According to Coingecko, the total capitalization of all cryptocurrencies on the blockchain lies at over $1 trillion. With Bitcoin having almost half of that figure, there's still room for development from other assets existing in the market. But something surprising is about to happen even more. There's an undiluted sector in the crypto industry that is set to boost the total capitalization of the crypto industry by more than $16 trillion. Imagine the crypto industry having a sector that generates more than $16 trillion.
A decentralized finance expert under the pseudonym "Edgy" has made a bold prediction of an upcoming part of the crypto industry that would be a significant boost. It is known as the real-world asset sector (RWA). This expert believes that before the end of 2030, the crypto real-world asset sector (RWA) will have generated more than $16 trillion. Going by the analogy of this expert, it is very much possible to reach the figure in the next 5 to 10 years. It would be an integration of NFTs, cryptocurrencies, and the blockchain.
What is the Real-world Asset Sector (RWA)?
The real-world asset sector (RWA) is a largely underdeveloped part of the crypto industry whose goal is to tokenize real-world assets and integrate them into the blockchain. There's an unlimited number of things that can be tokenized into the blockchain. Real estate, cars, airplanes, and even a pair of shoes can be tokenized into the blockchain. Tokenizing assets into the blockchain means converting them into tradable assets on the blockchain. When available on the blockchain, it makes way to a wide array of investors who may be interested in purchasing them.
To tokenize real-world assets like real estate means you will digitally represent their value on the blockchain. When you do this, a vast number of people can get access to these assets and buy them. In most cases, the ownership of these tokenized assets would be shared among many investors. For instance, when you tokenize real estate, more than 100 different investors can share the ownership of the estate. Tokenizing means creating tokens that represent the value and worth of those assets.
How will the Real-world Asset Sector (RWA) Generate Revenue?
While speaking about the crypto real-world asset sector (RWA), "Edgy" showed how it can generate tremendous profits within the crypto industry. It will serve as a crypto utility for different industries ranging from Amazon and real estate establishments.
Amazon NFTs are rumored to be tokenized assets. If the company finally launches its NFT platform with tokenized assets, investors will get ownership of several assets using cryptocurrencies.
The popular financial institution, Goldman Sachs, seems to be making the most moves. They recently announced the launch of GS Dap. GS Dap is a blockchain where real-world assets are traded. Traditional investments, such as loans and bonds, can be tokenized, and investors can buy or sell them. Siemens, another tech company, also entertains the idea of tokenizing real-world assets on the blockchain. They issued a $60 million bond tokenized on the Polygon Network, which is part of their plans to move and tokenize real-world assets.