Looking ahead to 2025-2026, there’s no denying that Real World Assets (RWA) on blockchain are set to dominate the financial scene. Everyone from BlackRock to banks is making their moves, and the talk of a trillion-dollar wave is becoming louder. But here’s the thing—there’s a crucial detail often left unsaid: traditional financial institutions simply cannot use the current public chains.
Think about it—if a bank wanted to issue national debt tokens on a public blockchain, would it really be able to handle transaction fees that fluctuate wildly from $2 to $50 each time it distributes dividends? Could they ask their high-end clients to memorize 12 mnemonic words and buy ETH just to pay gas fees for receiving interest payments? The answer is a resounding no.
This ‘uncertainty’ and the operational hurdles that come with it are the biggest obstacles preventing compliant funds from entering Web3. For institutions, unpredictability equates to risk, and no one in their right mind is going to take on that kind of risk.
This brings me to Plasma. I’ve been observing its progress, and I think it might be the missing link that allows these massive financial institutions to finally enter the blockchain space. Plasma is not just focused on making transfers easier for retail investors—it’s designing a blockchain experience that feels more like a ‘banking experience’ for institutions. With its Paymaster function, Plasma addresses the gas fee issue in the background, offering a seamless experience where asset issuers like banks or RWA projects can operate on-chain bonds as easily as buying financial products online. No gas anxiety, no native token hurdles. This ‘de-blockchainized’ approach is exactly what institutions need if they’re going to bring billions, or even trillions, of dollars into the space.
When it comes to the $XPL token, Plasma’s model shifts entirely. It’s not about the small change for retail investors anymore; $XPL is the ‘invisible anchor’ that institutions need to keep everything running smoothly. For large-scale national bonds, real estate, and stock transactions, each confirmation and dividend payment burns $XPL. This burning process isn’t coming from retail wallets; it’s being covered by the institutional players themselves. This model ensures that the wealthiest participants are the ones securing the network, which is a far healthier token economic system.
To wrap it up, while retail investors are caught up in hype, institutions are already looking for the solid infrastructure that can truly support RWAs. Plasma may not be the loudest player in the space right now, but in the realm of payment and asset on-chain solutions, it could very well be the most underestimated. This is my personal observation, but I strongly encourage you to dig deeper and do your own research—this space is evolving fast, and it’s crucial to stay informed.