From RWA to RWAfi, will Plume be the Alpha Key to capturing the trillion-dollar epic narrative?

Source: Plume Network

From a data perspective, the RWA narrative is definitely the clearest Alpha direction for the next 10 years in the "Blockchain+" space.

According to the RWA research platform rwa.xyz, the current total market size of RWA exceeds $15 billion. Fidelity predicts this number will double to $30 billion by 2025, while BlackRock's outlook is even more optimistic, estimating that the market value of tokenized assets will reach $100 trillion by the 2030s.

In other words, in the next 7 years, the potential growth space of the RWA narrative could be as high as 700 times or more! However, behind this lies a core question: who will truly capture the incremental value of this epic narrative?

Source: rwa.xyz

This should also be the billion-dollar question for the entire RWA track going forward, and the answer may be hidden in the infrastructure surrounding the RWAfi public chain.

RWAfi, the Historic Shuttle of RWA

Essentially, moving real-world assets (RWA) to the blockchain has only completed the first step of tokenization, far from enough to unleash its true potential—to further realize on-chain value, more efficient technological infrastructure, open infrastructure toolsets, and a complete ecosystem synergy are needed.

In simple terms, the on-chainization of RWAs not only requires technological breakthroughs but also needs a full set of service frameworks around the entire life cycle of RWA assets, especially to securely and inclusively introduce RWA assets into diverse on-chain DeFi scenarios, transforming the stock dividend of traditional assets into on-chain incremental value.

This is also the essence of RWAfi. Under the tokenization framework, RWA not only significantly enhances its own liquidity but can also earn DeFi returns through operations such as borrowing and staking, bringing real-yield asset support to DeFi and strengthening the foundation of the Crypto market's value.

Vitalik Buterin once proposed an interesting analogy, stating that each blockchain network has a unique "soul." For example, some networks deeply focus on a specific DeFi scenario, some concentrate on the NFT and DAO ecosystem, while others are dedicated to incubating ZK applications, and so on.

However, when we turn our attention to the RWA ecosystem, we find a fascinating reality: despite the popularity of RWAs, there are very few RWAfi public blockchains specifically designed to handle real-world asset management and on-chain circulation—even Ethereum, Avalanche, and other platforms with a strong RWA focus were not originally designed to support the trillions of dollars in real-world assets.

The reason is simple: RWAfi's core mission is to enable real-world assets to freely circulate on the blockchain. Therefore, compared to DeFi and other on-chain applications, it not only has to deal with the complexity of traditional on-chain applications but faces a more significant challenge of making RWAs truly "active" on-chain:

· On one hand, bringing real-world asset ownership "on-chain" involves a complex asset tokenization process and multi-party collaboration, requiring solutions for security compliance, liquidity, cross-chain interoperability, and a developer-friendly technical environment to achieve efficient on-chain asset liquidity and transparency;

· On the other hand, mere tokenization is not sufficient after being "on-chain"; there is still a need for "empowerment," meaning that the true value of RWA lies in how to build a transparent, efficient, and liquid on-chain financial market through blockchain technology, which requires subsequent deep integration with DeFi protocols, revenue distribution, risk management, providing RWA with liquidity, composability, and interoperability similar to crypto assets;

Using real estate as an example, once tokenized and on-chain, it ceases to be a "static" asset in the traditional sense and can participate in various DeFi scenarios. For instance, it can transparently distribute rental income through smart contracts or be used as collateral for on-chain financing. This "empowerment" brings higher technical and ecological requirements, breaking the inherent limitations of RWAs as real-world assets and injecting them with a higher level of composability and application potential.

Therefore, perhaps many people have not realized that RWAfi is not just a technical solution; fundamentally, it has also created a new asset class with native real-world revenue attributes—by introducing real-world assets, capital, and cash flow, it injects the blockchain ecosystem with native "real revenue attributes."

In this context, although many blockchain networks have begun to explore the RWA field, most of them have only scratched the surface, lacking end-to-end technical support and ecosystem layout. After all, RWAfi's success lies not only in its completion of asset tokenization, but also in its ability to provide a full range of solutions from development to operation:

Developers and users alike need a more user-friendly development environment, a more efficient and scalable infrastructure, and a more secure and compliant underlying environment. Therefore, the core requirement for the future multi-billion or even multi-trillion dollar RWA incremental market is obvious—a dedicated RWA public chain.

It can meet the diverse needs of institutional users and crypto-native users alike. In this vision, the RWAfi public chain is not only empowering RWA assets but is more likely to become the core capturer of incremental value in the RWA ecosystem. By becoming a hub for liquidity and value settlement, all DeFi operations revolving around RWA tokenized assets (such as farming and collateral interaction) can aggregate value through the RWAfi public chain, further driving the incremental expansion of the RWA track.

In short, a dedicated L1 public chain for RWA is just a means, not an end—the players who can truly capture the incremental value of the RWA track will most likely be solution providers that can seamlessly and efficiently run the end-to-end RWA process from on-chain infrastructure to ecosystem empowerment.

Therefore, from this perspective, the golden age of RWA-specific chains has already arrived.

An Analysis of the "All-in-One RWA Dedicated Chain" from Plume

For RWAfi, there is another natural advantage:

No matter which track or product ultimately emerges under the RWA narrative, as long as the overall market size continues to grow, a RWAfi public chain platform that directly provides the most foundational support in infrastructure form can tap into a future market worth hundreds of billions or even trillions of dollars and capture the incremental value behind it.

After all, RWA has gradually become a key driver of on-chain digital asset increment, allowing Web3 to effectively tap into the massive asset pools of traditional markets—such as the global bond market ($133 trillion) and the gold market ($13.5 trillion).

It is worth noting that since Compound sparked the DeFi summer in 2020, the total on-chain digital asset volume has seen significant growth. Despite a substantial pullback from the $180 billion in November 2021, as of January 13, 2025, the on-chain TVL still stands at a staggering $113.5 billion.

Source: DeFiLlama

However, compared to the trillions of dollars in tokenizable RWAs (bonds, gold, stocks, real estate, etc.), this volume is still relatively insignificant. Therefore, RWA tokenization will undoubtedly bring a new incremental force to the on-chain world, opening up unprecedented market space for expansion.

However, there are very few Layer 1 blockchains positioned around RWAfi. Recently, Plume, which just completed a $20 million financing round, is almost the sole strictly defined RWAfi blockchain, making it a benchmark event in the RWAfi field so far.

Plume's notable feature lies in its modular design. Through an all-in-one solution, it systematically addresses RWA tokenization, compliance, liquidity, and interoperability issues, providing developers and institutions with a comprehensive solution covering the entire lifecycle of RWA tokenization.

This systematic approach is worth paying attention to. After all, for a blockchain, how "high-tech" the technology is is not as important as whether it can attract developers and users to choose and stay, which is the core competitive advantage. This is especially true for products like RWA, which involve high complexity both on-chain and off-chain. If a blockchain only provides fragmented services in one link, developers and institutional users will not be interested.

Plume's advantage lies in its integration of multiple modular key tools, providing developers with a complete on-chain solution for RWA asset tokenization. This toolset not only lowers the technical barriers but also directly incorporates compliance vendors into the platform's upstream supply chain through a "compliance-as-a-service" model, ensuring that tokenized assets meet regulatory requirements from the source:

· Arc - Tokenization Engine: Arc simplifies the tokenization process by integrating compliance workflows and reducing barriers for asset issuers, providing an effective path to bring RWAs onto the blockchain;

· Passport - Smart Wallet: Passport allows users to store contract code directly in their externally owned account (EOA), enabling RWAfi composability, yield farming, and advanced account abstraction features;

· Nexus - Data Highway: Nexus securely integrates real-world data into the blockchain using cutting-edge technologies such as zkTLS, enhancing on-chain asset security and transparency while unlocking new opportunity scenarios;

Through these modular tools, Plume not only empowers developers but also significantly lowers the barrier for traditional financial institutions to enter Web3. Developers can reduce technical barriers through modular tools to rapidly deploy complex RWA solutions; the "Compliance-as-a-Service" model can also help traditional institutions address compliance pain points while providing efficient technical support.

This means that giants from Web2 such as UBS and Blackstone looking to enter Web3 can directly embed RWA tokenization services provided by Plume into existing products through a one-stop RWA asset tokenization service, enabling rapid product iteration and market expansion.

This not only allows institutions to easily tokenize assets and introduce them to the blockchain ecosystem but also retains the seamless user experience of Web2, empowering users with asset ownership and Web3 attributes.

Taking a more macro perspective, in the previous Web2 world where private traffic was king, whoever could enclose and aggregate enough private traffic could maximize their profits. This led to the situation in Web2 where fat applications and thin protocols were formed, with super apps like WeChat, Alipay, and Meituan becoming increasingly massive, locking in users through closed ecosystems.

In Web3, there has been a clear reversal in product logic — underlying components or middleware-form products are becoming increasingly popular. They can be inserted as "building blocks" or used as fundamental infrastructure to maximize aggregated profits. Plume's modular infrastructure perfectly fits this Web3 product logic. It provides traditional financial institutions and Web2 giants with lightweight RWA integration tools, enabling them to quickly achieve Web3 transformation.

The attractiveness of Plume lies in this aspect. For the RWAfi track, the future competition is not just a showdown of technical abilities, but whether it can design an efficient and user-friendly ecosystem support system around developers and users. This model of connecting on-chain innovation with off-chain assets will become the true watershed for the development of the RWA track.

The RWAfi Roadmap: The Bi-Directional Link Between Institutions and DeFi "Circle"

For Web3, "incrementality" is an eternal theme—whether it is the injection of incremental funds or the expansion of incremental users.

The core charm of RWAfi lies precisely in its innate "bi-directional connection" attribute: on one hand, linking Web3 newcomers and veterans, and on the other hand, connecting with the massive traditional financial asset base. This not only provides new asset categories and revenue opportunities for crypto-native users but also opens up a path for traditional financial giants to deeply integrate with the on-chain DeFi world, thereby achieving a synergistic effect of "1+1>2."

Using Plume as an example, it has currently built a "two-pronged" ecosystem network with institutional partners at its core and DeFi partners for extension:

· Institutional Partners: Responsible for providing compliance, trust foundations, and high-quality assets, they are the trusted core of its RWAfi ecosystem;

· DeFi Partners: Provide flexible, high-yield asset participation for on-chain users, further enhancing RWA's liquidity and composability;

Upon closer inspection, you will find that Plume's institutional circle mainly focuses on traditional asset tokenization, compliance, and asset management. Through Plume's on-chain infrastructure, RWA gains higher liquidity and transparency, paving the way for deep integration between traditional financial giants and RWAfi. For example:

· Anchorage Digital Bank: Provides compliant custody services for Plume's on-chain assets, allowing institutional clients direct access to on-chain RWA returns;

· DeFiMaseer: An institutional partner focusing on carbon market tokenization, bringing $200 million in carbon emissions quotas onto the chain, optimizing regulatory market efficiency and accessibility;

· DigiFT + UBS: Collaborated to launch uMint, driving the tokenization process of on-chain financial assets;

· Dinari Global + Blackstone Group: Bringing Blackstone's ETF onto the blockchain to provide higher liquidity for institutional assets;

· Elixir + Blackstone Group: Supporting Elixir in building more asset circulation infrastructure on the blockchain;

· NestCredit + MountainUSDM + m0 Foundation + Anemoy Capital/Centrifuge: Building a multi-stakeholder network to drive the sustainable development of diversified on-chain assets;

· Pistachiofi: Introducing on-chain Real Yield services to the Latin America (LATAM) and Asia-Pacific (APAC) regions to expand regional market coverage;

· Busha: Providing on-chain Real Yield for the African market to broaden the global financial services boundaries;

· Cultured RWA: Exploring the on-chain potential of the RWA speculative ecosystem;

· Google Cloud: Utilizing AI to provide RWA pricing services, making on-chain asset pricing more intelligent and efficient;

DeFi protocols that have deep integration or partnerships with Plume mainly transform the stock dividends of traditional assets into on-chain incremental value, such as providing diversified participation opportunities for on-chain users through liquidity support, yield optimization, and new scenario exploration:

· Ondo finance: The flagship protocol for tokenizing US Treasury bonds (USDY), injecting trusted asset liquidity into Plume's RWA ecosystem;

· Anzen finance: Supporting on-chain stable asset innovation for USDz, optimizing the tokenization experience of USD-denominated assets;

· Royco (Berachain): Providing a transparent income liquidity market designed for DApp development and expanding into the RWAfi ecosystem through collaboration with Plume;

· Bouncebit: As a partner of the CeDeFi portal, it helps users access trusted institutional-grade yield products through its platform, strengthening RWAfi's influence in the CeDeFi field;

· Midas: Focused on high-yield, institutional-grade assets in DeFi projects, providing Plume users with more on-chain yield options;

· PinLink: A DeFi infrastructure provider, collaborating with Plume to introduce fragmented DePIN assets and yield opportunities, enhancing ecosystem liquidity;

· Avalon finance: Plume's BTCfi liquidity layer partner, focusing on BTC lending and circulation in the RWAfi environment, further expanding the use cases of on-chain assets;

Objectively speaking, the Plume team has a background that inherently combines "technology + market" genes — members include both DeFi players from Web3 giants like Coinbase, BNB Chain, Galaxy Digital, and seasoned professionals from traditional finance and tech industries like Robinhood, J.P. Morgan, Google. This enables them to effectively address the complex needs of the traditional financial market, leveraging the unique advantages of blockchain technology to build modular, compliance-friendly infrastructure.

Overall, Plume has now built a vast ecosystem that includes both Web3 newcomers and veterans (covering both on-chain and token domains) and traditional financial giants (covering off-chain and RWA categories), accumulating over 180 applications and protocols. The testnet has attracted over 3.75 million users and generated billions of transactions, showing remarkable results.

The collaborative network driven by a dual-wheel model has also formed an ecosystem layout jointly promoted by Web3 newcomers (on-chain, DeFi protocols) and traditional financial giants (off-chain, RWA), with Plume playing an indispensable role as infrastructure between the two. With the continuous development of the RWAfi ecosystem, Plume is expected to become an essential part of this demand.

This further strengthens Plume's unique positioning as a "dedicated RWAfi end-to-end infrastructure," directly capturing the core value generated by RWA assets in tokenization, liquidity integration, and on-chain operations — from asset minting to deep integration into the DeFi scene. It can provide complete technical and ecosystem support, truly achieving a seamless conversion of traditional asset value to on-chain increment.

From this perspective, this “full-lifecycle empowerment” is precisely the unique competitiveness of a Plume-like RWAfi dedicated chain. RWAfi public chains not only serve institutions and developers but also directly target all RWA users, capturing end-user participation value, thus sharing the dividend of the entire RWA ecosystem's scale growth and becoming the core engine driving the expansion of a trillion-dollar market.

Interestingly, as a track closely related to regulation, Plume actually has an easily overlooked potential policy advantage: Plume's investor Katie Haun, who has served as a former assistant U.S. attorney, digital asset coordinator, former a16z partner, and joined the Coinbase board, can be said to be one of the few with a profound understanding of the far-reaching impact of U.S. regulation on the blockchain industry.

This also means that her investment background makes Plume closer to the center of regulatory policy, an undoubtedly positive signal for Plume — as the U.S. regulatory framework gradually matures, especially after a series of crypto-friendly individuals from the Trump administration took office on January 20, Plume is expected to be the RWAfi project closest to the "core of U.S. regulation," thus directly benefiting from the greatest policy support and market dividend.

Conclusion

Great winds start from small ripples, and the logic of the market has always been subtle and indirect, with all narrative value discoveries having their inherent development logic.

It can be said that RWAfi is one of the few narrative directions that can bridge the gap between on-chain and off-chain realities. Its potential comes both from the innovativeness of Web3 and the stockpile dividend of traditional financial giants.

The value of RWAfi public chains goes without saying — as the infrastructure that can truly elevate RWA tokenization to the “RWA asset internet,” it has provided a viable answer for the billion-dollar growth of the RWA narrative.

As for top players like Plume, who have a dual focus on on-chain (DeFi) and off-chain (traditional financial institutions), whether they can excel in the future depends on their ability to continue to attract developers, build a solid ecosystem, and truly prosper the fusion of on-chain and off-chain RWA. After all, in an uncontested blue ocean, the opportunity is just beginning, and everything is an unknown.

This article is a contribution and does not represent the views of BlockBeats.