Beyond US Treasury Bonds - Class of RWA

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J@ck
@Jack_MelodyLabsJan 19, 2026

The Spaces brought together Jack (Melody Labs), Robert (Raveta Global), Lauren (X Diving), a representative from HappyTrade, and Freya (Sulu) to map the next chapter of real‑world assets (RWA) heading into 2026. Speakers were most bullish on productive, cash‑flowing assets—especially machine‑generated economic activity from IoT/AI devices (Raveta) and critical infrastructure such as renewables, telecom, and industrial machinery (X Diving). HappyTrade emphasized tokenizing infrastructure in emerging markets to unlock global liquidity. On standardization, X Diving and Raveta focused on verifiable, real‑time cash‑flow proofs via hardware, IoT and AI oracles, and a pre‑RWA phase to make valuation programmatic; HappyTrade highlighted regulation and education; Sulu detailed compliance for tokenized sovereign bonds (legal title, cross‑border recognition, layered KYC, licensing, transparent disclosures). When pitching traditional owners, the winning value propositions were efficiency and capital access—tokenizing revenue rights (not ownership), 24/7 liquidity, fractionalization, and lower costs—translated into business terms. In Q&A, the panel cautioned that narratives rotate quickly; durable projects pair strong technology with relentless execution and compliance. The outlook: mass web2→web3 migration and interoperability will lift well‑structured RWA protocols, with transparency and efficiency as the core edge.

RWA Twitter Space: Asset Selection, Standardization, and Adoption

Participants

  • Jack (Host; Co-founder of Melody Labs)
  • Robert (BD at Raveta/Raveda Global)
  • Lauren (CMO at X Diving)
  • Craig (HappyTrade; brokerage platform)
  • Freya (Represents Sulu)
  • Audience Members: Anonymous attendee (Speaker 6) and Slain Lisa

Opening Context

Jack framed the session around the rapid maturation of the real-world asset (RWA) market heading into 2026. He emphasized a shift beyond tokenized cash toward diverse, productive assets (private credit, infrastructure, and more). Jack briefly positioned Melody Labs: a music rights platform that turns tracks into investable, income-generating digital assets via tokenized royalties, aiming for transparency and real economic value on-chain.

Asset Selection: Where Participants See the Next Trillion-Dollar RWA

Robert (Raveta/Raveda Global)

  • Thesis: Machine-generated economic activity as the next major RWA category.
  • Rationale:
    • Born-digital and economically real: IoT devices and AI-driven systems generate verifiable data and cash flows natively, avoiding the need to “wrap” traditional assets (e.g., real estate, bonds) to bring them on-chain.
    • Scale and inevitability: Billions of devices (energy meters, EV chargers, industrial machinery, healthcare devices) continuously produce measurable value; this class can outscale many traditional RWAs.
  • Focus: Productive assets where performance and output can be validated in real time, rather than passive holdings.

Lauren (X Diving)

  • Thesis: Productive infrastructure is the “sleeping giant.” Examples include renewable energy grids, telecom hardware, and specialized industrial machinery.
  • Rationale:
    • Continuous, persistent cash flows: Infrastructure assets work daily, generating revenue, making them ideal for tokenization to solve illiquidity and slow capital cycles.
    • Standardization unlocks access: Fractionalization enables retail investors to own parts of previously inaccessible assets (e.g., a slice of a power plant or network).
    • Narrative shift: From pure price speculation to owning shares of global economic activity. He cited the current RWA market cap (~$21B) with an expectation of multi-trillion growth.

Craig (HappyTrade)

  • Thesis: Tokenized infrastructure in emerging markets as a liquidity unlock.
  • Rationale:
    • Tokenization can finance expansion for capital-intensive projects (e.g., power plants) in jurisdictions with illiquid local markets.
    • Benefit to brokers: More capital flows on-chain increase market access and settlement efficiency.

Standardization: Turning Non-Standard Assets into Verifiable On-Chain Instruments

Lauren (X Diving)

  • Core challenge: Cash flow verification and establishing trust, not merely legal documentation.
  • Problem: A "black box" often exists between the physical asset and token holders.
  • Approach:
    • Hardware-level integration: IoT-enabled diving equipment autonomously records usage (time, depth, activity) and submits data on-chain.
    • Transition from "trust me" to "prove it": Replace manual reporting with device-verified telemetry to standardize performance-linked cash flows.

Robert (Raveta/Raveda Global)

  • Core challenge: Trusted valuation tied to real-time cash flows (more critical than legal ownership for device-based assets).
  • Approach:
    • IoT + AI oracles: Continuously validate device performance and output.
    • On-chain economic proofs: Convert real-time operational data into programmable on-chain signals.
    • Pre-RWA phase: Finance and value assets before securitization, turning valuation into a live, automated process rather than static appraisals.

Craig (HappyTrade)

  • Core challenge: Regulation and user education across jurisdictions.
  • Perspective:
    • Clarity breeds trust: As US, Hong Kong, UAE, and European jurisdictions articulate crypto rules, confidence grows.
    • Education: Position blockchain as infrastructure that makes transactions secure, faster, and cheaper, thereby encouraging liquidity injection.

Freya (Sulu)

  • Asset focus: Tokenized sovereign bonds (e.g., US Treasuries).
  • Core challenge: Legal title and cross-border recognition, not valuation/cash flows (which are transparent and public for sovereign bonds).
  • Key questions:
    • Are token holders legally recognized as creditors across jurisdictions?
    • Will smart contract auto-execution be upheld in traditional courts?
    • How to navigate varied securities classifications and AML rules globally?
  • Approach:
    • Compliance-first connective layer: Partner only with SEC-registered issuers with clear legal status; ensure underlying ownership is indisputable.
    • Layered KYC: Apply for licenses (e.g., US MSB, Singapore MPI); enforce jurisdiction-specific identity, limits, and permissions.
    • Radical transparency: Clearly label legal structures, risks, and compliance scopes for users.

Winning Over Traditional Asset Owners: Resistance and Persuasion

Robert (Raveta/Raveda Global)

  • Resistance: Fear of losing control and regulatory scrutiny.
  • Persuasion: Tokenize performance and revenue rights first (not legal ownership). Asset owners retain legal title while monetizing output, reducing perceived risk.

Lauren (X Diving)

  • Resistance: Fear of the unknown (hacks, scams, regulatory issues, volatility). “Why fix what isn’t broken?”
  • Persuasion: Efficiency and capital access.
    • 24/7 global liquidity and fractionalization lower cost of capital and broaden investor reach.
    • Small ticket sizes (e.g., $10–$20) increase participation and improve market fluidity.

Craig (HappyTrade)

  • Resistance: Language barrier and reputational baggage.
  • Persuasion:
    • Reframe crypto as cryptography (security), and blockchain as a superior network.
    • Analogies: Email vs postal mail—better speed, cost, and reliability.
    • Institutional validation: Banks and payment networks (e.g., JPMorgan, HSBC, Visa, Swift, PayPal) moving on-chain.
    • Hard numbers: On-chain brokerage settlements at ~$2 vs $7–$15 for traditional cross-border transactions in some markets.

Freya (Sulu)

  • Resistance: Uncertainty, legal risk, privacy, and tangible business value.
  • Persuasion:
    • Start with liquid assets (e.g., receivables) and leverage faster cross-border settlement.
    • Position blockchain as a faster, cheaper payment channel within existing legal frameworks—an upgrade, not disruption.

Audience Q&A Highlights

  • Utility RWA projects in a fast-evolving market:
    • Robert: Avoid specific endorsements; the AI + RWA combination is powerful but narratives shift quickly—risk awareness and alignment are essential.
  • What differentiates projects that endure amid surges of new protocols/users?
    • Robert: Hard to judge early; projects with strong foundations, continuous building, and sound backing tend to endure. Luck matters. Example: Hyperliquid’s rapid rise; ultimately, technology quality and hard work win.
  • Beyond US Treasuries, which RWA sectors could reach a trillion first?
    • Audience Member: Belief in RWA’s path to a trillion via interoperability and utility; partnerships (e.g., with big tech) and web2→web3 momentum help. Still, it’s risky to make definitive predictions; success hinges on strong fundamentals and proper setup.
  • Slain Lisa’s follow-up on regulatory clarity and scalability:
    • Audience Member: Too many variables to be certain; watch early indicators, respect web3 principles (decentralization, access, transparency). Avoid overconfident forecasts in a still-early market.

Key Takeaways and Insights

  • Productive, data-verified RWAs are ascendant: Assets with continuous cash flows and native digital telemetry (IoT/AI) align well with on-chain transparency and programmability.
  • Hardware-integrated oracles reduce trust gaps: Direct device-to-chain reporting turns performance and revenue into verifiable, standardizable signals.
  • Compliance-first is mandatory for regulated assets: Tokenized sovereign instruments require meticulous legal title handling, cross-border recognition, and jurisdiction-specific KYC/AML.
  • Liquidity and efficiency persuade traditional stakeholders: 24/7 global markets, fractionalization, and lower capital costs are compelling, especially in emerging markets.
  • Education and language matter: Reframing technology in familiar terms (security, better networks, lower fees) fosters adoption.
  • Risk is non-trivial: Narratives shift quickly; legitimacy, endurance, and execution quality are critical.

Notable Claims and Figures

  • Current RWA market cap cited at ~$21B, with expectations of significant growth through 2026 and the next decade.
  • Melody Labs aims to tokenize music rights with transparent royalty-sharing to create investable, income-generating digital assets.
  • Sulu is pursuing licenses (e.g., US MSB, Singapore MPI) and implementing layered KYC for cross-border compliance.

Open Challenges Raised

  • Cross-jurisdiction creditor recognition for tokenized sovereign bonds.
  • Enforceability of smart contract automation in traditional courts.
  • Standardizing real-time valuation frameworks for device-driven RWAs.
  • Eliminating black-box gaps between physical asset performance and tokenholder information.

Closing

Jack closed by underscoring that RWAs are catalyzing a broader global shift toward transparency and efficiency. Melody Labs intends to show that anything of real value—from small items to large infrastructure—can live on-chain. He invited the audience to follow Melody Labs and the speakers for updates and emphasized the collective effort to push boundaries and bring assets on-chain.