Jag Singh, CEO of re.al, discusses enhanced user experience through RWA tokenization and the process of purchasing property in 15 seconds | Episode 365

Cryptonews Podcast host Matt Zahab recently engaged in a conversation with Jag Singh, the CEO and co-founder of re.al, a Layer-2 solution designed to enable substantial on-chain liquidity for tokenized real-world assets (RWAs).

In an exclusive discussion, Singh elaborated on the significant advantages of tokenizing appropriate RWAs, the types of assets that attract the most interest from crypto enthusiasts, and the emerging use cases for RWAs.

He shared insights about the ability to buy and rent a property in merely 15 seconds, along with details about the forthcoming re.al rewards program.

10x Enhanced User Experience

The tokenization of real-world assets holds considerable promise, not only for the cryptocurrency sector but for the broader economy.

Some of the notable advantages include immediate transferability, verified ownership, and substantial liquidity, Singh noted.

A straightforward example he provided is the process of purchasing a property.

In traditional finance, acquiring a property, leasing it, and collecting rent involves lengthy procedures and extensive documentation.

Conversely, on-chain transactions can be finalized in just fifteen seconds.

The property is tokenized and already occupied, with rental payments automatically deposited into the owner’s wallet in USDC.

The owner may choose to leverage it for a loan or sell it, which also requires just a few clicks.

“That entire process offers a user experience that is 10X better,” Singh stated.

The RWA sector is set to emerge as a significant player in the crypto landscape over the next decade due to various factors:
• Practical applications of RWA
• Interest from major stakeholders
• Optimism among industry experts pic.twitter.com/g8uvRDsyTy

— AlΞx Wacy (@wacy_time1) August 16, 2024

Re.al acquires properties through a distinct entity and subsequently sells them. Currently, it is not homeowners directly conducting sales, but this is expected to change in the future, he mentioned.

The system is anticipated to become more decentralized, with onboarding pathways for a larger number of individuals to connect to the blockchain directly.

In the interim, the process is significantly more streamlined. The team has eliminated the need for lawyers, extensive paperwork, and the manual efforts of buyers searching for properties, as well as the necessity for them to collect rent independently.

“All of the complications have been removed, and all associated costs are effectively abstracted away,” Singh explained.

Currently, re.al is concentrating on ensuring high yields on single-family residential properties, as “that’s ultimately what our user base seeks.”

New Use Case: Payment-Free Mortgage

Another use case that excites the re.al team, Singh noted, is on-chain loans secured by property.

In the RWA framework, users do not incur monthly interest payments as they would with a traditional mortgage. “It simply reduces your collateral.”

For real estate, the average interest rate on-chain rises by approximately 5% annually.

Thus, the CEO stated, “what you end up with is a payment-free mortgage, a payment-free loan, which I believe is a highly attractive product if packaged correctly and regulatory issues are addressed.”

This payment-free loan is not yet available. However, the average American allocates over half of their income to their primary residence. Imagine the potential of freeing up those funds, the CEO suggested.

As technology advances and reveals areas previously beyond our comprehension, “I believe we will discover innovative use cases and possibilities that were not feasible before due to the composability of DeFi,” he remarked.

Exciting developments for re․al and the @arbitrum ecosystem!
Arbitrum is implementing significant technical upgrades throughout 2024 and 2025, and as an Arbitrum Orbit chain, re․al is positioned to gain substantial benefits.
Let’s explore what these updates imply for the future of re․al https://t.co/vaJKGur46t

— re.al (@real_rwa) August 21, 2024

Moreover, there is a notable demand among crypto and DeFi enthusiasts for real-world assets that enable diversification and hedging of their profits.

DeFi users have capital available on-chain and prefer to maintain it there.

“In the short term, that’s what I’m most enthusiastic about,” Singh stated, “developing for that audience that is already present and desires more assets, essentially, so that their entire network can remain on-chain.”

Tokenized Watches Are Out, But Speculating on Their Price is In

In addition to real estate, re.al identifies considerable interest in several other sectors as well.

However, watches and wines do not fall into this category.

The team invested significant time in forming partnerships and managing the logistics required for such extensive services, but demand was lacking.

Specifically regarding watches, Singh contended that people prefer to wear them rather than keep them on-chain.

Nonetheless, there is a desire to speculate on their values. “This is going to appreciate,” the CEO noted. “I think that’s likely more suitable than directly tokenizing them and attaching them.”

As a result, re.al is currently seeking a team to collaborate with and develop a solution like this on-chain.

Speculators play a vital role, but don’t forget that builders enhance our assets. The pendulum has swung too far, and a correction is inevitable.

— Jag Singh (@jagTNFT) August 8, 2024

Another opportunity exists in the interest from family offices and high-net-worth individuals in tokenizing art and similar RWAs.

“They essentially want to secure an on-chain loan against these assets and receive USDC,” Singh remarked.

Rewards Season Two is Coming

Singh indicated that the team is currently focused on total-value locked (TVL) and liquidity. While everything could potentially be tokenized, the challenge lies in generating demand among crypto enthusiasts.

A related area of focus is re.al’s rewards/points program. Season 1 is concluding in August, with Season 2 set to commence.

Additionally, a live calculation of all points/rewards will be provided for transparency.
For every 1000 points, you receive 1 $RWA. The points multiplier is clearly communicated, and users earn 10% for the individuals they refer.
You can use my referral link here: https://t.co/tkbnUuvbkO

— Viktor DeFi (@ViktorDefi) August 28, 2024

While Season 1 concentrated on TVL and establishing the chain, Season 2 will focus on builders, onboarding additional participants into the ecosystem, developing essential components of DeFi infrastructure, and other tokenization protocols.

Consequently, in the near future, the CEO anticipates “a variety of new protocols” launching on the chain, including “lending, leveraged yield farming, and various assets being tokenized on the chain,” he concluded.

____

That’s not all.

In this interview, Singh also covered:

• a value-accruing token that gathers all L2 fees so governance token holders receive 100% of sequencer fees in ETH;
• calculating yields in RWA;
• re.al engaging with various tokenization protocols;
• insights on Blast, Polygon, and Arbitrum;
• the challenge of TradFi adopting the 24/7 crypto-market system, though not impossible.

You can watch the complete podcast episode here.

__________

About Jag Singh

Jag Singh is the CEO and co-founder of re.al, a Layer-2 solution designed to provide deep on-chain liquidity for tokenized real-world assets (RWAs).

re.al aims to transform how RWAs are incorporated into decentralized finance (DeFi), utilizing yield-generating real-world assets as innovative building blocks within existing DeFi frameworks.

The post Jag Singh, CEO of re.al, on 10x Better User Experience with RWA Tokenization and Buying a Property in 15 Seconds | Ep. 365 appeared first on Cryptonews.