Global Cryptocurrency

DAO Maker

As cryptocurrencies become more integrated with traditional finance, more people are becoming interested in tokenizing real-world assets. For example:<ol><li>Retail Users: Regular people can now use tokenized real-world assets for tasks like sending money across borders and saving for the future.</li><li>Businesses: Companies are using stablecoins (cryptocurrencies with stable values) to pay their suppliers, making transactions more efficient.</li><li>In-Chain Institutions: Some organizations like MakerDAO are trying to earn profits by investing in tokenized Treasurys, which are government-backed bonds.</li></ol>This shift towards tokenizing real-world assets has been driven by changes in the economy, advancements in technology, and the growing credibility of cryptocurrencies.Tokenizing real-world assets using blockchain technology has become a hot topic, and it&#39;s not just the big financial players like Citi, JPMorgan, and Northern Trust who are interested; even those deeply rooted in the world of cryptocurrencies are getting involved.The idea of tokenization first gained traction around 2015, primarily with traditional banks. They believed that while they might not fully embrace cryptocurrencies like Bitcoin, the underlying blockchain technology had the potential to revolutionize finance by enabling 24/7 settlement, guaranteed execution, and lower transaction costs. As the cryptocurrency world increasingly intersects with traditional finance, more and more people are eager to explore the tokenization of real-world assets, often referred to as RWAs.Maria Shen, a general partner at Electric Capital, noted that while RWAs initially attracted high-net-worth individuals, family offices, pension funds, and university endowments, a new category of &#34;on-chain institutions&#34; has emerged. An example of this is the DeFi (Decentralized Finance) protocol MakerDAO.MakerDAO collaborates with institutions that borrow a stablecoin called dai and effectively tokenizes T-bills, which MakerDAO utilizes within its ecosystem. This development represents a significant shift, as it broadens the scope of participants in the tokenization of assets.Shen categorized these participants into three groups: retail users who can use RWAs for remittances and savings, businesses that utilize stablecoins for supplier payments, and in-chain institutions like MakerDAO, which seek to generate returns through tokenized Treasurys.Stuti Pandey from Kraken Ventures highlighted that RWAs have gained traction due to shifts in economics, technology, and credibility since the last wave of tokenization enthusiasm. She explained that as interest rates have remained low in recent years, assets with high growth and risk profiles have been favored. However, with the current downturn in rates, real-world assets are offering more appealing yields.Moreover, better tokenization infrastructure and increased attention in this round of tokenization excitement have the potential to further boost the adoption of RWAs.In summary, the world of tokenizing real-world assets is no longer limited to traditional financial giants but is attracting a diverse range of participants, driven by evolving economic conditions and improved technology.

Tokenizing real-world assets on blockchains is now appealing to both crypto enthusiasts and those who are cautious about cryptocurrencies

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