jakiro
Author: Zhang Feng
The global RWA (real-world asset) tokenization wave is sweeping traditional financial and crypto markets at an unprecedented rate.Recently, institutional-level actions have been frequently reported: the credit protocol Grove deployed $250 million tokenized credit products on the Avalanche blockchain, anchoring the US Treasury and CLO markets; with the support of Singapore’s sovereign wealth fund, Singapore’s Giants Protocol successfully transformed the property of the largest cohabiting space operator into on-chain assets; Fosun subsidiary completed a USD financing of tens of millions of dollars to increase its RWA infrastructure.
However, behind the prosperity, the shortage of start-up funds has become a fatal bottleneck for the implementation of the project – the project party is worried that it will lose all its money in the early stage, and professional service institutions such as legal and technical cannot bear the risk of advance funding.This contradiction has just given rise to a major business opportunity:RWA supports the creation of the fund and fills the ecological fault through innovative capital supply models.
1. RWA explosive growth and start-up capital dilemma
The current RWA market is moving from the experimental stage to a large-scale explosion.According to industry forecasts, the global RWA market size will exceed US$40 trillion in 2030, and this growth is driven by multiple factors:
Asset category diversification:From early US Treasury bonds and private credit dominance, it expanded to compound assets such as real estate, artworks, commercial paper, and commodities.For example, Hong Kong Delin Holdings tokenize the equity of Delin Building worth HK$280 million, becoming a benchmark case dominated by licensed securities companies.
Regulatory breaks the ice:Dubai approved the first tokenized money market fund, and Hong Kong promoted cross-border assets to be launched through regulatory sandbox mechanisms, providing a compliance basis for RWA.
Technology mature:Oracle price feeding (such as Chainlink), zk-proof verification (such as Rtree platform) and cross-chain settlement solutions solve the problems of asset anchoring and circulation.
However, the project cold start-up faces three financial difficulties.High compliance costs,Legal structure design (such as the establishment of Cayman SPV/Singapore VCC), regulatory filing (SEC, FCA license), and KYC/AML system embedding will take 4-12 weeks, and the consumption of funds accounts for more than 30% of the budget.
Technology development black holes,Investments in smart contract audits (third-party fees such as Quantstamp), asset chain mapping, oracle configuration, etc. often exceed US$500,000, and prepayment is required.
liquidity preparation pressure,To cope with redemption fluctuations, the project needs to freeze 20% of its cash reserves (such as USDC) in advance, which will exacerbate cash flow tightness.
Typical cases, such as Fosun FinRWA platform, although it received financing of tens of millions of US dollars, it took more than 9 months to apply for early technology research and development and compliance. If there is no capital support, it is very likely to die.Project parties often fall into a dilemma: self-raised funds may lose all their money, and external financing requires the transfer of core rights.
2. RWA supports fund operation structure and innovation model
In response to the above pain points, RWA support funds can be designed as a multi-strategy capital engine to meet the funding needs of different stages through flexible tools:
Stage-based debt financing instruments.Convertible loans are provided for certain expenditures such as legal compliance and technology development.For example, the fund’s advance of US$300,000 is used for smart contract development and Quantstamp audit, which stipulates that it will be converted into 3%-5% of the underlying asset income rights after the token issuance is successful.If the project fails, the fund enjoys priority liquidation rights for SPV assets.
Asset pool incubation model.The fund pre-built the compliance and technical infrastructure middle platform (such as the KYC verification module, ERC-3643 token standard adapter) for low-cost calls to multiple projects.Giants Protocol’s practice has proved this model – its AI-driven platform saves The Assembly Place 60% of the cost of turning on the link.The fund collects an equity share of 1%-2% based on the project tokenization scale.
Equity linkage investment.For Guofu Quantum Investment’s Rtree-like technology platform, the fund obtains long-term value through equity investment.For example, participating in a CAD 3 million private equity firm in Digital Asset Technologies supports its development of RWA instant settlement lightning network to capture cross-project benefits through technical dividends.
Funds realize automated management through smart contracts: deploy fund allocation contracts on low-gas fee chains such as Polygon, bind Milestone (such as releasing 30% of the funds after regulatory approval); use Oracle off-chain data to trigger token recycling, such as Centrifuge’s JTRSY fund automatically distributes returns through on-chain T-bills interest rates.
3. RWA supports fund profit path and risk hedging mechanism
The fund’s source of income needs to cover high risk exposure and can be designed as a three-stage rocket:
Basic income layer.Debt financing charges 8%-10% annualized interest (refer to Digital Asset Technologies bond terms), plus token conversion discounts (usually 70%-80%).For example, it provides a development loan of HK$5 million to Delin Holdings project, and obtains a subscription option of 5% of the total tokens in addition to interest.
Excess income layer.Capture value spreads through cross-market arbitrage: When the JAAA fund on Avalanche yields 6.2%, while the traditional CLO market is only 5.1%, the fund can make market spreads on compliant exchanges such as Archax after being allocated tokens in the primary market.
Ecological rights layer.Equity investment infrastructure (such as Rtree’s asset verification platform) produces synergies.Fosun’s case shows that the valuation growth of the technology platform is 3-5 times higher than the premium of a single project token.
Risk hedging requires systematic design.In response to regulatory risks,Adopt judicial isolation architecture to load different legal domain projects into independent SPVs.Referring to the Hong Kong RWA issuance requirements, a 9-12-month foreign exchange control buffer period is prepared.
To address technical risks,Force third-party audits (such as OpenZeppelin) and require project parties to purchase smart contract insurance (such as Nexus Mutual underwriting products).
For liquidity risks,Cooperate with market makers to design an automatic repurchase mechanism, and when the oracle detects that the token price falls below the threshold, it triggers the purchase of reserve funds.
4. RWA support funds: from capital pipeline to value network
The significance of RWA supporting funds far exceeds that of financial tools, and it will become the liquidity router and standard maker for the entire tokenization ecosystem:
Promote compliance innovation.The fund can work with the Hong Kong Monetary Authority and other institutions to test cross-border settlement plans (such as digital Hong Kong dollar wCBDC docking) in the sandbox to clear regulatory barriers for projects.
Accelerate technical standardization.By investing in multiple oracle projects such as API3 and Chainlink, a unified framework for asset price feeding is established to resolve the anchor disputes faced by Rtree-like platforms.
Cultivate secondary markets.As an early market maker, the fund injects liquidity into non-standard assets such as Delin Building tokens, attracting traditional giants such as BlackRock to enter the market.
When more projects, like The Assembly Place, transform “rebar and cement” into a revenue engine shared by global investors through tokenization, RWA support funds have quietly reshape the essence of value creation – from one-way blood transfusion of capital to symbiotic evolution of the ecosystem.
Conclusion: Reconstructing the capital gene in the RWA era
The current outbreak of the RWA ecosystem confirms the real demand, but the startup capital fault is like a deep rift, separating innovative ideas and scale implementation.Grove’s US$250 million deployment, Giants’ AI-driven platform, and Fosun’s compliance framework all verify the key value of capital catalysis to the industry.
The true competitiveness of RWA supports funds is not only due to its flexibility in design (debt-equity linkage, smart contract management), but also because it reconstructs the distribution logic of risk and return: allowing project parties to get rid of the fear of “going all out”, allowing technical service providers to obtain reasonable consideration, and ultimately allowing trillions of physical assets to be reborn on the chain.Perhaps RWA support funds are phased and may also be replaced by decentralized RWA funds, but as long as the problem can be solved, so what if it is replaced?Just like a shooting star, I have quietly passed by.
