Enduring RWA Trends: ISE Ecosystem delving into niche sectors and future prospects2023-08-29
There was an online event with @ISE Ecosystem @HabitTrade @X ForceCapital @DA AGE @4metas on Aug 28, 12 PM UTC. The topic of this Space is Enduring RWA Trends: Delving into Niche Sectors and Future Prospects.
It is a great honor for this SPACE to invite some of the most popular recent cryptocurrency projects as guests, especially the rising star of RWA – ISE Ecosystem. Here we share the wonderful insights of ISE Ecosystem representative Steven, CMO at ISE, on Twitter Space.
What propels the continuous growth of RWA?
The primary driving force behind bringing real-world assets into the crypto world is the ability to provide a stable risk-free yield for the crypto market, particularly in the macroeconomic context. Currently, most mature RWA projects are implemented through DeFi protocols’ one-sided demand for real-world assets, such as the need for asset management. Native on-chain earnings mainly stem from activities like staking, trading, and lending.
How does RWA follow a specific path to realization?
The specific implementation path for on-chain RWA assets could involve a strategy similar to asset securitization. This might include establishing Special Purpose Vehicles (SPVs) to support the underlying assets, offering control, management, and risk isolation.
For instance, an RWA project involving US Treasury bonds can take two paths: (1) the Off-Chain to On-Chain path represented by traditional compliant funds and (2) the On-Chain to Off-Chain path dominated by DeFi protocols. Given that the primary driver behind RWAs currently comes from the crypto world, the exploration of RWA projects within DeFi protocols is more mature.
Which categories of RWA assets do the participants favor? Kindly elaborate on their rationale.
Guests favor RWA projects related to real estate.
Can RWA play a pivotal role in advancing the DEFI landscape?
RWA can indeed foster the development of the DeFi sector. The beneficiaries of RWA application might not necessarily be the issuers of RWA assets, but rather entities like MakerDAO or other DeFi protocols. Due to the composability factor, participants in the DeFi ecosystem often capture the ultimate benefits.
Which regions are poised to witness tangible application of RWA narratives?
Currently, it appears that several new issuers of US Treasury bonds are mostly based in the Asian region, with several in Singapore and Hong Kong. While many operate from Hong Kong or Singapore, they might structure their operations using entities like the BVI or the Cayman Islands. On the other hand, the United States might be more cautious about regulatory risks. Early on, the development in this area might resemble the trajectory of Tether’s early development, with offshore operations initially. However, it’s likely that institutions in the US will also participate, as seen with projects like Circle. Recent projects seem to have started from Singapore and Hong Kong. Additionally, the Asia region’s significant demand for the US dollar, particularly in Southeast Asia and Northeast Asia, suggests that these areas are likely to be active participants.
All in all, ISE is a decentralized RWA infrastructure with blockchain security that lets you invest in realworld assets like real estate, bonds, and gold.
If you want to review the exciting content of this SPACE, please go to:
If you want to know more about ISE, please find out their official links in https://linktr.ee/industrialecology