Opportunities in RWA.

The recent rise of USUAL, ONDO, and OM has brought renewed attention to the RWA track. I think this is a good thing; in the next four years, during the golden window of friendly policies, besides stablecoins and payments, RWA will also be a major affected area.

In simple terms, RWA is about tokenizing real assets on the chain, allowing for free trading on the chain. Currently, there are several cases that have performed well and have gained recognition from the market and exchanges.

For example, the gold-backed stablecoin PAX Gold stores physical gold in regulated vaults and issues tokens equivalent to that amount of gold. Some DeFi protocols convert traditional assets like accounts receivable and debt into on-chain tokens, allowing users to purchase them on the chain for stable returns.

However, unlike these individual projects, the target of this wave of speculation is mainly RWA public chains and platform tokens, as the market has priced them as the infrastructure in the RWA field, somewhat similar to the major infrastructure of DeFi in previous years.

Market recognition.

The core reason why ONDO and OM's token prices have surged during this wave is the underlying assets. For instance, ONDO is the first company to tokenize exposure to U.S. Treasury bonds and also offers institutional-level services, allowing large enterprises to participate.

Ultimately, they provide a set of products backed by U.S. Treasury bonds, such as USDY and OUSG, with the former mainly aimed at retail investors and the latter at institutional investors.

These incomes and governance will all impact ONDO. The market also tends to price it similarly to bank stocks in the securities market.

The latter, OM, as a public chain based on RWA, has collaborated with MAG, a local real estate giant in the UAE, to tokenize $500 million worth of real estate, which is currently one of the larger collaborations in the RWA field. This favorable news has reflected in the recent coin prices.

Currently, OM itself is a public chain specifically for enterprises to issue and manage assets. If you want to create, manage, and transfer tokens on the platform, you need white-list permissions from the official, which ensures that the trading parties above are certified enterprises.

What opportunities are there?

Recently, the entire RWA, as well as Ethereum's DeFi and NFT sectors, have been experiencing a general rise, with some mentioned leading coins performing very strongly in this wave.

Therefore, the focus should be on projects within the same sector and those that have not yet issued tokens, with recent observations mainly on several, such as Plume Network themed around RWAFi.

Because RWA projects generally require enterprises and individuals to participate in on-chain pledging of real assets to generate income, RWAFi can be understood as buying a house in reality but not living in it, instead renting it out, ultimately obtaining the value of the house itself plus income-generating assets.

Plume is currently the most optimistic in terms of market data among unissued tokens, and the team has revealed plans to issue tokens for listing during this market wave.

Its lead investor is Galaxy Digital, a well-known financial asset management institution in North America, whose main business is asset management, mining, and trading, with investment being only a small part of their operations. Currently, they are major holders of UNI, ETH, and AVAX.

Another important investor is Haun Ventures, founded by former a16z partner Katie, who was previously a board member of Coinbase, served as a federal prosecutor, and is a well-connected individual in North America.

For players considering asset allocation and wanting to participate in airdrops, besides the recently concluded RWAFi deposit function, the test network is currently open, and the website has four tasks available for everyone to complete.

The official also revealed that

Deposits may open several more rounds to allow everyone to experience the combined returns of RWA and market DeFi strategies.

Currently, the secondary sectors being tracked and focused on are MKR, COMP, RIO, ONDO, MPL, USUAL, and OM. If you have more, feel free to recommend.

I hope the above content is helpful to you. Thank you for reading.