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The Biggest Problem with Tokenized Real World Assets (RWA): Lack of Trustlessness (Coming from a web3 consultant)

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by COINS NEWS 17 Views

I'm a web3 consultant and I consulted 2 well-funded start-ups against building Tokenized Real World Assets (RWA).

Tokenized Real World Assets (RWA) sounds like the next big thing in the crypto world. Katyln Foundation, the legal entity behind Klaytn Blockchain ($KLAY) reports that the tokenization of real-world assets could turn into a $16 trillion industry by 2030.

Most of the Tokenized RWA companies operate via a legal layer of SPVs and trusts of AIFs, and tokenization is just a fad. OpenEden, Centrifuge, Gold Finch, Maple Finance, etc are all just AIFs. You need to KYC to use the platform, high barrier to entry (proven $1m net worth, $100k minimum investment) and tokenization does not add any real value.

Most of the Tokenized RWA companies operate via a legal layer of SPVs and trusts of AIFs, and tokenization is just a fad. OpenEden, Centrifuge, Gold Finch, Maple Finance, etc are all just AIFs. You need to KYC to use the platform, high barrier to entry (proven $1m net worth, $100k minimum investment) and tokenization does not add any real value. Tokenization does, however, add an annual maintenance cost of $50k to $120k depending on the jurisdiction of the fund.

On the other hand, you have projects like Dinari, where you can buy stocks on chain, without any KYC. However, hold the assets in their legal entity. As such, users just have to trust them, they have no legal ownership over the stocks.

Most of the Tokenized RWA companies operate via a legal layer of SPVs and trusts of AIFs, and tokenization is just a fad. OpenEden, Centrifuge, Gold Finch, Maple Finance, etc are all just AIFs. You need to KYC to use the platform, high barrier to entry (proven $1m net worth, $100k minimum investment) and tokenization does not add any real value.
I wrote an in-depth article about tokenizing real-world assets in case anyone is interested:
https://medium.com/@rwajournal/how-to-start-a-tokenized-real-world-assets-rwa-project-in-2024-4719fbbbff57

submitted by /u/tinfoilad
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