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Exploring the RWA Tokenization Opportunity

Why Do We Need It?

Pages in this Section (Explore the RWA Tokenization Opportunity)
Market Opportunity | What is RWA Tokenization? | Why Do We Need It? | From ACATS to RWA Tokens | What Can Be Tokenized? | Latest Developments in RWA

Daily transactions in financial markets amount to trillions of dollars. In 2023 alone, the S&P500 saw an average daily trading volume of $253 billion, with gold and U.S. Treasury Bills trailing closely at $163 billion and $161 billion, respectively.

Every time a financial asset is purchased and sold, the asset must be transferred from the seller to the buyer. The transfer is done through an electronic system called ACATS that comprises of a series of requests, acceptances, customer data matching and reconciliation.

Despite ACATS being an electronic system, the transfer procedure is slow, inefficient and prone to human-error:

  • It takes three days to transfer financial assets through ACATS;
  • Hard reject rate is 11-13%, requiring repeat transfer requests;
  • 80% of soft reject are left unrectified which causes issues and delays

It gets worse; if your financial asset sits with a financial institution that is not a part of ACATS, the asset transfer must be done manually. Imagine millions of transfers being processed manually.