The Integration of Real World Assets and Decentralized Finance

The emergence of blockchain technology has brought new possibilities to the financial sector. Decentralized Finance ( DeFi ), as an important application of blockchain, has advantages such as atomic settlement, low cost, high transparency, and strong composability. However, the current DeFi ecosystem is still limited to the cryptocurrency circle and lacks connection with the traditional financial system.

In order to expand the application of DeFi, introducing real-world assets (RWA) into the blockchain has become an important direction. RWA includes tangible assets such as real estate, commodities, and artworks, with a global value exceeding $80 trillion. By tokenizing RWA and integrating it into the DeFi ecosystem, the liquidity and utilization efficiency of traditional assets can be improved.

Currently, several well-known institutions have begun to布局 the RWA tokenization field. Goldman Sachs has launched a blockchain bond platform, Siemens has issued digital bonds on the Polygon network, and Mitsui has achieved the digital securitization of real estate assets. Mainstream DeFi protocols such as MakerDAO and Aave are also actively introducing RWA as collateral.

The main applications of RWA in DeFi include: 1) as reserve assets for stablecoins; 2) as underlying assets for synthetic tokens; 3) as collateral for lending protocols. Among them, real estate, carbon credits, and corporate bonds are the more popular types of RWA.

Currently, DeFi protocols involved in RWA can be mainly divided into two categories: one is the stock and physical asset market, such as Backed Finance; the other is the fixed income market, including public credit and private credit, such as Centrifuge, Goldfinch, etc. These protocols provide services such as tokenization, trading, and financing for RWA.

Looking ahead, a Layer 1 public chain specifically designed for RWA may emerge to better meet the unique needs of RWA, such as permissioned access and flexible token standards. With factors such as the banking trust crisis, RWA tokenization is expected to become the next important narrative in DeFi.

Overall, the integration of RWA and DeFi brings new opportunities for traditional financial assets, with the potential to significantly expand the application boundaries of DeFi and promote the implementation of blockchain technology in a wider financial领域.