Huge Potential! RWA Cryptos Will Go Higher Than You Think!

Real world assets or rwas is a narrative That could really fly this bull market And when we saw that one of crypto's Leading price tracking sites had Published a report about rwas we knew we Had to take a closer look so today we're Going to summarize that report explain What it all means in simple terms and Tell you exactly which projects to keep A lookout for this is a video you don't Want to Miss the report we'll be summarizing Today is called quote rwa report 2024 Rise of real world Assets in crypto it Was published by coin gecko on the 26th Of March and we'll leave a link to the Full report down in the description and We recommend you give it a read if you Have the time but if not then don't Worry we'll be giving you the juiciest Bits right here in this video now to Kick things off the report begins with An overview introducing us to our waas And giving a few points to illustrate Their importance as the authors Explained real world assets represent Tokenized versions of tangible Assets in The physical world that are brought on Chain in plain English rwa tokens Represent things like stocks bonds and Real estate which can be traded on Smart Contract blockchains like ethereum the Authors Begin by outlining the history Of real world assets explaining that

They've been around since 2014 in the Form of stable coins which are of course Just tokenized Us dolls the authors also Note that tether actually issued the First usdt tokens on the Bitcoin Blockchain fun fact about that usdt was Originally launched in July 2014 as Realco coin before rebranding to tether In November that same year anyway the Report also explains that there are Stable coins that are pegged to things Other than Fiat currencies such as Paas's Pax G which serves as tokenized Go backed by real physical gold that's Stored in Bank vaults as another fun Fact the gold backing PX G is secured in Brinks vaults in London and you can even Redeem your Pax G tokens and have paxos Literally send you physical gold anyway During the Euphoria of 2021 some lending Platforms such as Maple goldfinch and Clearpool allowed institutions to borrow Funds without the need to put down Assets of their own as collateral then In 2023 some platforms began to offer Tokenized treasuries which offered Exposure to treasury bills once their Yields started to exceed those in defi Analysis shows that from the start to The end of the year the total value Locked for tokenized treasuries soared By 641 per. and by the way if you're Enjoying the video so far smash that

Like button to give it a boost and while You're there subscribe to the channel if You haven't already and ping that Notification Bell so you don't miss our Next video hold up a second there guy Sorry to interrupt folks but I just Wanted to very quickly tell you about The coin Bureau deals page now this is The place where we have put together Some of the very best deals and Promos In all of crypto so you can think things Like exchange signup bonuses trading fee Discounts and money off of Hardware Wallets and much much more besides so if You want to check that out coin.com Deals is the place to go or you can just Use the link in the description of this Video down below thanks very much and Now back to you guy anywh who the Reports authors then go on to split a Number of rwa projects into seven Categories these categories are Tokenized treasuries and securities Private credit real estate exchanges Stable coins regenerative finance and Arts and collectibles now we won't go Into every entity in each of these Brackets for the sake of time but as You'll see here there are a few Well-known companies in each as well as Some that many people probably won't be Too familiar with the authors also note That this list isn't exhaustive and Doesn't represent the entire rwa space

That being said it does offer a good Oversight into just how many projects Fall into this Niche moving on the Report then Compares companies offering Fatback stable coins and commodity Backed Assets in the pretty handy table they've Created each company is explored to see Which stable coins are offered what Chains they can be found on as well as a Few other details so to use tether as an Example you can see it offers fat-based Stable coins such as usdt e cnht and Mxnt as well as its goldback stable Asset XA tether's reserves are collateralized As cash and cash equivalents US Treasury Securities corporate bonds secured loans And BTC while its current custodian is Kor Fitzgerald tether provides rwas Across 14 different blockchains has no Governance token and has some fairly Competitive minting and Redemption fees On the other hand meanwhile the second Largest stable coin issuer Circle offers Just two fatback stable coins usdc and Eui C Circle reserves are collateralized As cash and cash equivalents and US Treasury Securities their current Custodians are bny melon customers bank And cross river bank they provide stable Coins across 13 different blockchains Have no governance token and have even Better fees than tether when it comes to

Minting and Redemption next the authors Assess the market caps of Fiat back Stable coins the report notes that as of The first February their total market Cap was $33.60 two billion at least at the time Of shooting now obviously stable coins Are predominantly made up of USD Peg Tokens the top three stable coins namely Usdt usdc and D account for 95% of the Market share with usdt single-handedly Making up 71.4% to the author's credit they also Point out usdc D pegging in March last Year what's crazy is that stable coins In other Fiat currencies such as the Euro the Chinese un or the Mexican peso Collectively make up just 0.2% of the overall market share the Authors also take a look into the Parabolic growth of stable coins in 2020 For reference at the start of that year Stable sat at a collective value of 5. 2 Billion but reached a high of $150 Billion just over a year later an Increase of 30X by March 2021 when it comes to commodity-backed Tokens meanwhile the authors comment That these can fluctuate in value Depending on what the underlying asset Is doing as of the 1st of February the Total market cap for these assets was $1.1 billion this accounts for just 0.8% of the market cap of fatback stable

Coins so they're really being dwarfed in Comparison in fact the market share of Commodity and non USD back stable coins Hasn't really changed in other words They don't seem to be growing any faster Than USD stable coins nevertheless 83% Of the market cap of Commodities is made Up of just two gold-backed assets Tether's xut and paas's paxg the authors Note that different Commodities will be Backed by different amounts of precious Metals as they put it quote xut and paxg Are both pegged to the price of one troy Ounce of physical gold while other Tokens such as Kinesis gold K and ver One vro are pegged to the price of one Gram of gold the next section of the Report looks at tokenized treasuries These gained traction during the bare Market as investors looked for a lowrisk Way to earn a steady yield on their Assets notably these come with more Regulatory scrutiny and as such kyc on These is mandatory and there may also be Limitations on who can actually invest In them coin gecko lists seven providers For tokenized treasuries these are Franklin Templeton Ono Matrix doc backed Hash note open Eden and superstate each Treasury offers a modest yield within a Range of 4 4.7% to 5.4% what's intriguing here is that Franklin Templeton is the largest issuer By a wide margin and also seems to be

The only one to not offer its product on Ethereum any who the following page Explains the structure of tokenized Treasuries basically issuers will work With Brokers to trade their assets under Management or alternatively they can Directly subscribe for treasury Purchases from the US government these Assets are then stored with a custodian Who will have an updated list of holders And their balances the fund manager will Then work directly with the custodian For various operational tasks such as Onboarding new users now it's important To note that tokenized treasuries aren't Actually backed by the treasuries Themselves rather they're backed by a Money market fund set up by the issuer These funds are capital market products With their own rules and regulations and This is why kyc is a necessity next the Authors dig into the market caps of These tokenized treasuries again the Date they reference is the 1st of February when there were 861 million of treasuries on chain as Mentioned earlier these saw parabolic Growth of more than 6% during the bare Market Franklin Templeton controls a 38.6% share of the market with 332 Million Of tokens issued it's also revealed that Most Protocols are primarily based on Ethereum which hosts

57.5% of the market share however a few Such as Franklin Templeton have instead Opted to use Stella which holds 39% of The market share not bad at all Considering How Stella doesn't seem to Be the choice for most treasury issuers But also not that surprising considering That Stella has been trying to secure Institutional Partnerships like this for Years is okay so the next section of the Report looks at real world borrowing Using onchain platforms the first part Looks at private credit protocols these Work a little differently to over Collateralize defi loans as they instead Allow real world businesses to obtain Unsecured loans based on their credit History the report names seven of the Top private credit protocols Maple trui Centrifuge clearpool Goldfinch credits And Florence Finance the authors then Provide this infographic that details The bridge between real world borrowers And onchain Loan providers basically Protocols will create a lending pool Which they'll either manage themselves Or delegate to a reputable third party Then users can deposit funds into the Pool as liquidity to be lent out to Borrowers in return lenders receive Liquidity provider or l P tokens which Represent their share of the Pool borrowers who are interested in Taking out a loan are assessed by the

Pool manager before they're accepted Then once the terms of the loan are Agreed the borrower receives funds from The lending pool which they'll then have To pay back with interest when the Lender redeems their LP tokens they Withdraw their share of the pool's Funds next the report looks into the Total active loan value of the top seven Private credit protocols the authors Note that quote onchain private credit Reached New Heights in 2021 however they subsequently suffered Significant defaults once the crypto Market crashed in 2022 but are now Seeing a recovery as of the 1st of February the total active loan value was At $446 million the report notes that the Demand for leverage from crypto trading Firms saw a meteoric run in the runup of 2021 most of which was facilitated by Trui and maple Who provided 86% of the Total active loans across the market in The aftermath of Tera 3ac and FTX Maple Suffered a $10 million default and the Total market value of active loans Crashed by 82.7% ouch that said the authors also Note that active loans are making a bit Of a recovery with the value increasing By 60% by by the end of 2023 this is mainly thanks to real world Lending firms like centrifuge and

Goldfinch with the former making up 53% Of the overall market share now to the Analyst's credit they provide an In-depth breakdown of borrower Demographics what's interesting is that 42% of private loans were used for cars Which is the largest use of these loans By quite a wide margin the second and Third largest usages were for fintech And real estate at just 19 and 9% Respectively what's crazy here is the Difference between the demand drivers That's because over the last year there Were 60 Automotive loans taken out for Cars with over $168 million lent out However there were no loans taken out Whatsoever for the second largest demand Driver fintech in 2023 another crazy Statistic is that while there were a Total of 840 loans taken out last year Only 10% of these loans are currently Active the other 90% have either been Repaid or defaulted on in the wake of Tera and 3ac in regards to geographic Location meanwhile most of the loans Were taken out by firms from Emerging Markets such as the whole of Africa who Took out over 40% of all loans whereas Countries like the us only have one Active loan now real world assets can be Used for more than just offering Services from The Real World the next Section of the report looks at how some Projects can actually help to heal the

World itself in a new sector called Regenerative Finance or refi these Projects aim to address social and Environmental issues by leveraging Blockchain technology the report notes That there are four areas that refi Projects will focus on to help Regenerate Good Old Mother Earth these Are tokenized environmental credits if You catch my drift ocean and marine Conservation renewable energy and public Goods funding starting with tokenized Environmental credits these projects Incentivize institutions to reduce their Environmental impact and can register Their excess credits on chain which can Then be traded on a Marketplace next Ocean and marine conservation projects Aim to use blockchain technology to Reduce the damage to our planet's Waters Plastic removal can be tracked on chain And marine life is protected by projects Tracking Seafood sustainability there Are also projects aiming to protect Marine biodiversity through blue Environmental credits then we have Renewable energy projects that track and Share verifiable onchain data on Renewable energy even allowing companies Around the world to purchase tokenized Versions of this energy to help power And scale up their businesses the final Refi category meanwhile is is public Goods funding these projects aren't

Necessarily focused on environmental Impact but rather on offering onchain Resources to others so for example by Matching public donations or Incentivizing project developers to Build on open-source software refi Projects like these stand to make the World a better place and remind us that Crypto really can make a difference However this assumes that the real world Assets backing these cryptos are Legitimate recent studies into Vera the World's leading standard for climate Action and sustainable development have Shown that over 90% of its environmental Credits are completely worthless H okay In the next section of the report the Authors note that on top of the Traditional Financial products we've Seen tokenized on chain the crypto Industry has also seen an increase in The number of capital market products Being experimented with over the last Few years in 2021 C genal issued a Million euro medium-term note on tezos This was a key driver for the Development of Forge a regulated Subsidiary offering crypto-based Services ranging from crypto asset Structuring issuing and custody then the European International Bank or eiib Issued a 100 million euro 2-year Bond on Ethereum this was done in collaboration With giants such as Goldman Sachs and

Sant andere with the move being geared Towards the dystopian roll out of cbdcs In 2022 KKR tokenized part of a $4 Billion fund to further offer out to Individuals albeit you had to have a Minimum of $100,000 and funds went through a One-year lockup period also in that year BNP Paribas issued tokenized bonds for Solar energy projects UBS London issued 50 million worth of tokenized debt Securities and rabo Bank issued €40 Million of commercial paper on chain Things continued in 2023 when ABN Amro Released a 450,000 digital Bond on a public Blockchain Seamans issued a60 million EUR one-year Bond and the Hong Kong Government issued a tokenized green bond Worth $800 million Hong Kong dollars on The following page the authors note that Quote a big portion of tokenization Experiments by trafi has been conducted On private blockchains instead of public Networks leading to debates surrounding Security they then compare the pros and Cons of trafi Institutions using either Private or public blockchains we won't Unpack everything here for the sake of Time but here is a quick Tldr basically if tradire institutions Opt for using private blockchains They'll benefit from enhanced privacy Obviously and simplified consensus

Mechanisms such as using proof of Authority this makes everything run in a Straightforward manner but the trade-off Is obviously centralization now this Might sound like something trafi would Opt for but remember that this means There are fewer points of failure a few Bad actors or a malicious bug could Easily the network on the other Hand if trafi institutions instead go For a public blockchain they would Benefit from heightened security as the Authors of the report put it quote in General a key component of a public Blockchain security is strength in Numbers where a large number of node Operators secure the network the Tradeoff here is that well it's more Public this is because with public Blockchains everything is publicly Viewable by all something that might not Always be ideal in this situation not Only that but the more people there are Using the network the more congested and Expensive it will be to use with black Rock recently launching its tokenized Bidd fund on the ethereum network However it looks as though public Blockchains will be the way forward Especially considering that it drew in $245 million of deposits in only its First week moving on in the next section Of the report the analysts at coin gecko Look at real estate and tokenized goods

These are the more commonly discussed Use cases for rwas and the analysts have Divided these into four categories these Are real estate arts and collectibles Luxury goods and fashion each category Has its own description and a few Examples of projects fulfilling that Particular Niche starting with real Estate the authors explain that Tokenized versions have the benefit of Increased liquidity and fractionalized Ownership put simply you could buy up Say 10% of the tokens for an office Block and you'd have 10% ownership and Would therefore get 10% of any income That property makes anyways the authors Note two projects that approach real Estate rwas in different ways with one Converting paper deeds into digital Tokens and another focusing on offering Alternative methods of real estate Payments using crypto or even nfts next We have arts and collectibles this Allows for the fractionalization of Things like fine art or Collectibles Like trading cards which means they're a Lot more liquid and accessible when it Comes to Trading the authors note a Project dealing with collectible cards Allowing users to trade those cards on Chain while the physical cards are kept In insured vaults and another project That offers fractionalized Fine Art on Ethereum the next category is luxury

Goods similar to Fine Art this allows For fractionalized ownership of some Expensive products such as watches and Can verify those products authenticity On chain and the final category is Fashion whereby unique items can be Tokenized into nfts which gives fashion Designers the opportunity to bundle Unique digital experiences when Ownership is verified again the authors Note two projects in this Niche one that Merges fashion and gaming and another That merges luxury fashion items with Nft technology now the next page of the Report takes a look at the price returns Of some rwa governance tokens Interestingly the authors note that Quote while the overall rwa market cap Has grown significantly none of the rwa Governance tokens have posted a positive Return they then go on to explain that Rwa governance tokens from the 2021 Cycle took a brutal hit from the bare Market and despite having rallied since The start of the year they're still Mostly down by 90% from their all-time Highs okay so that just about rounds up The review of the last few years for Rwas but what about the future well in The fin section of the report the Analysts give their take on what the Future of rwas could look like they Start by reiterating that fatback stable Coins are not only the most simple form

Of rwa but also the most popular in Their words quote their importance to The crypto industry cannot be overstated They go on to say that while more Issuers have become comfortable with Crypto more real world assets have been Digitized on the blockchain primarily in The form of debt or credit some of this Debt is low risk offering a stable yield That's especially useful during bare Markets while other debt carries much Higher risk but with yields that can Compete more with Define notably the Authors reflect that this could be seen As a representation of the current Investor base and the assets which Appeal to them the authors also note That other tokenization efforts of Credit such as corporate bonds Environmental credits or real estate Have yet to find their place in the Market despite having been around for Some time now as the demographic of Investors becomes more Diversified so Too will the risk appetite the authors Comment that this could be a chicken and Egg problem as if there's no onchain Demand for Quality rwas there won't be Many being tokenized and vice versa this Makes sense consider that rather than Holding a tokenized treasury you can Currently earn a higher yield by lending Out usdc on Def protocols without having To go through any onboarding or kyc the

Report notes however that the most Encouraging developments for rwas are The recent moves towards the Tokenization custodial and payment Space By trafi giants like Franklin Templeton PayPal and Standard Chartered if all Goes well this could boost the Confidence of regulators and investors Alike this is very much needed because Arguably the biggest hurdle RW face Outside of demand drivers is regulation And finally the authors discuss where Rwas fit into the current landscape they Write that the future of rwas is Dependent on how projects can Incorporate third parties such as Oracles custodians and credit assessors Which they say are inevitable as they Put it quote how these are effectively Utilized and managed will remain a Crucial element for their continued Operations so this brings me to the big Question what does all this mean for Crypto well the short answer is that Real world assets are set for Rapid Expansion as the hype continues to build Around rwas the number of assets being Tokenized is only going to increase and Because tokenizing assets on the Blockchain unlocks additional Opportunities through smart contracts it Won't be long before more companies see The value of crypto and jump on the Bandwagon this will drive up investment

Into RW a from crypto Natives and Simultaneously boost adoption for retail And institutional investors not already Involved in the space the active Involvement from trafi giants like Standard Chartered PayPal and Goldman Sachs in tokenizing stocks loans and Real estate proves that confidence in Blockchain is already growing and isn't Slowing down anytime soon of course the Main hurdle that rwas have to overcome Is like I said regulation that being Said though the more institutions that Get on board the more likely it is that Regulators will get their heads together And come up with some real Frameworks This won't only help our wasas but Crypto as a whole yes there's probably Still a long road ahead of us before we Get full regulatory Clarity but this is Definitely proving to be a step in the Right direction during this bull market We'll see more solid projects pop up as They use rwas to serve a real world Purpose make no mistake some of these Projects will have 100x or even 1,000x Potential and you can learn more about Some other narratives we're bullish on By watching the video linked to below The key will be doing the due diligence Needed to filter out the ones that Simply jump on the hype as opposed to Those projects that offer genuine Utility it will be fascinating to see

What the space looks like even one year From now who knows when next year's Report comes out it could all look very Different and that's all for today's Video folks so if you learn something New show it by Smashing that like button If you want to see more educational Content like this subscribe to the Channel and ping that notification Bell So you don't miss our next release if You are actively trading crypto then Head on over to the coin Bureau deals Page it has trading fee discounts of up To 60% and sign up bonuses of up to $60,000 be sure to take advantage of These limited time offers before they Are gone the link is in the description So with all that said thank you for Watching and we'll see you in the next One this is Guy signing Off

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