Stability Blog

Real World Assets on Blockchain: Cutting Through the Hype

Written by Klay Nichol | May 3, 2024

The real world impact of digitizing supply chain documentation

You may have seen the recent news of how BlackRock led a $47 million strategic investment into Securitize, “deepening the company’s commitment to crypto.” Tokenizing Real World Assets (RWA’s) like money-market funds, public stocks, and real estate seems to be the next growing narrative that will “drive crypto adoption.”

Don’t buy into the hype. True utility does not need a narrative.

Amidst volatile market reactions to RWA announcements — like the recent unfounded speculation about Hedera and BlackRock — it’s time to focus on the real opportunities blockchain offers beyond the crypto buzz. Blockchain isn’t just about tokenizing assets for hype; it’s fundamentally about creating a global trust network, ensuring that any piece of data — whether it’s a financial transaction or critical documentation — is valid and authentic without reliance on third-party verification.

The Current Landscape

Today real-world assets (RWAs) like supply chain trade documentation are already moving onto blockchain platforms. STABILITY has been at the forefront, driven by the demand for a global trust network that operates beyond the limitations of cryptocurrency. Why is there such a high demand for this type of solution? Because these seemingly mundane pieces of paper are currently being couriered around the world to facilitate the movement of a staggering $22 trillion in goods annually.

The Last Paper Frontier to be Digitized

Consider this: a single Bill of Lading may secure cargo worth more than the entire market cap of numerous DeFi protocols combined. Adding trade finance into the mix, digitizing these documents isn’t an incremental win — it’s revolutionary. The direct cost savings from digitizing such documents are projected to be in the billions. This isn’t just about cost-cutting — it’s a foundational shift in how we facilitate and finance global trade.

How Digitizing Supply Chain Docs has Real World Impact

Economic Impact: By moving to a blockchain-based system like STABILITY’s, companies can drastically reduce the overhead costs associated with managing paper trails, leading to cheaper goods and more competitive pricing in the global market. McKinsey estimates that going digital can save the shipping industry alone up to $6.5 billion in direct costs.

Environmental Impact: Transitioning to digital documents means a significant reduction in the need to physically transport paperwork around the world. This not only speeds up transactions but also cuts down on carbon emissions, contributing to environmental sustainability.

Efficiency at Ports: With increased visibility from digital documentation, shipping containers can be processed faster, reducing delays and lowering the carbon footprint associated with idling ships and trucks.

Why Now?

The delay in adopting blockchain in supply chain management was due to the absence of a simple, zero trust network that could validate and authenticate transactions without compromising privacy or scalability. Traditional (costly) private networks created silos that competitors couldn’t trust, while public blockchains stumbled on issues of privacy, scalability, and the regulatory and user complexities of cryptocurrency.

STABILITY’s Role

At STABILITY, we’ve built a feeless network that cuts through these challenges by offering a public, interoperable ledger without the complexities and limitations of cryptocurrency. Innovation should simplify, not complicate. By removing the noise and focusing on utility, we’re demonstrating that blockchain’s true power isn’t merely in tokenization — it’s in transforming how we trust, track, and transact essential assets on a global scale.

Innovation should simplify, not complicate.

As we continue to innovate, the focus remains on providing real, tangible benefits that reshape entire industries and enhance the way businesses and consumers interact worldwide.