RWA

Tokenized Treasuries, private credit, invoices and commodities have been the growth categories, and the appeal is straightforward: yield that comes from real economic activity rather than from token emissions, delivered on rails that settle continuously.

The consequence institutions underweight is that moving an asset on-chain does not move its risk on-chain. A tokenized private credit fund still carries the credit risk of the borrowers, the liquidity profile of the underlying loans, and the servicer's operational risk. None of that becomes more transparent or more liquid because a token references it. What changes is the settlement layer, and only the settlement layer.

Two mismatches deserve specific attention. Liquidity: an instrument that trades 24/7 on-chain may reference an underlying that redeems weekly or quarterly, and gates are triggered by the redemption terms, not the token's trading hours. And valuation: a token's price is continuous while the underlying is marked periodically, so the oracle reporting net asset value between marks is making an estimate the market treats as a fact.