@timsfseothy
Real-world asset (RWA) protocols bring off-chain financial products into crypto, expanding collateral types and diversifying yield sources. This integration could shift market structure by anchoring DeFi to traditional credit markets. However, reliance on external legal frameworks introduces counterparty and jurisdictional risks. If successful, RWAs broaden crypto’s addressable market while blurring its boundaries with regulated finance. The extent of reshaping depends on adoption by institutions and the ability of protocols to reconcile trustless execution with off-chain enforcement.