This morning on the subway, I saw someone talking about RWA going on-chain, saying liquidity has finally arrived… I couldn’t help but laugh a little and feel a bit anxious. The on-chain trading volume looks pretty lively, but honestly, a lot of it is “able to transfer” not “able to redeem.” When it really comes to returning to fiat currency, the redemption window, minimum amount, T+N, or even a counterparty saying “under compliance review” can block you, and on-chain is just putting the note in a fancier shell.

Now when I look at these kinds of projects, I prefer to first check the redemption clause screenshots: who has the final interpretive authority, how many conditions are written for triggering a pause, whether there is independent custody/audit evidence chain. Recently, the fuss over privacy coins and mixing coins has been quite intense and timely — on one hand, they want “composable liquidity,” but on the other hand, compliance boundaries are tightening, and the pressure ultimately falls on the redemption line. Anyway, I treat it as “liquidity exists under conditions,” don’t be fooled by the superficial depth.