Narrative:

RWA (Real World Assets) directly translates to real-world assets. Its value lies in bridging traditional assets and the web 3 world to achieve digital representation of real assets, effectively utilizing or mobilizing real assets (such as real estate, artworks, etc.) to enhance asset liquidity. With the combination of RWA and blockchain technology, RWA can transcend geographical limitations. Regardless of geographical location, currency systems, or other influencing factors, users can conveniently complete transactions or utilize assets through this combination. When RWA is mentioned, real estate, stocks, and so on often come to mind. From the basic characteristics of RWA tokenization, stablecoins also belong to the RWA product category. It seems that RWA is getting closer to us. This is another narrative of RWA, namely “inclusiveness,” which allows investors who do not have enough capital to enter high-value markets to indirectly invest in high-value RWA tokenized products.

What does the future hold?

In the past year, the overall TVL of RWA has shown a fluctuating upward trend. During this cycle, RWA, AI, MEME, and others are all relatively popular tracks. RWA has always been one of the more关注的赛道.

Image source:https://defillama.com/protocols/RWA

In the future, RWA is likely to continue the trend, and the combination of RWA and the DeFi track may attract more and more investors’ attention. In fact, high-value assets such as real estate and commodities face difficulties in settlement during transactions, and the relevant laws and regulations in different countries vary significantly. It is highly probable that projects related to such high-value assets will be constrained in development due to implementation and regulation in these two aspects. Therefore, if projects of this kind in the RWA track want to achieve better development, there must be significant progress in PayFi or cross-border settlement regulation and RWA asset certification beforehand, rather than relying on third parties in various regions to assist in clearing or certification as most do now.

In addition, the RWA projects related to stablecoins are relatively stable, and the mainstream market is likely to still be dominated by the US dollar, with the euro and others following. However, in the future, this type of project may exhibit national/regional differentiation, meaning that “investors from a particular country/region basically choose a certain type of stablecoin.” In such cases, stablecoins that obtain local regulatory licenses can seize the market advantage. The last trend, which should also be significant in the future, is that stablecoins may have anchor assets like bonds, securities, stocks, or funds, leading to more products and projects. The reason for this is that, as mentioned before, the settlement and regulatory aspects have better advantages compared to real estate and other assets. However, in the early stages of such projects, only those related projects with participation from institutions that have a certain voice in traditional finance (like BlackRock) may generate considerable economic benefits. After that, projects involving organizations that have a significant voice in the web 3 space may appear, featuring RWA projects with more community cultural characteristics.

Project

Here is an overview of the recent financing projects, provided solely for discussion from an objective perspective.

OpenTrade

OpenTrade was established at the end of 2022 and is headquartered in London, UK. Its investors include a16z CSX, Circle, Draper Dragon, CMCC Global, Ryze Labs, Polygon, and Kronos Ventures, among others. The total amount of financing has reached 8.7 million USD.

Currently, four products are available:

1. US Treasury Bonds Vaults: Fixed-term, fixed-rate USDC earnings guaranteed by US Treasury Bonds;
2. USDC Vault: Flexible; variable yield USDC. Backed by short-term U.S. Treasury bills, money market funds, and other cash equivalents;
3. EURC Vault: Current; variable yield EURC, backed by euros and short-term euro bonds, money market funds, and other cash equivalents;
4. Rate + Vault: Fixed; guaranteed by investment-grade corporate bonds, commercial paper, emerging market bonds, etc.

Use Vault tokens as indicators in accounting and other operations.

USUAL-Government Bonds

So far, it has raised a total of 8.5 million USD and is a Launchpool project of Binance.

Overall, it revolves around three types of tokens:

1. USD0: This is a permissionless and fully compliant stablecoin backed 1:1 by real-world assets (RWA), aggregating various U.S. Treasury bond tokens.
2. USD0++: is an enhanced treasury bond that locks the principal as collateral through USD0, using USUAL as an incentive.
3. USUAL is its governance coin.

Tokenomics: Total supply of 4 billion coins, initial circulation ratio of 12.37%.

Image source:https://docs.usual.money/usual-products/usual-governance-token/usual-tokenomics/distribution-model

The token distribution is as follows:

Huma Finance

A total of $46.3 million has been raised so far. Overall, it is a PayFi lending project. The latest round of financing includes $10 million in equity investment and $28 million in Huma platform physical asset investment. Distributed Global led the round, with participation from Hashkey Capital, Folius Ventures, Stellar Development Foundation, and others. It will merge with Arf on April 17, 2024, focusing on real-world asset tokenization related to PayFi.

Utilize Huma Points to track contributors to the protocol. Currently providing cross-border payment financing and digital asset-backed credit cards. This is completed through various funding pools, such as Arf - Cross-Border Payment Financing Pool (based on USDC instant settlement, simplifying cross-border payments); Rain Accounts Receivable Pool (helps entities like DAOs manage expenses through payroll cards); Jia Pioneer Fund Pool (provides decentralized financing for small businesses, rewarding borrowers who repay with ownership. This is known as “small business credit”) and other funding pools to facilitate cross-border payment financing.

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