“Given the recent moves we’ve seen from major financial institutions, particularly BlackRock and JPMorgan’s growing involvement in tokenization, I believe we could hit $50 billion in TVL.”
Ah, traditional finance (or TradFi, as the cool kids call it) is finally waking up to the idea that tokenized assets might just be the bridge to DeFi they’ve been looking for. It’s like realizing that the bridge to the other side of the river is actually a very nice boat!
And just when you thought it couldn’t get any better, onchain RWAs have recently surpassed a cumulative all-time high of $17.1 billion across 82,000 asset holders. That’s a lot of zeros, folks!
Can RWAs Attract 1% of the $450 Trillion Global Asset Market?
Thanks to their ability to democratize investor access and create more liquidity, RWAs are poised to snag a significant slice of the $450 trillion global asset market. Marcin Kazmierczak, co-founder and chief operating officer of RedStone, a blockchain oracle solution that sounds like it could be a wizard’s tool, believes this is entirely possible.
“While Bitcoin’s price movement remains uncertain, RWAs are gaining traction due to increasing institutional adoption and developing blockchain infrastructure in traditional finance,” Kazmierczak told CryptoMoon, adding:
“Traditional financial markets handle over $450 trillion in total global assets, with institutional investors managing roughly $100 trillion. Even a modest 1–2% shift of these assets to blockchain-based RWAs could drive significant growth in 2025.”
In other words, if even a tiny fraction of that money decides to take a vacation on the blockchain, we could be looking at a financial bonanza!
Crypto Volatility May Invite More Institutional Investment into RWAs
As the crypto rollercoaster continues its wild ride, RWAs may just emerge as the leading investment narrative for 2025. It’s like the tortoise and the hare, but this time the tortoise is wearing a blockchain-enabled racing helmet.
With more downside volatility in crypto markets—like this week’s $10 billion liquidation event, which sounds like a bad day at the office—Bhaji Illuminati, chief marketing officer at Centrifuge, an RWA-based DeFi lending protocol, suggests that this might just be the wake-up call institutions need.
“Huge swings in crypto prices always serve as a reminder of the importance of stable, yield-bearing assets. RWAs, especially fixed income, provide exactly that: a portfolio hedge against crypto volatility,” Illuminati told CryptoMoon, probably while sipping
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2025-02-08 12:01