RWA: Building a Global Financial World with a Public Ledger for Real Assets

The RWA (Real World Assets) sector has developed rapidly recently, with a market size exceeding $36.5 billion, a year-on-year growth of around 60%. The types of assets involved include private credit, U.S. Treasuries, commodities, real estate, and stock securities, while in Hong Kong, the main focus is on new energy assets.

Despite the many challenges faced by RWA development, such as compliance implementation and global liquidity issues, the involvement of traditional financial giants and the proactive attempts of various governments make it possible for RWA to truly change the hollowing and scaling dilemma of blockchain finance. As a bridge between the traditional asset world and blockchain finance, RWA is addressing the shortcomings of value capture in the blockchain world.

Recent market dynamics show that traditional financial giants like BlackRock are actively exploring asset tokenization. Mantra Chain has obtained a VASP license in Dubai, and the Stellar blockchain has established partnerships with several institutions. Projects like Alchemy Pay and Yala have also launched products related to RWA. In Hong Kong, Conflux Network is collaborating with Ant Digital Technology to promote the development of RWA, the Hong Kong Monetary Authority has launched a digital bond allocation program, and China Pacific Insurance has also introduced a tokenized fund on HashKey Chain.

However, the development of the RWA industry still faces multiple challenges such as regulatory uncertainty, adoption barriers, sustainability and volatility, technological challenges, liquidity issues, and investor confidence. The key to the future development of RWA lies in activating the "silent assets" that have long been detached from the traditional financial system, enabling their value expression and free circulation through blockchain.

RWA is expected to achieve the tokenization of traditional finance and the traditionalization of cryptocurrencies, and these two processes are moving in opposite directions. In the future, centralized pre-chain regulation and decentralized post-chain circulation may become the ultimate expression of RWA. At the same time, activating the vitality of the secondary market for RWA and building a distributed digital identity ( DID ) system will be key factors in driving the RWA industry to take off.

As major jurisdictions around the world gradually improve the RWA regulatory framework, we have reason to expect that RWA can build a world on a public ledger of real assets, a greater borderless financial world.