In the cryptocurrency industry, you don't have to look far to understand if RWA applies to blockchain. Fiat currencies in the form of stablecoins are the most popular RWAs and are growing at an astonishingly fast pace. According to a June 2022 research report by Binance, the market cap of stablecoins rose by more than 3,000% from January 2020 to January 2022.
The most prominent fiat currency to be tokenized is by far the US dollar. USD-backed stablecoins like USDC, BUSD, and USDT are in high demand, while other fiat currencies like the EUR, GBP, CAD, AUD, and HKD are only slowly catching up and being brought onto the blockchain. For instance, the stablecoin Euro Coin is 100% backed by euros and it’s always redeemable on a 1:1 ratio. Physical gold is also another real-world asset that has been tokenized in the form of commodity-backed stablecoins.
Besides fiat currencies and commodities, assets like real estate, equities, securities, corporate bonds, and government treasuries can also be brought on-chain through tokenization. Avatanium has embarked on the development of bringing real-world assets to the blockchain on-chain.