Why do we need RWA?

Traditional financial development takes a long time to settle transactions, and because of the high human involvement, the probability of errors and omissions is also high. There are also problems with the integrity system and trust mechanism. It is difficult to achieve financing or loans without transaction records; the cost is also high. The important source of income for the traditional financial transaction system relies on collecting transaction fees or loan interest; exchange rate changes are required in cross-border transactions. And for investors in the traditional financial market: in the traditional financial market, different countries and different asset classes often operate in isolation, and the market entry threshold is high.

RWA stands for the tokenization of real world assets, which refers to the process of converting the ownership value (and related rights) of tangible or intangible assets into digital tokens. This makes the digital ownership, transfer and storage of assets no longer require a central intermediary, and their value can be mapped to the blockchain and traded. RWA asset tokenization can improve the transaction speed and efficiency of the DeFi market, realize 24*7 transactions, without being restricted by time windows, and improve transaction efficiency. Track blockchain gold flows through public ledgers. Users can fully evaluate fair ways to participate in the market. In addition, asset tokenization makes the minimum purchase unit smaller, reduces the investment threshold and risk, and attracts more retail investors to participate.

The purpose of the NPC platform is to provide barrier-free, barrier-free, and uncensored one-stop financial services to global users, covering crypto assets, foreign exchange, stocks, commodities, indexes and inverse assets, spot, futures and binary options trading, open 24 hours a day, which is consistent with the purpose and concept of RWA. This innovative solution will greatly facilitate users' cross-asset, cross-market and cross-position transaction management and achieve diversified investment portfolios.

The logic of NPC's RWA synthetic assets will make on-chain investment in foreign exchange, various stocks, stock indexes, put/call options, futures and even insurance possible. It can greatly expand the boundaries of DeFi and enrich the application scenarios, providing fertile ground for the prosperity of the DeFi ecosystem in the next stage, and even becoming a key window for crypto finance to enter traditional finance.

Therefore, NPC will continue to expand its ecological map and develop into a 2.0 ecosystem, focusing on asset synthesis and trading on and off the chain. By pledging cryptocurrencies and related derivatives in the NPC platform, users can mint synthetic assets representing various real-world assets (RWA), including but not limited to stocks, bonds, artworks, luxury goods, etc. These synthetic assets simulate the price trends of corresponding assets in the real world without the need for users to hold the underlying assets themselves.

The NPC platform can more effectively bridge the gap between traditional finance and digital finance, allowing users to diversify their portfolios and lead DeFi to a new level.