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

Recently, many institutions and projects have been actively exploring the RWA field. The current 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 the support from various governments make it possible for RWA to become an important bridge connecting traditional finance and decentralized finance.

RWA not only addresses the hollowing-out problem in blockchain finance, but also brings new investment methods and financial expressions for real-world assets. In the future, RWA is expected to construct a boundaryless world on a public ledger of real assets.

1. Recent Market Dynamics and Key Events

market-related dynamics

1. The market size continues to grow, with the total market value of RWA-related tokens exceeding $10.62 billion, a year-on-year increase of 61%. Traditional financial giants such as BlackRock and JPMorgan are actively positioning themselves, and it is expected that the scale will surpass one trillion dollars in the next five years.

2. Progress has been made in regulatory compliance, such as Mantra Chain obtaining the VASP license from VARA.

3. Starcoin collaborates with multiple institutions and plans to put $3 billion of real-world assets on the blockchain by the end of 2025.

4. Alchemy Pay announced that its products will integrate RWAs, introducing traditional financial assets such as U.S. Treasury bonds and blue-chip stocks.

5. The Bitcoin liquidity protocol Yala has launched the RealYield platform, integrating RWA to provide structured returns.

6. Multiple Web3.0 companies will host the RWA REAL UP Dubai Summit 2025 in Dubai.

Technology Innovation Dynamics

1. Quant Network has launched the Overledger system that supports multi-chain applications, enhancing RWA cross-chain liquidity.

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

Project Financing Dynamics

1. Plume secures $20 million in funding to build an RWA financial ecosystem.

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

Hong Kong and China's RWA development

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

2. The Hong Kong Monetary Authority launched a digital bond grant program and the Project Ensemble sandbox project.

3. The 2025 Web3 Festival will be held in Hong Kong, and RWA tokenization has become a focal topic.

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

2. Industry Observation and Reflection

The main challenges in the current development of the RWA industry

1. Regulatory uncertainty: There are significant differences in regulations across regions, and a lack of a unified framework.

2. Barriers: User acceptance and adoption still need to be improved.

3. Sustainability and Volatility: Tokenization may lead to excessive speculation.

4. Technical Challenges: Security and Scalability Issues of Smart Contracts.

5. Liquidity issues: Some RWAs still face insufficient liquidity after tokenization.

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

Industry Observation and Reflection

1. The final form of RWA: centralized on-chain regulation before and decentralized circulation after on-chain.

2. Activating the vitality of the secondary market is the key to the takeoff of the RWA industry.

3. RWA can both tokenize traditional finance and traditionalize cryptocurrencies, achieving bidirectional value capture.

Appendix: Regulatory Framework for RWA in Major Jurisdictions Worldwide

United States

• Regulatory agencies: SEC, CFTC
• Core regulations: Security tokens are subject to securities laws, while commodity tokens are regulated by the CFTC.
• Key measures: KYC/AML requirements, expansion of securities identification

Hong Kong

• Regulatory Authorities: Monetary Authority, Securities and Futures Commission
• Core Framework: The Securities and Futures Ordinance incorporates security tokens.
• Key Measures: Ensemble Sandbox Program, Stablecoin Gateway Policy

European Union

• Regulatory Authority: ESMA
• Core Regulation: MiCA
• Key Measures: Liquidity Restrictions, Luxembourg Fund Structure as Issuance Channel

Dubai

• Regulatory Authority: DFSA
• Core Framework: Tokenization Sandbox
• Advantages: Equivalent to EU regulations, supports DLT applications

Singapore

• Security tokens incorporated into the Securities and Futures Ordinance
• Functional tokens must comply with anti-money laundering regulations.

Australia

• ASIC classifies RWA tokens that grant income rights as financial products.