Cold thinking under the current market RWA craze

Source: Seven bottles of robots without head

Introduction:RWAofCore business logicyesAsset tokenization means moving forward based on asset securitizationAgain走一步，用代币Technical formCarry as carrierBaseassetsConnotationVarious rights and interestsand risk,The significance lies in the fact that the technical advantages of the underlying blockchain architecture can be fully utilized, and the threshold for investor participation can be lowered and theFinancial productsTurnover efficiency and improving automation execution levelAll haveCost and efficiencyofInnate Advantages,butRWAThe dataization level of business scenarios is relatively high.Application applicationThe constraint of “If you want to go to the chain, go online first”.RWAWhat are the specific factors from being well received to being popular?Accelerateeffect?againWhat specific paths can guide the effective investment of market resources?The current marketWhat factors can RWA gain its own living space?Here webased onrightRWADevelopment trendsofDeeply recognized, targetedThe current market emergesRWASome cold thinking about the boom,In order to playGet rid of the false and keep the truth,excludeinterferenceThe role of,For the industryFocus onmoreEfficientturn upRWA’sDevelopment path.

Since the beginning of this year,RWA continues to be globalscopeHot topics that are highly concerned, on the one hand, the United States and the European Union continue to introduce related issuespolicy, respond to and regulate innovative business forms in the fields of asset tokenization and stablecoins, such asOn April 3, the U.S. House Financial Services Committee voted to pass the “Stable Coin Transparency and Accountability For a Better Ledger Economy” (STABLE Act) and clarified the reserves and capital requirements and anti-money laundering standards required for stablecoins issuance; on the other hand, many financial institutions and industry leading companies have announced the launch of tokenization-related products, such as:

• USAOndo Finance tokenize U.S. short-term Treasury bonds (T-Bills), where investors can hold and obtain Treasury bond returns (annualized by about 4-5%);

• Huaxia Fund (Hong Kong) launched the “Huaxia Hong Kong Dollar Digital Currency Fund”, becoming the first tokenized fund for retail investors in the Asia-Pacific region;

• Standard Chartered Bank and the Hong Kong Monetary Authority (HKMA) use the blockchain platform eTrade Connect to tokenize trade documents such as letters of credit (LC), bill of lading, and small and medium-sized enterprises can quickly obtain financing;

• Huili Group launched a private equity fund token based on Ethereum (VPF Token), with investment targets including Hong Kong technology startups and Southeast Asian infrastructure projects. Investors can redeem fund shares through tokens or transfer them in the over-the-counter market (OTC);

• BlackRock and Securities cooperate to launch a blockchain-based real estate investment fund, allowing investors to hold interests in some commercial real estate (such as New York and San Francisco office buildings) through tokens (such as SEC-compliant Reg D securities);

• Australia’s Maple Finance to tokenize SME loans, investors can obtain fixed income through MPL tokens (8-12% annualized);

• Switzerland’s Toucan Protocol tokenize traditional carbon credits such as Verra certified carbon offset projects;

• The British Shell Oil Pilot Energy Company trades oil futures contracts through blockchain;

• Sotheby’s Auction House tokenize high-end artworks through NFT + RWA, allowing investors to buy partial ownership.

aboveeventNot only forRWA has provided support to become the focus of the industry, andattractMany asset parties have turned their attention toRWA aims to obtain financing through this innovative business model, including a large number of small and medium-sized enterprises and self-employed individuals who want to build on physical assets.Get financing.The main difference between physical assets and financial assets is that they hold the assetcannotGet a certain cash flow.But the market’s reaction is very realistic, and has been around the world so farRWAissuedAll are based on financial assetsRelated cases,(Also include gold, crude oil and other categories that have both financial and commodity attributes),There have been no cases of successful issuance based on physical assets.Even based on financial assetsRWA projects are also often made by traditional financeThe headLeadership in institutions or industry“彼时王谢堂前燕，何时飞入寻常百姓家?“It is still unknown. RWA brings the benefits of technology,How can financial product innovation play an impact?What are the specific factors from being acclaimed to being acclaimed?to generate accelerationOr the effect of hindering?againWhat specific paths can guide the effective investment of market resources and realize the closed-loop business?This article intends to targetRWA is a hot topic, so you can think about it calmly, hoping to make RWALarge-scaleProvide support for application implementation.

1. Everything can be RWA?

RWA is literally translated as a real-world asset, but its core business logicyesAsset tokenization means moving forward based on asset securitizationAgainTake a step, use tokensTechnical formCarry as carrierBaseVarious interests represented by assetsand risks.HongkongThe CSRC defines tokenization as involving the use ofDLT records asset entitlements recorded in traditional ledgers on the programmable platform process.

The role and significance of asset tokenization lies in the fact that it can give full play to the technological advantages of the underlying blockchain architecture. Compared with existing financial infrastructure (financial electronicization and Internetization), it lowers the threshold for investor participation (mainly reflected in global investor participation, self-service account opening and7*24 all-weather transaction convenience), improving turnover efficiency (mainly reflected in settlement without the need for intermediary institutions to participate and clear) and improving the level of automation execution (reducing the participation of third-party institutions to reduce operational risks and operating costs) and other aspectsAll haveCost and efficiencySeehornofInnate advantages, but their disadvantages are also very obvious, mainly reflected inAsset tokenizationThe dataization level of business scenarios is relatively high.byThe constraint of “to go online first if you want to go online”,For example, in the financial industry,RequireallCanAll factors that affect asset risk and return must be digitized, and can provide full-dimensional and real-time continuous data as support for the risk and return assessment of financial assets.,Only by achieving complete asset tokenization.

ThisRequireApparentlytooHigh, but this is determined by the technical characteristics of blockchain and is also a reality that we must recognize.In a more common language, blockchain is just a database with its own reconciliation mechanism.foreignDeaf and blind, can only receive external data input, but cannot actively obtain data.What should I do if I want to actively obtain data?Then IoT devices must be needed as the source of data collection.How to ensure that the data collected by IoT devices can100% real linkWoolen cloth?One method is technical means. If the entire business process is fully automated and no human participation is required throughout the process, then the data is of course credible; another method is to use it.Supervision of trusted third-party institutions as credit endorsement.The first method obviously depends on the degree of intelligence of the business scenario, and at this stage, the second method is firstRely on a“mash upplan“accomplishData is trustworthy, and then based on trusted data, such asBusiness models such as RWA are an effective “stoppable measure”.so,The margin of RWA service lies in the acquisition of trusted data. In the current state, it is obviously not possible for RWA to be able to do everything.

Further,now thatRWAThe essence of asset tokenization,Core logicRight nowEmbodied in financial logic, the risks and benefits emphasized by financial businessMutuallymatch的基本原则At onceTo beRWA product designPlayBasiceffect,This principle is also a choice in the current marketThe core standards for RWA priority implementation scenarios.We know,The underlying assetsmainRisk-return characteristicsyesA comprehensive reflection of changes in various factors in the business scenario, andNot because of whether its carrier isIt’s a tokenAny changes occur,So,Able to provide sufficient trusted dataHelp eliminate information asymmetry among investorsforchooseAn effective method for RWA to prioritize landing scenarios.In the practice of the industry,Ant FinancialAnnounce priorityNew energy trackRWA Release, because the new energy industry chain, whether it is distributed power generation or charging piles, of course, also includes wind power generation and energy storage, it is generally based on intelligent systemsCarry out operations,haveCash flowandInformation flowSynchronous features,Issuance based on new energy basic assetsRWA,Investors faceThe information asymmetry will be greatly reduced, which can beinvestorProvide a clear and transparent returnInvestment Opportunities.If the charging pile is likeTraditionalParking lots are charged manually, so for this type of assetRWA will make no sense.

This risk control model through real-time data obviously goes beyond the traditional financial institutions’ expertise in asset mortgage, etc.squareModePlaceCovered range, so, fromControllable riskangleSet off, Ant GoldI’m willing to accept itAsAssets like “digital investment banking” are recommended toOwnCustomers,Otherwise, traditional financial institutions cannot achieve risk control purposes based on traditional risk control methods.ofassets,Ant FinancialWhat’s the reason to change themTokensWhat about packaging recommendations for your own customers?

For the same reason, existing technical conditions cannot make physical assetsvalueThe main data required to evaluate is to be linked,Unable to provideTrusted dataSupports risk control, overall, physical assetsRWA cannot find a valid path.

Of course, accordingThe standard for screening of “data flow and cash flow synchronization” is not just a scenario where the new energy industry can be used as a priority for RWA. For example, cars with autonomous driving functions can be used as an ideal basic asset for RWA, whether it is financial leasing or shared travel..With the improvement of digitalization in various industries, it will be issued based on these industry scenarios.RWAWillGrantThatmarketEvenLarge space for imagination.

2. Are all traditional financial products worth refactoring with RWA?

based onThe core logic of RWA is mainly reflected in the premise of financial logic, especially the experience of the financial industry.After electronic and Internetization, financial assetsnaturalExist in the form of data,financeIndustrial chainThe degree of dataization has been greatly improved.Relative to physical assets,Financial assetsIt is easier to achieve the goal of reducing participation thresholds, improving turnover efficiency and improving automation level through tokenization.So,All financial productsworthuseIs RWA refactored once?Obviously not.According to the previous analysis,passsupplyMore trustworthydataSignificantly improve the risk control capabilities of financial institutionsIn the case of“Open the chain”now thatThe gain is not worth the loss,alsoNo sense,A more realistic path to tokenization of financial assets isThe “mixed solution” means that first complete asset securitization based on the professional capabilities of financial institutions, and then anchor the securitized assets and specific tokens, and gain the advantage of “on-chain” on the financial end and part of the operation end of financial assets.Below, we use the tokenization of REITs as an example to illustrate the basic characteristics of this model.

FTJLabs first in the worldPropose this timeBased on the compliance architecture, we will connect traditional financial assets and on-chain liquidityRWA project REITs, which focuses on the worldListed on the exchangeReitsassets, constructed through issuance of fundsReits investment portfolio and issue REITs tokens using fund shares as the underlying assets; each REITs token corresponds to a share of specific fund products; investors can obtain REITs tokens through the Reits assets, fiat currency or stablecoins corresponding to the portfolio, and can trade at any location and at any time around the world, or based on these token assets.Build differentlyRevenue CharacteristicsThe voteportfolio.

On-chain, project developmentREITs Protocle, supports the automatic execution of REITs Token distribution, transaction, dividend and other functions,And passOn-Chain Data Analysis ModuleagainstBlockchain public information extraction data serviceinvestor.Under the chain,projectSelect a licensed institution to undertake the asset custody function and issue the fund net value data in real timeREITs TokenSecondary market transactions provide reference, and regularly issue asset custody reports to ensure that on-chain assets and custody assets are equal.

Based on the aboveFunction, tokenization grantsReits AssetsGlobal liquidity,It is easier to discover its value, and can also beWide investmentThe investor provides an investment target with unique risk-return characteristics. The investment portfolio that originally needed to be achieved through cross-exchange operations can be achieved through only one token.

In this product, two designs can reflect the characteristics of the product design. One is that the asset custodian isREITs TokenThe value ofPlay a basic supporting role, and asset custodians disclose the net value of custodian assets through periodic reports based on their own entity credit to ensure thatREITs TokenThe value of the custodial assets is anchored by the same value; secondly, the project onlyListed on the exchangeAs the underlying asset, the asset custodian can use the price information provided by the exchange asREITs TokenProvide a reference price if the underlying assets of the project also include private placementReits products, then asset custodians will not be able toREITs TokenProvide reference quotes, and then cannot guaranteeREITs Tokenassets are transparent and further impact on their liquidity.

3. RWA, wealth opportunity for mass participation?

In the current situation,“Mainland Assets + Hong Kong Funds” is an ideal model for carrying out RWA business, butHong Kong Securities Regulatory Commission (SFC)assetsTokenschangeKeep a cautious attitude in regulationIn the form of qualified investors’ identification and fundraisingaspectAll have clear regulations to avoid excessive investorsbearrisk.

In 2019, the Hong Kong Securities and Exchange Commission issued the “Statement on the Issuance of Securities Tokens”, imposing restrictions on the distribution and promotion of securities tokens “only for professional investors (personal financial assets ≥8 million Hong Kong dollars or licensed institutions).In November 2023, Hong Kong Securities and Exchange CommissionagainTwo circulars issued on the Circular on Intermediaries’ Activities Related to Tokenized Securities and the Circular on Tokenized Securities Acknowledged Investment Products, and will no longer beWillTokenized securities are considered“Complex products” are no longer limited to professional investors; however, the CSRC has retained a provision in the 2019 Statement, that intermediaries interested in engaging in tokenized securities-related activities should discuss their business plans with the CSRC in advance.Tokenized securities cannot be directly issued to all investors.

In December 2023, Jiashishi International cooperated with Meta Lab HK to tokenize its fixed income fund products, but is mainly aimed at professional investors.On September 10, 2023, Tai Chi Capital launched Hong Kong’s first real estate fund securities token for “professional investors”, whichTokensRaise funding for the first fund tokenization approved by the Hong Kong Securities Regulatory Commissionproduct, fundraising scale target100 million yuan, with a starting investment standard of HK$1,000, which is much lower than the US$1 million that is generally required to invest in private real estate funds.However, according to relevant regulations of the Hong Kong Securities Regulatory Commission, Hong Kong licensed digital asset exchanges do notableAccept registration of mainland users, my countryalsoClearly prohibit relevant institutions(For mainland residents)Provide virtual asset trading services. Even if Hong Kong allows licensed institutions to provide virtual asset trading services to retail investors, mainland users cannot directly participate.

In addition, it has been successfully issued at this stageRWA products often have the attributes of fixed income or income rights sharing, and relatively fixed expected yields are more suitable for institutions with larger capital scales to allocate assets. Therefore, at this stage, RWA is still very far from the wealth opportunities in the minds of mass investors.

4. RWA, an ideal channel for small and medium-sized enterprises to obtain financing?

RWA cannot provide the public investors with imagined returns on the capital side, so can it provide an ideal channel for financing for small and medium-sized enterprises on the asset side?

Everyone knows,Financing costs affect corporate financing channelschooseofcorefactor.According to market news, Hong KongRWA issuance costs generally include issuance costs and capital costs.Two parts, among which, the cost of funds is mainly determined based on the risk-return characteristics of the asset and the capital market environment during the issuance period (current market forecast is generally annualized6-10%); and issuance costs include due diligence costs, product design and development costs,Cross-border fundsThe channel isand post-management costs,The total of each issuance fee is approximately millions.It can be reversed according to the issuance costThe lower limit of RWA underlying assets is obviously not economical to issue RWA with an asset scale of less than 100 million.There is also time cost in addition to capital costs, this articlebyTokenizationREITsissuedAs an example,ClarifyAsset screening criteria,mainThe issuance process and time period are shown in the table1 shows:

To sum up, under the current market environment,RWA issuance has a high threshold in terms of financing costs and financing time, and is not an ideal channel for most small and medium-sized enterprises to obtain financing; for large enterprises whose financial indicators have reached or are close to reaching the listing of the Hong Kong Stock Exchange,Current Hong Kong marketMain channels for RWA distributionof3 digital asset exchanges (as of May 2025, a total of 10 institutions have been awardedIt is authorized by the Hong Kong Securities Regulatory Commission to engage in digital asset trading related business.But it has been online andCan be provided to the outsideThe only trading platform is3 companies),even thoughIt has certain advantages in issuance costs, but in capital costsand fundraising efficiencyObviouslyThere is obviousDisadvantages: For relatively stable asset returns and large capital demandWould rather choose firstexistListed and issued by the Hong Kong Stock Exchange, and onlyFinancial indicatorsCannot meet the Hong Kong Stock Exchange issuance standardsenterprise, is more willing to spend higher costs to choose a digital asset trading platform forRWA release.This is also the current Hong Kong marketThe main reason why RWA is difficult to implement.

5. Finance or the Internet?RWA’s current market survival way!

Whether from the definition of tokenized securities by the Hong Kong Securities Regulatory Commission or the general consensus of the market, financial assets are used as the basis of assets.RWAIt did not change its financial attributes, but onlyTokens asNew technical carriers materialize the original risks of underlying assetsandRevenue Characteristics.byTokens asNewVector,Financial productsexistTransaction convenience, transaction efficiency and process transparency reflect unprecedented advantages, if time goes byflowHundreds of years,1397In 2019, when the Florence Medici family first used bills of exchange to start cross-border exchange business in Europe;1602In 2018, the Amsterdam Stock Exchange launched the world’s first stock, Dutch East India Company StockofhourWait;or,1844In 2019, when the Bank of England monopolized the right to issue money in the UK and took the first step of the global central bank, they asked them to make a new choice.shouldDistributed ledgers will be chosen as the underlying architecture of these pioneering financial instruments. After all, the advantages of cost and efficiency are obvious..

But this is just a romantic assumption, time cannot be reversed.ExperiencedCrowds of accumulation, financeThe industry has already started from the productshapestate,ServeBreadth and depthLeveland the worldEconomic SystemCompleted profound binding and started with securities tokenizationRWAIt is unlikely to put all traditional financial productsthoroughRefactor once;Just asLike the Internet’s penetration into traditional society, it is from the most cost-effective and reflects the technological advantages.fieldGet it,RWA only updatesIt is possible to find your own opportunity.

AlthoughAIalreadyIn Chess and GoSpecial areasdefeatIt’sHuman, butbutIt is unlikely to replace humans with allinvestorProvide personalizedfinanceServe.Advantages of the InternetfirstIt is reflected in providing services to large-scale long-tail users, therefore,When traditional financial institutions have already occupied the main market share based on their service experience for leading customers, financial attributes are used as the basic business logicHowever, RWA has to use the attributes of the Internet to find its own living space.

In the short term,RWA needs to withstand the minimum requirements for market activation for traffic accumulation. It is a beneficial attempt to verify specific product forms in various scenarios, especially to choose tracks with better participation in C-end users and in line with the current industrial development trends, such as games and entertainment, may have greater opportunities; in the medium and long term,When new energy sources such as solar energy and wind energyforWhen the electricity can be seamlessly connected with the traditional power grid through intelligent systems and automatically provide charging services;haveAutonomous driving功能的taxiIn comprehensiveCost of useSignificant onBelow the familyBuyWhen in a car; when artificial intelligence supportsAgentIt can perform more tasks on behalf of humans, and computing power, models and data becomemainProduction factors, humans no longer need to participate directlyProductionWhenRWAThe function of.As an innovative financial service model,RWAWill accompany himsameThe development of a smart economy that is closely integrated with genesirreversiblebecomelongMainstream forms of financial services.World War IIOfAfterwards, the US dollar relied on the comprehensive national strength of the United StatesRise upReplace the pound to become“Global Hard Currency”It’s a good example.

Written at the end

whenThe previous oneRWAstillIn the proof of concept phase, butWe all agreeTrends represent the future.We’re here to targetRWAThe craze for some cold thinking is not rightRWAandInnovationexploreDenied it, on the contrary, wejustyesbased onrightThatDevelopment trendsofDeeply recognized,I’m willingGet rid of the false and keep the truth,excludeInterference, concentrationLooking for ittry to findmoreAn efficient development path.Or GeithnernewThe old saying reflected in the technology application curve is that people often make too high judgments about a new technologyThatShort-term effects, but too low estimates of their long-term effects.According to the idea of ​​verifying product prototypes, it may be better for the current situation.RWAFind a more suitable living space!