2.3 The connection between traditional finance and crypto finance
If the traditional financial market and the crypto-financial market can be connected, the problems of these two markets can be supplemented and the strengths can be maximized.
RWA Tokens (Real-World Asset Tokens)
RWA tokens (Real-World Asset tokens) are a game changer in making traditional finance methods more efficient. They allow real assets like property to be bought and sold on the blockchain without needing a middleman. This means assets can be turned into cash quickly using tokens, and they can be traded anywhere, without being limited by country borders. Also, by adding real-value assets to the crypto market, we can bring in more types of investors, making the market more active and liquid. To give an idea of scale, while the total value of crypto assets worldwide is about 1,500 trillion won, just the real estate market in Korea was valued at 17,788 trillion won as of March 2022. More investors and more liquidity mean that more people can use the financial tools offered by DeFi (Decentralized Finance).
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