What are RWA's? The challenge of tokenizing Real World Assets | TradFi to DeFi Episode 22 TradFi to DeFi

It's the biggest narrative in crypto right now and everybody is asking "What are RWA's"? In today's episode we explore what it takes to integrate Real-World Assets (RWAs) into the DeFi ecosystem. From the revolutionary approach of FRAX and their newly launched custodian FinresPBC to the parallels between traditional investments like mutual funds, this episode offers a high-level overview of the present and future of asset tokenization. The evolving role of intermediaries on the blockchain presents challenges but also opportunities for an improved experience. With RWA's, we're moving further along the journey from TradFi to DeFi.

This podcast features research by Nic Carter, Bitcoin researcher. Here's the link to his presentation from Singapore Token 2049: https://niccarter.info/wp-content/uploads/token2049_niccarter_090923.pdf


On this episode:
- Isn’t everything a RWA?
- What’s the main motivation of tokenization?
- What’s the most durable RWA use case?
- Why stablecoins are better for payments than Bitcoin
- What does tokenization mean for the US dollar and developing countries?
- What’s the next evolution of RWA’s after stablecoins?
- What about yield bearing stablecoins?
- The challenge of US jurisdiction over foreign stablecoin issuers
- Legislators are ignoring these unique threats to the US dollar
- FTX and others have made this more challenging for legitimate businesses
- Frax’s Public Benefit Corporation
- The truth about “decentralized” T-Bills
- How does FinresPBC intend to earn yield?
- How many intermediaries are involved here?
- What’s the end result?
- What does the founder of Frax think of rebasing mechanisms?
- Why you should watch Frax closely, despite the challenges they’ll face
- A framework for RWA taxonomy
- Real estate intermediaries and the blockchain
- Do intermediaries all just disappear once we start using the blockchain? (Spoiler - they don’t)
- How Frax depegged due to centralization risk, and what they’re doing about it
- Imperfect collateral and liquidity leads to depegging events
- Hint about a top secret project coming soon!

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What is TradFi to DeFi?
TradFi to DeFi is a community of like-minded crypto enthusiasts. We are a networking hub, project incubator, talent connector, mentorship provider, and opportunity maximizer for the DeFi user, whether new or experienced.

What is our mission?
As the world transitions from the status quo of Traditional Finance (TradFi) to the emerging world of Decentralized Finance (DeFi), there is a tremendous need for talent that can navigate this brave new world. We structured this podcast to equip you with the skills needed to understand DeFi tools while also providing opportunities for learning, networking, and professional development.

Who is this for?
We are a web3 onboarding community for anyone looking to transition from Traditional Finance (TradFi) to the emerging world of Decentralized Finance (DeFi). We bring crypto to the next level of adoption through community-driven events like podcasts, regular social events, and community-focused partnership opportunities with exciting new crypto projects. Our new protocol testing and analysis service allows members to engage with DeFi protocols before they hit the main net, presenting an opportunity to gain relevant industry experience. And cutting edge crypto projects can gain valuable insights from community feedback by signing up for protocol reviews by TradFi to DeFi.

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