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Chainlink (LINK) Creator Sergey Nazarov Says Real-World Assets (RWA) Are the Next Big Trend in Blockchain
Sergey Nazarov, co-creator of the blockchain oracle service Chainlink (CONNECTION), says a rapidly growing sector in the digital assets industry is set to become a leading trend.
Nazareth tells According to his 150,000 followers on social media platform X, real-world assets (RWA) look set to become the next big trend in blockchain.
The RWA trend in cryptocurrency aims to tokenize assets in traditional markets such as real estate, loans, bonds and more on-chain.
Nazarov says,
“Real World Asset (RWA) tokenization is the next big trend in blockchain and I believe it is on track to hold more on-chain value than cryptocurrencies…
The amount of value that can be rapidly transformed into an RWA is in the tens of trillions, with only a tiny percentage currently in RWA format. This includes all commodities, all real estate, all funds, and much more.
Large institutions like Blackrock, Fidelity and others are already participating in the RWA trend through tokenized funds, with many more to come.”
Nazarov says on-chain RWAs are a “superior format” for secure ownership and transferability of assets, noting that they can be purchased and transferred between countries and financial systems with less friction than traditional infrastructure.
According to Chainlink’s creator, RWAs provide easier access to global liquidity, a factor that he says has facilitated the growth of cryptocurrencies for years.
“RWAs have the ability to hold critical data that proves important things about the underlying asset much faster and more efficiently than traditional systems. Good examples are using Chainlink to ingest on-chain NAV (net asset value) data for large CSDs (central securities depositories) and proof of reserve on the current state of an underlying asset.
RWAs are in the very early stages of creating efficiencies for their assets using on-chain logic. As more of a fund’s administration/operations move on-chain, you will eventually see huge efficiency gains with also large decreases in the cost of running a fund.
For example, on-chain NAV data entry at a faster rate than the current system can significantly accelerate redemption times from months to minutes, resulting in significant cost benefits.”
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