The attractiveness of fixed income investments is rising, and the RWA track is迎来发展机遇.

Recently, the yield on the 10-year U.S. Treasury bonds has continuously surpassed the 4% threshold, making fixed-income investments in traditional markets more attractive. This may lead to some institutional funds from the crypto market flowing into traditional markets in search of more stable returns.

At the same time, the development of the tokenization of physical assets ( RWA ) track has created opportunities to attract incremental users from traditional markets and enhance liquidity. By putting traditional assets on-chain and tokenizing them, RWA provides traditional market participants with a more convenient way to invest while also opening the door for them to enter the crypto market. This two-way liquidity helps to increase overall market liquidity and promote more efficient capital allocation.

How RWA Mines Incremental Users

The introduction of RWA tokens has built a liquidity bridge between traditional markets and the crypto market. Traditional market participants can use RWA tokens to participate in the crypto market, while crypto market participants can also access traditional markets through RWA tokens. This increase in cross-market liquidity helps improve market efficiency and attract more investors and traders.

In terms of infrastructure, decentralized finance ( DeFi ) systems are built on blockchain technology, providing a range of financial services such as lending, trading, and liquidity mining. RWA tokens, representing traditional assets in DeFi, offer users a more diverse selection of assets and can seamlessly integrate with the DeFi ecosystem. This makes RWA exhibit great potential in the DeFi space, attracting more attention.

Investors typically seek to reduce risk through diversification and asset variety. RWA tokens provide a way to combine traditional assets with the crypto market, enabling investors to access a variety of investment opportunities on a single platform. This demand for asset diversification may drive investor interest in RWA and lead them to include it in their portfolios.

Main Participants of the Lending Agreement

Maple

Maple was founded in 2019, led by traditional finance bankers and credit investment professionals. The protocol aims to improve traditional capital markets by providing on-chain lending infrastructure for credit experts and connecting institutional lenders and borrowers. Maple combines industry compliance standards and due diligence with transparent, frictionless lending enabled by smart contracts and blockchain technology. Its on-chain operations primarily offer lending services for USDC and wETH, and it recently announced plans to launch on-chain lending pools for investing in U.S. Treasury bonds.

TrueFi

TrueFi is developed and managed by the TrustToken team, emphasizing transparency and creditworthiness, and manages loan approvals and risk assessments through the introduction of a decentralized autonomous organization. Since its official launch in November 2020, TrueFi has issued over $1.7 billion in loans to more than 30 borrowers, primarily consisting of fintech companies, credit funds, and cryptocurrency institutions.

Clearpool

Clearpool is a decentralized finance ecosystem that introduces an unsecured lending protocol for qualified institutions. Institutions can raise short-term funds through a single borrower pool, while DeFi lenders can obtain low-risk returns based on market-derived interest rates. As of now, the total amount lent from Clearpool's permissionless pools has reached $328 million, with an average yield of 10.24%.

Expansion of RWA in Financial Products: Structured Deposits

In addition to the native lending protocols of the crypto market, we can also expand new narratives and related products from the perspective of the traditional financial market. Structured deposit products are a common investment tool in the traditional financial market, typically offered by financial institutions. This product combines fixed income and derivatives and other financial instruments to provide a certain return while controlling risk to some extent. The "dual currency wealth management" in the crypto market is a form of structured deposits.

The two main elements of structured deposits include:

1. Underlying assets: can be exchange rates, interest rates, indices, ETFs, stocks, funds, commodities, etc.
2. Product Structure: Different structures are suitable for different market conditions (such as rise, fall, and range fluctuation, etc.).

The cryptocurrency market is usually characterized by high volatility and risk. Structured deposit products may provide some mechanisms to hedge risks, such as derivative contracts. These products can be used to reduce the risk exposure of cryptocurrency institutions during market fluctuations and offer more stable returns. Therefore, with the support of RWA, some professional investors or institutions may prefer to choose structured deposits, which are more mature products in traditional financial markets.

Overall, the rise of RWA popularity represents the integration between the cryptocurrency market and the traditional financial market. This integration not only provides investors with more investment options and diversified asset portfolios but also brings greater liquidity and efficiency to the entire market.