After two rounds of the crypto bull market, RWA is becoming the most dominant narrative in the crypto world.
DUBAI, DUBAI, UAE, August 4, 2023/EINPresswire.com/ — The STO-type projects were aborted in 2018 because of unclear regional regulation in some regions, and the fact that the crypto market, including DeFi, is not yet sufficient to support its liquidity. Synthetic assets (a form of RWA) came to prominence in the last DeFi summer, but RWA failed either due to the DeFi bubble.
After two rounds of the crypto bull market, RWA is becoming the most dominant narrative in the crypto world. the value logic of RWA becoming the dominant crypto narrative in this way: how crypto world-builders are looking for opportunities to merge with the DeFi narrative in the course of RWA’s development, thus realizing their own value capture.
BG Trade, a Dubai-based RWA project that is actively laying out the Hong Kong market, to analyze how to carry out the “DeFi and TradFi connection” and the value capture of the “technology and regulation”.
The value opportunity in the process of integrating DeFi, the underlying blockchain technology, is transforming TradFi (the traditional financial.
For governments, countries in the world are trying to get rid of or resist the hegemony of the US dollar, especially a large number of small and medium-sized countries without sovereign currencies, and countries in Southeast Asia, the Middle East, Latin America, and other countries with the need for cross-border trade and monetary consensus, blockchain technology as the bottom layer of DeFi is happy to help them in the building of the digital economy infrastructure to jump over the road traveled by the United States and China. This is the most macro-level sovereign world financial initiative to integrate into the crypto economy in the background, and therefore we judge that the main crypto narrative in the integration process is in the Asia-Pacific, a topic that we will discuss in a special article later.
For institutions, the programmability of the blockchain allows on-chain assets to be easily divided, combined, changed and new assets created, enabling options, futures and more complex financial transactions. Derivative assets created by smart contracts are code-guaranteed to run, saving a lot of labor and process costs. This is important and will be a drive for many traditional financial institutions to integrate proactively.
For the market side, investors can trace their underlying assets and trade based on a full understanding of the asset risks. Therefore, there are similarities between the Tokenization of assets and the securitization of assets, and the operation of asset securitization has a long history in traditional finance asset products including MBS and ABS, the former being securities backed by mortgages and the latter being securities backed by credit card loans. Both MBS and ABS are essentially financial derivatives packaged from mortgages. By selling MBS and ABS, banks can earn spreads while completely transferring risk. After the success of MBS and ABS, more complex financial products were created, such as CDO, which were then packaged and resold and eventually reached investors.
The integration of DeFi and TradFi when viewed in these three aspects is in RWA (Real World Asset Tokenization). As such, DeFi is the advanced form of the financial system where more and more real-world assets (multi-trillion dollar markets) will be integrated into the crypto market in the form of RWA. Asset holders in traditional financial capital markets will increasingly hold and trade assets in the form of RWA. As to how to put it into practice, let’s take BG Trade, a dark horse of RWA which is BASE Dubai and actively embraces the Hong Kong market, as an example to introduce.
In a previous interview, Nauman Ali, the CEO of BG Trade, explained the reason for BG Trade’s debut in the Dubai marketplace. “I have always believed that to get ahead in life or business, you must be in an environment that nurtures progress and success. Dubai welcomes technology that will change the future. Our vision is to utilize Web3 technology to integrate asset investments on the same platform, providing efficient connectivity opportunities for heterogeneous assets such as stocks, bonds, commodities and cryptocurrencies, as well as providing users with RWA (Real World Assets) asset allocation solutions.” Ali said.
In their plans, BG Trade will act as a bridge between the traditional stock market and the cryptocurrency world. In the future, we are committed to creating a cryptocurrency and stock ecosystem that breaks down the barriers between the cryptocurrency world and the stock market. Cryptocurrency holders can purchase tokens to obtain shares of the corresponding listed companies. For listed companies, they can tokenize their shares, so that even users who do not belong to the region of their own listed exchanges can conveniently purchase asset allocations, realizing cross-region, cross-domain, and more efficient asset allocation channels.
At the time of Hong Kong’s new policy, BG Trade has already set up a Hong Kong base and will be based in Hong Kong to build a bridge between the traditional stock market and the crypto world, so that global stock assets can be circulated across the region. For listed companies, BG Trade will make their stocks available to a wider range of investors, and for investors, and enable them to allocate their assets efficiently on a global scale.
The narrative of Hong Kong as a global crypto center are organically combined and have the effect of mutually empowering each other. Under the impetus of the new crypto policy, Hong Kong stocks to the blockchain is an inevitable trend. The first thing that BG Trade will do is to build a chained “Hong Kong Stock Exchange”. Currently, the total value of Hong Kong stocks is about US$4 trillion, and BG Trade will be at least a US$10 billion TVL project, which will start in Hong Kong and gradually expand to South Korea, Vietnam, the United Arab Emirates, and ultimately encompass all major stock markets in the world.
BG Trade is committed to realizing the convergence of traditional finance and cryptocurrencies, breaking down the traditional financial (TradFi) constraints, and utilizing DeFi to provide a freer and more efficient way of asset allocation:
Decentralized asset valuation and pricing. Decentralized asset valuation and pricing mechanisms provide transparent, fair, and accurate pricing for digital assets. By adopting multiple data sources and algorithmic models, it ensures that asset pricing matches the supply and demand in the market and provides a reasonable trading reference.
Decentralized fiat trading. The introduction of a decentralized fiat trading function allows users to trade fiat currency and digital assets directly on the platform. Through smart contracts and multi-party trust mechanisms, it ensures the security and reliability of transactions and provides fast transaction settlement and clearing services.
Decentralized Trading Pair Creation. The creation of customized decentralized trading pairs meets the specific trading needs of different users and facilitates the trading of more assets.
4. Decentralized Order Book. A decentralized order book record users’ orders and commissions, providing a fairer and more transparent trading environment. Users can view the real-time order book and market depth and make trading decisions based on them.
Decentralized lending. Decentralized lending functions allow users to borrow digital assets on the platform and earn interest income. The lending and borrowing process is realized through smart contracts to ensure safety and transparency.
Decentralized Derivatives Trading. Decentralized derivatives trading, such as spot leverage, perpetual contracts, etc., provide users with more investment and arbitrage opportunities.
The Value Logic of RWA Obstacles removing
In Decoding RWA, the Most Valuable Wealth Code in the Compliance Context, we described how RWA, which first existed as synthetic assets, is nothing new to the DeFi world, and why they failed in the last bull market. This was due to DeFi’s own constrained stage of development, as well as external constraints in terms of infrastructure and regulation.
Sandy
BG Trade
email us here
Visit us on social media:
Twitter
LinkedIn
After two rounds of the crypto bull market, RWA is becoming the most dominant narrative in the crypto world.
DUBAI, DUBAI, UAE, August 4, 2023/EINPresswire.com/ — The STO-type projects were aborted in 2018 because of unclear regional regulation in some regions, and the fact that the crypto market, including DeFi, is not yet sufficient to support its liquidity. Synthetic assets (a form of RWA) came to prominence in the last DeFi summer, but RWA failed either due to the DeFi bubble.
After two rounds of the crypto bull market, RWA is becoming the most dominant narrative in the crypto world. the value logic of RWA becoming the dominant crypto narrative in this way: how crypto world-builders are looking for opportunities to merge with the DeFi narrative in the course of RWA’s development, thus realizing their own value capture.
BG Trade, a Dubai-based RWA project that is actively laying out the Hong Kong market, to analyze how to carry out the “DeFi and TradFi connection” and the value capture of the “technology and regulation”.
The value opportunity in the process of integrating DeFi, the underlying blockchain technology, is transforming TradFi (the traditional financial.
For governments, countries in the world are trying to get rid of or resist the hegemony of the US dollar, especially a large number of small and medium-sized countries without sovereign currencies, and countries in Southeast Asia, the Middle East, Latin America, and other countries with the need for cross-border trade and monetary consensus, blockchain technology as the bottom layer of DeFi is happy to help them in the building of the digital economy infrastructure to jump over the road traveled by the United States and China. This is the most macro-level sovereign world financial initiative to integrate into the crypto economy in the background, and therefore we judge that the main crypto narrative in the integration process is in the Asia-Pacific, a topic that we will discuss in a special article later.
For institutions, the programmability of the blockchain allows on-chain assets to be easily divided, combined, changed and new assets created, enabling options, futures and more complex financial transactions. Derivative assets created by smart contracts are code-guaranteed to run, saving a lot of labor and process costs. This is important and will be a drive for many traditional financial institutions to integrate proactively.
For the market side, investors can trace their underlying assets and trade based on a full understanding of the asset risks. Therefore, there are similarities between the Tokenization of assets and the securitization of assets, and the operation of asset securitization has a long history in traditional finance asset products including MBS and ABS, the former being securities backed by mortgages and the latter being securities backed by credit card loans. Both MBS and ABS are essentially financial derivatives packaged from mortgages. By selling MBS and ABS, banks can earn spreads while completely transferring risk. After the success of MBS and ABS, more complex financial products were created, such as CDO, which were then packaged and resold and eventually reached investors.
The integration of DeFi and TradFi when viewed in these three aspects is in RWA (Real World Asset Tokenization). As such, DeFi is the advanced form of the financial system where more and more real-world assets (multi-trillion dollar markets) will be integrated into the crypto market in the form of RWA. Asset holders in traditional financial capital markets will increasingly hold and trade assets in the form of RWA. As to how to put it into practice, let’s take BG Trade, a dark horse of RWA which is BASE Dubai and actively embraces the Hong Kong market, as an example to introduce.
In a previous interview, Nauman Ali, the CEO of BG Trade, explained the reason for BG Trade’s debut in the Dubai marketplace. “I have always believed that to get ahead in life or business, you must be in an environment that nurtures progress and success. Dubai welcomes technology that will change the future. Our vision is to utilize Web3 technology to integrate asset investments on the same platform, providing efficient connectivity opportunities for heterogeneous assets such as stocks, bonds, commodities and cryptocurrencies, as well as providing users with RWA (Real World Assets) asset allocation solutions.” Ali said.
In their plans, BG Trade will act as a bridge between the traditional stock market and the cryptocurrency world. In the future, we are committed to creating a cryptocurrency and stock ecosystem that breaks down the barriers between the cryptocurrency world and the stock market. Cryptocurrency holders can purchase tokens to obtain shares of the corresponding listed companies. For listed companies, they can tokenize their shares, so that even users who do not belong to the region of their own listed exchanges can conveniently purchase asset allocations, realizing cross-region, cross-domain, and more efficient asset allocation channels.
At the time of Hong Kong’s new policy, BG Trade has already set up a Hong Kong base and will be based in Hong Kong to build a bridge between the traditional stock market and the crypto world, so that global stock assets can be circulated across the region. For listed companies, BG Trade will make their stocks available to a wider range of investors, and for investors, and enable them to allocate their assets efficiently on a global scale.
The narrative of Hong Kong as a global crypto center are organically combined and have the effect of mutually empowering each other. Under the impetus of the new crypto policy, Hong Kong stocks to the blockchain is an inevitable trend. The first thing that BG Trade will do is to build a chained “Hong Kong Stock Exchange”. Currently, the total value of Hong Kong stocks is about US$4 trillion, and BG Trade will be at least a US$10 billion TVL project, which will start in Hong Kong and gradually expand to South Korea, Vietnam, the United Arab Emirates, and ultimately encompass all major stock markets in the world.
BG Trade is committed to realizing the convergence of traditional finance and cryptocurrencies, breaking down the traditional financial (TradFi) constraints, and utilizing DeFi to provide a freer and more efficient way of asset allocation:
Decentralized asset valuation and pricing. Decentralized asset valuation and pricing mechanisms provide transparent, fair, and accurate pricing for digital assets. By adopting multiple data sources and algorithmic models, it ensures that asset pricing matches the supply and demand in the market and provides a reasonable trading reference.
Decentralized fiat trading. The introduction of a decentralized fiat trading function allows users to trade fiat currency and digital assets directly on the platform. Through smart contracts and multi-party trust mechanisms, it ensures the security and reliability of transactions and provides fast transaction settlement and clearing services.
Decentralized Trading Pair Creation. The creation of customized decentralized trading pairs meets the specific trading needs of different users and facilitates the trading of more assets.
4. Decentralized Order Book. A decentralized order book record users’ orders and commissions, providing a fairer and more transparent trading environment. Users can view the real-time order book and market depth and make trading decisions based on them.
Decentralized lending. Decentralized lending functions allow users to borrow digital assets on the platform and earn interest income. The lending and borrowing process is realized through smart contracts to ensure safety and transparency.
Decentralized Derivatives Trading. Decentralized derivatives trading, such as spot leverage, perpetual contracts, etc., provide users with more investment and arbitrage opportunities.
The Value Logic of RWA Obstacles removing
In Decoding RWA, the Most Valuable Wealth Code in the Compliance Context, we described how RWA, which first existed as synthetic assets, is nothing new to the DeFi world, and why they failed in the last bull market. This was due to DeFi’s own constrained stage of development, as well as external constraints in terms of infrastructure and regulation.Sandy
BG Trade
email us here
Visit us on social media:
Twitter
LinkedIn
Topic / International Organizations, Topic / Banking, Finance & Investment Industry, Topic / IT Industry, Country / Canada, Country / Hong Kong
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