What are the advantages of RWA (Real World Asset Tokenization) during market downturns?

1. Transparency and Security

• More transparent transactions: With blockchain, all transaction records can be publicly viewed, allowing anyone to trace the history of each transaction. This increases investors' trust in the security of assets, ensuring that the assets behind each token are real.

• Data cannot be tampered with: Once a transaction record is on the blockchain, it cannot be changed. This means there will be no forgery or tampering, making assets more secure.

1. Increased Asset Liquidity

• Easier asset trading: Traditional assets (such as houses or artworks) are often difficult to buy and sell quickly. However, through RWA, these assets can be converted into fractional digital tokens, making it easier for investors to trade and enhancing asset circulation.

• Trade anytime: RWA tokens can be traded on secondary markets, allowing investors to buy and sell these tokens at any time, thus increasing asset liquidity.

1. Lower Investment Barriers

• Small investments in large assets: RWA allows large assets to be divided into smaller fractions, enabling investors to purchase a portion of an asset, such as a small part of a large building, with less money, allowing ordinary investors to participate.

• Global investment opportunities: Through RWA, investors from around the world can participate in asset trading in different countries, breaking geographical limitations and providing more investment opportunities.

1. Improved Financing Efficiency

• Quick financing: Companies can raise funds faster through RWA without going through traditional complex financial approval processes. This allows businesses to obtain the necessary funds more swiftly.

• More funding sources: Through RWA, companies can attract global investors, increasing their chances of securing funding, especially for small and medium-sized enterprises, providing a new financing channel.

1. Integration with Decentralized Finance (DeFi)

• As collateral: RWA tokens can also be used as collateral on decentralized finance platforms. Investors can borrow against these tokens or participate in other financial activities, increasing the use cases for the tokens.

• Various financial services: Through RWA, investors can enjoy more financial services, such as staking and lending, making investments more flexible.

1. Risk Diversification

• Invest in more types of assets: RWA allows investors to more easily diversify their funds across different asset types, such as real estate and bonds, reducing the risks associated with a single asset.

• Lower risk: Because investors can purchase fractional shares of assets, the risks they bear during market fluctuations are smaller.

RWA provides investors and businesses with a more transparent and secure trading method, making traditionally hard-to-trade assets easier to circulate. Investors can participate in large asset investments with smaller amounts of capital while enjoying more financial services and lower risks. These advantages make RWA an innovative investment tool suitable for beginners.