Riding the RWA wave: Where is the industry heading in 2024 and beyond?
Following the announcement of BlackRock’s BUIDL, the tokenization of real-world assets has officially cemented itself as a key trend in 2024.
With Wall Street on the scene, is the sky really the limit? Let’s talk about where RWA is headed in 2024 and beyond.
The growth of global real estate
The global real estate market is on the rise. Savills Research put the total value of the world’s property at $379.7 trillion at the end of 2022, and experts at Grand View Research predict continued growth. The market is projected to expand at a rate of 5.2% annually until 2030. Anyone eyeing this market should be taking notes. Lucrative opportunities that were previously out of reach are now becoming accessible to retail investors thanks to platforms like YieldBricks.
Tokenization and GDP
The World Economic Forum has said that 10% of the world’s Gross Domestic Product (GDP) will be tokenized by 2027 with a significant portion of this expected to be RWAs. This shows just how enormous the opportunity is for getting into digital investments. And it’s still SO early.
DeFi and RWAs
DeFi, which goes hand in hand with RWA tokenization, is booming. Throughout 2021 and 2022, the total value locked (TVL) in DeFi protocols topped $100 billion several times, according to data from The Block. This growth is clear evidence that more and more investors are actively participating in the space.
Art and collectibles
The world of art and collectibles exploded during the last bull run with NFTs. In 2021 alone, the NFT market passed the $40 billion mark, according to Chainalysis. This number shows just how excited people are about owning digital art and other forms of tokenized assets. Yet another indication of where the RWA space might be headed in 2024 and beyond.
Fractional ownership
Platforms offering fractional ownership in RWAs, such as real estate and art, have gained traction. It’s becoming clear that people want more accessible ways to invest. YieldBricks is a perfect example of this. By opening up investment opportunities to a wider audience. We make it possible for small investors to get into real estate. It’s not just for the ultra-rich anymore.
Regulatory developments
Various jurisdictions are working on frameworks to govern and facilitate the growth of RWA tokenization. The European Union, for example, is implementing its Markets in Crypto-Assets (MiCA) regulation. This is a positive sign for the RWA space, indicating a supportive trend towards making RWA investing clear and safe for everyone. It also suggests that regulators can see that RWA is taking off and they are eager to get ahead of the masses and implement formal guidelines.
Institutional adoption
Institutional interest in RWAs is on the rise, with major banks and financial institutions exploring or launching blockchain-based platforms for asset tokenization. BlackRock’s launch of its tokenized fund, BUIDL, is a testament to the growing interest from Wall Street.
This move towards tokenization shows clear intent from big players to tap into the RWA sector. BUIDL is the first big example of how traditional asset management is evolving to include on-chain offerings, improved transaction efficiency, and global accessibility.
YieldBricks is making RWA accessible
The RWA sector looks set for exponential growth. YieldBricks is uniquely positioned to capitalize on that growth.
YieldBricks offers:
- A low entry point of just $50 and no lockup
- Global accessibility, not limited by regional restrictions
- A wide array of markets, including Southern Europe and MENA
- Higher yields than many competitors on internally-owned properties
- A legally compliant platform without falling under securities classification
Tl;dr: RWA looks ready to take off in 2024 and YieldBricks makes it possible for YOU to get a piece of the action.
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