Cosmoverse
Cosmoverse 24 - Tokenization Track
Key insights from the Tokenization Track
Seppmos
Researcher
Date
October 29, 2024
Key insights from the Tokenization Track
TL;DR of the Tokenization Track
- The $165T market opportunity
- Golden VISA via RWAs
- Tokenizing Real Estate
- RWAs made in Cosmos
- The biggest challenges for tokenizing RWAs
Agenda of the AI Track
Golden VISA via RWAs
Estate Protocol is collaboration with SmartCrowd are enabling users to get a Golden VISA for the UAE by purchasing real estate with their crypto.
Estate Protocol also announced that their protocol will soon go live on Mantra Chain.
The TAM for Real World Assets
The total addressable market for RWAs is massive as it includes most tangible and intangible goods & services we interact with on a daily basis like.
- Commodities, real estate, debt, stable coins.
- but also things as luxury goods, IP or art.
Difficulty of tokenizing RWAs
- It's pretty easy to tokenize fiat currencies and government treasuries.
- Tokenizing equities and real estate is much harder.
The RWA Opportunity
$164.5T is the market size of all financial assets as of June 2023.
Over the upcoming years and decades, it's very likely that most of these financial assets will move onto crypto rails and become tokenized for better liquidity, accessibility, and speed.
RWAs Made in Cosmos
RWAs have to be compliant with the laws, and as new regulations come up you need to have the ability to upgrade your validator set to match the newest standards, and this can only be done with a sovereign app-chain.
In Cosmos compliance and crypto can co-exist. Jayant Ramanand
RWAs tailor made for Institutions & Fintech
Provenance Blockchain started off on Hyperledger and got stuck in the mud. Then, we looked around and considered options like building an Ethereum L2 or something on Solana, but the Cosmos stack made the most sense to us cuz it gave us modularity and sovereignty. Joshua Maddox
There are $14B TVL on Provenance as of today.
Biggest challenges for the RWA sector
1) Regulation
2) Distribution
3) Privacy
are major hurdles for RWA mainstream adoption.
That's a wrap. We hope this article helped you stay up-to-date with the latest RWA developments in the Interchain.
Disclaimer
This article is intended to educate readers about certain topics and does not constitute financial advice in any way.