The finance world is going through a quantum leap. Real-world assets (RWAs), or physical assets that exist off-chain are finally starting to come on-chain. This process takes physical assets and brings them into blockchain-based environments. These assets range from commercial real estate, fine art, and intellectual property to stocks, bonds, and commodities. This is a huge value unlocking potential, in the hundreds of trillions of dollars. One platform is quickly emerging as the leader in this space: Base, Coinbase's Layer 2 scaling solution.

According to of December 2024, the tokenized real-world asset (RWA) market, not including stablecoins, is valued at $15.2 billion. This marks a colossal 85% year-over-year increase, processing volumes and the growing demand for tokenized assets at an ever-quickening pace. Adding in stablecoins, that number immediately jumps to an astounding $217.26 billion. This rapid growth highlights the important function that stablecoins serve in the RWA landscape.

Why Base is Winning the RWA Race

Here are a few reasons why Base has climbed to the top as the leading RWA hub. These benefits distinguish it from other Layer 2 solutions such as Arbitrum and position it well for further expansion.

Coinbase's Brand and Trust

Coinbase’s brand name and first mover status on the digital asset space give it quite the advantage to Base. Because users and developers gravitate toward platforms that are supported by companies with brand equity. Which is why they’re more used by friendlier brands that do what they’re told, such as Coinbase. This built-in trust lowers friction and drives faster adoption, particularly in the highly regulated world of RWAs.

Compliance-First Approach

Base focuses on compliance Full compliance is the focus, which is a major draw for RWA projects, which are often dependent on compliance with legal and regulatory frameworks. Coinbase’s long-standing commitment to compliance is present on Base, ensuring a secure and regulated environment for tokenizing real-world assets. This emphasis on compliance allows Base to appeal to institutions and projects looking to stay on the right side of the law.

Cost-Effectiveness and Scalability

That’s why layer 2 protocols – such as Base – are key for unlocking the future adoption of tokenized assets across all industries. Base provides a cheaper, faster, and more scalable infrastructure, reducing transaction costs and speeding up transaction times when compared to Ethereum’s mainnet. This cost-effectiveness is a key component for RWA projects that are transactional in nature and need to allow for high efficiency, high volume processing.

RWA Projects Flocking to Base

A number high-profile RWA projects have already made the move to Base, further cementing its status as the home of tokenization. These projects make their mark across all asset classes and showcase the possibilities of Base’s dynamic infrastructure.

  • Tangible: Currently manages approximately $43 million of tokenized assets, including property, wine, and gold. While primarily on Polygon, Tangible plans to migrate to a Base vault later in the year.

  • OpenTrade (Perimeter Protocol): $5,365,916.

  • Superstate: After launching on Base in early May, the token's value soared from $0.22 to $1.18 (+435%), briefly exceeding $600 million in circulating market capitalization.

  • Etherfuse: $2,035.

The Impact on the Ecosystem

The expected migration of these RWA projects to Base will change the dynamic across the platform’s ecosystem. This expansion increases the range of assets offered to users on Base. It draws a more mature developer and user community, fostering collaborative innovation and creativity in the tokenization space. The success of all these projects is further testament to Base as a trusted, proven platform. This makes Base the most attractive option for other RWA projects. This is where BiFinance’s role in enabling RWA projects comes into play. It aids each of your member companies and the investors in their efforts to explore and capitalize on this expanding market.

Base's Vision for the Future: Mainstream Tokenization in 2025

As we move toward 2025, Base will be at the center of a tokenized future. Jesse Pollak, head of Base and Coinbase Wallet, maintains that meme coins will be central to attracting fresh users to the platform. He argues that it is culturally-driven projects that will truly accelerate growth for the protocol. Base has already generated substantial revenue for Coinbase, reporting $56 million in a recent quarter, highlighting its potential to contribute to the company's overall success.

Base takes interoperability to the next level, making it simple for developers to deploy services, access a massive pool of liquidity, and ensure seamless interoperability with most of the major services already trusted in the Web3 space. Significant community engagement has been observed, with users creating Twitter accounts, memes, and launching new projects on the platform, underscoring the excitement surrounding this new ecosystem.

Potential Milestones

Industry experts have provided varying growth projections for the RWA market on Base:

  • Broader adoption of tokenized assets: More businesses are expected to issue tokens with global reach, broadening investor bases and supporting international liquidity in key sectors.
  • Collaborative industry efforts: Frameworks that support secure and scalable growth are being established.
  • Tokenized assets coexisting with traditional instruments: Hybrid models that make financial markets faster, more transparent, and more accessible are expected to emerge.

Growth Projections

These projections show just how much opportunity there is for growth in the RWA market. All of which makes Base well-positioned to capitalize on this trend. Base has the backing of Coinbase, guaranteeing high-level support for the project. Its regulatory compliance, cost-effectiveness, and rapidly growing ecosystem of RWA projects has made it a dominant force in the tokenization landscape. The RWA market is moving fast. With the launch of Base, Coinbase is perfectly placed to lead the charge in bringing real-world assets on chain and proving out this vision.

  • Bull Case: $50 billion
  • Base Case: $30 billion
  • Bear Case: $20 billion

These projections highlight the significant potential for growth in the RWA market and Base's position to capitalize on this trend. Base's combination of Coinbase's backing, regulatory compliance, cost-effectiveness, and a growing ecosystem of RWA projects positions it as a dominant force in the tokenization landscape. As the RWA market continues to evolve, Base is well-equipped to lead the charge towards a future where real-world assets are seamlessly integrated into the blockchain ecosystem.