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intermediate
RWA vs Traditional Finance
Comparing tokenized assets with traditional financial instruments.
6 min readJanuary 10, 2024
#Comparison#Traditional Finance#DeFi
RWA vs Traditional Finance
Key Differences
Settlement Speed
- **Traditional**: T+2 to T+3 days
- **RWA**: Near-instant on blockchain
Market Hours
- **Traditional**: Limited trading hours
- **RWA**: 24/7 global markets
Minimum Investment
- **Traditional**: Often high minimums
- **RWA**: Fractional ownership possible
Transparency
- **Traditional**: Limited visibility
- **RWA**: On-chain transparency
Cost Comparison
Aspect
Traditional
RWA
Custody Fees
0.5-2% annually
Gas fees only
Trading Fees
0.1-1% per trade
0.05-0.3% on DEX
Settlement
$10-50 per transaction
$1-20 gas fee
Intermediaries
Multiple layers
Direct ownership