RWA Track Analysis: Financial Giants Actively Positioning, Will the Crypto Assets Market Welcome a New Bull Run?

The birth of phenomenon-level enterprises or projects often stems from changes in market constraints and breakthroughs in ceilings. As new market spaces emerge, not only some trading platforms but also traditional financial institutions such as Goldman Sachs, Hamilton Lane, Siemens, and several leading DeFi protocols are actively laying out in the RWA track. RWA seems to target a trillion-level incremental market, attempting to carve out new paths in the traditional financial market and inject significant liquidity and broad market opportunities into the DeFi market.

Recently, an online live broadcast themed "RWA - Current Status and Trends of the Future 10 Trillion Track" was held on social media platforms. This event brought together multiple industry experts to deeply discuss issues such as the importance of RWA, its operating mechanism, conditions for its explosion, tokenization, and how to layout, among others.

Wonderful Insights

• Traditional finance has advantages in the RWA sector because the blockchain native ecosystem has limited understanding of this.
• RWA is a bridge and tool connecting the real world and the encryption world, an important step for bilateral integration and development.
• Operating credit and compliance under a decentralized framework is the only way for DeFi to connect with RWA.
• Hong Kong, as an international financial center, is very suitable for the development of RWA, as local investors tend to prefer tangible assets and anchor items.

Main Discussion Topics

The importance of RWA

A co-founder of a certain Crypto Assets content platform stated that RWA represents the integration of the traditional financial world and the Crypto Assets world, which is a development that industry insiders are pleased to see. This concept is likely to become the new narrative for the next bull run.

The CEO of a fintech company believes that the traditional financial industry is always reluctant to miss new opportunities, which is very different from traditional industries. The development of blockchain technology is an undeniable trend. The logic of the financial industry is always about hedging, and getting involved in this potentially disruptive industry is a form of hedging, especially when the target of the disruption could be traditional finance itself.

Definition and operation mechanism of RWA

The founder of an investment institution defines RWA as the tokenization of real-world assets, divided into three stages: asset digitization, standard data credibility, and credible data tokenization. He believes that RWA is a bridge and tool linking the real world and the encryption world, and an important step for bilateral integrated development.

Another expert classifies RWA into three categories: assets that are already securities off-chain; off-chain non-standardized financial assets (such as debts, private equity, private fund shares, etc.); and consumption rights with non-financial attributes.

The development prospects and challenges of RWA

Experts believe that RWA may become one of the important narratives in the next Crypto Assets industry, but it will not be the only one. The explosion of this track mainly depends on regulatory certainty. If traditional financial funds can enter the blockchain industry, RWA will gain greater development space.

In the process of RWA tokenization, the most important factor is the establishment of credit. The de-crediting philosophy of the blockchain-native ecosystem is not applicable in the RWA field. Experts emphasize that finance is based on credit, and credit comes from capability. The core of RWA lies in how to transfer demonstrable credit from off-chain to on-chain.

The combination of RWA and DeFi

Experts believe that for DeFi to integrate with RWA, it is first necessary to focus on credit issues and consider how to achieve efficient and transparent operations. Operating credit and compliance within a decentralized framework is considered the only way for DeFi to connect with RWA.

DeFi can provide smart contract-based financial services for RWA tokens, such as lending, liquidity provision, and derivatives trading. To layout the RWA track, it is necessary to establish a secure and reliable smart contract platform and integrate it with the DeFi ecosystem to promote the use and liquidity of RWA tokens.

The advantages of Hong Kong

Experts point out that Hong Kong, as an international financial center, is very suitable for the development of RWA. Hong Kong investors are more inclined towards tangible assets and anchors, which provides a good development environment for RWA. In addition, Hong Kong's friendly regulatory policies and diversified financial product portfolio also provide strong support for the development of RWA.

Overall, RWA, as a bridge connecting traditional finance and the Crypto Assets world, is receiving increasing attention from financial giants and blockchain projects. With advancements in technology and clearer regulations, RWA is expected to bring more innovation to the financial industry, providing investors with new investment and profit opportunities. However, in this process, how to establish a reliable credit system, address technical and legal issues, and how to deeply integrate with the DeFi ecosystem are all challenges that require ongoing attention and resolution.