Fortunafi's 2023 Real World Assets (RWA) Recap

Market consensus isn’t just that 2024 will be one of crypto’s most explosive years, but RWA will be a KEY theme. Now is the time to get up to speed!

Despite being rife with a variety of head-turning developments, innovations, and levels of adoption, Real World Assets (RWA) are widely regarded as the year’s winner; when all was said and done, 2023 ended with most market participants craving for more advancements within the world of RWA.

After a long, painful, and doubtful 2022, last year was what many expected to be a net-positive year for the broader cryptoasset market. Coming off of the collapse of FTX in November 2022, crypto began to see life breathed back into all corners of the market with each passing quarter. The prospects of deflation, the end of one of the U.S. Federal Reserve’s fastest and most intense credit tightening cycles, robust employment, a bitcoin (BTC) ETF approval, an improved regulatory environment (excluding the United States), and the SEC’s inability to prove various cryptoassets to be securities restore faith into the ecosystem. After all that went down in 2023, the broader market ended up notching a mind-blowing +113% return, while BTC, Ethereum (ETH), and Solana (SOL) notched equally as impressive gains of +155%, +91%, and +917% - a clear sign that the market has undergone a significant transformation and the bulls are now in control.

Fig. 1: Real World Assets Total Value Locked

But as with any year, not all pockets of crypto got the same love. Said differently, in 2023, select sectors caught the attention of market participants and builders alike. As we’ve time and time again, the ability to captivate market participants and builders ultimately comes down to the prospect of what the future holds for said sector. For instance, 2020 was unequivocally the year of Decentralized Finance (DeFi), with the summer having been widely regarded as a turning point for the industry and referred to as “DeFi Summer.” During this period, the DeFi ecosystem experienced a surge in popularity as users flocked to platforms that provided various financial services without the need for middlemen (including decentralized lending, borrowing, trading, and derivatives), and the industry became captivated by the disruptive potential of the sector. The case could be made that just as 2020 was the year of DeFi, 2023 was the year of RWA.

Such a claim can be attributed to, amongst other things, tokenized treasuries becoming a near $1B market, RWA total value locked (TVL) soaring past $2B, several crypto-natives and traditional financial institutions throwing their hat in the ring, and mind-blowing market opportunity estimates for 2030 ranging from $5T to $32T from the likes of Alliance Bernstein, Citi, Boston Consulting Group, and Bank of America. Although the rise of RWA and tokenization caught the attention of many, not everyone witnessed firsthand all that went down, and few can recall the major milestones, developments, and progress that the sector made. Accordingly, this report will cover all that went down in 2023. After reading, you’ll have a better sense of all that went down in 2023, why exactly RWA caught the attention of the broader market, and why all eyes will be on RWA in 2024.

Want To Read The Full Report?

Market consensus isn’t just that 2024 will be one of crypto’s most explosive years since inception, but RWA/tokenization will be a KEY theme. Between all that happened in 2023 and what’s coming this year, getting a better handle on what happened last year will position anyone to understand better what to expect. Now is the time to dive into our 2023 recap to prepare for what’s ahead!

Topics Covered:

  • Major RWA Milestones

  • RWA Launches, Acquisitions, & Raise

  • Institutions Dabbling in RWA

  • RWA Market Estimates from Institutions

  • What Fortunafi Accomplished in 2023

Disclaimer: The information contained herein is general information, intended for educational purposes only, and is not intended to constitute legal, tax, accounting, or investment advice. Information, opinions, and views are solely of Fortunafi, and none of the information contained should be used as the basis for any investment decisions. To ensure suitability, contact a licensed investment professional when making any investment decisions and do your own research.