RWAs build mirrors where they need building blocks

Key Points

1. Stablecoins have evolved into financial infrastructure, serving as programmable money, unlike many other RWAs which remain underutilized.

2. Tokenization alone does not guarantee adoption; early RWA models focused on custody rather than usability within DeFi.

3. Compliance is a major bottleneck for RWA growth, with legal frameworks like the GENIUS Act being a step toward enabling usable, compliant assets.

4. Liquidity in RWAs is hindered by lack of interoperability, preventing regulated assets from moving freely across DeFi.

5. New DeFi-compatible RWA designs are emerging, aiming to make them functionally relevant within DeFi rather than just adjacent to it.