How can RWA be implemented in traditional enterprises? A complete breakdown of three paths: Equity Confirmation, Payment, and Financing.

The proof of rights confirmation, payment and financing, taking new energy as an example, breaks down the value, boundaries, and risks of three RWA paths. This article is derived from a piece written by Pharos Research and organized, compiled, and authored by PANews. (Background: China’s regulatory crackdown! Reuters: Beijing halts Chinese brokerages' "RWA tokenization business in Hong Kong", a reflection of the regulatory conflict of one country, two systems) (Background supplement: How does RWA help DeFi break the dimensional wall? Let crypto assets move towards external circulation) RWA (Real World Asset, real-world assets on-chain) is not a new concept, but it has recently received widespread attention again. Driven by the shift in regulatory winds in the United States and policy support in Hong Kong, related practices continue to emerge, including the tokenization of financial assets such as U.S. Treasury bonds, stocks, and FOFs, as well as the exploration of various physical assets on-chain. According to data from DefiLlama, as of September 15, 2025, the total value locked (TVL) of RWA on-chain globally has reached $15.7 billion, a growth of 279% compared to January 2024. Truly valuable RWA is not just about moving existing financial products onto the chain, but deeply embedding blockchain capabilities into the real business of traditional industries, achieving a fusion of credible data, automated processes, and financing innovation. This article will introduce three paths for traditional enterprises to implement RWA: Path One focuses on proof of rights confirmation (without issuing tokens), Path Two involves issuing tokens but does not involve securities attributes (payment/storage purposes), and Path Three involves issuing tokens with securities attributes (financing/revenue type). Below, we will take the new energy industry as an example to analyze the three paths traditional enterprises take to implement RWA, demonstrating how blockchain enhances the credibility of data, settlement efficiency, and financing space in traditional businesses, helping readers understand the differences, choose suitable solutions, and anticipate risks. 01 Background and Pain Points: Why Talk About RWA Now RWA is not a new concept; at the early rise of blockchain, attempts were made to digitize and tokenize assets such as real estate and equity, but due to technical and regulatory constraints, the impact was limited. In recent years, with the evolution of regulatory attitudes and the maturity of technology, RWA has re-emerged as a focus. For example, the DeFi project MakerDAO used real-world asset U.S. Treasury bonds as collateral in 2019 to support its stablecoin DAI. At the end of 2023, BlackRock tokenized its short-term U.S. Treasury fund shares via Ethereum, allowing investors to receive Treasury bond yields in real-time by holding tokens. This marks the beginning of traditional large institutions embracing the RWA concept, bringing highly liquid traditional financial assets (Treasuries, money market funds) into the on-chain ecosystem. On the other hand, explorations of RWA in non-financial fields are also underway, such as data on-chain and trading circulation of supply chain receivables, carbon credits, intellectual property rights, and other assets. Overall, the development of RWA is transitioning from "concept validation - regulatory pilot - policy framework formation" towards compliant implementation. There is no separate legislation for RWA regulation, and countries mostly manage it within existing financial frameworks: if the token has securities attributes, it is regulated under securities law; if it involves payment and settlement, it falls under payment and stablecoin regulations. In the United States, institution-led tokenized fund shares and bond issuances are handled under securities regulations, and the Federal Reserve system's Project Cedar and others still belong to the settlement sandbox. Starting in 2025, Hong Kong will implement the "Stablecoin Ordinance" while exploring RWA use cases including new energy revenue rights through the Project Ensemble sandbox. The European Union manages stablecoins and crypto service providers under the MiCA framework, while securities-type RWAs continue to be subject to existing capital market regulations such as MiFID II. The pain points of traditional industries provide a place for RWA to be useful. For a long time, the trading and financing of physical assets have faced issues such as unclear ownership, inefficient processes, and insufficient liquidity. Taking new energy as an example, the revenue rights of photovoltaic power plants lack transparent registration and circulation platforms, leading to difficulties in due diligence and making it hard to realize assets in a timely manner. The immutable, traceable, and publicly transparent characteristics of blockchain can clearly confirm rights, leave verifiable traces, and support automated settlement, alleviating information asymmetry and improving efficiency. In supply chain finance, if contract and pledge status is shared on-chain, it can also reduce fraud risks such as multiple pledges on a single item. Cross-border payments are also a pain point. Through SWIFT remittances, it often takes several days, involving multiple intermediaries and incurring high costs, with low transparency; on the other hand, on-chain payment tools can provide instant crediting 24/7, completing settlements within minutes, at a cost of less than $1, which is highly attractive to new energy companies relying on global supply chains. From the perspective of regulation and auditing, traditional financing lacks data authenticity and transparency. RWA, through verifiable data and on-chain disclosures, allows every asset transfer and yield distribution to be subject to transparent auditing, balancing trust and efficiency. At the same time, global financial and technology companies are accelerating their layout: Citibank and Standard Chartered are exploring tokenized settlements, Ant Group has launched the RWA chain Jovay for institutions; places like Hong Kong are setting up licensing systems and sandbox pilots, with regulators adhering to the principle of "substance over form." Overall, compliance + innovation is becoming the main theme of RWA. The pain points of traditional enterprises and the advantages of blockchain create a supply-demand match, and policy relaxation has ignited a new wave of practical enthusiasm. 02 Three Paths for Traditional Industries to Implement RWA RWA does not equal issuing tokens for fundraising; traditional industry enterprises implementing RWA can be categorized into three paths based on whether tokens are issued and their attributes. The following will define and analyze each path's application scenarios, value, and limitations one by one. 2.1 Path One: Rights Confirmation/Proof Type RWA (No Token Issuance) This path embeds blockchain as a "proof of rights confirmation" tool into business processes without issuing circulating tokens. Enterprises do not directly finance through token issuance, but instead utilize on-chain hashing proof, timestamps, and distributed ledgers to perform rights registration, status recording, and credible circulation of physical or data assets. Typical application scenarios include: In the real estate sector, synchronizing property registration onto the blockchain to prevent ownership disputes such as "double selling"; in the industrial equipment sector, using IoT sensors to instantaneously upload operational data (like power generation of photovoltaic power plants, usage duration of charging piles) onto the chain, ensuring asset status transparency and preventing equipment from being misused; in the data factor sector, fully uploading the data collection, proof, and rights confirmation process onto the chain, clarifying the ownership and usage rights of data assets. For the new energy industry, typical practices of Path One include: uploading data such as power generation amounts and carbon reduction proof of new energy power stations onto the chain as proof, forming an authoritative and credible digital record repository. This data evidence can be verified by financial institutions, thereby improving the efficiency and credibility of carbon trading and green loan auditing. Case: Singapore Green Finance Data Proof (MAS Project Greenprint) [2] The Monetary Authority of Singapore (MAS) initiated Project Greenprint in 2021 with the aim of enhancing the transparency of ESG and green finance data through blockchain and API technology. The ESGenome platform under this project supports companies in disclosing ESG data and conducts proof through on-chain hashing to ensure information is immutable and traceable. Meanwhile, the Singapore Energy Authority (EMA) and SP Group launched a renewable energy certificate (REC) platform, allowing companies to complete the purchase, transfer, and cancellation of green electricity certificates on the platform, with relevant credentials being stored on-chain for compliance with carbon reduction regulations and green loan verification needs. Through this approach, Singapore achieves...