The Problem

The adoption of Real-World Assets (RWAs) and their integration into traditional finance face several critical challenges.

Illiquidity of Assets

Many real-world assets, such as real estate and fine art, are inherently illiquid. High-value assets often require significant capital and long-term commitments, limiting access to a select group of investors. This illiquidity makes it difficult for asset owners to quickly realize their value or diversify their portfolios.

High Barriers to Entry for Investors

• The traditional financial system presents numerous obstacles for individuals and smaller institutions looking to invest in high-value assets:

• Cost-Prohibitive Access: Large minimum investments exclude smaller investors from participating in lucrative markets.

• Geographic Restrictions: Regulatory and jurisdictional barriers make it challenging for global investors to access certain asset classes.

• Complex Documentation: Lengthy and cumbersome processes deter participation from non-experts.

Inefficient Processes in Compliance and Lifecycle Management

• Traditional asset management involves manual, time-intensive processes that are prone to errors and inefficiencies.

• Regulatory Compliance: Ensuring assets comply with local and international regulations can be costly and time-consuming.

• Data Fragmentation: Asset information is often siloed across multiple systems, increasing the complexity of management and verification.

• Operational Costs: High administrative overheads reduce the overall profitability of managing and trading real-world assets.

Limited Accessibility and Transparency

• Traditional finance often operates within opaque systems, leading to:

• Lack of Trust: Investors may have limited visibility into asset ownership and transaction history.

• Exclusion of Retail Investors: Exclusive access to asset classes perpetuates wealth inequality and stifles broader market participation.

By addressing these challenges, RWA Layer seeks to unlock the untapped potential of real-world assets, creating a more inclusive and efficient global financial system.