Interpretation of the Latest Trends in the Real Estate RWA Track (Part 1)

Diversified Investment Options: Market Targeting RWA

This year, the Real World Assets (RWA) industry has become a focal point, receiving much attention. RWA acts as a bridge between the digital economy and physical assets, providing possibilities for the security, stability, and long-term returns of digital assets, gradually forming a market consensus.

With the arrival of the Bitcoin bull market, a large number of stablecoins have flooded into the Web3 space. To balance risk and return, investors urgently need to find channels that can provide sustainable returns for non-yielding assets like stablecoins, and RWA perfectly meets this demand.

(Image source: rwa.xyz)

Focusing on RWA is one of the choices for diversified market investment. This trend not only attracts individual investors but also piques the interest of institutional investors. They seek to reduce volatility risk while appreciating asset value, which is the main driving force behind choosing RWA.

RWA encompasses a wide range of asset classes, including U.S. Treasury bonds, private debt, credit, and real estate. Different underlying assets each have unique advantages, making them one of the main targets for stablecoin capital inflows.

RealtyX DAO focuses on researching and exploring innovations in the RWA real estate sector. In today’s article, we will highlight several real estate RWA projects that are favored by the market. This article will be one of our series.

Compared to traditional real estate investments, real estate RWA offers higher liquidity, a more transparent trading process, and lower transaction costs, thereby lowering the entry barrier for investment. For example, Propy's blockchain real estate trading platform, RealT and RealtyX's real estate tokenization projects, and Parcl's real estate tokenization DeFi protocol are all notable highlights in the real estate RWA field. Through blockchain technology, these platforms and projects redefine the way real estate is invested in and managed, making real estate not only the domain of physical investors but also a significant component of the digital economy era.

Next, we will explore these projects one by one.

Propy -- Rapid Property Transactions with NFTs

Propy is a Silicon Valley startup founded in 2015, which launched its project token PRO through an ICO in 2018. The platform disrupts the traditional real estate market by leveraging blockchain technology. The ultimate goal of the platform is to enable online and autonomous real estate transactions based on smart contracts.

(Image source: www.propy.com)

What sets Propy apart is its successful implementation of NFT property sales, which mainly involves the following steps:

• Creating a legal framework to ensure legality: Ensuring the legality and compliance of NFT properties in the U.S., establishing a legal framework before properties become NFTs, such as using legal entities like Limited Liability Companies (LLC), to facilitate the smooth and effective transfer of real estate ownership through NFTs.

• KYC process: To ensure a smooth and secure property transaction process, potential buyers must complete a KYC (Know Your Customer) agreement to verify their identity before making an offer.

• Minting properties: Propy mints properties on the blockchain and sets them for sale. This ensures the security and transparency of transactions while providing potential buyers with the opportunity to acquire properties.

Through the implementation of these steps, the Propy platform has successfully promoted the sale of NFT properties and achieved significant accomplishments globally.

The main utility token of the Propy project is PRO. The PRO token serves as a multifunctional digital asset on the Propy platform, supporting various aspects of real estate transactions, from executing smart contracts to paying fees related to transaction records.

Currently, the performance and trading data of the PRO token over the past year are as follows:

• Price: $0.5439

• All-time high: $5.15

• All-time low: $0.03

• Market cap: $31,617,947

• Total supply: 100,000,000

• Circulating supply: 57,896,591

(Image source: coingecko)

RealT -- Pioneer of Property Tokenization

Founded in 2018, RealT is a blockchain startup focused on tokenizing U.S. real estate, aiming to achieve a more democratic and transparent real estate investment process. The company believes that blockchain technology not only simplifies the real estate investment process but also enables investors to manage their portfolios more effectively.

Through the RealT platform, properties are tokenized and represented by ERC-20 compatible RealTokens, which represent the rights to rental income from specific properties. This means that RealToken holders can earn income from the associated properties, including rent and asset appreciation.

(Image source: www.realt.co)

RealT has established partnerships with multiple real estate developers and brokerage firms, primarily focusing on low-cost rental properties located in suburban areas of the U.S. These low-value properties are sold through premium tokenization, providing investors with dividend opportunities. However, RealT's long-term rental distribution capability still needs market validation.

Although RealT has not yet launched an ecosystem token, it has begun distributing points to users holding RealTokens, which will serve as the basis for future exchanges for the ecosystem token REG.

RealtyX -- From Full-Chain Real Estate to Web3 Lifestyle

RealtyX is an innovative project dedicated to promoting real estate tokenization, achieving easy and transparent sharing of real estate value through blockchain technology, and providing unique value investment opportunities for global users.

(Image source: www.realtyx.co)

The tokenized properties on the RealtyX platform are represented by RST. This token is also based on the ERC-20 standard, initially issued on the Base blockchain, with plans to expand soon to the RWA-exclusive second-layer network, Plume Network. A notable feature of RST is its governance nature, allowing holders to participate in decision-making, including rent distribution, property sales, and hiring property management companies.

(Image source: www.realtyx.co)

Although the business model is similar to RealT, RealtyX's strategic asset allocation differs. First, RealtyX chooses areas with high market potential to provide users with high-end quality property resources. In the initial phase, the project has locked in Dubai and has already launched its first tokenized property in the region, offering about 8% returns.

In recent years, Dubai has developed into a preferred destination for global investors and elites, with significant growth in rental income and asset value. According to several institutions' forecasts, Dubai's rental income is expected to grow by up to 20% this year. Through RealtyX's RST token, users can share in this value and actively participate in the governance of related properties. Additionally, RealtyX currently offers an opportunity for RST holders to share a prize pool, which includes 10 ETH.

At the same time, RealtyX has also planned future community-driven real estate projects, which will be led by community members from acquisition to management to usage. According to RealtyX's latest roadmap, its ecosystem token RX is currently in planning and is expected to be launched in the second quarter of this year.

Parcl --- REIT on the Solana Chain

Parcl is a real estate investment platform on the Solana blockchain, aiming to bring the world's most popular real-world assets into the ecosystem through blockchain technology. Its uniqueness lies in allowing users to invest in entire communities and cities rather than just specific buildings. The platform's index represents the residential real estate market of a city, similar to a real estate investment trust (REIT) index system.

(Image source: app.parcl.co)

Parcl's protocol integrates traditional AMM and perpetual contract decentralized exchanges, providing a trading market for real estate indices in the DeFi space, meeting users' needs for speculation or hedging. Thus, Parcl's RWA trading not only offers higher returns but also comes with higher risks.

In the upcoming April, Parcl plans to airdrop its PRCL token, with a previously adopted points mechanism incentivizing users to participate in trading activities on the protocol. Since the launch of the points program, the total value of crypto assets deposited in the protocol has steadily increased from about $7,000 to $73 million as of February 26.

Conclusion

The momentum of the Bitcoin bull market and the strong growth of stablecoins have injected new vitality into the Real World Assets (RWA) industry. Innovative projects like Propy, RealT, RealtyX, and Parcl have rewritten the rules of real estate investment in unique ways, merging the digital economy with physical assets and promoting the popularization of Web3 technology.

RealtyX DAO will continue to focus on this track, bringing you updates on the latest developments of the aforementioned projects in future articles, as well as introducing more innovators in this field.

Original author: RealtyX DAO English Channel

Disclaimer: This article is for sharing industry hotspots only and does not constitute any investment advice. There are certain risks associated with virtual currency investments, and readers should carefully consider their risk tolerance when making investment decisions and participate in compliance with the law. The information contained in this article is for reference only, and readers should make decisions based on their own judgment. We are not responsible for any losses incurred as a result.