crypto is all about narratives the tricky part is figuring out which narrative will be the biggest which one which one well it looks like one of them is going to be tokenized real world assets or rwas and that’s because asset managers like Black Rock are launching tokenized rwas left and right and are even pressuring the secc to let them do more just like they did with the spot Bitcoin ETFs and that’s why today we’re going to to do a deep dive into the top five rwa cryptos stay tuned before we begin let’s make something clear Financial advice is not given here I don’t tell you what to buy or trade your portfolio is built from the choices you’ve made tokenized art and stocks on chain rwas are changing the game but this is crypto and the risks can be steep so d y r before you take the leap hit like And subscribe if you’re here to stay and uh with that out of the way let’s talk rwas now let’s start with a bit of background tokenized rwas or real world assets are well exactly that they’re assets you find in the real world that are digitized and put on a blockchain and this can include things like real estate art intellectual property gold stocks and treasury bonds when these assets are tokenized on a blockchain their Associated tokens essentially serve as a proof of ownership of the underlying asset what you may not know though is that pretty much every single one of you have used rwas at some point and that’s because stable coins are technically rwas as they are tokenized versions of real world currencies like the US doll what makes tokenized rwas exciting is that they provide multiple benefits over their real world counterparts suppose you selling an apartment building a find and a buyer for this building could be difficult as you would either need to find someone who can buy the whole thing or arrange a complex deal consisting of multiple buyers and lots of paperwork if you tokenize this apartment building though it becomes possible to do a bunch of things like split the apartment building into thousands of shares that can be purchased by investors with all the ownership rights being tracked by smart contracts instead of loyers you could even create a market for these shares and earn a cut of the fees as they’re bought and sold by the investors this is just one example of the many possibilities enabled by tokenized rwas and many people in crypto and Beyond are very bullish on them uh for instance Black Rock CEO Larry thinkink has been obsessed with tokenizing real world assets so much so that it’s honestly starting to get a bit creepy in any case Larry believes that tokenization can streamline Financial processes by reducing costs and eliminating tradire complexity in fact Larry says that tokenized rwas can reshape the way that assets are managed and when the CEO of the world’s largest asset manager is saying that you’d be crazy not to think that the narrative has potential so then this brings us to the first rwa crypto that you need to watch and that’s chain link now for those unaware chain link is a decentralized Oracle Network that connects smart contracts with real world data and this enables secure and reliable interoperability between onchain and offchain systems this is key for asset tokenization where asset ownership needs to be handled with precision as such many rwa projects use chain link to ensure data reliability making chain link the leading data driver for the entire rwa narrative using our apartment building example from earlier chain link would be able to verify the property’s value and could even automate the distribution of any rental income for each apartment what’s more is that chain links oracles provide complete transparency and its smart contracts can be triggered based on real world events so if an asset is sold in the real world the blockchain will automatically be updated pretty sweet right anyway chain link has shown resilience in the face of years of cryptos ups and downs and this has led many crypto projects to only accept stable coins and other assets that have chain links price feeds not only that but chain link has a load of cool features to enhance the way it provides the real world data for example there’s chain link functions which is a serverless web 3 platform that leverages chain links oracles to bring web 2 data on chain and this provides additional rwi data such as the available yields or the ownership records of a particular asset chain links Tech all sounds pretty awesome but where does its token come in well link is used to pay for the operation of a wide VAR iety of Oracle Services which is the main demand driver for the token a link is also used to incentivize node operators to provide accurate data and can also be used for staking logically this means that Link’s price is likely to be pushed up as adoption increases and more rwa projects start paying for the data feeds and this is why some analysts like those at k33 research have labeled link as the quote safest bet in the rwa narrative okay our second rwa crypto pick is Ono which has emerged as a leading rwa platform Ono is centered around the creation of tokenized traditional assets that provide a stable income generating yield the key to Ono’s success is its transparency and its compliance with trafi regulations meaning that investors of all kinds can feel assured that everything has been done above board so to speak Ono structure is primarily made up of two arms the asset management arm which creates and oversees the tokenization of rwas and the technology arm which develops defi applications that support the scalability of Ono’s Financial offerings Ono also offers several products of its own such as the usdy stable coin usdy which stands for US dollar yield is essentially a tokenized digital dollar that’s secured by short-term us treasuries and Bank demand deposits another one of Ono’s products is O USG which provides tokenized exposure to Black Rock spittle a short-term treasury fund oh and if you’re wondering about Ono’s ties to Black Rock ether scan shows that it holds around 38% of black Rock’s Biddle fund crazy stuff oh and just recently Ono made two seriously bullish announcements first it revealed the next evolution of Ono Global markets or Ono GM in a nutshell onog GM is a platform designed to tokenize access to stocks bonds and perhaps more importantly ETFs the aim is for onog GM to make rwa investing much more accessible transparent and efficient notably Ono GM’s reimagined framework was inspired by the accessibility and liquidity of stable coins Ono then revealed the Ono chain a purpose-built layer one for institutional grade rwas Ono chain was designed alongside advisor that include industry leaders like Franklin Templeton Wellington Management Wisdom Tree and Google Cloud to name beld few Ono says that an allnew rwa focused blockchain was needed since existing chains lack the infrastructure needed for True institutional adoption although the chain will be open for anyone to participate Ono chains validators will be permissioned only operated by reputable or regulated institutions according to the announcement this is to prevent front running and meev attacks there’s also a subset of validators that will be run by financial institutions allowing for seamless integration with trafi networks and Ono chain will have native defi support for rwas that will incorporate Ono’s Bridge so then what about the Ono token well Ono is used for governance to vote on things like protocol upgrades Treasury allocations and strategic Partnerships with a bit of luck changes to crypto regulations will make it possible for Ono to capture a portion of the yields it generates on the over $650 million of tokenized assets ass it offers with Ono’s unique approach to tokenized assets and its focus on Regulatory Compliance of all asset types the project is perfectly positioned as one of the most important rwa cryptos out there as the adoption of tokenized rwas grows Ono could do well as more and more asset managers flock to its current and future products and if you’re looking for a deeper dive and price predictions for Ono then have I got a treat for you right over here in the top right now our third rwa crypto pick is Mantra as a fun fact we actually covered Mantra in the coin Bureau Club in July of last year since then mantra’s om coin is up almost 10 times at the time of shooting and it’s not hard to see why that’s because Mantra supports rwas through a combination of regulatory compliant infrastructure modular tools and strategic developments for those unaware Mantra is a highly scalable layer 1 crypto specifically designed for rwas mantra puts compliance first by embedding kyc AML and transaction monitoring directly into the protocol and this ensures rwas on Mantra are fully compliant with global regulations for all asset types so crucial for institutional adoption Mantra is a cosmos based blockchain meaning it leverages cosmos’s inter blockchain communication protocol or IBC to enable cross asset transfers and to make sure everything is as seamless as possible Mantra also has a decentralized ID system through the use of soulbound nfts which helps with kyc across multiple platforms mantra’s modular architecture is what allows its blockchain to support rwas for instance there’s a mantra token service or MTS which is a powerful toolkit that allows devs to issue and manage tokens with customizable yields royalties and permissions notably MTS also includes the ab ability to freeze and Destroy tokens associated with illicit activity then there’s Mantra guard module a compliance and permissioning system that works in tandem with mantra’s digital IDs essentially the guard module’s role is to determine which users are able to access and interact with particular Assets in order to ensure Regulatory and legal compliance there’s even a dedicated compliance module specifically designed to tackle any regulatory hurdles of onchain financial transaction admittedly this might sound like Overkill to the average person but to institutional investors this sort of Regulatory Compliance is absolutely essential anyway what sets Mantra apart is the primary focus on regions like the Middle East and Asia where it collaborates with Regulators to streamline the licensing of rwa tokenization the result is that Mantra has been partnering with giants such as property developer deac to tokenize over $1 billion in real world assets on its chain and this relates to mantra’s om coin now om can be used for staking which allows holders to help secure the network while earning a yield arm holders can also gain governance rights and can vote on things like future upgrades or ecosystem grants and of course it’s also used to pay for transaction fees on the network as a layer one blockchain purpose built for rwas mantra’s permissioned infrastructure makes it an attractive solution for institutions as such om could see significant price appre appreciation as the narrative takes off although do bear in mind it’s seen some pretty impressive gains already okay our fourth rwa pick is makad which recently rebranded to sky before rebranding makad was a pioner in integrating rwas into defi primarily through its die stable coin which also recently rebranded to usds the reason for the Rebrand was to illustrate Sky’s endgame which is to decentralize the makeer protocol into independent subd which are now called Stars each with their own governance tokens but utilizing Sky framework we should point out that both the original mkr and die tokens are still active and upgrading to the new sky and usds tokens is optional this gets seriously interesting when you learn that a proposal to Rebrand back to make AAL was rejected by just four whales with a 98% majority uh rabbit hole for another time perhaps anywho uh by leveraging rwas Sky enhances the utility stability and scalability of the usds stable coin which acts as a bridge between trafi and defi to avoid relying on volatile crypto assets as collateral Sky users are waas like uh US Treasury bonds mortgage loans and even renewable energy project financing as collateral in order to Mint this usds this helps Sky to generate a stable yield which reportedly accounts for around 48% of its annual revenue to manage these offchain assets Sky uses a specialized rwa foundation and a special purpose vehicle to ensure Regulatory Compliance and full governance control over offchain assets and to ensure this Regulatory Compliance Sky’s design features safeguards to freeze any usds involved in illicit activity of course the sky token can be used for governance allow o holders to vote on parameters like fees interest rates and any future protocol upgrades and what’s more is that it acts as a back stop in the event of debt shortfalls so if collateral asset value drops below loan values Sky’s token can be minted and sold to cover any losses and what’s great is that to counter that Supply being mentored any surplus fees generated from loans are used to buy back and burn Sky tokens and this is part of a more complex system called the smart burn engine which is outside the scope of this video but the result is that sky is actually deflationary overall which is bullish for its price this will be especially true as the rwa narrative sees more adoption because there would be more protocol fees to fund the smart burn engine and as you’ve probably guessed that adoption will likely come from institutional investors who may want to boost their wealth through tokenized assets like treasury bills and this would push Sky’s price well skywards now our fifth rwa crypto pick has to be ethereum and that’s because ethereum and its layer 2 ecosystem absolutely dominates the rwa sector accounting for around 86% of all onchain rwas ethereum has been used by Major institutions to launch tokenized Real World assets and these include the likes of Black Rock UBS and Franklin Templeton to name but a few as you’ll know ethereum is technically the most secure and developed smart contract crypto making things like rwa transfers fractionalized ownership and automated compliance a walk in the park compared to other blockchains but what you may not know though is that when it comes to rwas ethereum has another uh trick up its sleeve and that’s because ethereum has a specific token standard designed for rwa tokenization called ERC 3643 in a nutshell ERC 3643 enables institutions to tokenize real world assets whilst meeting kyc and AML requirements oh and a fun fact EC 3643 has been dubbed the token for regulated exchanges protocol or T-rex for short obviously not all rwas will be running around as uh T-Rexes most rwas on ethereum right now likely exist as erc20 tokens which for those unaware is the most common token standard on ethereum if you see a project runs on ethereum chances are it’s an erc20 anyway while ethereum’s layer 2s are a bit of a meme right now they do make transactions much faster and cheaper which is precisely what’s needed for onchain rwas to flourish at least the ones that don’t require high security guarantees best of all you won’t struggle to find an ethereum layer to because uh you know there’s like a bajillion of them all right sorry that was a bit of a cheap shot in all seriousness though the fact that most r are on ethereum explains why spot ethereum ETFs continued to see significant net inflows despite E’s recent struggles perhaps the upcoming Petra upgrade could further help improve ethereum sentiment we actually have a video all about pectra which you can check out right over here for now though all you need to know is that pectra will improve ethereum’s scalability and efficiency on the base chain which will allow more rwa activity to take place on the layer one so then what does all of this mean for the crypto Market in short tokenized rwas are extremely bullish for crypto and that’s simply because most asset managers have decided to tokenize their rwas on public crypto blockchains and use public crypto protocols this is a trend that’s only going to continue as regulations improve in fact rwas could be one narrative that sees more Capital inflows than any other crypto narrative out there and we reckon this is especially true for ethereum now this might sound a bit odd considering that it isn’t purpose built for rwas like some others but hear us out as we mentioned a moment ago ethereum is home to the vast majority of rwa activity already and that’s precisely because it’s the most secure smart contract crypto so while we’re sure that rwas could cause plenty of other cryptos to pump it’s most likely to be eth that’s front and center this is especially true when you consider the regulatory backdrop for crypto in the US say did you know that President Donald Trump’s own defi protocol World Liberty Financial has been buying up eth by the bucket load if eth does begin to gain momentum other altcoins should eventually follow but you won’t be making multiple gains on eth or even larger established altcoins that’s for sure and this is exactly why we started the coin bu Club there you’ll be able to see what we here at the coin Bureau hold in our own personal portfolios you’ll also find weekly altcoin reviews for promising projects voted on by you our members as well as Daily Alpha and insights from members of the coin Bureau research team so if you want to stay ahead of the game consider becoming a member of the coin Bureau Club using the link in the description and I will see you there now if you like that video don’t forget to check out our latest one right over here and if you’re not subscribed to the channel yet you can do that right over here that’s me for now see you next time [Music]
