“The next generation of markets, the next generation of securities will be tokenization of securities,” said BlackRock CEO Larry Fink.
He’s not wrong. The securities industry has played a key role in making tokenization visible and popular. However, with recent innovations, asset tokenization is now much bigger than financial securities.
With a market potential of $16 trillion by 2030, tokenization has become a way to bring real-world assets (RWA) on-chain for better discovery, accessibility, and efficiency.
This provides a much-needed bridge between TradFi and DeFi. But thanks to the unique and exclusive RWA we are building. planet, tokenization will lay the foundation for a better and more sustainable world. This will take the entire cryptocurrency ecosystem into uncharted territory (in a good way).
Why RWA matters to the world
Inadequate incentive alignment is the biggest obstacle to sustainable development. Those in a position to responsibly build and invest (money, time, effort) for a better world have no incentive to do so on a large scale. And those who have that intention do not have adequate resources or access.
RWAs, especially those collaborating on PLANET, can bridge this gap. This provides a way to blur the lines between the physical and digital worlds. The tangible assets we hold in our hands can be owned, stored, and transferred online. This significantly improves accessibility, opening up new avenues for investment and collaboration without geographical restrictions.
Traditionally, the value of natural resources and other tangible assets has been largely underutilized. If we don’t take care of future generations and exploit them. Illiquidity was the cause of this suboptimal situation. For example, we cannot sit in Canada and invest in protecting Brazilian forests. There was no transparent and trustworthy means, at least for the public.
But with RWA, it doesn’t matter who we are or where we are. Anyone from large corporations and celebrities to retail users can leverage natural or physical value in a secure and transparent on-chain manner. This offers endless possibilities that were not possible even in the past 10 years.
A balance of exclusivity and accessibility
We have been conditioned to believe that exclusivity and accessibility are polar opposites. From high art to high fashion, not everyone has exclusive access to it. This also applied to natural assets due to centralized control and geographical barriers.
But not anymore. PLANET makes proprietary RWAs accessible to everyone. Blockchain technology allows unique natural, cultural (such as physical artwork) and other tangible assets to be represented digitally. Once connected to the chain, these assets become highly liquid making them widely accessible.
More importantly, RWA gains additional utility over PLANET. First of all, they generate on-chain yield. This is a new way to encourage sustainable investment by businesses and retailers. In addition to raising awareness, we are providing compelling reasons to prioritize the SDGs. And we’re working with GOAT to spread this message.
There is a need, then, to clarify what ‘exclusive’ and ‘accessible’ mean from an RWA perspective. RWAs on our platform are exclusive in two ways: First, there is a lack of underlying physical assets. Second, on-chain representations are unique, non-fungible, tamper-proof, and of limited supply. Thirdly, its collectability enhances its rarity as it has been confirmed that soccer superstar Lionel Messi is helping create the first generation PLANET RWA.
However, despite its exclusivity, it has low barriers to entry and is therefore highly accessible. For example, users can gain partial ownership of valuable natural assets. This allows you to enter the RWA market with minimal resources and scale your profits based on on-chain profits.
For the PLANET ecosystem, these RWAs are also an important part of the rewards program for early adopters, holders, and others. For example, the launch of PLANET’s gamified utility roadmap The first 2,500 winners of the public game will automatically win coveted digital mystery boxes, some of which hold celebrity-backed real-world assets (RWA). The winner was later entered into an algorithmic drawing to randomly win one of an additional 2,500 mystery boxes, which again randomly carried RWA.
Best Practices for the Future of Cryptocurrency
In addition to improving access to proprietary assets, we are also addressing another key issue facing RWAs: transparency. Blockchain does not by itself guarantee a strong connection between physical assets and their on-chain versions. Scammers can sell ‘virtual’ twins without delivering any ‘real’ assets.
That’s why we built an intuitive, easy-to-use companion app to help users track their RWA from production to delivery. This is possible using advanced oracles for real-time connectivity between the on-chain (digital) and off-chain (physical) worlds. Additionally, we will ultimately create a RWA-based metaverse where each part is connected to the whole in a way that increases verifiability, trustworthiness, and community orientation.
Therefore, we are setting new standards and practices that advance cryptocurrency as a whole. RWA is a key factor in cryptocurrency adoption. This enables powerful systems that solve real problems, create long-term value, and enable mass-market utility. And PLANET is all about leveraging the full potential of RWA.
However, like financial securities, green RWA is another specific area for tokenization. The possibilities are endless. Now, almost everything under the sun can be tokenized. Innovators can take a cue from our efforts and explore uncharted territory. Cryptocurrency-based systems can reach all-time highs as well as market prices.
RWA is still in the early stages of development and adoption. Now is the time to test different strategies and experiments. However, the potential or desired outcome is quite clear. As more unique RWAs emerge, the cryptocurrency market will become more diverse. Adopters will have more options, which can promote decentralization at a completely different level.
Better options and accessibility will attract new investors to cryptocurrencies. People who sit on the sidelines waiting for solutions to their industry-related needs. Unlike previous market cycles, the upcoming market cycle will have more to offer than decentralized financial services or gaming. For example, public goods will become a key area of innovation thanks to RWA.
Leveraging both physical and digital value simultaneously is the best way to fully utilize your assets. There is no better way to do this if it is accessible, equitable and safe. We are committed to this at PLANET.
Now is the time for other industry stakeholders to embrace RWA and move towards a more sustainable world. The tools at our hands have so much potential, so why aren’t we using them well?
disclaimer: This article is sponsored content and does not constitute financial advice. CryptoNewsZ does not warrant or guarantee the accuracy of the content. Readers are urged to independently verify information and exercise caution when dealing with companies mentioned. Investing in cryptocurrency is risky and it is recommended that you seek advice from a qualified professional.