9 Best Real World Asset Tokens to Invest in 2024

One of the biggest opportunities for the crypto industry lies in bringing real world assets onto the blockchain. Tokenizing assets like gold, art, real estate, capital pools, and more has the potential to democratize finance and create new opportunities for everyday investors.

The push to tokenize real world assets is still in its early days, but there are already dozens of projects in this space. In this guide, we’ll explore the 9 best real world asset tokens to invest in today and explain everything investors need to know about real world asset cryptocurrencies.

Analyzing the Best Real World Asset Tokens

Let’s take a closer look at how these real world asset tokens work.

1. Bitcoin ETF Token – Crypto With High Staking Rewards, A Dynamic Token Burn Strategy, And Deflationary Tokenomics

Bitcoin ETF Token ($BTCETF) is a trending new crypto witnessing high investor traction immediately after its presale launch. 

The token is linked to the SEC’s anticipated approval and launch of the first Bitcoin Spot Exchange-Traded Fund (ETF). Designed as an ERC-20 token, $BTCETF aims to align its growth and value with the key developments in the Bitcoin ETF sector.

The presale of Bitcoin ETF Token is strategically laid out in 10 stages, offering an opportunity for early investors to capitalize on a potential price increase. 

Starting at $0.005 per token, the price is set to rise incrementally to $0.0068 by the final stage. This structured approach to pricing has already caught significant attention, with over $830K raised in just 10 days, highlighting strong investor interest and confidence.

$BTCETF is designed with a deflationary model, planning to burn 25% of its total supply of 2.1 billion tokens. This burning is strategically linked to achieving five major milestones in the Bitcoin ETF space, including the SEC’s approval of a Bitcoin ETF, the launch of such an ETF, and the ETF’s assets under management reaching $1 billion. 

Each milestone met will result in a 5% burn of the total token supply, improving  the token’s scarcity and potential value.

A notable feature of $BTCETF is its high staking rewards, currently offering an APY of over 300%, which is set to decrease as more tokens are staked. This makes early participation in staking highly advantageous. 

Per the Bitcoin ETF whitepaper, the project has allocated 25% of tokens for staking rewards. Over 90 million tokens are already been staked in 10 days, showing strong investor trust. 

Investors can buy $BTCETF tokens through the project’s website using Ethereum (ETH), USDT, or even by card. 

The project encourages active community engagement and provides regular updates on its progress, inviting users to follow on Twitter and join the Bitcoin ETF Token Telegram group.

2. Bitcoin Minetrix – Stake-to-mine Cryptocurrency Enabling Investors to Earn Bitcoin through Cloud Mining

Bitcoin Minetrix is a new crypto project that takes a slightly different approach from most real world asset tokens. Instead of providing a token that’s directly backed by a real world asset, Bitcoin Minetrix is creating a new framework for cloud Bitcoin mining that can make it easier for investors to earn BTC.

With Bitcoin Minetrix, investors stake the project’s $BTCMTX token and earn mining credits. These are non-transferable credits that can be redeemed for cloud hashpower for mining Bitcoin. Mined BTC in the Bitcoin Minetrix pool is then passed back to investors based on the hashpower they have redeemed.

This stake-to-mine system solves one of the fundamental problems with cloud Bitcoin mining: trust. In existing cloud mining solutions, individual miners need to pay for hashpower upfront and simply trust that they’ll get the Bitcoin their hashpower mines.

With Bitcoin Minetrix, investors never pay for hashpower directly, so their tokens are never at risk. They simply have to stake $BTCMTX.

This novel approach has the potential to democratize Bitcoin mining and create a real way for individual miners to compete with Bitcoin mining farms. Bitcoin Minetrix plans to rent out hashpower from existing mining farms initially, but plans to build its own mining farm in the future.

Bitcoin Minetrix’s approach has proven incredibly popular with investors. The $BTCMTX presale has raised more than $500,000 and is running towards its $3.08 million soft cap ahead of schedule. The presale plans to sell 3.1 billion tokens, or 77.5% of the total supply of 4 billion $BTCMTX.

During the first stage of the presale, investors can buy $BTCMTX at a price of $0.011. Investors won’t want to wait to join the presale as the price is expected to increase by 8% ahead of the Bitcoin Minetrix launch.

For more information on this exciting and unique cloud mining project interested buyers can read the Bitcoin Minetrix whitepaper, as well as join the bustling community on the socials (X and Telegram).

3. Ondo Finance – Yield Protocol with Multiple Tokens Backed by Low-Risk Investments

Ondo Finance is a unique blockchain platform and DeFi protocol helping investors generate yield from traditional assets like bonds and treasuries. The platform offers multiple tokens, each backed by a different mix of real world assets and offering varying levels of yield and financial risk.

Ondo Finance’s highest-yield token is $OHYG, the Ondo High Yield Corporate Bond Fund. This token offers a yield of 7.33% and is primarily backed by shares in the iBoxx $ High Yield Corporate Bond ETF.

Other tokens offer lower yield and are backed by US treasuries and US money market funds. These assets have AAA credit ratings, indicating that they have relatively low risk of default.

For now, Ondo Finance is mainly targeted at institutional and high net worth investors. The minimum investment in its tokens is $100,000.

However, the platform has the potential to expand its offerings to retail investors as liquidity in its tokens expands. Ondo Finance is also actively rolling out new real world asset tokens. The newly launched Ondo US Dollar Yield token, for example, is backed by a combination of short-term US Treasuries and bank demand deposits.

4. Tangible – Offers Real Estate-backed Stablecoin and NFTs Backed by Gold, Wine, and More

Tangible is a real world asset crypto platform that’s making it easier for anyone to invest in real estate and earn money from rental income. It operates similarly to some real estate investment trusts (REITs), but on the blockchain.

The project’s RealUSD stablecoin is always pegged to $1 and is backed by real estate and $DAI. The real estate portion of the collateral ensures that RealUSD grows over time, while the $DAI backing provides liquidity for withdrawals.

RealUSD holders can earn daily yield from rental income on properties that Tangible owns. The yield changes daily since Tangible also uses income to automatically re-collateralize RealUSD in response to price changes.

Tangible also offers TNFTs, NFTs that represent tokenized ownership in real-world assets. Currently, TNFTs are available for gold bars, real estate, wine, and watches. There are hundreds of TNFTs available to buy using RealUSD and prices start at under $2,000 for these investments.

Tangible also has its own token, $TNGBL. Investors can stake $TNGBL to earn yield in USDC, providing another way to invest in this project. Locked $TNGBL is represented by a TNFT that can be redeemed at the end of the lock-up period.

5. MakerDAO – Borrow and Lend Crypto with $DAI, Backed by US Treasuries and Bonds

MakerDAO is one of the most established DeFi protocols on Ethereum.

For most of its history, it wasn’t focused on tokenizing real world assets. Instead, the goal of MakerDAO was to facilitate borrowing and lending. The key to liquidi lending on the platform was its DAI token, a stablecoin that has a fixed value of $1. DAI was for many years backed by other cryptocurrencies including USDC and GUSD.

However, starting in 2022, the MakerDAO community voted to diversify into real-world assets and began buying up US treasuries. By mid-2023, the treasury owned $1.1 billion in US treasuries and corporate bonds. In addition, in June 2023, MakerDAO approved a measure to buy an additional $1.28 billion in short-dated US treasuries.

As a result, every DAI stablecoin will soon be more than 50% backed by US treasuries, corporate bonds, and other stablecoins—which themselves are collateralized by real world assets.

While the price of DAI is fixed, the price of $MKR, MakerDAO’s governance token, has skyrocketed in response to these treasury purchases. The token is up 65% in the past 12 months and has a total value locked of nearly $4.5 billion.

6. Centrifuge – Liquidity Pool Project Centered on Earning Yield from Real World Assets Like Business Invoices

Centrifuge is a multifaceted liquidity protocol that enables users to lend and borrow funds.

On the borrowing side of Centrifuge, borrowers can access funds without traditional middlemen. That reduces fees and enables investors to use more funds to invest in real world assets.

Lenders can make funds available on Centrifuge through multiple lending pools. These pools are collateralized by a variety of non-traditional real world assets. For example, one pool is backed by business invoices, enabling lenders to collect future income on if a business defaults on a loan. Another pool is collateralized by carbon credits, and another by future gig economy revenue.

Centrifuge works with other major players in tokenizing real world assets, including Maker, Blocktower, and Circle to create more opportunities for investment. The protocol follows all KYC and security requirements of traditional financial institutions to ensure that users remain safe investing on the blockchain.

7. RealT – Fractional Investment in Tokenized Real Estate with Rental Income Payments

RealT is a blockchain protocol that’s democratizing real estate investing through tokenization. The platform uses a series of LLCs to invest in properties, then tokenizes those LLCs to distribute their value to investors.

Every property RealT owns is rented out and managed by a property management firm. Investors in the tokens for that property receive weekly rent payments in a USD-denominated stablecoin.

What’s unique about RealT is that investors don’t purchase tokens that represent a portfolio of properties. Instead, each RealT LLC represents one property. Investors in tokens for that property get to vote on management decisions such as how much rent to charge, when to sell the property, and more.

This approach means that investors can build a custom real estate and rental income portfolio by investing in multiple RealT tokens. The project has a dedicated platform to help investors manage their tokens, vote on property decisions, and more.

8. Horizon Protocol – Platform for Minting Synthetic Assets Based on Real World Assets Like Gold and Forex

Horizon Protocol is a unique real world asset crypto protocol that enables users to mint synthetic assets—which it calls “zAssets”—based on real world assets.

Horizon Protocol currently has tokens for gold (zXAU), silver (zXAG), oil (zWTI), and currencies like the Yen (zJPY). It also has tokens for stocks and indices, including zSPY, zAPPL, and zAMZN.

Ultimately, Horizon Protocol hopes to expand its selection to create unique synthetic derivatives that don’t currently exist. These could be used for hedging positions, collateral within DeFi protocols, and more.

Horizon Protocol is governed by a DAO, enabling holders of the platform’s $HZN token to vote on which new zAssets should be created. Investors in $HZN who stake their tokens also earn rewards from transaction fees in Horizon Protocol zAssets.

The project currently has almost $3 million in total value locked and more than $550,000 in created zAsset value.

9. Polytrade – Build a Portfolio of Diversified Assets Including Treasuries, Invoices, Real Estate, Collectibles, and More

Polytrade is a new blockchain project that’s making it easier for crypto investors to expand their portfolios into real world assets. The project provides a marketplace for tokenized assets as well as tools or monitoring and managing portfolios.

The platform is still under development, but Polytrade plans to support a wider range of asset classes than many competitors. It plans to tokenize car loans, real estate, structured credit products, business invoices, stocks, bonds, treasuries, collectibles, and more.

Another neat feature that Polytrade is building is its secondary marketplace for tokenized assets. This will enable Polytrade users to swap assets among themselves in pursuit of diversification and create liquidity for assets that otherwise can be difficult to trade.

The project has already seen more than $5.7 million in transaction volume. It’s available across multiple blockchains including Ethereum, Polygon, BNB Smart Chain, and Solana.

What Are Real World Asset Tokens?

Real world asset tokens are cryptocurrencies designed to tokenize real world assets and make them available for trading on blockchains.

Broadly speaking, this class of projects is attempting to bridge the divide between the digital world of cryptocurrencies and blockchain protocols and the traditional world of investable assets.

Importantly, real world asset protocols enable investors to use these real world assets as collateral for a decentralized loan. They also give investors in crypto a way to earn yield from traditional financial assets without moving funds off the blockchain.

Tokenizing assets can also make some investments more attainable for retail investors. For example, an artwork might cost $1 million, putting it out of reach for any one investor. But if that artwork is tokenized into 1 million tokens that cost $1 each, it is much easier for everyday investors to purchase a piece of ownership in that asset.

Why Invest in Real World Asset Coins?

There are several reasons why investors should consider buying real world asset tokens.

Appreciation Potential

One of the main reasons why investors are flocking to real world asset cryptocurrencies is that this is one of the fastest-growing sectors of the crypto market. Real-world asset tokenization reached an all-time high of $3.6 billion in locked value in 2023.

That number doesn’t count tokenization on private blockchains, either. Banks like JPMorgan, Citi and Franklin Templeton are using their own blockchains to digitize traditional assets and make them more accessible to customers.

This massive push towards tokenization suggests that the market opportunity could be large—and investors in a project that gets real world asset tokenization right could stand to reap significant gains.

In 2020, the then-new DeFi sector exploded 2,100% in total value locked. Now, it looks like real world asset tokens could be on the cusp of similar growth.

Yield Generation from Real World Assets

Investors in real world asset coins can also benefit from the assets that back those tokens. Many coins offer ways to generate market-beating yields with lower risk than traditional investments.

For example, some real world asset crypto tokens invest in US treasuries and bonds, then pass on yield from those investments to token holders. Yields can be upwards of 10% APY, depending on the protocol and asset mix.

Other tokens invest in real estate and generate rental income, which is then passed onto investors. Investors in these coins can benefit from both rental income payments and appreciation in underlying property prices.

Portfolio Diversification on the Blockchain

Having the ability to invest in real world assets on the blockchain also enables crypto investors to build more diversified portfolios.

Right now, investors in crypto can invest in hundreds of different cryptocurrencies. But the crypto market tends to move all together in one direction, so investors don’t achieve much diversification simply by holding several different tokens.

With real world asset tokens, investors can keep their funds in a crypto wallet, but invest in everything from cryptocurrencies to real estate to art and beyond. Investors with a diversified on-chain portfolio could be less impacted by the next crypto downturn.

Access to Out-of-reach Assets

Investing in real world asset crypto tokens can also enable investors to own investments that are otherwise inaccessible to them. For example, investors can purchase tokens that represent ownership in a commercial real estate project or a valuable collectible.

Having access to these assets further increases investors’ ability to diversify their portfolios and can provide more opportunities for appreciation and yield.

How to Decide Which Real World Asset Tokens to Invest in

There are several important things to consider when choosing what real world asset projects to invest in.

Growth Potential

Investors who hope to make a profit from appreciation in a real world asset token’s price need to think carefully about the growth potential of that token.

Some tokens are designed with limited supplies and could shoot upwards in price if users flock to them.

Other tokens’ prices aren’t as directly tied to the degree to which they are used. For example, $MKR is a governance token. Demand for this token is based partially on the value of the MakerDAO and the total value locked in DAI.

It’s important to study the tokenomics of a real world asset token and understand what forces will drive the token’s price up or down.

Tokenizable Assets

Different real world asset tokens are designed to tokenize different types of assets. For example, one token might focus on tokenizing real estate, while another tokenizes US treasuries.

For investors hoping to diversify their portfolios, which assets they can access through a cryptocurrency is important. Diversification-minded investors may want to invest in tokens that provide access to multiple asset classes or to assets that are inaccessible through traditional financial systems.

Risk vs. Yield

Another thing to consider is the risk vs. yield profile of the assets that a real world asset crypto tokenizes. There’s a big difference in the risk and yield of investing in tokenized US treasuries and investing in tokenized stocks.

In general, assets that offer lower risk also offer lower yield. This is why US treasuries, which are considered extremely safe investments, typically produce lower returns than corporate bonds or stocks.

Investors may want to consider risk and yield when building a diversified portfolio. For example, they may diversify within the same asset class by choosing tokenized investments with different risk and yield profiles.

Liquidity

One issue that real world asset tokens are facing as this market gets off the ground is that not all tokenized assets are liquid. That is, there isn’t always a large market for trading tokenized assets.

As a result, it can be difficult for investors in some real world asset tokens to sell their tokens at the current market price.

This isn’t true for all real world asset tokens, however, and it is usually not an issue for projects with significant total value locked. Liquidity should continue to improve as more funds flow into real world asset tokens and tokenized assets become easier to exchange across blockchains.

Conclusion

Real world asset tokens are bringing assets like real estate, stocks, bonds, and more onto the blockchain. They promise a revolution in decentralized finance and closer ties between the worlds of cryptocurrency and TradFi.

The best real world asset token to invest in today is Bitcoin ETF Token. Early investors who stake $BTCETF can get high APY on staking. The project has already raised more than $850k through its presale in just 10 days, so investors have to hurry if they want to lock in the best price for this real-world crypto coin.

References

• https://www.coindesk.com/markets/2023/06/01/makerdao-paves-way-for-additional-128b-us-treasury-purchase/
• https://beincrypto.com/real-world-assets-value-high/
• https://www.coindesk.com/business/2023/09/28/banking-giants-abuzz-about-tokenization-of-real-world-assets-as-defi-craves-collateral/
• https://yield.app/blog/a-look-back-at-2020-the-year-of-defi
• https://www.coindesk.com/consensus-magazine/2023/07/18/tokenize-everything-institutions-bet-that-cryptos-future-lies-in-the-real-world/
• https://www.frbsf.org/education/publications/doctor-econ/2004/january/corporate-treasury-bonds-interest-rates-risk-spreads/
• https://www.coingecko.com/learn/what-are-real-world-assets-exploring-rwa-protocols

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