199. Insights: Real world assets on-chain: changing the future of ownership
Nov 1, 2023
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Vanessa Grellet and Justin Schmidt join the hosts to discuss real world assets and their tokenization. They explore the challenges and implications of implementing blockchain in large organizations and banks, and the potential for using blockchain to enhance trade systems. The conversation also delves into the future of stable coins and the tokenization of real-world assets, as well as the implications for startups replicating traditional assets on-chain.
Tokenization of real-world assets on the blockchain provides speed, accessibility, and security while fractionalizing ownership into shares.
Tokenized assets on public blockchains offer more open functionality and can be used in additional leveraged positions or lending.
Deep dives
Use cases of tokenized RWA's
Tokenization of real-world assets allows users to trade, invest in, and own tangible assets by putting their ownership on the blockchain. This provides speed, accessibility, and security to blockchain transactions while lowering costs and lowering barriers to entry by fractionalizing ownership into shares.
Comparing traditional financial assets with tokenized assets
Traditional financial assets that are tokenized on private blockchains have limited interoperability and are not able to interact with public chains. Tokenized assets on public blockchains, on the other hand, have more open functionality and can be used in additional leveraged positions or lending. However, the type of token and its uses depend on the blockchain environment it is on.
Differences in managing traditional and tokenized assets
When someone has access to a tokenized asset through traditional means, their options are limited to regular financial instruments. On the other hand, tokenizing assets via platforms like Ondo allows for more possibilities and utilizes the protocols and utilities of the blockchain. Tokenized assets can offer yield, be stored as collateral, and be used in margin trading.
Factors to consider in tokenizing real-world assets
Large organizations and banks considering tokenizing assets need to assess their technical capabilities, team expertise, and network options. Keeping assets on private blockchains provides efficiency and reduced cost, but limits interoperability. Engaging with public blockchains allows for increased leverage, additional trading options, and the use of DeFi applications. However, involving third parties can complicate infrastructure and operations.
gm. Mauricio Magaldi and Catherine Gu are back this week, talking about real world assets.
On today's episode they dive into real world assets, or RWAs for short. They explain what they are, discuss some of the use cases of tokenized RWA we’re seeing today, the pros and cons of bringing RWA on-chain, and where this emerging market is headed.
To discuss all of this and more they were joined by some amazing guests:
Vanessa Grellet, Aglae Ventures
Justin Schmidt, President and COO at Ondo
This episode is sponsored by Visa.
This episode is brought to you by Visa, one of the world's leaders in digital payments. Crypto has opened up a new world of possibilities, and Visa’s helping everyone take part. Consumers now can enjoy the freedom and flexibility of using their Visa crypto-linked cards for everyday purchases at millions of Visa-accepting merchant locations around the world. Join us in this new money movement; learn more visa.com/crypto.
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