The True Value of RWA: Breaking Information Barriers and Reshaping Settlement Processes

Recently, the concept of RWA( Real World Assets has frequently appeared in various occasions, from financial forums to startup circles, where it seems everyone is talking about "asset on-chain" and "real-world mapping". However, amidst this wave of enthusiasm, we need to think calmly: What problems can RWA actually solve? What foundational conditions are necessary for it to be implemented?

Many people describe RWA as "on-chain reshaping" of real-world assets, which is not incorrect. However, the real premise of "reshaping" is to break down the original information barriers and reconstruct the Settlement process.

Currently, many projects claiming to be RWA are essentially just transcribing data that originally exists in traditional systems onto the blockchain. The entire business process has not undergone any fundamental changes: asset generation, value confirmation, yield calculation, investment allocation, and other stages still rely on the project team's offline operations to handle progressively, with the blockchain merely serving as an "enhanced report".

Although this approach technically uses blockchain, it has not truly changed the logic of financial operations. Simply converting asset information from paper contracts into JSON files on the blockchain cannot be considered true "asset tokenization."

If we cannot break through this point, RWA will remain at a primary stage forever. The real challenge lies in how to utilize blockchain not only to record assets but also to drive financial operations.

Two Key Criteria for Evaluating RWA Projects

Many people believe that the core of RWA lies in "certification" - that is, the asset source is clear and there is explicit registration on the chain. However, trustworthy data is merely a fundamental premise. What truly determines whether RWA has financial value is whether it can achieve credible settlement, that is, whether the funds flow mechanism on the chain can operate effectively.

Therefore, the assessment of RWA value can be divided into two progressive levels: credible data and credible Settlement.

Layer One: Trusted Data

This refers to whether the blockchain can accurately record changes in the status of real-world assets. It appears to be a technical issue, but it is actually a fundamental transformation of business processes. External interfaces such as sensors, custodians, and oracles need to push information to the chain in real-time, automatically, and objectively when changes in assets occur. This is the primary threshold for RWA. A true RWA project must ensure that "events are known on the chain as they occur," rather than relying on periodic manual uploads of "reports."

Layer 2: Trusted Settlement

This is the core value of RWA. It means that value transfer actions such as profit distribution, principal repayment, default handling, and fee rollover can be executed automatically, are tamper-proof, and are publicly transparent. To achieve this, stablecoins and other monetary units must be involved on the chain.

Many projects overlook this key point: even if data is on the chain and contract logic is complete, if the settlement process still requires manual operation or "simulated" capital flow through third-party platforms, then on-chain tokens are merely a symbol of "apparent assets" rather than truly executable financial rights.

Basic Evaluation Criteria for RWA Projects

1. Can the data flow be automatically uploaded to the blockchain without manual intervention?
2. Can the funds flow be settled directly on the chain?

If the answers to these two questions are negative, then the so-called "asset on-chain" or "on-chain Settlement" may just be a superficial form, essentially still a centralized traditional process, merely replacing the traditional ledger with blockchain.

Stablecoins: The Core Driver of RWA

To achieve true RWA, blockchain technology is needed as the information layer, and stablecoins are required as the value carrier. The importance of stablecoins is not only reflected in macro advantages such as improving payment efficiency and reducing costs, but more importantly, it allows funds to truly "flow" in the blockchain world.

The greatest significance of stablecoins is that they allow funds to be programmable and executable for the first time. You can set when to make payments, to whom, how much to pay, and even trigger payments based on specific on-chain events. It is no longer static funds waiting for human intervention, but rather dynamic value that can flow automatically like data.

Only RWA that applies stablecoins can truly achieve on-chain smart contract management for the entire asset lifecycle, including generation, yield distribution, and exit recovery. Otherwise, no matter how many institutions participate or how many audits endorse it, it essentially remains another form of centralized platform.

Therefore, we can conclude that without the application of stablecoins, RWA projects find it difficult to achieve true value reshaping and financial innovation.