Wintermute Says RWA Could Become the Next Major Crypto Liquidity Channel

Wintermute said crypto markets have recovered over the past two weeks, with ETF inflows turning positive and stablecoin issuance stabilizing, but that a full new cycle still needs a fresh source of capital. According to Odaily, the firm said RWA could become the next major liquidity channel, following earlier cycle drivers such as VC and ICO activity from 2017 to 2018, stablecoins from 2020 to 2021, and ETFs and digital asset treasury companies from 2024 to 2025. Wintermute said stablecoins once recorded more than $120 billion in net issuance in a year, while ETFs have seen cumulative net inflows of $63 billion and digital asset treasury companies have accumulated more than $115 billion. By comparison, RWA attracted about $16 billion over the past 12 months, roughly one-tenth of the previous-cycle peak for ETFs and treasury companies. The firm said on-chain tokenized assets have roughly doubled over the past year to more than $30 billion and continued expanding even as stablecoin supply contracted. Wintermute added that RWA capital initially buys traditional assets such as Apple shares and U.S. Treasury funds rather than crypto assets directly, but that once these funds move on-chain, the friction to shift into Bitcoin, altcoins and DeFi would fall. It said clearer regulation and the acceptance of tokenized Treasurys and funds as collateral by trading platforms and DeFi could support a slower but longer-lasting market cycle.