There has been a lot of talk about Real World Assets (RWA) coming onto the blockchain. Tokenizing things like gold, securities, bonds, even luxury items has tremendous implications and real world value.
This RWA revolution is expected to grow to 16 trillion dollars by 2020 according to this Boston Consulting Group infographic.
This is absolutely shocking considering that the value of the entire crypto market today is barely over 1 trillion dollars. Meaning this area of crypto alone could bring tens of trillions of dollars into the crypto market.
Not only that but the current market cap for all RWA tokens according to Defi Llama is roughly 2.2 billion.
As you can see this growth is exploding since the start of this year and a 16 trillion dollar valuation in 6 years would be a 7,272x of this entire market. Think about that for a second. People positioned correctly here will make fortunes.
We recently had Larry Fink, the CEO of BlackRock, the largest asset manager in the world with over 1 trillion in assets, come out and endorse crypto in a huge way. Listen to what he says here.
Really listen to his words in this clip. How many times does he say international? He refers to his “global” investors. Then goes on to say international 3 times. He says an international crypto product can transcend global currencies. He then mentions its a “huge opportunity.” And finally he again, says that interest is “broad based and worldwide.”
Normally, I don’t like to listen to major CEOs when they got on tv and talk. Usually you want to do the opposite of what they say. However, in this case I am paying more attention to the details here and how many times in such a short clip he mentioned the international implications.
BlackRock is one of the largest real world asset managers on earth and they are seeing a huge opportunity in crypto. Can we put two and two together here and figure out where they may be investing?
Well let’s look at what BlackRock did last week via Bloomberg. It gets a little fuzzy but you can see at the bottom that they used JPM’s network to “turn shares in one of its money market funds into digital tokens.” There it is right there in plain sight.
The biggest asset manager in the world is turning real world assets into digital tokens.
So, today I am adding a RWA token to our watchlist that has been on my radar for months and is now beginning to break out.