RWA Market Needs

From a Fragmented Market to a unified Framework

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The Need for an Interoperable Ecosystem.

Tokenizing financial assets is a complex process due to the intricacies of both finance and blockchain technology. The financial industry involves numerous actors with distinct roles, and the complexity varies based on the type of securities, jurisdictions, and investor types. Additionally, blockchain technology, including smart contracts, is often misunderstood, leading to further complications.

Challenges in the Current Landscape:

• Complexity in Finance and Blockchain: The intricate nature of finance and the technical complexities of blockchain make tokenization projects difficult to execute. This dual complexity results in lengthy legal and technical challenges.

• Educational Gaps: There is a significant need for education to bridge the knowledge gap between traditional finance and blockchain technology.

• Incompatibility of Traditional Systems: Most traditional financial systems are not equipped or compatible with blockchain technology. This incompatibility hinders seamless interaction and integration, further complicating the tokenization process.

Due to these challenges, current tokenization projects often lead to poor quality outcomes. These projects provide limited guarantees to investors and lack interoperability within the value chain, hindering seamless interactions between issuers, distributors, and on-chain applications.