RWA Products
Last updated
Last updated
As inflation is increasing around the world, there is a growing need for a new kind of global and programmable asset-class that can maintain it's value stable and eventually increase in value over time.
This is where 1:1 asset-backed NFTs like Collaterize come into play. These NFTs are transferable and programmable digital assets, backed by a basket of real-world assets that are tokenized on a blockchain. On one hand, they provide digital liquidity to the real economy by enabling investors to issue, redeem, and trade fractional shares of the underlying assets, such as real estate, art, or even corporate bonds. On the other hand, because they are backed by a diversified basket of real-world assets, they can maintain stability and purchasing power over time.
Such asset-backed NFTs create a new class of digital assets that can be traded and used as collateral in DeFi, expanding the pool of investable assets and increasing liquidity in the previously illiquid assets and markets.
Unlike so-called "", which are pegged to an asset (such as USD) to maintain a relatively stable value, asset-backed NFTs are backed by assets under management (AUM) and derive their value from the underlying assets. This makes them less susceptible to volatility and speculation, providing a more stable and secure investment option. Asset-backed NFTs can support a variety of use cases, including foreign directed investments (FDI), domestic and , trading and settlement, and provision of cash collateral.
Asset-backed token, , or CBDCs can coexist and complement each other in a sustainable digital asset ecosystem that provides transparency and compliance to investors. Asset-backed token offer transparency through the tokenization of real-world assets, enabling investors to see and understand the underlying asset, which can increase trust and confidence in the market. Deposit tokens provide regulatory safeguards and connectivity to traditional banking infrastructures. CBDCs provide stability and trust as they are issued and backed by central banks.
The most substantial cost reductions are realized in the phases of the securitization process that are operationally intensive and administratively heavy. These phases include:
The initial offering and distribution of assets,
The ongoing management and servicing of custody and loans,
The trading activities in secondary markets.
The following illustration provides an approximation of the possible savings at each stage within the securitization workflow.