Potential RWA, Becomes One Of The Assets With Positive Narrative For Investment

Illustration. (Photo: Unsplash)

The Real Word Assets (RWA) token is projected to be a new narrative that will dominate the crypto world in the future thanks to the advantages of smart contract blockchain technology and wider adoption.

The RWA token market is estimated to reach a value of 16 trillion US dollars by 2030. This figure reflects the huge potential of the RWA token which is a special token that represents real assets in the physical world such as gold, stocks, houses, and other assets.

This token is created through the tokenization process using smart contracts on the blockchain and can be transacted like other blockchain-based tokens. Oscar Darmawan, CEO of INDODAX stated, RWA tokens allow physical assets to be converted into digital assets that can be traded on blockchain.

Examples of real-world assets that can be tokenized include houses, cars, jewelry, precious metals, and stocks. This process is similar to the concept of shares made in digital form and traded on exchanges, but with RWA tokens, trade is carried out on blockchain networks.

"In addition, RWA tokens can be used as collateral to obtain loans or generate dividends such as shares. For example, land certificates that are signed can be pawned for loans, or these tokens can provide passive income to their owners," said Oscar, in his statement, Monday, June 3.

However, there are several challenges in adopting RWA tokens. Legal and regulatory issues, especially in cross-border transactions, as well as the issue of trust between service providers and users are still the main obstacle. In addition, changes in the mindset and technology adoption by real-world asset owners are also a challenge in itself.

Despite this, RWA tokens have great potential to go forward with strong momentum. RWA may become the biggest gainer in the upcoming bull market, due to the large amount of money from real-world assets that will flow into the crypto market.

But keep in mind, ups and downs of tokens will follow the physical asset base, or the profit-sharing scheme. So that unlike Bitcoin, the ups and downs of prices are in accordance with supply and demand. In Indonesia itself, there has been an original RWA token since 2019, named lyfe.

"The RWA token opens new investment opportunities that were previously unaffordable by many people. With real-world asset tokenization, we can see higher liquidity and more efficient asset management. INDODAX supports this innovation and is ready to be part of the future of digital transactions," said Oscar.

One of the crypto projects that already carries RWA tokenization, namely Ondo. As is known, Ondo Finance is a Coinbase project that brings unique financial solutions by combining traditional financial aspects (TradFi) with decentralized finance (DeFi). This project combines real-world assets (RWA) with blockchain technology. The goal is to offer financial products and institutional quality services to anyone.

Oscar Darmawan added that INDODAX provides Ondo tokens on its platform exchange for trading. On INDODAX since early January 2024 ONDO has occupied the 7 largest volumes with a value of IDR 1.493 trillion, even since May, ONDO has occupied the 9 largest volumes with a value of IDR 242.59 AD. Several traders and investors can transact easily after conducting independent research (DYOR) and consider buying and selling RWA assets related to this finance.

In addition, to educate the public, INDODAX also provides news that is always updated actually to provide up-to-date information about tokens, coins, and various other news related to the crypto world.

"We are committed as a source of reliable information for our users. Always monitor our social media platform, visit the official INDODAX website, and use the INDODAX Academy for free as a means to learn together. INDODAX Academy offers a variety of educational materials ranging from crypto foundations to deep market analysis, all designed to help users understand and take full potential from crypto investments," he explained.