LTO Network to host the worlds most advanced RWA ecosystem on its blockchain.
There are currently 1.3 billion USD of RWAs on-chain in crypto. This area grew to a total value of 1.05bn USD in 2023, 82% (855.7m USD) of which has come from treasuries, real estate, and private credit.
Major industry leaders from both the traditional financial and crypto worlds are calling RWAs the biggest growth area for crypto in the next cycle, and it is estimated that by 2030, there will be 16 trillion USD of RWAs on-chain.
It sounds like a great and growing ecosystem to be involved with, and the news and social media excitement surrounding this sector shows that the greater crypto community agrees. But for RWAs to reach their full potential, the current market needs more capable technologies to tokenize assets in a meaningful way. Even more so, it needs technology that allows this to occur in a decentralized manner.
The introduction of decentralized RWAs means that the greater crypto community and DeFi can start interacting with these RWAs in a much safer form. With centralized RWAs, an additional layer of trust is required between the Web3 community and the centralized parties performing the tokenization. If the centralized party disappears, the tokens representing the asset become useless. Therefore, these centralized RWAs are not a true and reliable store of value.
Tokenizing assets requires a strong legal framework as well as technology that can address the complex issues around "identity" and the demonstration of the legal ownership of the asset. Consequently, there is also the requirement to preserve the privacy of sensitive data that defines the legal status and ownership of the assets.
LTO Network has built a robust suite of technologies that work together and form our RWA ecosystem to address and solve the current issues surrounding RWAs.
Through the integration of our various DApps, we are able to provide the world's most robust and capable RWA platform to handle the entire lifecycle of assets, from on-chain tokenization to DeFi participation and back to off-chain interaction.
The majority of these technologies have already been built. We will now rapidly deliver an integrated form of these individual parts and start bringing assets on-chain in the second quarter of 2024.
Step 1 - Connect our private layer APIs to Firm24.
Firm24 is one of the Netherlands' leading business registration notaries, and their modern approach provides an API-driven notary platform. LTO Network will integrate its private layer with its software. This will allow real-world entities to issue RWAs on the LTO Network without manual intervention or a centralized party. The API Integration will be bidirectional.
Step 2 - Ownables Plug and Play Structure for RWAs
The LTO Network's OWNABLES technology launched on the active mainnet in December 2023. With the availability of this platform, the next step is for the project to create OWNABLES Templates and APP for RWAs that ingest Firm24-issued notarized contracts in the form of our immutable digital asset technology.
We will also launch the LTO Network Ownables wallet in Q1 of 2024. This wallet will allow you to store and manage your RWAs.
The templates will contain pre-made smart contract code to take advantage of our bidirectional integration with Firm24. This will allow RWAs on LTO to interact back with the real world.
Step 3 - Start tokenizing
We will start experimenting with tokenization and bringing various assets onto the LTO Network. Our current aim is to tokenize up to 1 million USD worth of assets in the next 12 months.
To better understand the possibilities, legal ramifications, and use cases with tokenization, we will tokenize assets of varying classes, including:
- Store of value assets (Gold, etc.)
- Revenue-generating assets
- Precursor assets (that evolve through their usage and increase in value)
- Private Equity contracts
Step 4 - Build EQTY for Liquidity
Allowing RWAs to exist on-chain is simply the first step for the LTO Network. Our ambition as a project has always been to demonstrate and deliver adoption.
We explored several scenarios for adoption, and our 5-year strategy for mainstream RWA adoption using the LTO Network will start with the creation and launch of a completely new protocol and ecosystem that will connect the LTO RWAs to on-chain liquidity, starting with liquidity available on the Ethereum network and its layer 2's as this is where the bulk of DeFi participation is occurring.
EQTY is going to be an entirely new project built on top of the LTO Network. It will consist of several key components that utilize LTO Network's technology and fuel the adoption of LTO RWAs by paying taxes to the LTO Network to facilitate growth. A separate whitepaper for EQTY will be launched in Q1 of 2024.