial giant BlackRock is looking to bolster its entrance into the decentralized finance world on the heels of its iShares Bitcoin ETF, an exchange-traded fund focused on tracking the price of Bitcoin on a traditional stock market. With CEO Larry Fink at the helm, BlackRock is looking to maximize on RWAs using its preexisting assets such as bonds and real estate Karayaneva. With this in mind, it is understandable why the current market cap for RWAs, just under $10 billion, is expected to rise to over $10 trillion within the next decade.
Lucrisma
Aside from what is already implemented in this realm of blockchain technology, more options lie in the future. For example, loans and mortgages fit the mold set forth by RWAs. When you join Lucrisma, your financial data is securely tokenized. By having this data easily accessible due to its tokenized nature, not only can change and assets be monitored more easily than in the status quo of the traditional finance world, but there are now more applications for this data. With Lucrisma, users whose financial data is already tokenized have the opportunity to apply for a mortgage straight from the app. As Lucrisma is already connected to more than 12,000 traditional financial institutions, options for mortgages will be available at your fingertips, and what used to be a tedious process is now simplified with the harmonization between the TradFi and DeFi worlds. The process is not only expedited, but the stress that is involved in the conventional route is mitigated, and users can get on to what matters most in their lives.