Crypto’s true potential is finally taking hold in the minds of money managers the world over. Its potential as an efficient liquid substrate for asset value transfer is now uncontested, and the frantic rush to tokenize RWAs – real world assets – on-chain is underway.
Gold, as one prime underlying assets of the global economy, is no different. Kinka Gold is the most premium, high-grade on-chain gold available anywhere and – in light of the RWA boom – is well-placed to offer investors of every stripe the access to on-chain gold they need to participate in the modern blockchain-powered economic system.
What Are RWAs?
RWAs (real world assets) are digital representations of actual assets like real estate, commodities, stocks, loans, and other financial instruments that make up the modern economy. Creating an RWA involves minting a representative token and tying the value of that token to the value of the real world asset it tracks.
By doing this, ownership of the token represents ownership of the asset itself, and transfer of that ownership can be done as easily as sending the token to another blockchain address. In the future, the fees involved with transferring ownership of a house – for example – could be as little as the gas fee for the blockchain the token lives on.
By existing as tokens on the blockchain, RWAs can be imbued with immense liquidity, fungibility, accessibility and efficient-transfer as the tokens inherit the general security and malleability of the blockchain they live on. Asset transfers that would previously require excessive legalese, professional accreditation, and intermediaries taking a cut can be simplified to one simple transaction.
The concept of RWAs gets more exciting still when you take into account the programmability of these assets. Tokenized stocks could auto-payout dividends, for example, if called in via smart contracts. These compostable money-legos could also be built on top of one another, creating diverse asset-baskets that can be further tokenized into bespoke units, and traded more efficiently than ever.
What this means is a money system that can strip away the layers of bureaucracy that usually attend these assets. High-level financial instrumentation will no longer be the exclusive domain of banks, but the domain of everyone. An open, permissionless financial system that can better represent the true nature of the value held within it, and be far more liquid and accessible to the general population than current models.
The direction of travel is clear. As of January 2024, over $5B USD is locked in RWAs. With increasing regulation of instrumentation for financial institutions such as the Bitcoin ETF, this number will only increase over time. RWAs is the next great horizon for crypto to evolve into, and evolve it will. A staggering $16 trillion is expected to inflow into the RWA market by 2030.
Gold’s Place in the RWA Boom
Gold, of course, will play a central role in this. As asset trees become ever more complex, the need for a safe, dependable, fungible and widely accessible intermediary on-chain asset for these diverse baskets to flow through becomes more important than ever. Gold is that asset, as it has always been, and its tokenization is vital to the functioning of the new economy. As fiat currencies deflate, gold is increasingly used as an excellent safe haven asset to trade into and out of on the way to other assets, or to store wealth accrued through profitable trading.
Kinka Gold, or $XNK, is backed 1:1 by premium Japanese gold. Its gold meets the standards of the London Bullion Market Association (LBMA), and most of it is designated as a clearing stock on the Osaka Exchange’s gold futures market, which is licensed by the Japanese Financial Services Agency.
It is issued by UNBANKED, INC., a trading house with over 50 years of experience in the gold and commodities markets, and a trusted source of premium gold to the Japanese and global markets. Fully bankrupt-remote, on-chain ownership of $XNK represents ownership of the most secure gold anywhere on the market, and it is fully redeemable for the holder at any time.
Kinka not only represents the best execution of on-chain gold, it represents a huge change in how the general population can access gold for their own portfolios. As it stands, owning gold is more tricky than it should be for the retail investor. Expensive purchasing, management, and storage fees accrue to bite into any investment or any use of gold as a stabilizing influence on a portfolio. With Kinka, that friction is reduced to near-zero, and its accessibility increases to infinite. It’s the rebirth of gold for a new generation, for both money managers and individuals.
Crypto Adoption and A New Era for Gold
Gold, therefore, will not only be made better by $XNK, it will be improved. It will take the world’s most ancient currency and make it fit for the DeFi generation. Decentralized Finance creates economic primitives that were simply not possible before. Yet, in a world of fluctuating token values, exaggerated by crypto’s status as an immature yet growing industry, having reliable on-chain gold that is fully redeemable will be a lifesaver for anyone serious about building a battle-hardened portfolio.
The ability to use on-chain gold as collateral for crypto loans, to lend it through DeFi protocols, to contribute crowdsourced funding to on-chain initiatives, and even to use it as a payment currency, will create a new life for the world’s oldest and most reliable currency, and help reassert is as the world’s local currency. Usable wherever you are. As crypto adoption grows – who wouldn’t accept gold as payment? Especially when that gold can be divisible down to the smallest unit and usable as payment everywhere, but without having to worry about whether your own national government is going to tank the value of your cash-on-hand.
RWAs will change modern finance forever. It will also change the finances of the individual. In all this change and chaos, something stable needs to remain – and what’s more stable than gold? Kinka will give everyone someone to hold onto as crypto adoption changes everything for everyone, forever.
Get ready for $XNK, and ride the boom of tokenized RWAs in the safest, most secure way possible.