RWA: Building a New World of Public Ledger for Real Assets

Recently, several centralized institutions and decentralized projects have been actively promoting the development of the RWA sector. Currently, the RWA market size has reached $36.5 billion, with a year-on-year growth of about 60%. Although there are still many challenges, the involvement of traditional financial giants and support from various governments make it possible for RWA to truly change the hollowing out and scaling issues in blockchain finance.

RWA, as an important bridge connecting traditional assets and the blockchain world, is filling the gap in blockchain value capture. It not only brings real-world opportunities onto the chain but may also become the sword bearer of this "parallel world." We look forward to RWA building a boundless global asset investment system that allows investors to freely allocate assets on a global scale.

Recent Market Dynamics and Key Events

market-related dynamics

1. The market size continues to grow, with the number of RWA-related tokens exceeding 185, and a total market value of over $10.62 billion.

2. Traditional financial giants like BlackRock are actively laying out their strategies in the RWA field, exploring the possibilities of asset tokenization.

3. Mantra Chain obtaining the VASP license from Dubai VARA marks progress in regulatory compliance for the RWA project.

4. Starcoin blockchain announces partnerships with multiple institutions, planning to put $3 billion worth of real-world assets on-chain by the end of 2025.

5. The crypto payment company Alchemy Pay announced the integration of RWAs, which will introduce traditional financial assets such as U.S. Treasury bonds and blue-chip stocks.

6. The Bitcoin liquidity protocol Yala launched the RealYield platform, integrating RWA to provide a structured yield market.

Technology Innovation Trends

1. Quant Network launched Overledger, an interoperable blockchain operating system supporting multi-chain applications.

2. Securitize launched the sToken Vault feature to enhance the liquidity and composability of RWAs.

Project financing related updates

1. Plume has secured $20 million in funding to build the RWA financial ecosystem.

2. Tether invests in Quantoz, planning to launch a stablecoin that complies with MiCAR standards.

Hong Kong and China's RWA Development Events

1. Conflux Network collaborates with Ant Digital Technology to promote the growth of RWA in Hong Kong.

2. The Hong Kong Monetary Authority has launched the "Digital Bond Grant Scheme" and the "Project Ensemble" sandbox project.

3. The 2025 Web3 Festival will be held in Hong Kong, with RWA tokenization becoming a focal topic.

4. China Pacific Insurance has launched a tokenized US dollar money market fund on HashKey Chain.

Industry Observation and Reflection

The main challenges in the current development of the RWA industry

1. Regulatory uncertainty: The lack of a unified regulatory framework globally affects the promotion of RWA and compliance costs.

2. Adoption barriers: A broader user base is needed to accept and use RWA.

3. Sustainability and Volatility: Tokenization may lead to excessive speculation, affecting asset stability.

4. Technical challenges: Vulnerabilities in smart contracts and scalability issues may affect the security and reliability of RWAs.

5. Liquidity issues: Some RWAs may still face insufficient liquidity after being tokenized.

6. Investor confidence: Lack of transparency, security, and regulatory compliance may undermine confidence.

Observation and Thought

1. Centralized pre-chain regulation and decentralized post-chain circulation are the ultimate expressions of RWA.

2. Activating the vitality of the secondary market for RWA is the beginning of the industry's takeoff. Distributed Digital Identity (DID) systems will become an important strategic watershed.

3. RWA can both tokenize traditional finance and traditionalize cryptocurrencies, achieving the process of good money replacing bad money in cryptocurrencies.