Mastering Crypto

09/09 04:55

Coinbase joins Hands with Major Crypto Players

Coinbase, Aave, USDC stablecoin issuer Circle and Coinbase’s layer-2 solution Base, among other crypto industry leaders, announced the launch of “Tokenized Asset Coalition”. The joint venture will target onboarding users from the traditional finance sector by leveraging real-world assets.

Real World Assets (RWA) tokenization is a concept rather novel in the crypto space. RWA tokenization, put simply, is tokenized assets unlike cryptocurrencies and Non-Fungible Tokens (NFTs). These assets are tangible in nature, including the likes of precious metals, real estate, artwork and even treasury bonds. The Tokenized Asset Coalition intends to bring the next trillion Dollars on-chain through tokenizing real-world assets.

Additionally, they also intend to advocate and educate about the same as the coalition believes public crypto rails offer superior efficiency, cost savings and transparency compared to legacy systems.

Impact of the Coalition on the crypto market

Open to adding more members, the coalition would be able to spruce up usage and investment in the crypto space using this method. Tokenizing RWAs allows people to invest in vehicles that they are more familiar with by making them more affordable than owning or investing in the entire asset.

Furthermore, with the help of crypto market leaders pushing the idea, the RWA tokenization market could explode. This would act as a catalyst for blockchains, as capturing the market would be crucial for growth.

Moreover, crypto adoption would boost, and crypto assets would find exposure but also necessitate more stable market conditions. This is because RWAs would experience significantly less volatility in comparison to cryptocurrencies, opening them up to competition from tokenized assets.

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