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The growth of the RWA segment outpaces Bitcoin and Ethereum
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The growth of the RWA segment outpaces Bitcoin and Ethereum

Jun 10, 2024

In May, the sector of tokenized real-world assets (RWA) led in growth rates, exceeding the average of 21% in the crypto industry. According to Artemis Terminal, RWA grew by 58%, while the ecosystems of Ethereum and Bitcoin showed growth of 26.1% and 18.2%, respectively.

This growth was driven by several significant events, such as major asset tokenization projects and positive regulatory discussions. This trend highlights the growing potential and importance of this sector for the entire financial industry.

Key Events in the RWA Sector

  • Stradivarius Violin: Galaxy Digital tokenized an Antonio Stradivari violin valued at 9 million dollars. The owner plans to use the token as collateral for a loan.
  • Watford FC Shares: Watford FC football club put 10% of its shares up for sale in digital format through the Republic and Seedrs platforms.
  • Regulatory Attention: The US House Financial Services Committee held hearings on the tokenization of real assets, discussing the need for additional rules to support this segment.

Long-Term Prospects of RWA

Experts are optimistic about the long-term prospects of the industry. According to BlackRock CEO Larry Fink, the tokenization of RWA increases the flexibility of investment strategies, reducing transaction costs.

Franklin Templeton CEO Jenny Johnson also notes the revolutionary potential of RWA, citing loyalty programs and the reduction of minimum investment amounts as examples.

The combination of loyalty programs with real assets, in my opinion, will be very popular among companies. Blockchain technology simply makes it possible, she commented.

Traditional financial institutions are actively exploring the use of blockchain technologies in asset management, increasing inclusivity and fostering a savings habit among the younger generation.

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