Bridging the gap between traditional and digital trading with real-world assets (RWAs)
Real-world assets (RWAs) have long been discussed as a game-changing force in the investment world, offering greater accessibility through fractional ownership, liquidity, and transparency with tokenization. While the conversation around tokenizing RWAs isn’t new, the current wave of excitement surrounding crypto ETFs, Bitcoin reaching $100k for the first time ever, and blockchain technology as a whole, is breathing fresh life into the RWA market.
Yet, the same roadblocks remain, particularly surrounding userfriendly access to hold and trade these assets. To trade RWAs today, users often have to navigate digital wallets and decentralized exchanges, potential hurdles for those outside the blockchain-savvy bubble. What’s needed is a familiar bridge to this next wave of digitization.
What are real-world assets and why are they relevant now?
RWAs refer to tangible assets like real estate, fine art, and commodities like gold that can be divided into fractions and represented as pieces or “shares” to be sold at the fractional cost of the present-day market value of the asset.
The concept isn’t new, digital representations of assets have been available prior to blockchain technology. Real Estate Investment Trusts (REITs) and Exchange-Traded Funds (ETFs) showcase a similar concept by providing digital representations of pooled assets that are easily accessible and tradable, serving as a reference point for what the tokenization of RWAs aims to replicate.
By putting these pieces on a blockchain-powered platform, like Upstream, these assets become privy to the benefits of the technology including real-time trading across borders, an affordable entry point through fractionalization, and transparent orderbooks with best bids and offers publicly displayed.
For example, imagine owning a piece of property, a work of art, or a classic car. With blockchain technology, you could trade a fraction of that asset from your phone, instantly, without the need for traditional intermediaries like banks or brokers. This democratizes access to investments that were previously limited to the wealthy or well-connected.
What’s the missing link?
Despite the advantages, tokenized RWAs remain largely confined to complete DeFi or tokenization-specific platforms that may require users to create a digital wallets compatible with specific blockchain networks and fund with cryptocurrency. While these steps are second nature for seasoned crypto investors, they could present a steep learning curve and leave out a lot of everyday investors.
Additionally, the types of assets being tokenized — real estate, art, commodities — tend to be more common among high-net worth individuals due to the significant capital needed to purchase these assets outright. Further, many of these assets attract more conservative investors who are often more comfortable trading on familiar trading platforms rather than navigating the complexities of decentralized exchanges.
Upstream as the bridge to RWA trading for all
Upstream is stepping in to address this gap by offering a trading app that merges the traditional framework of trading with the digital advantages of blockchain. As part of the regulated MERJ Exchange, Upstream provides a secure and familiar environment for trading RWAs.
This approach removes many of the barriers that currently limit RWA adoption. By simplifying the trading process and offering a regulated platform, Upstream aims to make RWA trading as intuitive and accessible as traditional stock trading. It’s about creating a bridge that invites everyone, not just blockchain enthusiasts, to participate in this new investment frontier.
Stay connected to hear about upcoming opportunities for traders on Upstream. Issuers interested in listing on Upstream can get started here. Investors (non-U.S.) can download Upstream on iOS or Android.
Note: U.S. persons may not deposit, buy, or sell securities on Upstream.
Disclaimers:
U.S. persons may not deposit, buy, or sell securities on Upstream. Anyone may buy and sell Collectibles on Upstream.
This communication shall not constitute an offer to sell securities or the solicitation of an offer to buy securities in any jurisdiction where such offer or solicitation is not permitted. Collectibles have no royalties, equity ownership, or dividends. Collectibles are for utility, collection, redemption, or display purposes only. Anyone may buy and sell Collectibles on Upstream. All orders for sale are non-solicited by Upstream and a user’s decision to trade securities must be based on their own investment judgment.
Upstream is a MERJ Exchange market. MERJ Exchange is a licensed Securities Exchange, an affiliate of the World Federation of Exchanges, a National Numbering Agency, and a member of ANNA. MERJ is regulated in the Seychelles by the Financial Services Authority, https://fsaseychelles.sc/, an associate member of the International Association of Securities Commissions (IOSCO). MERJ supports global issuers of traditional and digital securities through the entire asset life cycle from issuance to trading, clearing, settlement, and registry. It operates a fair and transparent marketplace in line with international best practices and principles of operations of financial markets. Upstream does not endorse or recommend any public or private securities bought or sold on its app. Upstream does not offer investment advice or recommendations of any kind. All services offered by Upstream are intended for self-directed clients who make their own investment decisions without aid or assistance from Upstream. All customers are subject to the rules and regulations of their jurisdiction. By accessing the site or app, you agree to be bound by its terms of use and privacy policy. Company and security listings on Upstream are only suitable for investors who are familiar with and willing to accept the high risk associated with speculative investments, often in early and development-stage companies. U.S. persons may not deposit, buy, or sell securities on Upstream. There can be no assurance the valuation of any particular company’s securities is accurate or in agreement with the market or industry comparative valuations. Investors must be able to afford market volatility and afford the loss of their investment. Companies listed on Upstream are subject to significant ongoing corporate obligations including, but not limited to disclosure, filings, and notification requirements, as well as compliance with applicable quantitative and qualitative listing standards.
Collectible products are akin to a digital sticker of an underlying artwork and should not be considered a financial investment; a security token, an e-money token, or a form of digital currency. Collectibles should not, therefore, be purchased by anyone seeking financial gain or with an expectation to profit from the purchase, ownership in the entity, dividends or distributions, sale or resale of a Collectible. By buying a Collectible, you agree that you are not doing so for investment purposes or for the purposes of obtaining a security or an appreciating asset. You understand that the benefit you receive for buying a Collectible is limited to supporting athletes, celebrities and other brands. You also acknowledge that ownership of a Collectible does not carry with it any rights, express or implied, including (without limitation) copyright, trademarks or other intellectual property or proprietary rights in and to the underlying artwork. The copyright to the digital artwork remains with the copyright holder.
Forward-Looking Statements
This communication contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) difficulties in obtaining financing on commercially reasonable terms; (ii) changes in the size and nature of our competition; (iii) loss of one or more key executives or brand ambassadors; and (iv) changes in legal or regulatory requirements in the markets in which we operate. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.