Empowering Underserved Markets Onchain An Exposition to Real World Assets RWAs - Oluwole Kayode

please let's welcome Olu kyot to the stage as he discusses on this topic please around the Applause for U so my name is U as you mentioned I'll be speaking on on empowering on the sub Market onch she mentioned on the on the you mentioned on sorry so I was speaking on on the sub Market empowering on the sub Market function before I start last year when battle spoke spoke about attracting prosperity to Africa I think I was somewhere around there okay okay can you guys hear me now thank you so last year B spoke about attracting prosperity to Africa and he asked a question what stores the attraction of prosperity to Africa then I answered I talked about the Vicious Cycle of poverty when he starts from low productivity you move to low income from low income you move to low investment then all the way back to low Capital the cycle just keeps continuing the simple way to understand it is that when you are poor keep getting poorer and today it feel like a full secondy moment for me to come and talk about how to empower on the St Market especially through the blockchain um so we already know that the transformative power of the blockchain is that's change our world it's gradually changing it how do we use the power of the blockchain to empower the on the sub Market how do we use the transparency the compossibility to drive real economic value in the real world on the sub Market when I talk about on the sub Market um there's a synonym for it I called it Africa we all know Africa is the most UND Market in the world and how does it work we lack capital for basic infrastructures there's limited funding for small scale Enterprises let me not B you with the facts but there's one thing we need to know fsda has estimated that there's a $300 billion Gap in the funding market for small scale and small scale and medium Enterprises in the next six years start by 20130 our oranization rate will increase by 50% this in essence means that there will be increased stress on our current infrastructures so how can we use the blockchain to bridge this funding Gap what are the things that we can do serving the on Ser Market there's this popular statement that we say about banking the own bank and I think the blockchain has really excelled in that especially in terms of payment we've um solved so many issues especially in crossb payments using State points transfer money from one part of the world to the other but how do we leverage this to drive economic value in our environment in our country in our ony Market Africa this brings us to two major factors the number one is retail investors and number two is rwa by retail investors what do I mean a very simple ways to understand this is uh there are two types of investors the retail investor and institutional inv inors you're intial investors you have unlimited Capital maybe not necessar unlimited but you have a large pool of capital to invest in different types of assets so um you have an ofly way to uh to move markets to make ches that you want but with retail investors your capital is limited however we can leverage retail investors to breach our Fundy Capital how we need to understand that in the past few years the significance of Reta investors especially in equ Market has drastically increased over 52% of the current Equity Market in the USA is being controlled by retail investors how can we use this power to attract Capital to our Market I spoken about USA this is where rwa come from what is rwa rwa is called reward asset on the blockchain an rwa is an asset either tangible or intangible that has intrinsic value that can be represented on chain a very good example is this o that we're currently using let's of course the organizers of this event must have paid reasonable amount of money to use it so if we're going to bring this all on chain we have to represent the digital rights or the rights of this assets we have to bring it on chain yes so um other examples of rwa could be real estate agricultural Farms cargo ships Transportation anything that has intrinsic value and can generate reasonable Revenue so how can we use this as a bridge to fund our Capital deficits in Africa I'm going to be making some examples of how people in other world have be able to use rwe to attract Capital to their Capital markets I've already mentioned that RW are tangible intangible assets that have in value that can be represented on and the current tvl for SP TL I mean total value Lo of RW is $6.4 billion so it is not a market that we can neglect and by 2030 right according to my and Company the market C for would be 2.4 over2 trillion so it's a market we really want to take take his life off so how can we use rwba and Retail investors like I said you remember I mentioned that there are two major ways or two major factors that comes in hand when we want to empower our Market through using retail investors and rwa so how do these two come together to help our markets the first one is by diversifying our financial sector RWS can diversify our financial sectors by serving as an alterity traditional Banks a very good example is Mantra chain in the last no not not Ming good Finch I don't know if anybody knows good Finch good Finch is aized private private Credit Company and what they do is they use the liquidity on the blockchain to fund companies in the real world in the last four years if this bought over $100 million worth $1 million worth of loan to companies in UND markets especially in Nigeria the beautiful story about the companies is that when they the company one of their major users was a Nigerian one of the major reasons that the bu company was a Nigerian who runs a company and he couldn't access capital from traditional Banks so that way gold fin bres the Gap in our financial sector especially for on the sou Market second way is by supporting onand development here like I mentioned earlier Orban development in uh Africa is going to not Urban Development urbanization in Africa is going to be increased by 50% by 2030 this in essence means that our social infrastructure and amenities we have to go through increased stress they are not already you know enough anyway so how can we use RW to increase them very good example is matain the last couple of months matain has tokenized over $500 million worth of real estate now I'm going to leave it to your imagination imagine if $500 million worth of cized real estate is done in Lego State maybe I shouldn't get to abitious let's let's just say $50 million of real estate can imagine what you do to our real estate market and the good thing is on the other side the people that funded this project will get real ye that is the two parts the economic value is being driven and Retail investors are getting paid at the same time this brings me to the third theard um point which is generating you through value creation not speculation before I explain that please take a look at this nft the name there is um g g giraff 2021 I bought it with about one soul and um a few days later it completely lost all its value and I had to I had to message de on Discord uh bro we lost what's going on with our project I know there's a there's a joke online about when he project drugs and you have to go and meet the de and tell him not to give up it's actually my le experience I went through it then I told him what are we going to do then he asked me if I had any ideas like as if we implemented project together anyway I'm talking about making money from speculation now how do we change that to making money from creating real value using RWS a very good example of that is estate protocol EST protocol toises real estate properties and lets people invest for as as 50 us this so imagine instead of using my one soul to buy this nft then I could have invested in EST protocol and the good thing is truly with speculation there's um a lot of volatility I could get a lot more money but with a reward asset my Capital will be presed and I will get reasonable yield say about 10 to 15 maybe apy for my Capital will and on the other part I'll be contributing to driving economic value in the real world so you can see how rwa comes in and a so how do we create an rwa like I said our are assets that have inic value that can be represented on chain the first thing you want to do is to choose your asset a very good example could be let's say let's say is worth about $1 million and um we want to doize it let's use it as a very good example here so now we identify a as our asset I want to doize it the second thing is to go through the legal Frameworks how does this work because these assets will be represented on chain we need to codify how the digital right work the metadata of the things like um how old it is the revenue it generates per month or qu or yearly that's to be in our information so after going through the um the legal part you want to go through compliance and kyc and a good thing there's a lot of progress with adog made in Nigeria currently about two crypto companies received their two their license to run digital assets company I think just go and Legos estate is currently in the process of tokenizing some L and real estate so there's a lot of progress there if you are considering that so after you are done with compliance decide if you want to do kyc or no kyc the next step fractionalization like I said if your qu was worth $1 million and you want to fractionalize it into let's say 1,000 fractions that in essence means a fraction wors $1,000 right so now this way if you are a retail investor who has limited amount of cash you can invest in fractions of a cotel and be able to get dued from the revenue that quot generates let's say quarterly or yearly then the next thing tokenization platform there are different types of platform that you can use by platform I mean blockchain you want to use blockchain that supports enterprise Enterprise grd applications a very good example is K that's flow latency that support for account abration so if you are dealing with a LW of retail investors you're definitely doing with people who are not familiar with the blockchain so you want to make your own bodying as easy as possible and it um evm equivalence so if you have been building on ethereum before you are looking to um integrate with etherum protocols becomes way easier for you then the next thing is you develop your smart contract you write the code that enables toiz of the assets you include the details of your assets such as um the revenue it to generate you want to calculate the amount of value that each fraction will give you back at at the at the end of a certain duration then the next thing is to mean your asset and to you create your digital token and represent the ownership of this asset like I've said before then you integrate it into the market there are two ways you integrate into the market you got go through the primary or private where you meet your asset and you Market to only your investors either through oore or through Private Sales then secondly is you can integrate secondary Market at the end of it this way it gives your asset more composability you can leverage let's say a fraction of a cotel this is a you know basic example now if you bought a version a fraction of the H and you have it onchange you could leverage it if your supplier or the people or the the your the people who created the contract included it in the contract that you could Market it in secondary market so this way you can use your fraction of the cot to actually do other things online like staking or lending so this way we drive more value into each fraction of the asset then finally you want to go through ongoing management you want to ensure that the manage the assets that toiz is in the perfect condition then you want to include certain um technologies that help you ensure that there's enough data that been transfer from your assets to the blockchain you can use you can do that through the use of um chain link chain link Pro of ser as technologies that you can integrate into your real world asset that helps you transfer data on chain and um finally we've talked about thear market we've talked about the retail investors and how RW can be Bridge C between capital and on markets again so without um anyway all of this are very good Innovations but without the cooperation of the government and the necessary regulatory body especially the XC we are not going to be able to out of the the financial and revolution of Africa thank you so much