We’re heads down at
@inside_r3 getting the Corda RWA Protocol ready for launch. I’ve been doing a few podcasts to explain where we’re going, and
@arifkazi_ has a nice take below. In my own words:
The needs - and demands - of DeFi allocators are fundamentally different to those of traditional investors: demand for higher yield, bigger risk appetites. The median DeFi allocator does not look like the median TradFi investor.
But it goes further.
Think about the onchain experience you get with non-RWA tokens in DeFi. It’s easy to forget just how nice it is:
* Easy entry and exit of positions
* Commonality of experience - the ERC-20, SPL, etc., standards have no TradFi equivalent
* Services operated by different parties are compatible with each other, everything plugs together nicely (aka ‘composability’)
* Everything’s in one place (your wallet) - no endless logging in and out of different vendors’ clunky websites
* And it’s surprisingly meritocratic: the asset either performs or it doesn’t. A fancy brand name on the token counts for nothing if it’s a dog.
Yes… it’s also still highly imperfect… contract hacks, oracle failures, bad actors under every rock... But anybody who has used it in anger knows how much better the user experience - the overall product - can actually be.
This is why I say tokenisation has to be about more than simply taking an off-the-shelf TradFi asset and distributing it as a token. The target market expects a far superior product experience.
But they do of course also really want higher quality yield. Yield that is backed by actual real-world cash-flows, and which works natively with DeFi.
That’s what my team is building - Wall Street yield, packaged so it works smoothly with DeFi… bending the product to meet the customers’ needs, not the other way round.
every rwa on solana gets judged against a 6-7% risk free rate. tradfi can't compete with that
richard, ceo of r3, was explaining how tradfi isn't going to tokenize everything & drag capital back to legacy rails.
capital onchain wants to stay onchain.
they're the customer now. so the assets come to them
solana just crossed $2.8b in rwa value
still behind eth on total, but holds ~98% of tokenized stock volume
growth rate is the metric that matters. not absolute lead
risk free rate onchain isn't 4% treasuries. it's 6-7% staked sol
so the bar for any rwa on solana is structurally higher than anything tradfi ships
bringing a bond onchain & calling it done won't work. it needs packaging. yield, liquidity, collateral eligibility, lending integration
product problem, not tokenization
solana compounds a second edge: second-gen apps
kamino learned from aave. lending, dex & rwa infra on sol got to look at what broke on eth & leapfrog
the curator layer is where the real game is
doesn't matter who issues the asset. who packages & distributes it
30 options on the shelf is worse than 3 good ones. whoever solves curation on sol owns rwa distribution
the interesting bit he wouldn't say outright:
heritage tradfi brands may be actively repellent to onchain capital
defi-native rwa brands are outperforming brand name managers in actual distribution
customer doesn't want your logo. they want the cashflow in a form their wallet understands
if you're building rwas on sol right now, the stack (issuance, curation, distribution, collateralization, liquidation) is the most underbuilt high-value surface in crypto
every layer is a business
sol isn't winning rwas by being first. solana is winning by being where curators, liquidity & regulatory clarity converge
already happening