Get to know what real world assets are in crypto

Liputan6.com, Jakarta Real World Assets (RWA) are a class of crypto tokens that represent tangible assets that exist outside the digital spectrum. These can range from bonds to real estate properties, commodities, and machinery.

Reporting from Bitcoin.com, Friday (29/3/2024), RWA allows these assets to have a place in the Decentralized Finance (DeFi) ecosystem, thereby increasing the availability of financial tools that are often inaccessible and opening new application horizons.

The tangible assets represented by RWA are essentially assets that have substantive and universally recognized value, meaning the value and ownership of such assets are widely accepted and understood, thereby making them viable for transactions, investments and other financial operations globally.

Generally, objects that have economic value are owned by individuals or business entities, and are expected to produce economic benefits in the future. Ownership can be converted into value through sales or licensing. These tangible assets provide a significant portion of total global financial value.

Why is RWA Useful?

Because the tangible assets of traditional finance account for a significant portion of total global financial value, they should be seriously considered in any investor's diversified portfolio.

For people with large crypto exposure, integrating a mix of these traditional, tangible assets can result in a stronger portfolio.

Unfortunately, access to these traditional assets is limited by many factors, including high barriers to entry, regulatory and geographic restrictions, and liquidity issues.

Traditional assets such as real estate and commodities often require large initial investments. Likewise, although there are a variety of denominations available, a reasonable investment in bonds also requires a large outlay, limiting participation primarily to already wealthy individuals.