From the outside, blockchain and cryptocurrencies are synonymous.
From the inside, crypto does not mean 'blockchain'.
While crypto is a high-volatility speculative digital asset, blockchain is simply a type of backend software that can be applied to different verticals. One of those emerging use cases is financial services.
It turns out that blockchain is a useful backend to run financial transactions on. Decentralised Finance (DeFi) is a good example.
And if we can use blockchain as a financial software backend, rather than using centralized databases, what types of financial transactions should run on the blockchain? What types of financial services will be challenged by blockchain?
These kinds of questions point to an emerging product space, 'Real World Assets' (RWAs). Currently, a majority of digital assets are either 1) digitally native (e.g. Ethereum) or 2) reflexive (e.g. Luna and Terra). On the other side, exogenous assets can be brought to the blockchain. Those include assets that exist in the 'Real World', such as mortgages, corporate bonds and invoice financing.
We co-authored the industry's first Primer into Real World Assets. If you are an investor working in traditional finance, read to find out how blockchain intersects and challenges how traditional financing is done. If you are working in crypto already, read to find out the future of digital assets as a more resilient asset class.
A quick rundown on this viral Twitter thread.
The full 70-page report with the most comprehensive ecosystem mapping is available on Docsend here.