xRWA

xRWA allows Real World Asset trading via CBDCs. Invest globally in top assets, from U.S. Treasury Bills to real estate. With xRWA, worldwide investments are a click away.

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Increasing interest and market in RWA market

Real World Assets (RWA) are rapidly carving a niche within the crypto ecosystem, bridging the chasm between traditional finance and the burgeoning digital domain. Spanning a spectrum that includes assets like U.S. Treasury bills, real estate, and ETFs, the allure of RWAs is undeniable. Their traction in today's markets propelled our inspiration to create a platform that marries the two realms.

xRWA : Bridging Traditional Finance with Digital Innovation

xRWA aims to pioneer a shift in RWA investments, harnessing the power of Central Bank Digital Currencies (CBDCs). Our platform seamlessly allows users from around the globe to deposit CBDCs, in exchange for tokenized RWAs. For this hackathon, we introduce tokenized U.S. Treasury bills ($UST). Given their reputation as one of the world's most secure investments, we aim to make them accessible to all, regardless of geographical or financial boundaries.

Tokenized U.S Treasury Bills($UST)

Our initial token $UST is a tokenization of the U.S Treasury Bills portfolio. Within the $UST pool, users will be able to deposit any kind of CBDCs in order to get an equivalent amount of $UST. $UST will start at the value of $1, growing in value over time. With an intuitive interface, users can easily estimate their $UST returns based on their CBDC deposits and, when needed, seamlessly retrieve their CBDCs based on their $UST holdings. Comprehensive pool analytics and portfolio specifics are at the users' fingertips, ensuring complete transparency. For this hackathon, we utilized three of the hypothetical XRPL deployed CBDCs($BSD, $ENA and $KRW).

liquidity is one of the common issues in RWA investment. The conversion of sizable RWA amounts into cash could incur significant costs. To guarantee streamlined transactions, 5% of the total pool is retained as a fractional reserve in the form of $USDC. This ensures swift redemptions. Meanwhile, the remaining 95% undergoes conversion to fiat and is committed to procuring U.S. Treasury Bills off-chain. Daily the pool will be rebalanced to keep 5% of the fractional reserve ratio. In the  scenario where withdrawal demands exceed the reserve, requests are queued for execution on the subsequent banking day.

XRPL in xRWA

For our demo, we deployed four fungible tokens: $BSD, $ENA, $KRW, and $UST. We've designed a straightforward wallet, managed by a seed phrase, with the security of storing these seed phrases in the browser's local storage. To give demo participants a hands-on experience, we integrated a faucet button, allowing them to mint fungible tokens and explore our service. Exchange ratio between the CBDC currencies and price of the US Treasury Bill was queried from the apis.

The primary xRWA account setup trustlines for each token, facilitating currency transfers. As users pour in their CBDCs, xRWA instantly crafts the equivalent $UST for them. And, when users opt to pull out their $UST, the system automatically annihilates the $UST, reimbursing them with the original CBDC.

We have increased the reusability and convenience of XRPL functions such as account setting, trustline setting, and currency payment and more by creating custom hooks wrapped around them using React hooks

Our deployed fungible currency $BSD, $ENA and $KRW's issuer account addresses are as follows. $BSD: rsUGJxpPw1vgQWsC9aTLbTYAjLEsU6tjqB, $ENA: r3H1RCy8t6pwDGLjtrfxMkqTmPeGFh649d, $KRW: rh2e1V7hVECXPXjEz2fEY5LTYkZDdAcCF4. Also our xRWA account address is rEUtrf3ewziPNFphXwq78zsC5PRBu4ofLK.

Whats next?

In the second phase of our project, we aim to introduce a digital Treasury Bill directly on the XRPL platform. Presently, the core assets of all RWAs are managed off-chain, leading to a significant dependency on the token issuer and raising centralization concerns. To address this and to enhance the utility of CBDCs, we're developing a platform that emulates the Department of Treasury. This will enable the on-chain issuance of Treasury Bills, ensuring better synergy with CBDCs.

In addition, we will launch an exemplary DeFi platform that leverages RWA tokens. This platform will provide users with the capability to engage in lending activities or even create synthetic assets, paving the way for a broader range of financial interactions on the blockchain.

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