Yesterday, I had a discussion about what RWA is, and I realized that many people still don't fully understand this field. So I decided to share some observations about Real World Assets – a trend that I see changing the way we view crypto.

Simply put, what is RWA? It’s real-world assets – real estate, bonds, copyrights, or anything of value in the traditional financial world – converted into tokens on the blockchain. This idea isn’t new, but what makes it noteworthy is the participation of major financial players like Goldman Sachs, JP Morgan, BlackRock. They’re not the type to jump easily into risky games.

The beauty of tokenizing assets is that it solves an old problem: how can retail investors access traditional assets? Previously, if you wanted to own a part of luxury real estate or treasury bonds, you needed a lot of capital. Now, through blockchain, you can own a small fraction of these assets, increasing liquidity and expanding investment opportunities.

Looking at the numbers, you’ll find it interesting. Around 2023, the tokenization of treasury bonds grew by over 780%, led by Franklin Templeton. Private Credit – secured lending – has increased ninefold since 2022, accounting for up to 70% of the total RWA market share on Web3. Figure is a typical example, applying blockchain to real estate mortgage lending. The total market cap of RWA at that time was about $8 billion, but importantly, it accounted for less than 1% of the entire crypto market capitalization. What does that mean? There’s still huge room for growth.

I notice that what RWA is isn’t just a technical concept but also a strategic milestone. After the collapses of 3AC and FTX in 2022, the crypto market needed something to rebuild trust. RWA is precisely that solution – it links to real assets, reducing systemic risk. Smart contracts play a key role in guaranteeing and managing these tokens on the blockchain.

But here’s what I want to emphasize: not all RWA projects are noteworthy. When choosing, you need to look for projects with real products, clear economic applications. $ONDO is an example I follow – it focuses on tokenizing treasury bonds, and its yield has attracted significant interest. But what’s important is that its product has real value, growing based on actual demand, not just speculation.

I believe that what RWA is will become an increasingly common question in the crypto community. This field develops more slowly than other trends, but that’s its strength – steady, sustainable growth, avoiding price bubbles. As major institutions continue to participate, and as blockchain technology becomes more widely adopted, RWA will open new opportunities for both the crypto market and traditional finance. That’s why I always follow this field – because it’s not just a temporary trend, but part of the future of finance.