DeFi

Why Tokenizing Real-World Assets Captivates Both DeFi and TradFi

Published

8 months ago

17 May, 2024

Why Tokenizing Real-World Assets Captivates Both DeFi and TradFi

In finance, there are few moments that herald a seismic shift: a confluence of innovation and opportunity that promises to redefine the landscape. The tokenization of real-world assets (RWA) sits at this crossroads, heralding an era of transformation for both decentralized finance (DeFi) and traditional finance (TradFi). As we witness this pivotal moment, akin to the dawn of the Internet or the creation of the stock market, it is imperative to explore why and how this revolutionary concept is captivating minds and markets, opening a new path to financial freedom and empowerment.

By Itai Avneri, Deputy General Manager & COO, INX

Itai Avneri, Deputy CEO and COO of INX

Unveiling the need for tokenization: the TradFi and DeFi dichotomy

Traditional fiance (TradFi) and decentralized finance (DeFi) represent two contrasting but intertwined threads. TradFi, with its historical institutions and established practices, has long been the backbone of our economic system. Yet this is not without its challenges. Fragmented financial infrastructure, prolonged settlement times and lack of 24-hour trading are notable obstacles. This inefficiency creates liquidity and accessibility bottlenecks, hindering the smooth flow of capital and stifling innovation.

Conversely, DeFi appears as a bold counterpoint, freed from the constraints of traditional systems. Its hallmark is the 24/7 trading environment, providing unparalleled accessibility and fluidity that TradFi struggles to match. DeFi’s agile infrastructure, supported by blockchain technology, enables rapid settlements and a degree of transparency that traditional systems can only aspire to. However, this modern financial frontier faces its own set of challenges, primarily the lack of substantial types of collateral. The reliance on volatile cryptocurrencies and synthetic assets as collateral limits DeFi’s appeal to a wider audience and reduces its potential for mainstream adoption.

Tokenization emerges as the harmonizing force in this dichotomy, a bridge merging the strengths of TradFi and DeFi while mitigating their respective weaknesses. By tokenizing real-world assets, transforming tangible assets such as real estate, art or commodities into digital tokens, TradFi’s valuable and stable assets become easily accessible and divisible, imbued with the agility of DeFi ecosystem. Meanwhile, DeFi can finally access a pool of collateral backed by real value, not just synthetic tokens.

Tokenization: connecting worlds, unlocking potential

With hundreds of billions of dollars of real assets waiting to be put on-chain, it’s no wonder that the token assets market is expected to reach a staggering $10.9 trillion by 2030. This projection is not simply an indication of growth. This demonstrates a fundamental transformation in the way we view and manage assets. Sectors like real estate, debt, private credit and equities are leading this trend.

Yet despite the vast potential of the tokenized assets market, it remains largely untapped, with only around 0.03% of the total market size currently being exploited. This low level of market penetration represents a golden opportunity, a chance to be at the forefront of an industry on the cusp of transformative growth. The tokenization of RWA offers a unique proposition: participate in the evolution of an industry and be a pioneer in a space where the rules have yet to be written.

As tokenization reshapes the contours of our financial systems, it heralds an era of transformation where the convergence of TradFi’s legacy and DeFi’s innovation heralds a new dawn of democracy and fiscal opportunity, redefining our relationship with assets and wealth.

Towards a multi-asset future

Institutional adoption of digital assets is not just a trend; it’s a paradigm shift, with Bitcoin ETFs propelling Bitcoin to unprecedented heights. Yet the real pivot to connect the established world of TradFi and the burgeoning domain of Web3 is the tokenization of real-world assets (RWA). This leap forward is not without obstacles, such as a fragmented regulatory landscape and challenges in market making and liquidity.

But the brightest minds in TradFi and DeFi are collaboratively navigating these complexities. When we at INX set out to do the first SEC-registered blockchain IPO, we envisioned exactly this type of cross-pollination of financial ideals.

Looking ahead, we foresee a diverse financial ecosystem where tokenized RWAs, cryptocurrencies, stablecoins and central bank digital currencies (CBDCs) will merge. Through the convergence of DeFi and TradFi, crypto investors can invest in real-world assets, diversify their portfolios, and earn yield through high-quality instruments without leaving the blockchain. Meanwhile, traditional financial institutions can replace their outdated infrastructure with fast and efficient peer-to-peer systems.

Above all, the tokenization of real-world assets opens the door to a new class of financial instruments previously unimaginable. Imagine getting a loan to finance your home by staking your tokenized Tesla shares. Or using a tokenized version of your house as collateral to create stablecoins. The scope of possibilities is endless, and those of us who are privileged to be here today will have the opportunity to shape the financial world of tomorrow.

Read other stories: Tokenize.it revolutionizes the business financing landscape with the launch of a crowdfunding product

The Token RegRadar: Next-generation AI-powered legal support

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

Social networks: https://linktr.ee/rollblockcasino

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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