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What I am reading (because I am also new to this) is that it can even be used for money market funds, i.e. banks could convert their reserves into an NFT RWA if they wish, or even give this option to their clients.

O yes of course

But since it's something new, of course, gaining confidence takes a lot of time and no missteps.

Building trust and confidence takes time especially when investors are needed to grow a project