One under-discussed effect of blockchain in private markets is that it can change the minimum economical size of a financial asset.
Traditional private credit carries a lot of fixed overhead: documentation, reporting, reconciliation, servicing and administration. Below a certain ticket size, the economics simply stop working.
Automation changes that threshold.
When more of the lifecycle can be standardized and executed programmatically, smaller and more granular assets become economically viable to finance at scale.
That may be one of RWA’s more important effects: not just making existing markets more efficient, but making previously uneconomic markets financeable.