2026 is truly a watershed year for the RWA track. Goldman Sachs has forecasted an annual market size of $1.2 trillion, while Morgan Stanley is even more aggressive, directly raising it to $1.5 trillion. This is not just talk — over 70% of this involves the tokenization of low-risk assets like bonds and real estate, indicating that institutional capital is flowing seriously into this space.

Why is this happening? The reason is simple. Large-scale players with over a million dollars in capital have changed their mindset. The old approach of "betting on high yields and explosive growth" has become less preferred after experiencing several market cycles. The current priority order is: safety first, preservation of value second, and stable cash flow third. After all, for whales and institutions, a single liquidation or margin call could wipe out years of ordinary investors’ principal in seconds.

This also explains why low-risk fixed-income strategies have become so popular recently. A leading RWA project’s plan is very representative — they don’t rely on traditional DeFi methods like crypto collateralization, but instead directly anchor real-world hard assets. For example, short-term U.S. Treasuries maturing within 90 days, or high-rated municipal bonds. What’s the biggest advantage of these assets? Very stable cash flows. Even in extreme market conditions, the interest income from these physical assets remains, and there’s no risk of liquidation.

The clever part is the dual protection system. For instance, some stablecoin reserve structures consist of over 95% cash and short-term U.S. Treasuries. Funds and operational expenses are managed separately, with top-tier institutions like JPMorgan Chase and Bank of America acting as custodians. This is not just talk — there’s a regulatory framework supporting it.

So, the options on the table are clear: either continue to fight in the volatility game or choose this "safe + strong" allocation strategy. For those with accumulated capital of a certain scale, the latter is obviously a smarter way to navigate cycles.