Real-world asset (RWA) digitization is the process of converting real-world assets like dollars, financial securities, real estate, or commodities into digital tokens on a blockchain, enabling cheaper, faster, and more accessible assets.

Market Opportunity

With growing demand for financial efficiency, market accessibility, and alternative investments, digitized RWAs are expected to play an increasingly critical role in global financial markets. The ability to combine physical asset ownership with the speed and efficiency of blockchain technology is reshaping legacy financial systems.

According to Roland Berger, the value of digitized assets is projected to exceed $10.9 trillion by 2030, with real estate, debt, and investment funds leading as the top three digitized asset categories.

1) Roland Berger Conservative Forecast – Assumes <1% of RWA will be digitized. Source: Roland Berger

Market Size

The global value of digitized real-world assets stands at $867 trillion. As of November 2024, only 0.001346% of this value exists on-chain, highlighting the enormous potential for growth in asset digitization.

Digitized RWAs are poised to play a significant role in shaping the next generation of capital markets, helping to bridge the gap between traditional finance and digital assets.

Benefits of RWAs

A major benefit of RWA digitization lies in the ability to break down barriers in asset ownership. Historically, many of these assets were available only to institutional investors or individuals with significant wealth. Fractional ownership changes this by dividing valuable assets into smaller, tradeable units, making them accessible to a wider audience while preserving their underlying value.

Why Digitize Real-World Assets?

Digitizing RWAs provides solutions to several longstanding challenges in asset management and investment:

1. FAST, 24/7 TRANSACTIONS
Digitization enables near-instant transactions via the blockchain while enabling markets to operate 24 hours per day, seven days per week, all year round.

2. OPERATIONAL EFFICIENCY
Smart contracts automate compliance checks, dividend distribution, and settlement processes, reducing reliance on intermediaries and lowering costs.

3. TRANSPARENCY AND SECURITY
Blockchain technology ensures that every transaction is recorded on an immutable ledger, reducing the risk of fraud and providing clear ownership records.

4. GREATER ACCESSIBILITY
Assets like real estate or fine art, which traditionally take time to buy or sell, become more liquid when digitized. Tokens can be traded in smaller increments, opening markets to more participants.

Use Cases of RWAs

Digitized RWAs offer use cases across multiple markets and asset classes:

1. STABLECOINS
Dollar-backed stablecoins provide a stable, liquid, and programmable asset for payments and remittances. They facilitate cross-border transactions, enhance liquidity in digitized markets, and improve treasury management for institutions.

2. PRIVATE CREDIT
Digitization enables broader investor participation in private credit markets by fractionalizing loan portfolios and making them tradable. This could increase access to capital for businesses while providing investors with a new source of yield.

3. US TREASURIES
Digitized treasuries offer near-instant settlement and 24/7 trading, making them more accessible to a global investor base. This enhances the potential liquidity in traditionally rigid fixed-income markets.

4. NON-US BONDS
Digitization allows investors to gain exposure to international fixed-income assets with reduced transaction costs and streamlined settlement processes. It could also help issuers tap into a wider, more diverse investor base.

5. COMMODITIES
Digitization has introduced precious metals like gold and agricultural products into the hands of retail investors. Gold-backed tokens like Tether Gold allow smaller investments in a historically stable asset.

6. REAL ESTATE
Property digitization enables fractional investment, providing access to high-value properties. By removing intermediaries and automating transactions, digitized real estate improves market efficiency and lowers costs.

7. MUTUAL FUNDS/EFTs
Digitization of these securities also enhances liquidity and simplifies settlement, enabling greater market participation.

About Pointsville

Pointsville is an end-to-end alternative asset factory

• We are your one-stop shop for loyalty, stablecoins, and alternative asset digitization & management.
• Our software platforms bridge the gap between emerging digital financial technologies and traditional asset classes. Our technology supports our partners with tools to:
  • Convert real-world assets into digitized alternative assets
  • Utilize the leading capital markets, regulatory, loyalty, and blockchain technologies
  • Empower your network with programmable loyalty, ownership, issuance, and asset management tools
  • Enable regulatory compliance and reporting for loyalty and alternative assets

To learn more about asset digitization, click here.