RWAfi: New Opportunities in the Trillion-Dollar Track

According to data from the RWA research platform, the total market size of RWA currently exceeds $15 billion. Fidelity predicts that this figure will reach $30 billion by 2025, while BlackRock is even more optimistic, forecasting that the market value of tokenized assets will reach $10 trillion by the 2030s. This means that in the next 7 years, the potential growth space for the RWA narrative could exceed 700 times.

However, to truly unlock the potential of RWA, merely completing tokenization is far from sufficient. More efficient technological architecture, open infrastructure tools, and a well-established ecosystem collaboration are also needed. In short, RWA requires a complete service framework surrounding the entire life cycle of assets, especially to safely and with low barriers introduce RWA assets into diversified on-chain DeFi scenarios, transforming the stock dividends of traditional assets into incremental value on-chain.

This is exactly the significance of RWAfi. Under the tokenization framework, RWA not only greatly enhances liquidity but also allows for obtaining DeFi yields through operations such as lending and staking, introducing real yield asset support to DeFi and strengthening the value foundation of the crypto market.

Despite the popularity of RWA, there are very few public chains specifically serving the management and on-chain circulation of real-world assets. The reason lies in the dual challenges faced by RWAfi:

On one hand, putting real-world assets on the blockchain involves complex processes of asset tokenization and multi-party collaboration, requiring solutions for security compliance, liquidity, cross-chain interoperability, and a developer-friendly technical environment.

On the other hand, after "going on-chain," there is also "empowerment," which means that the true value of RWA is reflected in how to build a transparent, efficient, and highly liquid on-chain financial market through blockchain technology. Therefore, it is also necessary to achieve deep integration of DeFi protocols, yield distribution, and risk management, granting RWA liquidity, composability, and interoperability similar to that of crypto assets.

Taking real estate as an example, after tokenization and being put on the chain, it is no longer a "static" asset in the traditional sense. It can participate in a variety of DeFi scenarios, such as the transparent distribution of rental income through smart contracts, or being used as collateral for on-chain financing. This "empowerment" raises higher technical and ecological requirements, while also breaking the inherent limitations of RWA as real assets, injecting higher-dimensional composability and application potential.

Therefore, RWAfi is not just a technical solution; it essentially creates a brand new asset class with native real yield characteristics. By introducing real-world assets, capital, and cash flows, it injects native "real yield attributes" into the blockchain ecosystem.

The core demand of the future trillion or even multi-trillion dollar RWA incremental market is evident – a dedicated RWA public chain. It can simultaneously meet the diverse needs of institutional users and crypto-native users. In this vision, the RWAfi public chain is not just empowering RWA assets, but is also likely to become the core value capture of the RWA ecosystem's incremental value.

Recently, Plume completed a new round of financing of $20 million and is almost the only strictly defined RWAfi public chain. A notable feature of Plume is its modular design, which systematically addresses the tokenization, compliance, liquidity, and interoperability issues of RWA through a one-stop solution, providing developers and institutions with a comprehensive solution that covers the entire lifecycle of RWA tokenization.

Plume integrates multiple modular key tools, providing developers with a complete on-chain solution for RWA assets.

• Arc - Tokenization Engine: Simplifies the tokenization process and provides an effective way to bring RWAs on-chain.
• Passport - Smart Wallet: supports RWAfi composability, yield management, and advanced account abstraction features.
• Nexus - Data Superhighway: Securely integrating real-world data into the blockchain using technologies like zkTLS.

This modular tool not only lowers the technical threshold but also integrates compliance vendors directly into the upstream supply chain system of the platform through a "compliance as a service" model, ensuring that tokenized assets meet regulatory requirements from the source.

This means traditional financial giants can directly embed RWA tokenization services provided by Plume into existing products, enabling rapid product iteration and market expansion. This not only allows institutions to easily tokenize assets and introduce them into the blockchain ecosystem but also retains the smooth user experience of Web2, empowering users with asset autonomy and Web3 attributes.

The core charm of RWAfi lies in its inherent "bidirectional connection" attribute: on one hand, it links new and old players in Web3, and on the other hand, it connects with the massive pool of traditional financial assets. This not only provides crypto-native users with new asset classes and income opportunities but also opens up a pathway for traditional financial giants to deeply integrate with the on-chain DeFi world, thereby achieving a "1+1>2" additive effect.

Plume has built a "dual-handed" ecological network centered around institutional partners and extended by DeFi partners:

• Institutional partners: responsible for providing compliance, trust foundation, and high-quality assets, serving as the trusted core of its RWAfi ecosystem.
• DeFi Partners: Providing on-chain users with flexible and high-yield asset participation options, further enhancing the liquidity and composability of RWA.

Plume's institutional circle primarily focuses on the tokenization, compliance, and asset management of traditional assets. Through Plume's on-chain infrastructure, RWA gains higher liquidity and transparency, paving the way for the deep integration of traditional financial giants with RWAfi.

DeFi protocols that achieve deep integration or collaboration with Plume mainly transform the stock dividends of traditional assets into on-chain incremental value through Plume, such as providing liquidity support, optimizing yields, and exploring new scenarios, to offer diverse participation opportunities for on-chain users.

Plume has now built a vast ecosystem that connects both new and old participants in Web3 with traditional financial giants, accumulating over 180 applications and protocols. The testnet has attracted more than 3.75 million users, generating hundreds of millions of transactions, demonstrating remarkable effectiveness.

This "full lifecycle empowerment" is exactly the irreplaceable competitive advantage of RWAfi dedicated chains like Plume. RWAfi public chains not only serve institutions and developers but also directly target all RWA users, capturing the participation value of end users, thereby sharing in the dividends of the scaled growth of the entire pan-RWA ecosystem and becoming the core engine driving the expansion of the trillion-dollar market.

RWAfi is one of the few narrative directions that can bridge the gap between on-chain and off-chain, with its potential stemming from the innovation of Web3 and benefiting from the stock dividends of traditional financial giant assets. As a public chain that can truly elevate RWA to "RWA Asset Internet" through tokenization, RWAfi provides a practical solution for the billion-dollar growth of the RWA narrative.