The recent changes in RWA as reported by Lao Bai will determine the main track for the next cycle.

This article will delve into the development trend of the RWA (Real World Asset Tokenization) track, analyze the application scenarios of RWA, the types of assets suitable for on-chain, past and current solutions, and changes in market trends. This article originated from an article by @Wuhuoqiu, Investment and Research Partner of ABCDELabs, and was compiled, compiled and contributed by wublockchain. (Synopsis: Let everything be on the chain" RWA public chain Plume What does the ideal crypto world look like? (Background supplement: RWA Primer" How blockchain changes the future of physical asset tokenization) After talking about the view of the market from the perspective of the East and West in the previous part, today I just took advantage of YZi Labs' official announcement to invest in the RWA platform Plume Network, and talk about the recent changes I observed in the RWA track. This matter has to be broken down into four parts to say 1. Does RWA really have a use case, or PMF 2. Which RWA assets are suitable for on-chain and which are not 3. What were the solutions of the past and what are the solutions now 4. RWA's wind direction in the past few months, do you feel it First of all, 1 – whether RWA really has an application scenario, or PMF – (here first remove the stablecoin track of the US bond chain, Usual, MKR, etc. have found PMF) Take the US stock chain as an example, this is the most noisy category on Twi. Many people think that the US stock chain belongs to this move, really want to speculate on the US stock of their own channel, any target on the chain is more volatile than the US stock, there is no need to come to the chain to play stocks I have a different view on this, I personally think that the US stock is meaningful on the chain 1. In terms of channels – it is true that most of the bigwigs above A8 and A9 use securities platforms such as Futu and FirstTrade to diversify their investments in coins, stocks, gold, etc. But I believe that most retail investors in the circle do not have US stock accounts. On-chain U.S. stock trading can at least open their purchase channels without threshold. From another point of view, the total market capitalization of stablecoins such as USDT/USDC is increasing, which is another way to spread the hegemony of the US dollar relative to traditional finance. If the smart wallet that Crypto experiences through stablecoins + Payfi+ Alipay really goes to Mass Adoption one day, do you think Laomei is willing to give them the world to take over U.S. stocks? Do people in most other countries in the world prefer to open accounts with various bank brokerages and toss a few days to buy their own country's half-dead stocks, or simply place one-click investments against the seven sisters of the world's largest economy like Taobao shopping? 2. From the perspective of application scenarios, imagine such a case, as a P young general, you rush Mubarak to make 100,000 U these days, you know that Tesla has recently cut down, it is a good time to dig the bottom, and then you want to exchange this 100,000 U for Tesla stock. Even if you have a U.S. stock account, you have to first convert the 100,000 U OTC into fiat currency, the fiat currency is transmitted to the broker's account through the bank, and then start buying from the broker, this set of processes basically takes 3-5 working days (17 years before I contacted bitcoin in Australia through FirstTrade bought U.S. stocks, Swift transfer alone is 4,5 days, but also charge a large tens of dollars in fees), if one day your Telsta rises you want to sell it for BTC or U, This process has to be done again...... Imagine if there are U.S. stocks on the chain, and the U seconds you earn from Meme are exchanged for Tesla, the reduction of this friction cost is really not a little bit, but a 10-fold hundredfold improvement in experience Then talk about 2 – Which RWA assets are suitable for on-chain Similarly, T-Bill, which has proven itself is not in the discussion, and other RWA assets actually depend on who is specifically targeted For the To C side, stocks are undoubtedly the most suitable. Most retail investors have not been exposed to first-level private equity, you are tokenizing the equity of an unlisted company, and it is estimated that few people can understand + buy + hold for a long time. There are also personal credit collateral like those above Centrifuge, such as bridge loans in the real estate market, corporate accounts receivable loans, etc., which are also not suitable for To C. The only thing that most C-end users are familiar with should be stocks. To C more scenarios, should be to target an asset for users who have not purchased through the chain before, is a process from 0 to 1 For the To B side, there are many more things that can be tokenized, but compared to To C's from 0 to 1, the To B side should be more of a friction reduction from 1 to 100, just as primary private equity was originally circulated between some institutions and high-net-worth investors, placed in Centrifuge The bridge loan mortgage is likely to be loaned out of the bank, but this circulation process is relatively cumbersome and frictional. Placed on the chain, just like Payfi and Swift, it can achieve a huge increase in user experience and circulation speed. Speaking of which, I talked about an RWA project last year, and the parent company is a relatively high-ranking asset management institution in the United States. They intend to issue a token on their own trading platform based on the first-level equity of customers on their own asset management platform, such as Musk's SpaceX, so that the token can be easily circulated and changed hands, and eventually SpaceX will be directly settled in one lump sum when it goes public. So to B, in addition to the transaction users limited by institutions and enterprises, the main body of issuance is actually relatively limited, just like the above example, unless you have a large amount of SpaceX equity in your own hands, otherwise you are simply just an STO or RWA platform, you want to attract SpaceX equity holders to you to issue a token representing SpaceX equity, which involves resource cooperation, legal terms and other aspects of friction is much greater There are many intermediate states, but To C can also be To B, such as the kind of IP chain like the Story Protocol, or the royalties of a novel, the box office of a movie, the sales of a game These things are tokenized, I feel that it is still in the early stage of exploration, and it needs to be tried one by one to be falsified. Like Tokenize, FT failed, and Kaito was relatively successful. Celebrity Time Tokenize, disappeared within a few days of fire...... These things have to be done slowly, and then 3 – What were the solutions in the past, and what are the solutions now? Or take U.S. stocks as an example – the solution in the past was basically based on synthetic assets, represented by SNX, Terra's Mirror, and GNS, which is basically falsified at present, and the above three platforms have long since removed the previous synthetic U.S. stock assets, for two reasons, one is that everyone is interested in taking stablecoins or local currencies (...)