US Federal Reserve optimistic about RWA, calls for regulation.

Isha000

This year, the RWA track for the tokenization of real-world assets has garnered significant attention, with many believing that RWA will become the next hot topic in the bull market. Boston Consulting Group's latest forecast suggests that the tokenized asset market could grow to $16 trillion by 2030.

In recent times, the Federal Reserve in the United States has also released a report titled "Tokenization: Overview and Financial Stability Implications" with the aim of providing background knowledge on tokenization, discussing its potential benefits, and financial stability risks.

"The current financial system continues to be built on centralized (company-owned) and dispersed infrastructure, requiring third-party intermediaries. However, decentralized ledger technology (DLT) and blockchain technology (BCT), such as tokenization, can help facilitate the transformation of this traditional infrastructure. In fact, Bank of America Global Research predicts that the tokenization of traditional assets will reshape financial and banking infrastructure, as well as public and private financial markets in the next 5-15 years.

Companies are leveraging this technology to reduce credit risk, optimize supply chains, and enhance data transparency. However, challenges and risks still exist. Aside from a lack of global coordination, regulatory and compliance risks may also slow down the adoption of tokenized assets."

The Federal Reserve is optimistic about the future development of RWA. Firstly, the report explains the concept of tokenization, which refers to the process of digitizing non-crypto assets (underlying assets) into digital tokens (cryptocurrencies).

The report points out that since July 2021, the Total Value Locked (TVL) of real-world assets (RWA) has been continuously growing compared to the entire DeFi market. Many new projects continue to be launched, encompassing various categories of underlying assets such as agricultural products, gold, precious metals, real estate, and other financial assets.

The report is bullish on the future of RWA development, noting that while the scale of asset tokenization is currently quite small, projects involving the tokenization of various types of underlying assets are in development. This indicates that asset tokenization may occupy a larger portion of the crypto ecosystem in the future.

Jafar224

Enhancing liquidity is certainly a good thing.

Janak9955

It seems like regulation is needed. Let's take it slow.

Ritu13

The lack of regulation is also a bit of an issue.

Iravan774

What is the Federal Reserve in the United States? I've never heard of it before.