Many months ago maybe even over a year ago I was talking about RWAs otherwise known as real world assets. But that seems to no longer be in the headlines in the crypto world after Blackrock released their BUILD token on the Ethereum network $ETH you really haven't heard much about it since.

Are RWAs just a big joke that will never become reality? Or are there things going on right now that people are missing or simply not understanding?

In this article I'm going to dig into RWAs and see where we are today and what we could possible see in the future of it.
*This article is for entertainment purposes only and is not financial advice.

RWAs Stablecoins

One often overlooked RWA that's the biggest are stablecoins. A token that represents in most cases a 1:1 ratio of token to $1 USD fiat currency. Think of things like Tether, USDC and others.

Since stablecoins came out we have seen a mess of projects pop up. Some which have failed and were not really backed by Fiat or only partially and others which are still in the building phase such as the case with VISA one of the largest credit card companies around the world.

VISA's goal with this is to allow more people around the world to have access to money and make payments. They are currently primarily doing this with Coinbase and their USDC stable coin token.

Since it's birth stable coins have only become more and more popular and the crazy thing about them is they do have a "print" value to them based on traditional markets like bonds, savings and other "safe" investments which further boost the performance of these stable coin assets by major companies.

This is heating up into a battle itself as the defacto at one point was USDT (tether)which has actully seen a slow decline in market cap values over the years instead of increasing as more and more other options in particular USDC have been showing their face.

This makes sense as there are still shady risk factors with USDT in which they still after all of this time and all of the battles don't do audit reports. While a company like Coinbase in the USA have to do these reports constantly. This starts to build trust over a company like USDT where people feel better moving their stable coin funds into USDC over USDT for example.

What Are Stablecoins Being Used For?

Stable coins based on looking at transactions seem to primarily be used for NFT's and to trade crypto and I'd say that's pretty much the bulk of what I use it for myself. The second is savings and defi which I would agree is the second place that I use crypto if not the first personally.

Socialfi and gaming is also have a big impact on the overall world when you talk about third world counties where people with internet access actully have the potential of making life changing USDC and other stable coin cash outs. Banks in these areas are also doubling down on this tapping into the potential of earning revenue while giving access to people. This digital format of money while only very slowly changing the world at the moment could very well shift into a little more of a equality system years down the road. But I'm sure those higher up will have something to say about it once it gets too big like always.

What Blockchains Benefit

Right now the major player that benefits from all of this is Ethereum which houses the USDC and USDT was originally done on the bitcoin Omni layer.

However as much as I hate to say it Tron is actully a major player in terms of the amount of stable coin investing and trading happening. Which to me is honestly a big scam fest of people launching weird projects. It's honestly the wild west and it's still shocking to me that governments have not cracked down more on Tron.

What is clear is that stable coins will continue to be one of the largest RWAs that often get over looked. But they open up everyone with access to the internet the real ability to start gaining wealth through various sources. While I personally feel the crypto space is still FAR behind the web 2 space in terms of content and paying people I do believe we are starting to make small gains and at some point it will only take a single web3 social platform with money, ads etc backing it like a web2 platform to really break free and open the world up to massive RWAs.

What are you using your stable coins for?

Posted Using InLeo Alpha