When even Larry Fink, the CEO of Blackrock predicts that Tokenization is the future of markets, it’s time to pay attention!
But what is the Tokenization of Real-World Assets & why is it so special?
RWA pertains to physical assets that can be transformed into tokens and represented using blockchain technology. However, RWA isn’t just restricted to physical assets. It encompasses any verifiable revenue streams or cash flows, or even in reflection on a company’s balance sheet, where the entire asset side can be viewed as RWA.
There are effectively four categories of physical assets that can be tokenized for RWA:
- Yield-bearing instruments (Dividend-paying assets, Royalty streams, and P&L monetization)
- Real Estate (Hard Assets, Funds, and Non-Traded REITs)
- Alternative Assets (Private Assets like equity, and debt; Collectables like art, cars, spirits; and Sports)
- Financial Products (ETFs, Indices and Stablecoins)
Furthermore, RWA also encompasses the emerging trend of issuing capital market products using blockchain technology. This involves tokenizing digital securities, which can then be offered to retail investors. RWA protocols enable the use of these assets as collateral for securing loans in cryptocurrencies, predominantly stablecoins. The debt is generally transformed into a non-fungible token (NFT) split into several tokens that represent the lenders’ shares. These tokens can be exchanged for stablecoins, which ultimately transfer to the borrower’s account.
Our team has carefully assessed these projects and found the 3 upcoming could be great options for you to invest in. These projects each have a list of pros and cons and come with a lot of advantages that you must consider. You can sort through all these options based on your own investment needs and goals and choose what suits you the best.
A blockchain built specifically for security tokens.
Polymesh is an institutional–grade permissioned blockchain built specifically for regulated assets. It streamlines antiquated processes and opens the door to new financial instruments by solving challenges around governance, identity, compliance, confidentiality, and settlement.
Polymesh was built to incorporate governance, identity, compliance, confidentiality, and deterministic finality into the chain’s core.
- Polymesh’s Tokenomics
There is no maximum stock set for Polymesh. However, there is a maximum supply of 1 billion POLYX tokens, of which some 900 million are in circulation. The remainder may currently be held by the team behind Polymesh or lost during a token burn. POLYX is distributed in the following way:
24% was distributed during the presale and airdrop.
51.3% belongs to the reserve supply.
2% is for Polymesh’s advisors.
8.9% is for Polymesh’s founders and team members.
0.9% belongs to the bonus reserve.
- Recent Partnership
Polymesh and TokenTraxx Collaborate to Bring the Next Chapter in Web3 Music.
“Through NFTs and the power of Polymesh’s purpose-built blockchain, TokenTraxx is committed to reshaping the narrative of the creator economy and ensuring artists receive the recognition and compensation they deserve.”
A Real-World Asset Tokenization Platform
TVVIN emerges as a cutting-edge Real-World Asset Tokenization Platform catering to both the Institutional and Retail Markets. Initially launching on the Cardano Blockchain, TVVIN is ambitiously designed for long-term Omni-Chain integration.
Set for a Q2 2024 launch, TVVIN’s platform promises a fully compliant ecosystem, offering tokens that are 1:1 backed by LBMA-certified gold, securely vaulted in the Channel Islands. Following this, TVVIN plans to expand its offerings to include tokens backed by Silver, Platinum, and Palladium, eventually broadening its scope to various Real-World Assets.
Positioned to be a trailblazer, TVVIN Gold will be the first Gold-Backed token on the Cardano blockchain and the only one to boast backing by Gold stored in the prestigious Channel Islands.
- The TVVIX Token
TVVIX serves as the utility token of the TVVIN Platform, facilitating several key functionalities. It provides access to their digital vaults, enabling holders to potentially earn a yield on their Real-World Asset Tokens. This yield, generated through the low-risk financial utilization of the underlying assets, will be distributed as additional TVVIX tokens, complemented by an NFT certificate. This certificate allows for the conversion of TVVIX into more Real-World Asset Tokens like the Gold Token.
Moreover, TVVIX plays a pivotal role in the governance of the TVVIN DAO, allowing holders to propose and vote on new tokenisation projects.
- TVVIX’ Tokenomics
TVVIX has a fixed supply of 4.2 billion tokens, distributed as follows:
ISPO & Community: 5%
Private Sale: 30%
Liquidity & Rewards: 20%
The ongoing ISPO (Initial Stake Pool Offering) is a unique opportunity for ADA (Cardano) holders to delegate to TVVIN Stake pools and earn TVVIX Rewards, running until February 19, 2024.
More about the ISPO: ISPO Details
The upcoming Private Sale, starting in Q1 2024, will be held in collaboration with several launchpads.
- Recent News/Partnerships
TVVIN recently co-founded the Real-World Asset Tokenization Association (RWATA), alongside other industry leaders.
“RWATA is strategically positioned to guide and structure the burgeoning RWA Tokenization sector. Its formation is timely, aiming to shape the future of the industry, ensuring effective and responsible asset tokenization that aligns with evolving regulations. As a collaborative entity, RWATA is instrumental in harnessing the sector’s potential while expertly managing its developmental complexities.”
BG Trade, a visionary all-in-one platform for Real World Asset (RWA) issuance and trading, represents the forefront of financial innovation. With a pioneering approach, BG Trade has conceived a groundbreaking “Meta-Asset Bridge” designed to seamlessly unite traditional stocks with the world of cryptocurrencies. This bridge offers a dynamic and efficient connection for stock investments, forging a new era in the world of finance.
- Future Goals
In the upcoming roadmap, BG Trade has set ambitious goals for the future. In the last quarter of 2023, they are poised to launch the zkDID identity system, a pivotal step in enhancing security and trust within their platform. Simultaneously, BG Trade will engage in discussions within their DAO community to explore the possibilities of a ve-governance model, laying the groundwork for democratic decision-making. R&D efforts will be in full swing, focusing on the development of this ve-governance module, ensuring a robust and transparent governance framework.
Looking ahead to the first quarter of 2024, BG Trade is gearing up for a series of pivotal milestones. The BTT business module will see significant advancements, strengthening the platform’s core capabilities. Business models for traditional stocks will be developed, offering a diverse range of investment opportunities. The highly anticipated BGT Swap will begin its gradual rollout, offering users access to an array of services. Furthermore, the official launch of BGT financial services will mark a significant step forward in providing comprehensive financial solutions to users. To solidify their position as a global player, BG Trade will embark on a holistic expansion into multiple markets, ensuring a comprehensive and robust development strategy.
- Token information
BGT is a pioneering cryptocurrency that’s backed 1:1 by Real World Assets (RWA), making it a prominent in the DeFi space. BGT holders not only enjoy the security of real-world asset backing but also receive token airdrops from various listed companies and assets. The innovative vision behind BGT includes listing it on traditional stock exchanges, potentially bridging the gap between BGT tokens and traditional stocks, creating new possibilities in financial markets. Within BGT’s ecosystem, diverse asset classes, including stocks, bonds, and commodities, offer investors numerous growth opportunities. Additionally, BGT plans to provide token holders with airdrops of tokens linked to Real World Assets, opening doors to exciting investment prospects and potential value growth.
Token contract address: https://arbiscan.io/token/0x45f6a3e1fcdb24c3e5097324872a8f5cf4602d48#balances
- Recent partnership
Over the course of the past three months, BG TRADE has successfully forged strategic alliances with over 100 prominent platforms and projects. These collaborations encompass a diverse range of partnerships, including wallet integrations, community engagement initiatives, liquidity provision agreements, and a myriad of other mutually beneficial endeavors. These developments have solidified BG TRADE’s position as a preeminent and highly engaged player within the realm of Real-World Assets (RWA).
Summary: Understanding RWA in Short (TLDR)
- Real World Assets (RWAs) are off-chain assets like gold, real estate, and bonds, tokenized for use in Decentralized Finance (DeFi), enhancing liquidity and investment opportunities.
- RWAs offer sustainable, reliable yields in DeFi, backed by traditional asset classes, transforming the DeFi landscape.
- They serve as a bridge between decentralized and traditional financial systems, making DeFi more compatible with external markets.
- Tokenization of RWAs allows for fractionalization, making assets like private credit accessible to a wider range of investors.
- The RWA ecosystem is evolving due to factors like layer 1 RWA protocols, regulatory changes, and the global economic environment.