Traditional finance companies are showing increased interest in Ethereum-based real-world asset (RWA) protocols, resulting in RWAs outperforming DeFi blue chips. RWA protocols allow entities to tokenize and trade real-world assets, making them divisible, transferable, and tradable on decentralized platforms. The top uncollateralized lending protocols for institutions, TrueFi and Maple, have increased by 26.6% and 117.8%, respectively, in 2023, while Centrifuge, a real-world asset tokenization platform, has surged by 32% year to date.
– Real-world asset (RWA) protocols are becoming increasingly popular in decentralized finance (DeFi) circles.
– RWA protocols allow entities to tokenize and trade real-world assets, making them divisible, transferable, and tradable on decentralized platforms.
– Traditional finance companies are showing increased interest in Ethereum-based RWA protocols, resulting in RWAs outperforming DeFi blue chips.
– The top uncollateralized lending protocols for institutions, TrueFi and Maple, have increased by 26.6% and 117.8%, respectively, in 2023.
– Centrifuge, a real-world asset tokenization platform, has surged by 32% year to date.
– The governance tokens of RWA protocols surged significantly in January and April thanks to the rising interest in them.
– The lack of sufficient RWA on-chain was hindering the ecosystem’s development, but this is changing due to increased tokenization of real-world assets.
– The top RWA protocol by total locked value, Ondo Finance, enables stablecoin holders to directly invest in exchange-traded funds managed by top-tier asset managers like BlackRock and Pimco.
– MakerDAO has approved the conversion of centralized stablecoins like USD Coin (USDC) to U.S. Treasury bonds.
– Debt market protocols like Maple Finance, TrueFi, Goldfinch, and Clearpool have led the price action and activity among RWA protocols.
– Non-collateralized lending protocols carry the risk of debt default, and the yields of U.S. Treasury bonds are set to fall once the Fed starts cutting its benchmark interest rate.
