In a recent interview, Ramon Recuero, co-founder and CEO of Kinto, discussed the evolving role of real-world assets (RWAs) in institutional investments. As these assets become more prevalent, industry leaders are keen to understand their future role, especially following the recent Bitcoin halving event.
Recuero explored the indirect relationship between Bitcoin’s halving events and the investment in RWAs. Although there is no direct impact, historical trends indicate that these events tend to precede increased investment interest and activity in the sector.
He pointed out Maker DAO’s significant influence in the RWA market, acknowledging its long-standing position and success. Recuero also mentioned other key players such as Backed, Centrifuge, Mountain Protocol, and Blackrock’s BUIDL fund. These entities highlight the variety and potential within the RWA market.
Projected Growth and Mainstream Adoption of RWAs
Looking ahead, Recuero shared a cautious projection on the timeline for RWAs reaching mainstream adoption, suggesting it could take anywhere from several years to a decade. He noted that currently, the most prominent application of RWAs involves tokenized U.S. treasuries. Products like the BUIDL fund, Mountain USDM, and Maker have been pivotal in providing access to on-chain short-term treasury bills.
However, he mentioned that broader applications, such as home equity loans or tokenized equities, might face a slower integration into mainstream markets.
Regarding the short-term focus following the Bitcoin halving, Recuero expects a shift toward ETFs by institutional investors, with a more pronounced impact likely to unfold over the medium to long term. He believes that the halving event will lay the groundwork for the next bull market, influencing the supply and potentially altering market dynamics.
As the dialogue around RWAs continues to grow, their journey toward broader acceptance remains influenced by a mix of market cycles, investor interest, and ongoing technological advancements. This dynamic narrative continues to shape the landscape, promising a fascinating evolution in how traditional and digital asset markets intersect.