When you hear 'Web3', 'DeFi', 'blockchain', you might feel these concepts are distant. But did you know? With the rise of RWA (Real World Assets), the blockchain world is gradually permeating our lives—from government bonds, real estate to gold and accounts receivable—all of which could be transferred, traded, and managed on-chain!
RWA is becoming the most likely 'real-world application scenario' for Web3.
🧠 What exactly is RWA?
RWA, short for Real World Assets, is called 'real-world assets' in Chinese.
Simply put: it moves real-world assets 'on-chain' and enables digital circulation through tokenization.
For example:
A U.S. government bond transformed into an on-chain debt token;
A real estate property divided into multiple NFTs representing ownership shares;
An accounts receivable transformed into an asset that can be collateralized for loans in DeFi.
This is the charm of RWA: breaking down the high walls between 'traditional finance' and 'blockchain', achieving a synthesis of real value and on-chain circulation.
💡 Why is RWA the 'key bridge' for Web3 to land?
🚫 The biggest pain point of Web3: funds shifting from real to virtual, with an ecosystem that recycles itself.
✅ The emergence of RWA is breaking this closed loop, bringing real-world funds and assets 'in'.
Specifically, the value of RWA is reflected in several points:
✅ 1. Truly attracting 'traditional large capital'.
Most ordinary DeFi projects involve internal fund transfers on-chain. RWA can bring the assets of banks, institutions, and enterprises on-chain, attracting true players from traditional finance.
✅ 2. Provide stable income assets, reducing market volatility.
The DeFi market is easily affected by drastic price fluctuations. By introducing government bonds and debt assets, RWA can provide tools with 'stable income' on-chain, making it friendlier for conservative investors.
✅ 3. Enhance compliance and promote institutional participation
Many RWA projects have audits, compliance frameworks, and regulatory reports, naturally fitting into institutional entry standards, and are expected to become the 'stepping stone' for Web3 to mainstream finance.
🧐 Is RWA a new concept?
Actually, it's not new. As early as 2020, projects like Centrifuge and MakerDAO began trying to move assets like real estate and accounts receivable on-chain, but the infrastructure was immature, and market demand was insufficient.
It's different now:
🔹 The end of the U.S. interest rate hike cycle has led to a surge in demand for on-chain government bond products.
🔹 Policies in places like Hong Kong, Singapore, and Europe support the development of RWA.
🔹 Giants like BlackRock and Fidelity have already issued bonds and transferred assets through RWA.
It can be said that RWA has moved from the conceptual stage to the launch stage.
🔍 Let me give you an example!
A typical operation process of RWA is as follows👇:
In reality, there is a batch of U.S. short-term government bonds.
RWA project parties (like Ondo) collaborate with custodial banks to hold these government bonds.
Tokens 'representing this batch of bonds' are issued on the blockchain (like OUSG).
Users subscribe to these tokens with USDC, which is equivalent to buying U.S. government bonds on-chain, enjoying the returns.
✔️ With just a few clicks on-chain, you can participate in bonds that were previously only available to large institutions, and redeem them anytime.
Isn't that cool? This is the practical value of RWA!
🔮 Summary: RWA is a 'reaching hand' from Web3 to the real world.
The reason RWA is worth our attention is not because it's a trendy concept, but because it can truly connect 'Web3 and traditional finance'.
✅ It introduces real assets, expanding the variety of DeFi assets.
✅ It attracts traditional large capital, injecting fresh funds into Web3.
✅ It promotes compliance in Web3, enhancing feasibility.
RWA may not be the 'get-rich-quick scheme', but it is likely the golden thread that weaves through bull and bear markets.
👉 Upcoming: RWA is changing the financial system in 5 ways, don't blink! You are witnessing the reconstruction of finance.
📩 Feel free to leave a message with 'RWA', and I'll send you a chart analyzing mainstream RWA projects.
📬 Forward + Bookmark, don't let this main thread slip away quietly.