Nikolas Sargeant
Binance Research, the world’s top cryptocurrency exchange’s research unit, has recently released its latest comprehensive report titled "RWAs: ”A Safe Haven for On-Chain Yields?”. The September report covers Real-World Assets (RWAs) and their increasing role in decentralized finance (DeFi) as a stable and secure source of on-chain yield.
With blockchain technology advancing even further, RWAs, like tokenized US Treasuries, real estate, private credit, and carbon credits, are slowly, for better or worse, disrupting the financial world between TradFi and DeFi. With over $12 billion in tokenized assets on-chain (excluding the stablecoin market), RWAs are emerging as a pivotal driver for sustainable yield generation on blockchain platforms.
The report explores:
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Market Growth: RWAs have seen huge growth from major institutional players, including BlackRock, Franklin Templeton, and WisdomTree.
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Key Technologies: Smart contracts and specialized oracles are facilitating the transfer of RWAs onto blockchain.
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Technical and Regulatory Challenges: Centralization, third-party dependencies, and legal frameworks are all challenges to RWAs.
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Future Outlook: The implications of upcoming US interest rate cuts on the RWA ecosystem and the broader DeFi landscape, with RWAs offering opportunities for diversification and transparency.
"TradFi giants, BlackRock and Franklin Templeton have helped to take the tokenized Treasury market to new highs," the report’s Introduction highlights. "In this report, we provide background on the various key categories within the RWA space and recent TradFi involvement before taking a tech-driven tour of a handful of the most interesting major protocols in the space.."
The report also highlights six major RWA protocols, including Ondo, OpenEden, and Centrifuge, and provides a detailed analysis of their structures, yield potential, and associated risks.
The full report, "RWAs: A Safe Haven for On-Chain Yields?" is available now on the Binance Research website.
