Bittime – Meld, acrypto-friendly crypto banktokenized real-world assets (RWA) to retail investors. This collaboration allows investors to “buy moreBitcoin” using the assets they own.
This news was announced by a Meld spokesperson in an email to CoinDesk. Meld has entered into a memorandum of understanding with decentralized finance (DeFi) platform Swarm Markets. For your information, Meld operates on the layer-1 blockchain which has the same name.
Meld Take Advantage of the Swarm Platform
Swarm Markets, a DeFi platform licensed by the German financial regulator (BaFin), launched its unlicensed RWA trading platform last December.
Meld will utilize the Swarm platform to offer lending and borrowing services for these assets on-chain.
This opens up the opportunity for retail investors to margin trade across assets, something that is not currently available through traditional methods.
"This could be very interesting entering the next bull run. Investors could lend out their shares to then buy more Bitcoin, for example," said a Swarm spokesperson.
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Collaboration between Meld and RWA
The collaboration with Meld enables a large retail user base to access tokenized RWA through licensed banking services.
Meld recently obtained a virtual asset service provider (VASP) license in Lithuania. With the Crypto Asset Market Regulation (MiCA) from the European Union, this license is expected to make it easier for Meld to obtain similar licenses in other European Union member countries.
Tokenized Real World Assets (RWA) is the process of trading traditional assets such as stocks, bonds, and even real estate on the blockchain.
Some in the crypto industry predict tokenized RWAs will become a trillion-dollar business in the future.
As an illustration of investor interest, Meld has had 75,000 potential customers sign up to get early access to their platform.
Also Read: BlackRock Plunges into RWA with Plans to Launch Ethereum Token-Based Fund
Impact of Meld and Swarm Markets Collaboration
The partnership between Meld and Swarm Markets has the potential to have a significant impact on the development of tokenized real-world assets (RWA) and the decentralized finance (DeFi) industry:
1. Democratize Access to Assets
So far, investment in high-value assets such as real estate and shares is often limited to institutional investors or investors with large capital.
With the presence of tokenized RWA offered through the Meld platform, retail investors also have the opportunity to invest in these assets.
Tokenization breaks down asset ownership into smaller, more affordable units, so even investors with limited capital can participate.
2. Increase Asset Liquidity
Traditional assets such as real estate generally have low liquidity. The process of buying and selling these assets can take a long time and involve various intermediaries.
Tokenization of assets can increase liquidity because they can be traded more easily and quickly on DeFi platforms. This has the potential to make asset markets more efficient.
3. Cost Efficiency
Traditional asset transactions generally involve high administration fees and brokerage fees. DeFi platforms offer the potential to reduce transaction costs through the use of blockchain technology.
Smart contracts can automate transaction processes and reduce third party involvement, so that transaction costs can be reduced.
4. Innovation in DeFi
The integration of tokenized RWAs with DeFi platforms can give rise to new financial innovations. For example, investors can use the assets they own as collateral to get loans in the form of crypto assets.
In addition, the presence of RWA can enrich the products and services offered in the DeFi ecosystem.
Also Read: RWA Tokenization on a Large Scale Not Feasible Yet?
Challenges and Future of Tokenized RWAs
Despite offering various benefits, tokenized RWA development still faces several challenges:
1. Regulation
The crypto industry currently still does not have clear and uniform regulations in various countries. Regulatory uncertainty could hinder the growth and adoption of tokenized RWAs.
2. Security
Cybercriminals may target DeFi platforms that offer tokenized RWA. It is important to ensure the security of the platform and the digital assets traded on it.
3. Standardization
There is currently no unified standard for asset tokenization. This can introduce complexity and make the integration process between different platforms more difficult.
However, with increasing interest and collaboration from traditional financial industry players and crypto companies such as Meld and Swarm Markets, the future looks bright for tokenized RWAs.
Going forward, we can expect to see increased adoption of tokenized RWAs, clearer regulations, and new financial innovations born from the integration of traditional assets with blockchain technology.
Also Read How to Buy Crypto:
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
What Are Real World Assets (RWA), and How Do They Function in DeFi?
What Are Real World Assets (RWA), 5 Crypto Coins & Blockchains That Use the RWA Narrative
Art Revolution: Artrade Can Turn Works of Art Into RWA
DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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