Bittime - The financial world is abuzz with a new trend: real world asset (RWA) tokenization. This is an innovative way to open up investment opportunities and increase the ease of buying and selling assets.
What is RWA?
RWA (Real World Assets) in the crypto world are real assets that exist in the physical world, but can now be owned digitally through the blockchain tokenization process. This process is like breaking down asset ownership into small parts called tokens.
Examples of RWA assets include property, works of art, commodities, even shares. Investors can buy partial ownership of these assets through certain platforms.
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The Role of Blockhain in RWA Tokenization
Blockchain technology plays an important role in tokenization . Assets such as property or works of art that usually require large capital to own, can now be broken down into small parts called tokens. This means that you can have partial ownership of these assets with a more affordable investment.
Also read: What is RWA and Why is it Important for DeFi?
Apart from that, tokenization also eliminates the role of intermediaries which usually makes transaction costs expensive. Investors can participate directly and have more control over their assets.
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Tokenization also offers a solution to a real problem that many parties face. For example, small and medium enterprises (SMEs) often have difficulty obtaining business capital.
Through asset tokenization (RWA - Real-World Asset), they can use part of the asset ownership as collateral to obtain loans. These assets can also be stored on decentralized finance (DeFi) platforms or put into special investment containers.
Also read: What is DeFi?
Tokenization also opens up wider investment opportunities, including for those who do not yet have a bank account or adequate financial access. With just an internet connection and valid identity, anyone can participate in the easy and fast investment process.
Fathom Protocol Takes Advantage of Tokenization
Fathom Protocol is one example of a company leveraging tokenization to create a mutually beneficial ecosystem. They provide trading platforms, liquidity loans and yields for investors and business people.
For investors, Fathom tokenization offers financial independence, informed investment choices, and the ease of using assets as collateral.
Tokenization is expected to realize the "Internet of Value," namely a convenient, affordable and global asset storage and transfer system. Blockchain technology that supports tokenization ensures the security and transparency of transactions.
So far, the gap between asset owners and investors has been a challenge in itself. RWA tokenization comes as a bridge to overcome this gap.
This is in line with the opinion of Manuel Rensink, Co-Founder of Fathom Protocol. He emphasized that tokenization can make investing more accessible to everyone.
In addition, assets can be used as collateral to obtain loans more efficiently.
Rensik also explained that Fathom's FXD token was designed as the core of a decentralized global financial network.
FXD is resistant to the risk of bank bankruptcy because it is backed by digital assets XDC and RWA whose value exceeds the value of the token itself.
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In short, RWA tokenization opens up profitable opportunities for investors and asset owners. Investors can access various investment opportunities, while asset owners can get loans easily.
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:
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Ripple and Axelar Work on RWA Tokenization Project on the XRP Ledger
DISCLAIMER: This article is informational in nature and is not an offer or invitation 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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