February 23, 2023
The latest trend in the crypto space is the adoption of Real World Assets (RWA) on-chain.
- Apple ($AAPL), Tesla ($TSLA) and two US Treasury Bonds are the first tokenized assets, offered by Swarm.
- The tokens are compliant with German regulation and are available on Polygon.
- The tokens are 100% backed by Traditional Finance stocks and bonds.
What RWA-backed tokens means is a lower correlation between tokens. Price movements between tokens are usually highly correlated, which means vulnerability to meltdowns like Celsius and FTX. Tokens backed by something off-chain can be more independent, and therefore stable, from other market movements. Until now, the best options for stability have been stablecoins pegged to sovereign currencies. RWAs like Apple, for example, whose market capitalization is larger than the total market cap for cryptos, can offer limitless stability and collateral for crypto markets.
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