For Real World Assets (e.g. Real Estate) to come on-chain (e.g. as NFTs), there needs to be a way of linking the physical to the digital object in a trustless way. This seems impossible. Who is tackling this and what are the solutions?

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USDC is an example of already successful on-chain RWA. (Would you agree?) I think it can look like that, and that it's still valid "defi" to have a trusted verifier of the asset while enabling trustless (and permissionless & interoperable) transactions on it.