In the blockchain and decentralized finance (DeFi) space, RWA (Real World Assets) is an important emerging sector. Through tokenization, real-world assets can be introduced into the crypto ecosystem, serving as a bridge between traditional finance and DeFi. Bifu Academy will guide you through the origins, development, applications, core projects, and technical architecture of RWA.

What is RWA?

RWA refers to assets in the blockchain or Web3 ecosystem that are represented and traded digitally through tokenization. These assets include:

• Tangible assets: real estate, commodities, precious metals, artworks, etc.
• Intangible assets: bonds, securities, intellectual property, fiat currency, carbon credits, etc.

The core idea of RWA is to increase the liquidity of traditional assets and enable them to participate in DeFi lending, staking, and trading. In other words, it acts as a bridge between traditional and crypto-native assets.

Bifu Tip: Tokenizing RWA involves multiple steps, including asset acquisition, custody, and establishing legal frameworks, ensuring that on-chain assets are legally traceable.

Development History of RWA

RWA development can be divided into three stages:

1. Early Exploration (2017-2019)
   1. 2017: Polymath and Harbor explored security tokenization
   2. 2018: RealT started real estate tokenization pilots
   3. 2019: TAC alliance formed to promote RWA standardization and cross-platform collaboration
2. Initial Development (2020-2022)
   1. 2020: Centrifuge, Aave, Compound introduced RWA as collateral
   2. 2021: MakerDAO began supporting RWA collateral to mint DAI
   3. 2022: JP Morgan and Goldman Sachs entered the RWA market; RWA Alliance was established
3. Rapid Expansion (2023–Present)
   1. Major asset managers like BlackRock and Fidelity entered the RWA market
   2. SEC (US) and ESMA (EU) started formulating RWA-related regulatory frameworks

Bifu Academy Observation: With the involvement of traditional capital and Web3 institutions, the marketization and standardization of RWA is accelerating.

Application Areas of RWA

RWA encompasses diverse asset types, mainly including:

Real Estate and Tangible Assets

Tokenization lowers investment thresholds and increases liquidity:

1. Tangible: focuses on tangible asset tokenization
2. Landshare: allows small investors to join real estate funds
3. PropChain: global real estate investment platform
4. RealT, RealtyX: purchase tokens to gain partial ownership and rental income from US properties

Fiat and Stablecoins

Stablecoins (USDT, USDC, FDUSD, USDE) pegged to fiat provide low-volatility digital assets:

1. Tether backs USDT with reserve assets to maintain 1:1 USD value
2. Stablecoins can be used in lending, payments, cross-border transfers, etc.

Lending Markets

RWA expands collateral options, enabling companies and investors to obtain financing with real assets:

1. SMEs can access more capital via RWA
2. Investors can support company growth and share returns through RWA

Bonds and Securities

RWA integrates bonds and securities with emphasis on compliance and transparency:

1. Maple Finance: on-chain loan pool management
2. Securitize: tokenized securities issuance and trading
3. Ondo Finance: tokenized short-term government bond funds

Core RWA Projects

1. Centrifuge – Bridging Real Assets On-Chain
   1. Tokenizes SME receivables, introducing liquidity into DeFi
   2. Core architecture: Centrifuge Chain, Tinlake, on-chain NAV calculation, layered investment structures
2. ONDO Finance – Decentralized Institutional Investment Bank
   1. Provides institutional-grade financial products, tokenizing US Treasuries and money market funds
   2. Product structure: USDY (cumulative & rebase), OUSG (short-term treasury tokenization)
3. BlackRock BUIDL – First Tokenized Ethereum Fund
   1. Invests in cash equivalents and short-term US Treasuries to maintain token stability
   2. Highly compliant, open to qualified investors

Summary

The core goal of RWA is to enable interoperability between real-world and on-chain assets, attracting more traditional capital into the blockchain ecosystem and blurring the line between DeFi and traditional finance.

• Core Sectors: securities, real estate, credit lending, stablecoins
• Advantages: strong narrative, huge potential, high compliance threshold
• Risks: regulatory uncertainty, underlying asset quality, liquidity risks

Bifu Academy Reminder: Exercise caution when investing in RWA projects, paying attention to underlying assets and compliance to minimize potential risks.