RWA: Global Collaborative Exploration of Technology and Regulation

Introduction: The Digital Transformation of Real World Assets

RWA(Real World Assets) refers to real-world assets, which are the transformation of physical assets such as real estate and bonds into digitally tradable tokens on the blockchain. This concept originated from asset securitization in 2017 and has developed over 8 years into an important means of reshaping the liquidity of traditional global assets. RWA utilizes blockchain technology to aim at breaking through the boundaries of traditional assets and regulation, providing new possibilities for financial innovation.

According to RWA.xyz data, as of May 2025, the total market value of on-chain RWA reached $22.38 billion, an increase of 7.59% compared to 30 days ago, with the number of asset holders at 100,941, a month-on-month growth of 5.33%. Boston Consulting Group predicts that by 2030, the global RWA market size will reach $16 trillion, accounting for 10% of the global GDP.

The rapid growth of RWA has also brought some issues, such as “air coins”, “funding schemes”, and compliance arbitrage. These problems need to seek a balance between technological innovation and regulatory adaptation. This article will start from the global core tracks and representative projects to analyze the latest developments in RWA in depth.

Core RWA Tracks and Representative Projects Worldwide

Tokenization of National Debt: Institution-led Compliance Experiment

In the context of the global economy characterized by “three lows and one high” ( high debt, low interest rates, low inflation, and low growth ), the tokenization of government bonds has become the most popular direction for RWA. Blockchain technology can enhance the flexibility of government bond trading, reduce costs, and improve transparency, bringing significant growth opportunities to this low-risk sector.

In a leading international project, the BlackRock BUIDL Fund adopts the ERC-1400 standard, reducing SEC compliance costs by 30%, and surpassing $500 million in management scale three months after issuance. Goldman Sachs’ GS DAP platform issued $12 billion in digital bonds, shortening the issuance period from 2 weeks to 48 hours, with a 60% improvement in settlement efficiency.

In Hong Kong, the Monetary Authority has issued approximately HKD 7.8 billion worth of digital bonds through the CMU. Hong Kong is also promoting the Ensemble sandbox program to explore the application of asset tokenization. On the mainland, exploration is underway in the field of asset securitization, such as promoting policies for data asset inclusion in the balance sheet, laying the foundation for data asset on-chain.

Real Estate Tokenization: Challenges of Liquidity Reconstruction and Legal Adaptation

Real estate tokenization faces challenges such as liquidity reconstruction and legal adaptation. In the United States, RealT has lowered the investment threshold for real estate to $50, but some transactions have been suspended due to mismatches between on-chain and off-chain ownership. Hong Kong, China, allows tokenization of REIT shares, with projects like Munch piloting the splitting of restaurant revenue NFTs, reducing the financing cycle by 50%. In mainland China, a pilot of blockchain technology is being implemented through the Shenzhen real estate registration system, with 30% of property rights information recorded on-chain.

Tokenization of Carbon Credits: Compliance Game in Environmental Finance

Tokenization of carbon credits is an important direction for RWA. Internationally, the Toucan Protocol has accumulated a trading volume of $4 billion, but is restricted by Verra’s physical retirement requirements. The tokenization platform built by Ant Group in Hong Kong enables cash-to-cash transactions between carbon credits and green bonds. Meanwhile, the mainland has launched a blockchain carbon trading platform to achieve on-chain registration and trading of national carbon market quotas.

Breakthroughs and Conflicts in the Synergy between Technology and Regulation

Compliance Architecture Innovation: Offshore SPV and On-chain Sandbox

The Project Guardian led by the Monetary Authority of Singapore introduces Chainlink oracles, successfully establishing a bridge connecting off-chain real-world data with on-chain smart contracts. Mainland China has achieved a deep integration of technology and regulation in its digital yuan pilot. Hong Kong, on the other hand, clarifies the licensing system for virtual asset service providers through the “Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance (”.

) Technical Bottlenecks and Solutions

The reliability of oracle data, optimization of cross-chain interoperability, and security of smart contracts are the main technical challenges faced by RWA. Ant Group’s Ant Financial in Hong Kong is exploring the “Internet of Things terminal + multi-party secure computing” system in the “Langxin Project”, effectively avoiding the risk of contract breaches caused by data distortion. The mainland focuses on regional collaborative innovation, using the “Guangdong-Hong Kong-Macao Greater Bay Area cross-chain infrastructure” pilot as a breakthrough.

Liquidity Dilemma and Market Differentiation

The private credit market and the liquidity enhancement of non-standard assets are significant challenges facing RWA. The Hong Kong global shipping business network ###GSBN( is reconstructing the cross-border trade financing model through an electronic bill of lading tokenization pilot. The mainland, on the other hand, relies on a mature supply chain ecosystem to create an inclusive on-chain financial service system.

![25 Years Q3 Outlook: How can RWA balance technology, regulation, and the market from a global perspective including Mainland China and Hong Kong?])https://img-cdn.gateio.im/webp-social/moments-246c5c736f443e1f8c70d7b6737db74d.webp(

RWA Legal Compliance Framework and Case Analysis

) Domestic Legal Challenges and Compliance Pathways

The domestic regulation clearly prohibits token issuance financing ### ICO (, and RWA projects must use fiat currency or compliant stablecoins for settlement. Cross-border financing must comply with capital project management regulations, such as raising overseas funds through the Qualified Foreign Limited Partner ) QFLP ( model.

) Hong Kong sandbox mechanism and cross-border compliance

The Hong Kong Monetary Authority’s Ensemble sandbox provides a compliant testing environment for RWA projects. The stablecoin regulatory rules in Hong Kong achieve equivalence and mutual recognition with the EU’s MiCA framework, which is beneficial for reducing compliance costs. The “Stablecoin Bill” requires that any fiat-backed stablecoin or stablecoin pegged to the Hong Kong dollar issued in Hong Kong must apply for a license.

Comparison of International Compliance Frameworks and Interoperability Dilemmas

The global RWA regulatory system presents regional characteristics, mainly divided into securitization-led type ### in the United States (, sandbox experimentation type ) in Hong Kong (, unified legislation type ) in the European Union (, and emerging experimentation type ) in Dubai and Singapore (. The interoperability dilemma is mainly reflected in aspects such as fragmentation of protocol layers, conflicts of jurisdiction, and fragmentation of liquidity pools.

![25-Year Q3 Outlook: How can RWA balance technology, regulation, and market from the perspectives of Mainland China, Hong Kong, and globally?])https://img-cdn.gateio.im/webp-social/moments-6ee514c5297847cb7664d7ad2b20c978.webp(

Future Path Prediction

) Technology-driven ### Singapore-Hong Kong collaborative paradigm (

The second phase of the Hong Kong Ensemble Sandbox has launched a pilot for “regulatory rule codification”, collaborating with Singapore and other regions to build a cross-border sandbox cooperation network. In terms of oracle network upgrades, Chainlink’s CCIP technology has demonstrated outstanding results in the Hong Kong pilot.

) Regulatory Priority Type ### United States, European Union - Mainland, Hong Kong Benchmarking Paradigm (

Hong Kong and the United States have injected new momentum into the international mutual recognition of RWA compliance frameworks with their new moves in stablecoin policy. The Hong Kong Monetary Authority is actively drawing on the European Central Bank’s experience in blockchain wholesale transactions, piloting real-time settlement of the digital Hong Kong dollar and tokenized assets.

) Hybrid Path ### Institution-led Global Network (

In terms of collaboration between international institutions and Chinese financial technology, Ant Group’s digital technology arm and UBS jointly launched the Asia-Pacific New Energy RWA platform, aiming for a financing scale of $500 million by 2025. Progress has also been made in the compliance interface between SWIFT and blockchain, with Hong Kong participating in the innovative SWIFT GPI pilot project that integrates Chainlink oracles.

![25th Year Q3 Outlook: How can RWA balance technology, regulation, and market from a global perspective including Mainland China and Hong Kong?])https://img-cdn.gateio.im/webp-social/moments-a297aeab308b0f073ca4e4acea896140.webp(

RWA Market Chaos and Risk Warning

) “Air Coin” and “Capital Pool” are rampant

Some illegal projects use RWA as a pretext, but in fact, they rely entirely on multi-level distribution and pyramid scheme tactics without any underlying asset support. Some projects even use forged audit reports and the unauthorized use of well-known institutional logos to deceive investors into trusting them.

Compliance Arbitrage and Regulatory Loopholes

Some projects take advantage of cross-border regulatory differences for arbitrage, such as avoiding compliance checks for data crossing borders or registering in regions with lenient regulations to bypass strict securities law constraints. The participation channels for compliant RWA products in the mainland are limited, leading investors to turn to non-compliant projects.

Technical Risks and Operational Traps

Technical issues such as smart contract vulnerabilities and oracle data delays pose challenges to project operations and the security of investors’ assets. Some projects even build copycat chains, falsely claiming to be developed based on mainstream public chains to defraud investors.

![25 Years Q3 Outlook: How can RWA balance technology, regulation, and market from the perspectives of Mainland China, Hong Kong, and the global view?]###https://img-cdn.gateio.im/webp-social/moments-3cea8c2a5307a9434770a946e19c831d.webp(

Conclusion: Global Practices and Insights of RWA

The development of RWA faces a deep-seated contradiction between “decentralized liquidity” and “localized regulation.” In the future, as the dynamic balance between technological efficiency and regulatory security continues to optimize, RWA is expected to become a core link between the real economy and global capital. However, the current market is rife with chaos, requiring collaborative efforts from industry participants, regulatory agencies, and investors to promote the long-term healthy development of the RWA market.

![Q3 Outlook for 25 Years: How RWA Balances Technology, Regulation, and Markets from Global Perspectives including Mainland and Hong Kong])https://img-cdn.gateio.im/webp-social/moments-fa3e8a26c95b57a8dd116e0f25bbe6bb.webp(

![25 Years Q3 Outlook: How can RWA balance technology, regulation, and market from the perspectives of Mainland China, Hong Kong, and globally?])https://img-cdn.gateio.im/webp-social/moments-59eac4bc8c1ef0fb492bda049984ed92.webp(

![25-Year Q3 Outlook: How RWA Balances Technology, Regulation, and Market from the Perspectives of Mainland China, Hong Kong, and Globally?])https://img-cdn.gateio.im/webp-social/moments-621a48c69e347380b3518fe6783d9d44.webp(