Author: Kyle Samani, co-founder of MMulticoin Capital; translation: Golden Finance 0xxz
There’s been a lot of talk about RWA lately. I find that most of these discussions are framed wrong. Like NFTs, RWAs are a fairly horizontal term that refers to many different things.
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The PFP is obviously very different from the music NFT, and the music NFT is very different from the sword in the game. These are all NFTs, but their go-to-market methods (GTMs) are completely different.
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RWA is similar in this respect. RWA includes fiat-backed stablecoins such as USDC and USDT, treasury bonds, bonds, stocks, commodities, etc.
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How they go to market has largely nothing to do with each other, consider Provenance, for example, the most mature and focused attempt to bring the entire bond market on-chain.
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Bringing the bond market to the chain is not issuing bonds (some customized versions have appeared on Ethereum in the past 5 years).
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Bringing the bond market on-chain is a matter of standards, and you need to get all parties involved to agree to the new standard: issuers, underwriters, fund managers, auditors, buyers, sellers, brokers, banks, etc.
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My point is that bringing bonds on-chain is a *really* hard problem. Getting all parties to agree to use a new standard is not easy. This requires a lot of focused effort.
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Get all parties in the bond market to agree that the new blockchain standard has nothing to do with other categories of RWA. The path to market is completely different.
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Another interesting problem with RWA is synthetic assets. There are many assets that are easier to synthesize and introduce on the chain, such as using perpetual swap contracts.
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Synthetic assets cannot completely replace RWA, but in many cases, synthetic assets > spot assets.
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Real estate, for example, is “super” difficult to tokenize individual real estate. Parcl makes it relatively easier for people to trade a composite index of a city and, I think, more useful.
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