Should All Your Financial Assets be on Blockchain?

Real-world assets (RWAs) represent a critical bridge between traditional finance and crypto, aiming to bring tangible assets like T-bills and private credit onto blockchain infrastructure. Rather than merely replicating existing financial systems, the focus lies on creating composable, liquid, and user-centric rails that allow crypto-native participants to interact with traditional assets seamlessly. Plume, an L1 blockchain, facilitates this by providing the necessary infrastructure for tokenization and yield distribution, exemplified by its Nest vault protocol. While the current market is dominated by crypto-native users seeking yield, the long-term goal is to build an open, global financial ecosystem. Success depends on maintaining decentralization and composability while navigating the risks of over-leveraging and the potential pitfalls of relying on opaque curators, ultimately ensuring that the institutionalization of crypto does not compromise its core principles of self-sovereignty and transparency.