Sergey Nazarov, co-founder of blockchain oracle service Chainlink (LINK), says one rapidly growing area in the digital asset space is poised to become a leading trend.
Nazarov told his 150,000 followers on social media platform X that real-world assets (RWAs) appear to be the next big trend in blockchain.
In the cryptocurrency space, the RWA trend aims to tokenize assets from traditional markets such as real estate, loans, and bonds on-chain.
Nazarov says:
“Tokenization of real-world assets (RWAs) is the next big trend in the blockchain industry, and we believe they will hold more on-chain value than cryptocurrencies…
The amount of value that can be quickly converted into RWAs is in the tens of trillions, and very little of it is currently available in RWA format. This includes all commodities, all real estate, all funds, etc.
Large institutions like Blackrock and Fidelity are already participating in the RWA trend through tokenized funds, and more are expected to join in the future.”
Nazarov said on-chain RWAs are a “great format” for secure ownership and transferability of assets, noting that they can be purchased and transferred across jurisdictions and financial systems with less friction than traditional infrastructure.
According to Chainlink’s creator, RWA provides easier access to global liquidity, which he says has fueled the growth of cryptocurrencies for years.
“RWAs can store critical data that proves important things about the underlying asset much faster and more efficiently than traditional systems. A good example is Chainlink putting NAV (net asset value) data for large central securities depositories (CSDs) on-chain and using reserve proofs for the current state of the underlying asset.
RWA is in the very early stages of creating asset efficiency using on-chain logic. As more of the fund’s management/operations move on-chain, this will ultimately lead to a significant reduction in fund operating costs while also significantly increasing efficiency.
For example, putting NAV data on-chain at a faster rate than current systems can provide would dramatically accelerate the timeline for exchanges, reducing it from months to minutes, which would have huge economic benefits.”
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