RWA: Building a Public Ledger World for Real Assets

Recently, many centralized institutions and decentralized projects have begun to explore the RWA track. The current RWA market size has reached $36.5 billion, a year-on-year increase of about 60%, covering various fields such as private credit, U.S. Treasury bonds, commodities, real estate, and stock securities. Although RWA still faces many challenges, the involvement of traditional financial giants and the active exploration by governments around the world have brought hope for solving the hollowing-out and scaling issues of blockchain finance.

RWA, as a bridge connecting traditional assets and blockchain finance, is expected to become the "sword bearer" of this parallel world. It can not only reshape traditional finance but also bring real-world opportunities onto the chain. We look forward to RWA achieving global borderless asset investment and financial expression, allowing investors to participate in various asset investments across borders at any time.

RWA has the potential to build a public ledger world based on real assets, creating a more open and borderless financial ecosystem.

Recent Market Dynamics and Key Events

market-related dynamics

1. The market size continues to grow, with a total market capitalization reaching $36.5 billion as of April 21, an increase of 0.7% in 24 hours. There are over 185 related cryptocurrencies, with a total market capitalization exceeding $10.6 billion, a year-on-year increase of 61%.

2. Traditional financial giants like BlackRock and JPMorgan are actively laying out plans in the RWA sector, with expectations that the scale will surpass one trillion dollars in the next five years.

3. Mantra Chain has obtained the VASP license issued by VARA in Dubai, marking progress in compliance for the RWA project.

4. Stellar blockchain collaborates with multiple institutions, planning to bring $3 billion worth of real-world assets on-chain by the end of 2025.

5. Alchemy Pay announced the integration of RWA, bringing traditional financial assets such as U.S. Treasury bonds and blue-chip stocks into the crypto ecosystem.

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

Technology Innovation Trends

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

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

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 Digital Technology to promote Hong Kong's first renewable energy battery swapping RWA project.

2. The Hong Kong Monetary Authority has launched the "Digital Bond Grant Scheme" and the "Project Ensemble" sandbox initiative to support asset tokenization experiments.

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

4. China Pacific Insurance launched a tokenized US dollar money market fund on HashKey Chain, raising 100 million USD on its first day.

Industry Observation and Reflection

The main challenges in the current development of the RWA industry

1. Regulatory uncertainty: There is a significant difference in regulatory frameworks across countries, lacking unified standards.

2. Adoption Barriers: Ordinary investors have insufficient understanding of RWA, resulting in low participation.

3. Sustainability and Volatility: Tokenization may lead to excessive speculation, affecting the confidence of long-term investors.

4. Technical Challenges: The security of smart contracts and the scalability of blockchain still need improvement.

5. Liquidity Issues: Some RWA tokens still face issues of insufficient liquidity after tokenization.

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

Observation and Reflection

1. The ultimate expression of RWA may be a combination of centralized pre-chain regulation and decentralized post-chain circulation.

2. Activating the vitality of the RWA secondary market is key to the industry's takeoff, and a Distributed Identity (DID) system may become an important breakthrough.

3. RWA can tokenize traditional finance and traditionalize cryptocurrencies, achieving value reconstruction in the crypto world.

In the future, RWA is expected to become an important bridge connecting traditional finance and the crypto world, injecting substantial value support into blockchain finance. However, to realize this vision, continuous efforts are still needed in areas such as regulatory compliance, technological innovation, and market education.