Tokenized RWAs Will TAKE OVER Crypto!

"However, current RWA proposals by the SEC and pending crypto regulation like the Clarity Act give us a sense of what final regulations will look like. In short, it looks like the main and possibly only requirement for issuing certain types of RWAs will be basic disclosures like who is issuing it, where they're based, how much of the RWA there is, whether the supply can be changed, who holds the initial supply, and so on and so on."

"Right now, most RWAs exist on permissionless blockchains, but in the future, they'll likely move to permissioned ones since large pools of capital require more compliance."

"Now, right now, most RWAs are non-native, but in the future, they'll likely be primarily native, assuming most assets become tokenized. And that's because stocks, bonds, and currencies make up most of global assets, and they could all be issued as native RWA."

"In the short term, the RWA with the most potential are likely to be non-native RWAs on permissionless blockchains, mostly precious metals and stocks you can trade on crypto chains. That said, this fundamentally depends on what happens with regulations in the short term. The SEC is looking into giving exemptions to many onchain activities, including RWA issuance and trading. If these exemptions arrive soon, we could see a wave of native RWAs being issued on all blockchains."

"In the long term, the RWAs with the most potential are likely to be native RWAs on permissioned blockchains."

"As more RWA emerge, the market cap of stable coins will grow. Logically, then you should be on the lookout to see which stable coin issuers will benefit most from these RWA dynamics. And the one that comes to mind is Circle, which not only has a tradable stock, but also has close connections to BlackRock."

"The main kinds of RWAs to watch out for are those backed by historically illiquid assets such as real estate. And that's because increased liquidity leads to more price discovery. And where there's volatility, there's opportunity in some."