While the L1 battle is ongoing, public chain upstart Sui leads the “RWA Spring”

Author: Wenser, Odaily Planet Daily

Affected by Trump's upcoming election and a series of potential favorable policies in the United States, the cryptocurrency market once again ushered in a trading peak. The price of BTC once exceeded US$107,000. Countless investment institutions are investing large amounts of money in BTC ETF, ETH ETF and other funds. In addition, we are also looking for new value growth points.

At the same time, as previously predicted by Binance founder CZ, the altcoin season has arrived. In addition to established tokens and Meme tokens, L1 public chain tokens are also rising strongly. Among them, SUI, which has continuously broken through new highs, is eye-catching. , Sui ecology not only has a solid foundation in the DeFi sector, but the development of the Meme currency sector is not far behind. In addition, unlike other L1 public chains that are limited to the encryption market, its recent big moves in the RWA sector have also brought new possibilities for attracting liquidity and attention from outside the circle.

On December 13, Sui officially announced a cooperation with Ant Digital and its Web3 technology brand ZAN. The two parties will introduce RWA (real world assets) in the ESG field into the Sui ecosystem. One side is a public chain upstart, and the other side is a digital asset pioneer. From this point of view, both parties will start the "RWA Spring" for physical assets, bringing more possibilities to the encryption market. Odaily Planet Daily will sort out and analyze this in this article.

The best reason to choose RWA: the emerging industry with a scale of up

to 30 trillion in the future

The main reason why Sui and Ant Digits chose the RWA sector as a cooperation position is naturally because it is located at the interface of TradFi and DeFi and has a huge potential market size. According to the official website of RWA.xyz, the current RWA asset scale on the chain exceeds 14 billion US dollars, the stablecoin asset scale reaches 201.77 billion US dollars, and there are as many as 116 asset issuers. However, compared with the future prospects, there is still more than 100 times the market space.

Global consulting firm McKinsey & Company stated that the tokenized asset market (RWA) may reach US$4 trillion by 2030, and many projects are moving from pilots to large-scale deployment. Colin Butler, head of global institutional capital at Polygon, previously said that RWA represents a global market opportunity of US$30 trillion. High net worth individuals and private equity funds will drive adoption in this space as tokenization brings liquidity and accessibility to historically illiquid asset classes. A previous research report by Tren Finance pointed out that if the RWA industry can reach the median expectation of approximately US$10 trillion, its value will increase by more than 54 times from the current level.

RWA.xyz website information

According to the "Top Ten Predictions for the Crypto Market in 2025" previously released by asset management giant Bitwise, in 2025, with the accelerated entry of Wall Street institutions, the RWA market size is expected to reach US$50 billion, and is likely to grow exponentially from then on; venture capital The company ParaFi predicts that the tokenized RWA market may grow to US$2 trillion by 2030; while the Global Financial Markets Association predicts that it can reach US$16 trillion. Such hot market expectations have naturally attracted the influx of a number of world-class giant institutions:

• Goldman Sachs’ digital asset platform has been officially launched and helped the European Investment Bank issue a 100 million euro two-year digital bond. In addition, Goldman Sachs has also cooperated with traditional financial institutions to launch related businesses and plans to build its own private chain for asset tokenization.
• Siemens Group has previously issued 60 million euros of on-chain digital bonds for the first time, launching "the first attempt in the RWA field."
• Financial giants such as HSBC, JPMorgan Chase and Citigroup are also exploring the tokenization of government bonds in an attempt to improve financial efficiency and settlement speed.
• The current size of the U.S. Treasury bond RWA market is close to US$3 billion, an increase of nearly 30 times from US$100 million at the beginning of 2023. Among them, the size of USYC, launched by Hashnote in partnership with cryptocurrency custody company Copper, has reached US$880 million; Bailey The scale of BUIDL launched by Germany has reached US$560 million.

U.S. Bond RWA Market Information

It is understood that the cooperation between Ant Digital and Sui is mainly to promote the tokenization of ESG-related RWA and expand its reach to global investors through RWA. The underlying assets are new energy assets from a Chinese solar material manufacturing company. business.

As a blockchain ecosystem whose ecological TVL increased more than 14 times to US$14 billion this year and is supported by American asset management giants such as Grayscale and VanEck, Sui regards the RWA market as the "next development and growth point." Jameel Khalfan, Head of Ecosystem Development at Sui Foundation, said: “Tokenizing ESG markets is a big step forward for real-world assets. Through this partnership, investors will be able to access a whole new market, and it’s all happening on the The platform that's most suitable for it is Sui."

It can be seen that RWA has become a strategic track that is valued by blockchain networks and digital asset institutions, and its industry value is extremely high.

Double support for RWA development: endogenous advantages and market

demand

Specifically, the strategic significance of the RWA track is reflected in the following three aspects:

• Asset transparency and transaction efficiency: By tokenizing physical assets and introducing them to the blockchain network, investors can deeply participate in market transactions with the help of the transparency of on-chain data and the high efficiency of on-chain operations.
• Improved liquidity of physical assets: On the basis of improved transparency and enhanced security, RWA assets can achieve partial ownership split, thereby greatly improving the digital liquidity of physical assets.
• Play a bridging role between traditional markets and crypto markets: By introducing low-risk, high-yield tokenized products, more physical assets and more investors will inject a new wave of liquidity into the traditional and crypto markets, revitalizing them. In addition to real-world physical assets, it also brings more high-quality targets and financial liquidity to the encryption market.

RWA can represent many different types of traditional assets, both tangible and intangible. The RWA in overseas markets is mainly bonds and gold.

As the leading blockchain network in the crypto market, why did Sui choose China’s new energy assets?

Industry experts pointed out that "this reflects 'China's industrial characteristics' to a certain extent." According to data from the Qianzhan Industry Research Institute, the cumulative installed capacity of China's new energy industry will reach 1.57 billion kilowatts in 2023, with a five-year compound growth rate of 15.31%. . From solar power generation segments to charging piles and new energy vehicle products, new energy has become China's "new label". "After (these new energy assets) are converted into RWA, they have high potential and high growth." The above-mentioned person pointed out.

It can be said that the RWA tokenization of physical assets will truly promote the deep coupling of Web3 technology and digital assets, thereby realizing the digital redevelopment of real assets.

Looking to the future: The RWA market welcomes new possibilities for

diversified development routes

In the past, RWA track development mainly focused on fixed assets such as U.S. debt. Relatively speaking, the asset types and technical routes were relatively single. Thanks to the in-depth cooperation between Ant Digits and its Web3 technology brand ZAN and Sui, the two parties will jointly promote the tokenization of RWA assets on a larger scale, providing technical support, ecological development, capital introduction, etc. for traditional markets and The encryption market has injected new vitality.

“Transfer traditional assets from a low-liquidity environment to a high-liquidity market through tokenization,” BiFinance Research Institute mentioned in its latest research report. “This cooperation will introduce high-quality assets in the ESG field to the blockchain and empower entities. industry and is expected to become a new driving force for the development of the bull market.”

Previously, Ant Digital has launched the largest new energy chain asset platform in China - the "two chains and one bridge" platform consisting of "asset chain", "transaction chain" and "Ant Chain trusted cross-chain bridge", with a total of There are more than 12 million chain devices; the Web3 product ZAN for overseas markets has also been launched. The total market value of the Sui blockchain has reached US$13 billion, and the total locked-up volume (TVL) has exceeded US$18.9 billion. After the two parties announced their cooperation, the price of Sui surged 10% within 24 hours, hitting a record high.

In the future, with the ecological blessing of Sui, the RWA market territory of both parties is expected to usher in a new round of expansion. It is foreseeable that the spring of the RWA market is coming.