With the advent of the digital age, the asset management industry is undergoing a tremendous transformation. The emergence of decentralized finance (DeFi) and blockchain technology has brought new ideas and methods to asset management. In this context, RWA and decentralized funds have become two topics of great interest. This article will introduce these two concepts and how they can collaborate to bring unprecedented opportunities to the asset management industry.

What is RWA?

RWA stands for Real World Asset, which refers to assets that exist in the real world and can be digitally expressed, such as real estate, stocks, bonds, and more. The trading and management of these assets typically require the involvement of traditional financial institutions, but the emergence of RWA has brought new possibilities to these activities.

With the support of blockchain and smart contracts, real-world assets can be converted into digital assets, enabling decentralized trading and management. This model has brought new ideas and methods to the asset management industry. The application of RWA is also expanding, including real estate, logistics, energy, art, and other fields, providing investors from all walks of life with more choices.

What are decentralized funds?

Decentralized funds are funds that are managed and traded through smart contracts. They use blockchain technology and smart contracts to automate management and trading, making the fund management process more transparent and efficient. The emergence of decentralized funds makes it easier for investors to enter various asset investment fields while also improving the efficiency of the asset management industry.

As a decentralized fund platform, DeFund aims to make it easy for anyone to participate in decentralized fund investment by connecting professional investors and ordinary investors. The platform uses protocols to ensure the interests and asset security of all parties. Currently, DeFund only supports the trading of mainstream tokens, but it will add more investment categories in the future. RWA is also part of the overall plan, and the platform will ultimately create a multi-asset class and multi-chain fund issuance and management platform. If you’re interested, you can learn more about this platform.

Compared to traditional funds, decentralized funds offer higher flexibility and lower barriers to entry. They can be traded globally without geographical restrictions and provide investors with a wider range of investment options, including cryptocurrencies, RWA, and other assets.

Collaborative Innovation between RWA and Decentralized Funds

The collaboration between RWA and decentralized funds can bring more opportunities and innovation. By converting real-world assets into digital assets, trading and management can be made more convenient. At the same time, decentralized funds make it easier for investors to enter various asset investment fields, improving the efficiency of the asset management industry.

Decentralized funds can effectively solve some of the problems of traditional funds, such as high barriers to entry and low liquidity. They offer more convenient and efficient investment methods, allowing more people to participate in asset management. Based on blockchain technology and smart contracts, decentralized funds can also achieve more comprehensive asset management and risk control, providing investors with a safer investment environment.

RWA also brings more investment opportunities and choices to decentralized funds. Traditional funds can only invest in certain specific areas or assets, while RWA can convert more assets into digital assets, providing investors with more investment opportunities. For example, real estate, art, and other traditional fields can be converted into digital assets through RWA, providing investors with more investment opportunities.

In addition, the collaborative innovation between RWA and decentralized funds can bring more comprehensive asset management. Through smart contracts and blockchain technology, more efficient asset management and risk control can be achieved. Investors can have a more transparent understanding of the assets they hold, while also being able to manage their investment portfolios more conveniently.

Currently, there are some industry cases that demonstrate the potential of collaborative innovation between RWA and decentralized funds.

Ondo Finance：Ondo Finance is a decentralized platform created by a pair of former Goldman Sachs colleagues. The platform’s core product is a stablecoin-based lending protocol that invests in money market funds, US government securities, and more to create a profitable stablecoin.

Securitize: Securitize is a platform for issuing and managing security tokens. The platform can tokenize various assets, including real estate, private equity, and debt, and provides compliance automation and secondary market trading functionalities.

Centrifuge: Centrifuge is a decentralized financial protocol that aims to tokenize real-world assets such as accounts receivable, invoices, and trade finance using blockchain technology, thereby increasing asset liquidity and tradability.

There are many other projects to explore that offer more convenient and efficient asset management through the combination of RWA and decentralized funds. These projects utilize blockchain technology and smart contracts to digitize real-world assets, enabling decentralized trading and management and offering new ideas and methods for future asset management.

Conclusion

The collaborative innovation between RWA and decentralized funds has brought unprecedented opportunities and innovation to asset management. By digitizing real-world assets and enabling decentralized trading and management, more convenient and efficient investment methods can be provided to investors. Additionally, based on blockchain technology and smart contracts, more comprehensive asset management and risk control can be achieved, providing investors with a safer investment environment. Although there are some challenges and issues in these emerging fields, with the continuous development of technology and applications, the potential of RWA and decentralized funds will continue to be unlocked.