💪Challenges

Despite the overall positive development trend of RWA, there are still many challenges in the development process:

Small market size: Most RWA products have difficulty finding product-market fit, and in the short term, there is more narrative FOMO rather than breakthrough innovations or strong growth drivers.

Differentiated understanding of off-chain assets: There is a significant difference in the understanding of off-chain assets among DeFi DAO members, and overly complex off-chain assets are difficult for the community to understand.

Trust assumptions of RWA: Since tokenized RWAs are ultimately off-chain, unable to be enforced through smart contracts for settlement, and rely on endorsement from traditional financial institutions, the trust attributes of these RWAs may never reach the same level as Crypto Native Assets.