2025 is the year of RWAs.
I think most of the initial on-chain demand won't be HODLers (maybe with the exception of @SkyEcosystem) but will be generated from traders looking to loop for leveraged returns.
This implies that good liquidity is a non-negotiable (whether via atomic redemption with USDC/USDT or deep secondary liquidity on DEX's)
Some teams are getting quite creative with solving for liquidity. Emerging solution include:
- Parking reserves in BUIDL for atomic USDC redemptions (at the cost of some yield drag if native yield > treasuries)
- Redemption fees that reward LPs
- Traditional market-maker mandates
- Bank-provided repo facilities
- Asset manager’s own balance sheet support
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