# Axelar: Interoperability and RWAs

By [Goodnessuc](https://paragraph.com/@goodnessuc-2) · 2024-06-17

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Axelar is already famous for being the interoperability solution that connects most blockchains in web3. Axelar is the only interoperability solution that connects multiple ecosystems, including EVM (Ethereum-based) and IBC (Cosmos) based blockchains, with Bitcoin, Hedera, Polkadot, Ripple, Solana, and Sui on the way.

Axelar is building programmable interoperability that works across many asset classes. Recently, the project has taken a step further in supporting RWA (real-world assets) markets.

Interoperability and Real-world Assets
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On-chain RWA tokenization offers multiple benefits, including liquidity for traditionally illiquid assets and greater accessibility to a broader market.

Interoperability unlocks transparency and liquidity for real-world assets through integration and interoperation between various blockchain networks. RWA projects will need interoperability for permissionless tokenizing markets like real estate, commodities, or financial instruments to ensure assets retain value and liquidity across different blockchains and platforms.

Interoperability projects will aid asset transfer and seamless interaction between platforms for real-time updates and security, transparency, and verifiability (which is a blockchain primitive)

How Axelar is Pioneering Interoperability for RWAs
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![](https://storage.googleapis.com/papyrus_images/d5fa623f6cf655247218cb42a0e16175454f761c72c7364898eb81d0c5604f63.png)

Axelar is the biggest interoperability project by every significant standard, from the number of chains supported to volume, asset classes, and many other metrics.

Axelar’s innovative approach to interoperability goes beyond asset transfers and cuts across General Message Passing (GMP), chain abstraction, and programmability to support any asset class.

Axelar’s programmable interoperability is powered by its uniquely designed hub and spoke network topology, ensuring efficient and secure communication between multiple blockchains (for seamless asset integration).

![](https://storage.googleapis.com/papyrus_images/e366962b63e2321da6a3e65d7ce74c589e2f8e5db8f268c6a5af31b3856a08c5.png)

Axelar routes messages through a central hub to mitigate security breaches and maintain scalability. This approach is crucial for serving large or small markets (security and scalability are always paramount).

Axelar runs a Cosmos-based proof of stake layer one blockchain with a dynamic validator set where participants can implement additional validation policies, rate limits, and other security measures tailored to their needs.

Axelar's consistent message semantics layer as blockchain tech evolves ensures that connected applications can seamlessly adapt to validation and transport layer advancements without extensive upgrades.

The network's open and transparent architecture enables end-to-end visibility into cross-chain transactions for monitoring and preventing illicit activities such as money laundering.

This transparency is vital for institutions operating in highly regulated environments to ensure adherence to stringent compliance requirements while leveraging the benefits of decentralized technology.

Axelar is actively addressing the challenges of compliance and security in asset tokenization in collaboration with leading financial institutions and regulatory bodies,

Conclusion
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Multiple institutions keep choosing Axelar as their partner for institutional interoperability, and it’s not abnormal! Axelar is the shortest path to scale.

Check out [axelar.network/ecosystem](https://axelar.network/ecosystem) to keep tabs on Axelar’s RWA partnerships and others.

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*Originally published on [Goodnessuc](https://paragraph.com/@goodnessuc-2/axelar-interoperability-and-rwas)*