Key Takeaways

• While most RWA protocols focus on bringing traditional finance onchain, Plume redefines the scope of the RWA market. It presents a framework for building an RWAfi ecosystem by leveraging real-world assets and concepts in an onchain environment
• Plume differentiates itself by focusing on building an ecosystem centered around crypto-native users and applications, rather than prioritizing financial and institutional adoption. This approach aims to create a vibrant ecosystem around RWAs and demonstrate their value to crypto-native users through versatility and composability of onchain applications
• As a comprehensive platform for RWAs, Plume offers a range of solutions and integrations with service providers. Its vertically integrated platform streamlines the tokenization process of RWAs and can be customized to service requirements, enabling asset issuers to efficiently bring real-world assets onchain
• Plume addresses the friction and challenges faced by RWA asset issuers by directly integrating solutions for regulatory compliance, identity verification, and liquidity management into the platform, collaborating with various service providers. Plume's integrated solution significantly simplifies operations for users and asset providers, allowing them to focus on their core services
• Plume Arc, the network's tokenization engine, simplifies the complex process of bringing real-world assets onchain. By integrating various integrations and workflows, Plume Arc significantly reduces the time and effort required for asset tokenization, lowering barriers to entry for providers in the RWA market
• Data Highway is Plume's native technology for anyone to integrate real-world data into the onchain ecosystem in a permissionless way. It ensures secure data verification and seamless integration of offchain data using TLSNotary. Transactions on the Data Highway are prioritized by the Plume sequencer with reserved blockspace baked directly into the chain. Data Highway enables RWA applications to create new speculative opportunities, such as leveraged long positions on luxury goods or betting on regional economic indicators
• Plume's Smart Wallets allow users to store contract code directly into the storage of their EOA accounts. This feature is baked directly into the chain specifically to enable RWAfi composability by making Yield a first-class citizen on Plume, and later extended to support arbitrary code extensions, including a superset of all existing account abstraction functionality.
• Plume has built an RWAfi ecosystem centered on RWAs by developing a wide range of applications, from DeFi protocols to consumer applications. The RWAfi projects in the Plume ecosystem consist of applications that provide new user experiences in various fields such as collectibles, real estate, perpetuals, and DEXs

What make RWAs interesting? While perhaps not as alluring as memecoins or technical innovations, the size and impact of RWAs is literally overwhelming. Stablecoins, one of the most successful RWA products in crypto, recorded settlement volume of $10T in 2023. Tether, one of the dominant player, alone issued over $130B and reported a ground-breaking $5 billion profit in just half a year.

The success of RWAs extends beyond stablecoins. MakerDAO recorded $400 million in profit, accounting for 40% of the total revenue among all Ethereum DeFi protocols. Other protocols like Ondo, Ethena, and Frax are accelerating the trend of bringing traditional assets into the onchain environment. Moreover, traditional financial institutions are entering the space, with Blackrock's BUIDL fund managing over $500 million and Franklin Templeton's BENJI exceeding $400 million.

Source: 10 Charts that Show RWA, DeFi, and Ethereum Ecosystems are Vibrant

Despite these impressive figures, only a small fraction of the potential for RWAs has been explored. The size of opportunity is simply enormous. Consider that each of individual categories, such as real estate($600 trillion), bonds($130 trillion) and alternative assets($22 trillion), effortlessly dwarf the current total crypto market cap of $2.5 trillion. Regarding that the current complex DeFi ecosystem is built primarily on a few crypto-native assets, the introduction of a wide array of real-world assets could dramatically expand the scope and capabilities of this industry.

Unlike most RWA protocols that focus on bringing traditional finance onchain, Plume's approach to RWAs breaks what we have previously imagined possible. Plume redefines RWAs as the true convergence of the real world and Web3, implementing a vision that extends beyond the conventional boundaries.

Plume aims to bring more diverse, stable, and uncorrelated assets onchain, making them usable in the whole crypto ecosystem. By combining real assets with permissionless and compatible properties of onchain environment, Plume seeks to build a bridge between the physical world and crypto, potentially ushering in new users, capital, and use cases. The vision of Plume encompasses both the classic view of tokenizing physical assets like sneakers, GPUs, stocks, and real estate, as well as creating entirely new assets with the combination of RWAs and crypto.