The crypto industry has always promised to change the world, but one area where that promise is becoming real is in Real World Assets (RWA). In simple terms, RWA projects connect things like real estate, bonds, and stocks — which exist in the "real world" — to the blockchain. As the RWA sector heats up in 2024, two major trends are leading the way.

Let's break them down clearly.

1. Building Native RWA Protocols Inside Crypto

One area of RWA growth is the development of native crypto protocols that focus specifically on real world assets. These projects don't just use blockchain as an extra layer — they are built entirely on-chain to manage, tokenize, and trade RWAs.

A key example is Ethena. Ethena has made headlines recently with its synthetic dollar (USDe) and "internet bond" product. What Ethena does differently is that it combines crypto-native strategies with real world references. For example, USDe is backed by a mix of staked Ethereum and futures contracts, offering returns similar to traditional bonds. It's still a fully blockchain-based asset, but it mirrors real-world financial products.

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This shows a major movement: crypto protocols are creating their own versions of traditional finance products, but with blockchain advantages like transparency, 24/7 access, and borderless trading.

Another growing project in this area is Ondo Finance. Ondo bridges tokenized securities to decentralized finance (DeFi), letting users access tokenized bond-like products directly within crypto platforms. With the rise of Ondo, the industry sees a future where "boring" traditional assets like U.S. Treasuries can become liquid, tradable, and programmable inside crypto wallets.

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In short: native crypto protocols are not just copying traditional finance — they're rebuilding it, using blockchain technology from the ground up.

2. Tokenization Efforts by Traditional Financial Giants

The second big area of RWA ecosystem development is much more "TradFi" (traditional finance). Here, major institutions are tokenizing existing real-world assets onto blockchain platforms.

Take BlackRock, the world's largest asset manager. BlackRock recently launched its own tokenized fund called BUIDL on the Ethereum network. This is historic because it's not just a small experiment: it shows that even the biggest players in traditional finance are serious about blockchain.

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BlackRock isn't doing this alone. It partnered with Securitize, a leader in the RWA space that provides tools for tokenizing real-world assets and complying with regulations. Through Securitize, investors can buy into tokenized versions of traditional funds with the same protections and structures they expect in traditional markets.

Similarly, Apollo Global Management, another financial giant, is exploring tokenizing its credit funds. Apollo's partnership with JP Morgan's blockchain network Onyx aims to streamline how assets are issued, transferred, and managed digitally. Their focus is to make private credit investments — usually difficult and slow to move — into faster, more accessible digital products.

These moves are huge signals. They show that blockchain is no longer just a "crypto thing". It's becoming part of how traditional assets are managed.

Why These Two Areas Matter Now

Both developments are helping crypto and blockchain find real adoption beyond speculation.

• Native crypto RWA protocols like Ethena and Ondo are creating new types of financial products that are flexible, transparent, and global.
• Traditional finance tokenization efforts by firms like BlackRock and Apollo are making familiar assets more efficient, opening blockchain technology to trillions of dollars in traditional investments.

The market is already reacting. Tokens linked to the RWA theme, like HBAR (Hedera), ONDO (Ondo Finance), and POLYX (Polymesh), have seen strong price gains in 2024, outperforming many other sectors in crypto.

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With both sides — crypto-native innovation and traditional finance adoption — growing fast, RWAs could become the next major wave that brings blockchain into everyday financial life.

FAQs

Q1: What are Real World Assets (RWA) in crypto? Real World Assets refer to things like real estate, bonds, or stocks that are represented digitally on a blockchain, making them easier to trade and manage.

Q2: Why is BlackRock's BUIDL fund important for RWAs? Because it shows that major institutions are using blockchain seriously, not just experimenting, bringing massive credibility to the RWA sector.

Q3: What makes Ethena's approach unique? Ethena creates blockchain-native products that mimic real-world financial returns, offering new options for decentralized investors.

Q4: Which tokens are popular in the RWA sector? Some strong performers include HBAR, ONDO, and POLYX, all of which are connected to RWA development and tokenization platforms.