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Home web3.0 What is RWA? What is the relationship between RWA and stablecoins?

What is RWA? What is the relationship between RWA and stablecoins?

Jul 16, 2025 am 08:15 AM
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RWA and stablecoins are a symbiotic relationship. RWA provides solid value support for stablecoins and is the foundation of their credit; while stablecoins provide an indispensable stable payment and settlement tool for the tokenization, transactions and lending of RWA assets. With the gradual clarity of the regulatory framework and the continuous maturity of technology, the combination of RWA and stablecoins will be further deepened, bringing profound changes to the global financial market.

What is RWA? What is the relationship between RWA and stablecoins? - php Chinese

The tokenization of real-world assets (RWA) is an important bridge connecting the traditional finance and crypto worlds, and stablecoins play a crucial role in this process. Understanding the profound connection between the two is the key to grasping the future development trend of financial technology.

What is RWA?

RWA is the abbreviation of "Real World Asset", meaning "real world assets". It refers to the process of converting valuable assets in the real world into digital tokens through blockchain technology. These assets can be physical or intangible.

RWA mainstream trading platforms include:

  • Binance:
  • OK:
  • Huobi:
  • Gate.io:

Common RWA types include:

1. Real estate : Partial ownership of an apartment or a commercial real estate can be tokenized for investors to purchase.

2. Bonds and notes : Traditional financial products such as U.S. Treasury bonds and corporate bonds can be brought to the chain to achieve more efficient transactions and settlements.

3. Private credit : Loans provided to enterprises can be packaged into asset packages and tokenized, open to a wider range of investors.

4. Artwork and collectibles : High-value artworks can be divided into multiple tokens, lowering the investment threshold.

What is RWA? What is the relationship between RWA and stablecoins? - php Chinese

The close relationship between RWA and stablecoins

Stablecoins are cryptocurrencies whose value is pegged to specific assets (usually fiat currencies such as the US dollar), which acts as a stable medium of transactions and a store of value in the crypto ecosystem. The relationship between RWA and stablecoins is mainly reflected in the following aspects. They are interdependent and together form the infrastructure for the integration of DeFi and TradFi.

1. RWA is the cornerstone of mainstream stablecoins

The value of mainstream fiat-collateralized stablecoins such as USDC and USDT is not generated out of thin air. The issuer needs to hold reserve assets of equivalent value to support each stablecoin it issues. Most of these reserve assets are RWA, mainly high-liquid cash, cash equivalents and short-term US Treasury bonds. Therefore, it can be said that the safest and most basic RWAs such as US Treasury bonds are the core pillars that support the market value of hundreds of billions of dollars in stablecoins. The credibility and stability of a stablecoin depends directly on the quality and transparency of the RWA reserves behind it.

2. Stablecoins are the main medium for investing in RWA

When investors want to buy a tokenized real estate share or a tokenized private credit on the chain, they usually don’t pay in cryptocurrencies with price fluctuations like Bitcoin or Ethereum. Because during the trading process, fluctuations in the currency price will bring huge uncertainty. Stablecoins solve this problem perfectly. Investors use stablecoins such as USDC or USDT for pricing and trading, ensuring the stability of transaction value. Stablecoins are the "official currency" and "settlement layer" that operates on the chain of the RWA market.

3. The two jointly promote the future of finance

RWA and stablecoins work together to serve an ambitious goal: to build a more efficient, open and inclusive global financial system. RWA introduces real-world value into blockchain, providing DeFi with a sustainable and low-relevant source of returns for crypto markets. Stablecoins provide a reliable track for the circulation of these values. Without RWA, DeFi will become an internally cyclical speculative game; without stablecoins, on-chain transactions and applications of RWA will be difficult to scale.

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