- The Tokenized Asset Coalition (TAC) has released its first report on the development of the RWA sector.
- Experts noted the maturity of DeFi protocols, as well as the stability of Tether and Circle.
- According to the report, stablecoins backed by euros and other fiat currencies have not gained widespread adoption.
On January 16, 2024, the Tokenized Asset Coalition (TAC), which includes Aave, Centrifuge, Circle, Coinbase and other companies, presented the first annual report on the state of RWA. Blockworks reports.
Experts called stablecoins a “ray of hope” for this market segment. The report found that, compared to venture capital funds and some blockchains, centralized stablecoin issuers Circle and Tether have shown resilience in the bear market.
According to DeFi Llama, the total market capitalization of stablecoins is $133.6 billion. At the same time, USDT dominance in the market exceeds 70%.
The market capitalization of stablecoins has crossed the mark of $133.6 billion. Source: DeFi LlamaAssets backed by currencies other than the dollar are not widely used. According to the data provided, the total value of stablecoins pegged to the euro is about $600 million.
Despite the lack of recognition of this asset class, they attract institutional investors. Firms such as Societe Generale, DWS and Galaxy Digital have launched euro-backed stablecoins.
Additionally, efforts to develop the RWA sector have focused on US Treasuries. As Centrifuge CEO Lukas Vogelsang noted, they were not previously in demand:
“Firstly, interest rates were close to zero, so investors were not interested. Secondly, it is worth noting the sustainable development of the decentralized finance industry. We see maturity on the part of DAOs and DeFi protocols in how treasury needs to be managed effectively.”
According to data aggregator RWA.xyz, as of January 2024, more than 20 companies offer tokenized products worth $861 million. Vogelsang believes Treasuries will likely remain an attractive vehicle for storing spare cash.
“While Treasuries may be investors’ first entry point into RWAs, they tend to diversify their investments into other assets. We expect this trend to continue through 2024 and beyond,” said the head of Centrifuge.
Let us remind you that we have a separate material about tokenized assets of the real world – we recommend that you read:
Ivan BabiukAnother area that is of interest to industry participants is the tokenization of private loans.. According to RWA.xyz, it is valued at almost $600 million.
In their report, experts pointed out the importance of regulating this market segment. This is necessary for institutional adoption of RWA and mass adoption of tokenization across industries.
Previously, 21.co published a report on the development prospects of RWA. According to analysts, market capitalization will grow from $3.5 trillion to $10 trillion by 2030.