Understanding the tokenization of RWAs

The world of finance is on the brink of a revolutionary transformation thanks to the tokenization of real-world assets (RWAs). The age of securitisation is quickly fading as this faster, safer, and more diverse technology finds its place in the financial sector. The implications of this emerging technology are far-reaching, promising to change the face of finance forever. In this article, we delve into what, why, and how tokenization can be implemented to benefit millions of people and businesses around the world.

Recent estimates reveal that the combined value of real-world assets amounts to a staggering $256 trillion, with the vast majority of these assets being highly illiquid and traded using outdated methods that are slow, expensive, and sometimes even manual. However, tokenization offers an exciting new alternative that promises to revolutionise the way assets are bought and sold. Tokenization refers to the process of creating a digital copy of a real-world asset, and with the advent of blockchain technology, its true potential is set to be unlocked.

At StrikeX, we have long recognised the inevitable shift towards a tokenized economy and have spent the last two years laying the foundations of an ecosystem that can harness its truly breathtaking potential. And we are not alone in our vision:

Institutional giants such as Citi Bank and BlackRock are now touting the tokenization of RWAs as the single biggest use case for the mass adoption of blockchain technology. With a potential market size in the tens of trillions of dollars, and the World Economic Forum suggesting that 10% of Global GDP will be tokenized by 2030, the excitement around this emerging market is palpable.

But what makes tokenization so promising? The benefits are numerous and far-reaching, offering an answer to many of the problems plaguing our current financial system. Firstly, tokenization allows for fractional ownership, which in turn brings liquidity to previously illiquid assets. By splitting an asset’s value into multiple tokens, a broader base of investors can participate, bringing much-needed liquidity to these previously hard-to-trade assets.

Furthermore, fractional ownership is not just beneficial for sellers, but also for investors. People who previously could not invest in assets such as fine art or real estate due to high barriers to entry now have the ability to buy tokens that represent a fraction of the underlying asset. This means that more people can benefit from investing in markets that were previously closed to them.

Moreover, blockchain transactions carried out on automated smart contracts remove the administrative burden of traditional asset transactions. Removing intermediaries not only increases the TPS (Transactions Per Second) but also decreases the cost per transaction. Additionally, all transactions carried out on the blockchain are fully traceable and transparent, adding another layer of security for buyers and sellers that were absent from our traditional financial system.

Tokenization also promotes inclusion by removing geographical barriers. Anyone from anywhere in the world can conduct transactions in a tokenized ecosystem, democratising access to global markets. Any asset that holds value can be tokenized, from stocks, artwork, commodities to currency pairs and even real estate.

The implications of the tokenization of real-world assets are vast and far-reaching, offering a revolutionary transformation of the financial sector. Tokenization promises to bring much-needed liquidity, fractional ownership, speed, cost savings, transparency, inclusion, and variety to previously illiquid and outdated markets. And with the potential for a market size in the tens of trillions of dollars, the tokenized economy is set to explode, changing the way we invest and interact with assets forever.

Learn about the StrikeX ecosystem and how we are harnessing the power of tokenized RWAs to deliver a suite of products & solutions ready to dominate the tokenized economy.

https://tradestrike.io/RWArevolution
https://tradestrike.io/Q2update

— The StrikeX Team

Learn more about our project on www.tradestrike.io

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