# 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.

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