Isn’t it contradictory to ‘decentralization’ when RWAs remain confined to a single chain?
Generally, people list RWAs like real estate, stocks/bonds, treasuries, and other financial assets on chain for security, liquidity, and the trustless access that blockchain provides.
Tokenization/RWA as a growing ecosystem is currently valued at $18.85B, with a projected growth of $50B by the end of 2025.
Coingeek.com
But if these assets remain trapped in isolated chains, imagine the chaos that could unfold. $50B worth of RWAs funneled into fragmented system would result in
➝ Siloed liquidity
➝ Overly complex cross chain interactions
➝ Broken user journeys,
➝ Stunted RWA growth and adoption.
The solution? Chain abstraction.
How does chain abstraction help RWA liquidity/growth?
@axelar ITS as a Web3 interoperability solution provides effective and scalable cross chain communication for transfer and tokenization of RWAs. It enables secure and efficient scaling of blockchain networks while providing one of the most simplified UX.
What does this mean?
What this means to different users varies. As an individual, when I choose to tokenize a RWA (say for instance, my house) , with Axelar’s ITS, even with my limited technical skills I could enjoy
🌟Easy representation of my property across multiple chains.
🌟Access to a wider, unified market of traders across different chains and
🌟Access to higher liquidity pools cross chain.
🌟security of cross chain access
For institutions, developers seeking to build innovative protocols in the RWA niche
🌟Lowered barrier for entry by providing a comprehensive suite of tools for builders.
🌟Customizable features
🌟Wider user base distribution
🌟Advanced security
So both individual users, builders, and institutions are saved from issues tied to fragmentation, like downtime, limited liquidity, high fees, etc., which would normally need a lot more technical experience to achieve cross-chain access.
This episode of ‘The Block’ with Sergey Gorbunov, co-founder of Axelar, adds more insight.
theblock.co/post/326321/here…
Axelar is fanning the flames of adoption in RWA tokenization. This decentralized, programmable infrastructure is the long-term solution by increasing the liquidity and accessibility of these assets, attracting more institutional and retail investors to tokenization and RWA.
This perfectly embodies the promise of onchain RWAs, a practical solution to fragmentation currently facing the ecosystem. creating a seamless and enjoyable user experience that prioritizes security, trust, and user empowerment.
Enjoyed this post? Check out my previous post 😉
x.com/el_obino/status/192575…