Why is the US-Ukraine agreement a special RWA?

The recent US-Ukraine Mineral Agreement has attracted global attention. This agreement is not only a cooperation between the two countries, but also represents a huge opportunity for "asset tokenization" and global financial liquidity. If you are still confused about RWA, you can take a look at the US-Ukraine Mineral Agreement.

The US-Ukraine Mineral Agreement is essentially an RWA project: RWA bonds are an investment fund, the underlying assets are the future income of minerals, the capital is injected by LP, and the assets raised are used for projects under construction. It achieves the following goals by converting Ukraine's natural resources and minerals, such as oil, natural gas, titanium, lithium, etc., into assets that can be traded globally:

• Future income of mineral resources as the underlying asset, attract global investors to participate.

• Fund raising: Through fund injection and asset trading, global resource investment and reconstruction project financing are carried out.

The core of the US-Ukraine Mineral Agreement is to turn illiquid assets into tradable assets, breaking geographical restrictions and achieving global liquidity.

US-Ukraine Mineral Agreement

The core contents of the US-Ukraine Mineral Agreement include:

• Jointly manage the reconstruction fund: Ukraine and the United States will jointly hold and manage the fund. Among them, in July 2023, the Ukrainian government and BlackRock Group jointly established the "Ukrainian Development Fund"

• Ukrainian capital injection: Ukraine will inject 50% of its future natural resource income into the fund, covering natural resources such as minerals, oil, natural gas and related infrastructure (such as liquefied natural gas terminals and ports).

• US financial support: The United States will provide funds, financial products and other important assets to support Ukraine's reconstruction. The specific support method is not yet clear, and may include debt, tangible or intangible assets.

• Investment purpose: The funds raised by the fund will only be used for Ukraine's reconstruction projects.

• Legal constraints: The fund's decisions and rights are subject to US law, and both parties must follow this legal framework.

In addition, Ukraine's mineral resources, including titanium, iron, lithium, etc., are valued at $11 trillion, and Ukraine controls several important mineral deposits. These resources will provide asset support for the fund.

UK loan agreement

The UK will provide Ukraine with a £2.26 billion aid loan, which will be disbursed over three years. The key points of the agreement are as follows:

• Loan amount and purpose: The total loan amount is £2.26 billion, mainly used for Ukraine's weapons production.

• Repayment method: Ukraine will repay the loan with the proceeds generated by Russian assets frozen by the West.

• Loan installment: The loan will be disbursed in three years at £752 million per year, and the first loan will be provided next week. • Russian asset freeze: Since the escalation of the Ukrainian crisis, the West has frozen about $300 billion of Russian overseas assets, most of which are stored in clearing bank accounts in the European Union, although these assets are not used as collateral for loans. Through these loan agreements, Ukraine has been able to obtain important financial support while providing repayment funds through the use of proceeds from frozen Russian assets. Please note that it is the proceeds generated by the frozen assets. How can Ukraine play RWA? Assuming that Ukraine chooses not to rely on the United States and the United Kingdom, but to operate RWA tokenization by itself, it can obtain the following opportunities: 1. Issuing RWA tokens with mineral resources as underlying assets: Ukraine's rare earth, titanium, lithium and other mineral resources are worth $11 trillion, which are high-quality RWA underlying assets.

2. Create an RWA asset trading platform: Based on the issuance of mineral assets, Ukraine can create an on-chain rare metal RWA asset trading platform to allow global investors to participate in investment and trading.

3. Issuance of RWA stablecoins: By tokenizing the underlying mineral assets and establishing an RWA asset trading platform, Ukraine can issue its unique rare metal RWA stablecoins to provide stable investment products for the global market.

The tokenization of Ukrainian mineral RWA is the key to solving the current pain points. The RWA tokenization method can transform traditional assets such as Ukrainian mineral resources into financial assets that can circulate across borders and provide investors with stable returns. Through this mechanism, Ukraine's mineral resources, energy assets, etc. can flow globally, making strategic resources that were originally difficult to reach transparent and liquid.

Conclusion: Seize the globalization opportunity of RWA and move towards the future

RWA's core advantage lies not only in its asset tokenization characteristics, but also in the breakthrough of the current global financial system. RWA can not only provide asset liquidity for Ukraine, but it is also the key for the global capital market to enter a new era, allowing everyone to seize this financial revolution in the era of virtual assets!

#ARAW Always RWA Always Win!

In 2025, the RWA market will quickly find its place in the wild growth.