The tokenization of real-world assets (RWA) is advancing into its 3.0 phase, characterized by the integration of structured financial products and traditional financial assets into the blockchain ecosystem. This evolution follows the U.S. SEC's 2024 approval of Bitcoin and Ethereum spot ETFs, which has facilitated institutional capital inflow into the crypto market, transforming cryptocurrencies into tradable securities.
Platforms like Robinhood and Kraken have responded by launching tokenized equity trading pairs, marking a significant step in the convergence of traditional finance (TradFi) and crypto. The next phase aims to leverage blockchain's composability to develop hybrid financial products, such as tokenized equity staking and cross-market liquidity mechanisms. However, as crypto becomes more institutionalized, native crypto assets may face increased competition from traditional financial assets in terms of risk-adjusted returns and market stability.
RWA 3.0: TradFi and Crypto Converge with Tokenized Assets
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