In today’s market, a fascinating topic is gaining traction–Real World Assets in Crypto (RWA). This concept entails the conversion of tangible assets in the real-world, such as U.S. Treasury bills, real estate, and stocks, into tokens on the blockchain. These tokens act as digital representations, signifying ownership or fractional ownership of the actual physical assets.
Certainly, this is not a novel concept, as numerous companies and projects have already ventured into it during the previous market cycle. Their primary objective was to tap into the vast fund volumes of traditional finance and integrate them into the blockchain. However, the initial hype waned due to the lack of a robust regulatory framework, resulting in substantial financial losses.
The resurgence in interest is due to the current undesirable crypto market conditions, resulting in declining yields for native DeFi protocols. In fact, stable yield rates have plummeted to levels even lower than those of U.S. Treasury bonds, which are commonly known as the “risk-free rate.” Seeking to prevent capital outflow from the crypto world, individuals in the crypto community, mainly driven by some Web3 companies and DAOs with treasury management needs, desire a mechanism that allows them to enjoy real-world gains within the crypto space.
This resurging narrative of RWA is attributed to the improved Defi protocols that have learned from past mistakes, such as now they are taking regulation and compliance into further consideration by introducing trust structure. But generally, the idea is all about adding real-word cases–it crystalizes the ambition to embrace a larger market and introduce the people outside the crypto world.
It has emerged as a prominent narrative and trend, and obviously it is not an isolated case in the crypto sphere. When we understand its general concept as a way to link the crypto world with the real world, enabling crypto real-world investments, we can see that Alchemy Pay is playing a role in this connection by facilitating crypto real-world spending. This alignment is based on the fundamental consensus that cryptocurrencies need to expand beyond their own boundaries and integrate with the larger financial world. To meet this urgent demand, Alchemy Pay’s answer is Crypto Card solution.
The crypto card solution offered by Alchemy Pay is designed to assist business partners in issuing their personalized co-branded crypto cards with Mastercard, whether in virtual or physical form. These cards enable users to top-up and spend various tokens globally and make instant shopping. Essentially, by collaborating with Alchemy Pay, partners gain the flexibility to launch and tailor crypto cards under their own brand, while Alchemy Pay takes care of the intricate bank acceptance processes. Users have the option to recharge popular tokens like USDT, USDC, ETH, BTC onto the card, or they can opt for customized tokens specific to their project. Subsequently, they can directly utilize these recharged cryptocurrencies for daily spending.
The trial for the crypto card was initiated in June and has undergone testing on Bit.Store and Token Pocket during the previous month. The complete launch is anticipated in the latter half of the year, offering both virtual and physical cards to all interested clients. Presently, the crypto card is limited to USD prepaid functionality, but Alchemy Pay intends to collaborate with an HK issuing bank to introduce HKD prepaid support in Q3.
The emergence and utilization of RWA in Defi signifies Defi’s endeavor to exert a more substantial influence on the financial landscape, effectively bridging the gap between Traditional Finance (Tradfi) and Defi. According to a RWA report from Binance research, the tokenized asset market is projected to grow to $16 trillion by 2030, providing ample opportunity for expansion. Taking the progress of RWA in crypto, it is logical for the crypto industry to incorporate fiat currencies into its system to achieve a more significant impact.
Against this backdrop, Alchemy Pay’s endeavors align with the prevailing market trends. Notably, Alchemy Pay’s On-ramp is crucial for bringing more users into Defi products and linking them to RWA. Furthermore, AP’s other businesses, such as On & Off-ramp, NFT Checkout, and crypto payments, effectively strengthen the bond between the crypto world and reality, expanding the project’s reach to a broader audience with user-friendly solutions. Alchemy Pay also is actively collaborating with banks and governments worldwide, making significant strides in compliance efforts.
With RWA back in the spotlight, the cryptocurrency world is witnessing the resilience of nascent forces. Among these, payment products, represented by Alchemy Pay, stand as a prominent category of blockchain technology, demonstrating a surge in real-world applications. Just like RWA and many other industry partners, our goal is to expand the industry’s reach by connecting crypto with a wider audience and fostering an increasing number of real-world blockchain use cases.
About Alchemy Pay
Founded in Singapore in 2017, Alchemy Pay is a payment gateway that seamlessly connects crypto with traditional fiat currencies for businesses, developers, and end users. With its On & Off-Ramp solution, NFT Checkout, Crypto Card and Crypto Payments, Alchemy Pay supports payments in 173 countries.
The Ramp is a one-stop solution to buy and sell crypto and fiat, easily integrated by platforms and dApps according to requirements. The NFT Checkout enables direct purchases of NFTs using fiat payment methods. The Crypto Card solution empowers businesses and token issuers to provide users with branded virtual and physical cards for instant global spending. ACH is the Alchemy Pay network token on Ethereum and BNB Chain.
