• The real-world asset sector is growing rapidly and could reach a market cap of $16 trillion by 2030.
• Various factors, such as Amazon’s NFTs and Goldman Sachs’ GS Dap, are driving the growth of this sector.
• Tokenization of real-world assets can make them more accessible to a wider range of investors.
The Real-World Asset Sector
The world of crypto assets has seen significant growth in recent years, with the total market capitalization reaching over $3 billion in November 2021. A new sector within the cryptocurrency industry is poised to continue the trend and explode in growth terms according to decentralized finance expert Edgy – the real-world asset sector (RWA). Edgy believes that this sector could reach a market cap of $16 trillion by 2030, which could catalyze cryptocurrencies into mainstream adoption.
What Is The Crypto Real-World Asset Sector?
The real-world asset sector uses blockchain technology to tokenize real-world assets, such as real estate, commodities, and other physical assets. Tokenization means converting ownership of an asset into digital tokens, which can be traded on a blockchain-based platform, making the asset more accessible to a wider range of investors. To tokenize a real-world asset, a digital representation of the asset is created on a blockchain based platform that is then divided into smaller units or tokens that investors can buy and sell. Once the asset has been tokenized it can be traded on any cryptocurrency exchange like any other asset.
Catalysts for Growth
Edgy suggests that certain factors can act as “catalysts” to propel the growth of the RWA towards its target market cap of $16 trillion by 2030. These include:
• Amazon’s NFTs rumored to be tied to real-world assets • Goldman Sachs’ GS Dap platform allowing traditional assets such as loans and bonds to be tokenized • Siemens’ issuance of its first corporate bond tokenized on Polygon Network
Advantages Of Tokenization
Tokenizing an asset brings numerous advantages for investors including increased liquidity due to greater accessibility; fractional ownership meaning even small investors have access; cost savings from reduced middlemen fees; transparency through traceable transactions on distributed ledgers; improved security through cryptographically secure systems; faster settlement times; and global scalability due to no geographic restrictions.
The potential for growth in the RWA sector is immense with Edgy predicting it could reach up to $16 trillion in market capitalization by 2030 if several key catalysts are achieved. Furthermore, tokenizing these assets can bring numerous advantages for all types of investor while also increasing their accessibility globally with no geographical restrictions