CipherBC MPC Custody Services Break Barriers From RWA
According to IntoTheBlock, the share of Real World Assets (RWA) protocols in the total locked value (TVL) of DeFi has reached 3.69%, a significant increase from 1.77% in July 2024. This steady upward trend indicates that RWA is gradually integrated into the DeFi ecosystem. A BCG report predicts that by 2030, the market size for tokenizing global illiquid assets will reach $16 trillion, accounting for 10% of global GDP. This includes on-chain asset tokenization and the fractionalization of traditional assets (such as ETFs and real estate investment trusts).
However, multiple challenges, including technical, regulatory, and ecosystem hurdles, limit its widespread application. As a market leader in MPC wallets, CipherBC is committed to enhancing asset tokenization efficiency, improving transparency and compliance, and driving the development of RWA through its latest Flexify-MPC wallet. This innovative solution provides robust support for businesses and investors, opening a new chapter for RWA.
What Is RWA?
Real World Assets (RWA) refers to converting tangible assets from the physical world into cryptocurrencies on the blockchain, such as stocks, bonds, real estate, gold, artworks, and intellectual property. These tokens represent ownership of the assets and can be traded and invested in on the blockchain.
Why Is RWA So Popular?
RWA allows lower entry barriers and higher-value assets to be represented on the blockchain in token form, offering a more cost-effective and convenient trading model that disrupts traditional finance. For instance, real estate tokenization eliminates complex legal procedures and high transaction fees typically associated with traditional property transactions. By fractionalizing real estate into tokens, investors can purchase and hold these tokens, benefiting from asset appreciation.
The Value Reimagined: On-Chain and Liquidity
RWA encompasses various assets that we can perceive physically in the real world, including but not limited to real estate, land, securities, artworks, and intellectual property. Although these assets should hold significant value, issues like information asymmetry, high transaction costs, and poor liquidity often prevent their full realization in traditional finance. Once tokenized on the blockchain, RWA tokens can utilize universal cross-chain protocols, unlocking liquidity and integrating with the entire blockchain ecosystem. This tokenization allows for fractional ownership, enhancing accessibility for previously underserved investor groups. By placing financial assets on-chain, we can ensure transparency and auditability and streamline distribution, trading, clearing, settlement, and custody processes while reducing counterparty risk.
Application Scenarios and Benefits
? Increases liquidity for tangible and intangible assets, potentially driving up the prices of illiquid assets.
? Significantly lowers transaction costs and enhances efficiency, reducing cross-border transaction time.
? Blockchain technology provides a transparent, decentralized, and flexible trading environment.
? Investors can fractionalize large assets for financial operations, diversifying their portfolios and improving affordability.
Break the Barriers Faced By RWA
RWA has tremendous potential, but to achieve widespread adoption, it must overcome various challenges, including technical, regulatory, and ecosystem hurdles. As a market leader in MPC wallets, CipherBC focuses on digital asset management for businesses and building a Web3 business management ecosystem. The latest release of the CipherBC Flexify-MPC wallet can help address these challenges.
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Enhancing Asset Tokenization Efficiency
Many assets remain unsuitable for tokenization, with RWA primarily concentrated in cash and bonds. Complex assets like real estate and commodities face high regulatory demands and low marginal benefits, slowing their tokenization progress. By utilizing CipherBC Flexify’s customizable approval processes — RAFP, the wallet can provide the following:
The team management function also facilitates collaboration among different departments, streamlines internal processes, and advances the tokenization of complex assets.
Strengthening Ecosystem Interconnectivity
The traditional financial system has established norms and structures involving a vast network of interests, making the transition to a new on-chain system challenging. The roles and cooperation models within the blockchain ecosystem must be redefined, and critical infrastructures like stablecoins are still maturing, impacting market acceptance. CipherBC Flexify’s Web3 integration features facilitate interaction with various DeFi platforms and DApps, promoting the establishment of a more robust RWA ecosystem that enhances asset liquidity and usage scenarios. Moreover, CipherBC’s technical capabilities enable cross-chain operations, improving interoperability between traditional finance and blockchain and aiding in the integration and development of RWA projects.
Enhancing Compliance and Transparency
RWA involves cross-border regulatory issues, with new token products continually emerging. CipherBC has established a strong foundation of customer trust through its commitment to transparency and technical verifiability, including open-sourcing core code and obtaining ISO 27001 certification. Additionally, CipherBC has acquired licenses from over eight countries. In the newly launched MPC wallet, CipherBC Flexify features:
? Transparent Transaction Tracking Utilizing Flexify’s transaction status tracking function to ensure transparency for all tokenized assets, thus enhancing trust and reducing compliance risks.
? Third-Party Audit Mechanism Establishing independent third-party audit processes within Flexify’s approval center to ensure the authenticity and reliability of asset information.
? AML & CFT We work with a third party specialist security auditing firm to provide KYT services, which can help enterprises avoid interacting with terrorist and money laundering accounts during transfers (both in and out).
Addressing Ownership and Attribution Issues
Can digital assets be redeemed for actual assets in the real world? The processes for transferring, delivering, and redeeming assets still require legal frameworks. CipherBC employs MPC technology, leveraging TEE secure environments and risk control management to design a secure architecture that clarifies asset transfer, delivery, and redemption processes and assures digital asset ownership. Additionally, flexible asset management tools help users better understand the ownership and rights associated with their digital assets, thereby enhancing user experience and trust.
Through these strategies, the CipherBC MPC custody service promotes the development of RWA and provides the necessary technical and management support to break current barriers.