All termsDeFi and RWA IntegrationWorth knowing
Real World Asset Collateral
Real world asset collateral is collateral whose value ultimately comes from an asset or financial claim outside the blockchain. This could include tokenized securities, property related interests, receivables or other eligible real world assets.
Why it matters to you
Using RWAs as collateral connects DeFi and blockchain based lending with traditional economic assets. But the lender must still consider valuation, custody, legal enforceability, liquidity and how the underlying asset could actually be realized if the borrower defaults.
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Learn real world assets properly
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