Trust, Not Technology, is the Real Barrier for RWA Adoption

Jack Kong, CEO of Nano Labs, posted on X that the real challenge for Real World Assets (RWA) integration lies in trust rather than technology. Banks are not primarily focused on 'on-chain' solutions but are more concerned with maintaining privacy, compliance, and certainty while accessing DeFi liquidity. These constraints make it unlikely for traditional financial institutions to directly engage with public blockchains. The most feasible approach involves institutions first establishing private blockchains to handle sensitive assets, and then selectively connecting to the public blockchain world using technologies like Zero-Knowledge Proofs (ZKP) and Fully Homomorphic Encryption (FHE). The recent 2300% surge in River's value is fundamentally driven by capital-fueled liquidity games. The true competition for RWA infrastructure is just beginning.