Miguel Buffara, Lead Financial Engineer at RACE, recently commented on how RWA tokenization is enhancing investment processes for HNWIs.
Miguel Buffara from RACE explained that it could be beneficial to tokenize real-world assets for various use-cases. Buffara also shared details about RACE and the impact it intends to have on the evolving RWA tokenization ecosystem.
Our conversation with Miguel Buffara is shared below.
Crowdfund Insider: Could you explain what RACE is and the rationale behind tokenizing real-world assets (RWAs)?
Miguel Buffara: RACE is a modular-full stack infrastructure platform designed for the tokenization of RWAs, built on a Layer 2 blockchain solution. Our goal is to address the fragmented nature of current tokenization practices by offering a seamless end-to-end solution, even for people who don’t have experience with crypto.
Our automated and decentralized platform ensures asset digitization, linking real-world asset provenance to NFTs and other ERCs. This creates a global digital marketplace, breaking down traditional barriers and offering opportunities for a broader range of investors.
The main rationale for tokenizing real-world assets is to solve key challenges in today’s investment landscape. Tokenization offers transparency, security and a streamlined approach to traditionally fragmented investment practices. It makes high-value assets like art or aircraft more accessible and removes geographical constraints, allowing investors worldwide to participate in diverse, high-value investments.
Crowdfund Insider: What types of tokenized RWAs do you want to bring on chain and which target group are you focusing on?
Miguel Buffara: We’re really excited about bringing high-value assets such as aircraft, real estate, art, luxury goods, and private equity on chain. These assets are not only valuable but also perfect candidates for enhanced liquidity and fractional ownership. Imagine being able to buy and sell portions of a property internationally – that’s the kind of new investment opportunity we are creating.
Our main focus is on Ultra High Net Worth Individuals (UHNWI) and High Net Worth Individuals (HNWI). These investors are always looking for ways to diversify their portfolios with valuable, illiquid assets. By leveraging blockchain technology, we can offer them increased liquidity, transparency, and security, making these investments more accessible and attractive. The platform’s features are tailored to meet the sophisticated needs of HNWIs, providing them with new opportunities to invest in a wide range of high-value assets.
Crowdfund Insider: How does RACE specifically address the needs of HNWI? Could you dive deeper into the services or benefits it provides?
Miguel Buffara: RACE is designed with HNWIs in mind, offering tailored services that make investing easier and more rewarding. One of our standout features is the RACE Smart Wallet, which simplifies the investment process through gas abstraction, allowing users to pay fees in any currency. This flexibility is particularly beneficial for HNWIs who often deal with multiple currencies and require seamless transaction capabilities. The Smart Wallet also supports batch transactions, which combine multiple operations into one, saving you time and effort.
Our technology is built to handle the complexities of the tokenization market and our goal is to transform tokenization into a modern way of managing assets, providing HNWIs with personalized investment opportunities worldwide.
Crowdfund Insider: What are the key features and technologies that differentiate RACE from other blockchain platforms focused on asset tokenization?
Miguel Buffara: RACE introduces an end-to-end solution to the crypto space, designed for both non-crypto natives and crypto natives to tokenize, distribute, and interact with general crypto applications.
What sets RACE apart is its interoperability across its distribution infrastructure, wallet, and chain and tokenization layer. This ensures that non-crypto natives can access the DeFi ecosystem and use their tokenized assets within it. Additionally, RACE introduces a robust KYC process, essential for maintaining platform integrity and user trust. The platform also focuses on enhancing wallet management through its partnership with DFNS, offering non-custodial, ‘keyless’ wallets that simplify digital asset management, which is crucial for onboarding the next billion users. RACE is not only bringing one of the first ‘keyless’ solutions but also the first scalable on-ramping solution directly inside a non-custodial wallet. This reduces the route for investors to reach the on-chain environment from four steps to one.
Another point that differentiates RACE from its competitors is the unique Decentralized Investment Committee (DIC). This committee, composed of experts in law, finance, and regulation, oversees each tokenization to ensure rigorous due diligence and compliance. This level of oversight enables users to verify that the tokenized assets on the platform have been thoroughly vetted, instilling trust among investors and asset owners.
Crowdfund Insider: How does the current market landscape for tokenized RWAs present opportunities for HNWI investors and what trends should they be looking out for?
Miguel Buffara: The current market landscape is full of opportunities for HNWI investors in tokenized RWAs. Over the past year, we’ve seen tremendous growth in this sector, with the market cap now exceeding over $8 billion. This boom in tokenization offers HNWIs a great chance to diversify their portfolios by investing in a wide range of exclusive assets, including real estate, private equity, and rare collectibles. It’s a perfect way for investors to diversify their risk across various asset classes and geographies, and even explore new asset classes that were previously out of reach.
The increasing participation of traditional financial powerhouses like BlackRock signals a significant shift as well. Their involvement shows that tokenized assets are steadily becoming part of mainstream investment strategies. In fact, with projections estimating the RWA market to hit $10 trillion by 2030, tokenization is set to emerge as a pivotal force, redefining asset ownership and investment landscapes while reshaping investment strategies.
As the market matures, we can expect to see more innovative financial products designed to leverage blockchain for wealth preservation and growth. It’s an exciting time for HNWIs to get involved in tokenized RWAs, as this space is continually expanding and offering new opportunities for savvy investors.
Crowdfund Insider: What are the next major milestones for RACE? Are there any upcoming features or expansions you can share?
Miguel Buffara: The next major milestone for RACE is the launch of our mainnet, which will greatly enhance the platform’s capabilities and user experience. This launch will pave the way for a broader range of asset classes to be tokenized, providing investors with more diverse and flexible investment options. We are also introducing advanced tools for asset management and discovery, empowering users to manage their investments efficiently and uncover new opportunities within the RACE ecosystem.
Looking ahead, we are also exploring strategic partnerships that will further our mission of accessing high-value assets. These collaborations aim to enhance the platform’s functionality and user experience, making it even more accessible to a global audience. These collaborations aim to enhance the platform’s functionality and user experience, making it even more accessible to a global investor audience.