Following the demise of its stablecoin, USDR, last year, Tangible changed its name to re.al. In two weeks, the redesigned layer-2 blockchain is anticipated to be online.
Can one of the most well-known failures in the real world assets (RWAs) space become a pillar of support for one of the most popular financial products in cryptocurrency? It’s what Tangible DAO is wagering on.
A liquidity problem last year caused the U.K.-based project’s stablecoin, USDR, to fail. Now, Tangible is focusing on two types of redemption: the first is a physical redemption of assets for sub-dollar stablecoin holders, and the second is a symbolic redemption of the project by changing its direction to become a platform on which other RWAs can construct.
According to CEO Jag Singh, the “re.al” layer-2 blockchain, which is now operating under a different moniker, aims to provide a “full stack” experience for issuing and trading tokenized real-world assets. The Arbitrum-based network, according to him, intends to launch in two weeks.
According to optimistic forecasts, the RWA market will surpass $10 trillion by the end of the decade. Considering that the current entire crypto market valuation is only one-fifth of that amount, that could seem a little strange.
But if proponents of permissionless trading have their way, a significant portion of the financial system will unavoidably move to the blockchain. The same would apply to tokenized trading platforms for well-known “real world assets” like equities, commodities, and real estate.
The question remains unanswered as to where this trading occurs, assuming the migration occurs at all. The most likely place to settle would be on one of the so-called layer-2 networks—Arrum, Optimism, and Polygon—which connect to Ethereum’s security system but are quicker and less expensive than the most well-known blockchain for smart contracts.
Singh, however, believes that a “highly specialised” layer-2 will prevail more likely. Singh has been working on real-world crypto assets since 2021. According to him, the reason Re.al decided to adopt Arbitrum for their development was because it provides native support for a variety of petrol tokens, which are the currency that users use to make payments. According to him, those who own the new governance token on the blockchain would receive revenue from projects that build on re.al.