New thinking on RWA

Source: Daoshuo Blockchain

In previous articles, I have written many times that the rise of AI agents has given me different ideas about many previous applications and scenarios.

Because the rise of AI agents may completely change the operating logic and operation methods of many applications and scenarios.

Recently, I saw a video explaining AI on the Internet, which gave me new thoughts on RWA.

This is a video of Bloomberg interviewing two entrepreneurs on January 22.

One of them is Larry Fink, CEO of capital giant BlackRock, and the other is Xiao Peng, CEO of artificial intelligence company G42.

In this video, Xiao Peng talked about the following points:

- In the future, each of us will have multiple AI agents.

- Cryptocurrency is the currency of AI.

- With the emergence of artificial intelligence, videos, texts, and sounds can all be forged. At that time, the only technology that can verify the authenticity of this is blockchain technology, which is an encrypted watermark based on blockchain technology, signed by real people with their own wallets to ensure the authenticity of the content.

- Because AI agents trade on behalf of humans, there will be a large number of 7 x 24-hour non-stop trading markets in the world in the future

Of these four views, we have repeatedly shared the first two in the article, and our readers should not find them new. The third view is very cutting-edge and interesting, and I share it for everyone to think about, but I will not expand on it in this article.

The fourth view is what I want to share today.

My understanding of RWA is:

Its goal is to tokenize off-chain assets with crypto assets and put them on the chain so that we can trade on the chain.

For this track, I have never understood what rigid needs it solves.

Let's take tokenized US stocks as an example.

Such transactions are actually trading US stocks. And the major traders of US stocks are generally traditional financial institutions. Which of these institutions does not have a legal channel for US dollar investment? Since they have such channels, why do they have to go through a detour and specifically exchange fiat currency for stablecoins and then go to the chain to buy tokenized US stocks?

If this market is not for big traders, is it for retail investors with crypto assets? But looking around, how many retail investors in the current crypto ecosystem can appreciate the rise of US stocks? Isn't it more exciting to buy meme coins? Even if you don't buy meme coins, buying Bitcoin is not bad, right?

It is neither a rigid demand for big traders nor a popular choice for retail investors, so where is its user base?

Even if we have a wild imagination and imagine that this market has great room for imagination, my view has always been:

Because this track involves a lot of regulatory issues and negotiations with government departments, it will be the fat of traditional financial institutions, and it has little to do with us retail investors. We retail investors are at most watching the excitement in this track, and the direct benefits we get from it are very limited.

In the video mentioned above, Xiao Peng mentioned that 7 x 24 hours of uninterrupted trading has opened up the ceiling for the RWA track.

Because AI agents do not need to rest like humans, they can be active day and night. I believe that AI agents in the financial field will have great room for imagination. This means that in the future there will be a large number of AI agents that are ready to trade at any time.

In the current global financial market, there are only a few 7 x 24-hour trading markets, and many markets are divided by time zones and holidays. This is far from satisfying the greedy and bloodthirsty appetite of finance.

Once there is an RWA market, all financial transactions are placed on the blockchain, which can support 7 x 24-hour uninterrupted trading, which provides great flexibility and profit opportunities for participants who aim to profit from trading. Because unlike humans, AI agents do not need to rest at all, they can conduct various transactions on the chain in real time.

The first thing that will be attracted by this trading scenario is the countless institutional investors, especially financial institutions that conduct quantitative trading.

Once this scenario is realized, the global financial landscape will be completely subverted, whether it is the transaction amount, transaction type or transaction scale, it will show an explosive blowout.

Such a scenario will not only subvert the existing encryption ecology, but also subvert the traditional financial ecology.

Since it is a subversion, it is bound to encounter resistance.

I don't think the resistance from the crypto ecosystem is big, but the resistance from the traditional financial ecosystem is probably not small, especially the resistance from regulation.

However, now that there is a leader like Trump who is friendly to the crypto ecosystem, I estimate that this situation will change a lot.

Therefore, in the next few years, I think the RWA market will accelerate its development, and traditional financial giants will do their best to promote the construction of a 7 x 24-hour all-weather trading ecosystem on the chain. The assets traded include not only crypto assets, but also stocks, foreign exchange, derivatives and even any profitable off-chain assets.

In this video, the CEO of BlackRock also appeared. This scene makes me feel that the attention and follow-up of traditional institutions to the crypto ecosystem are no longer what they used to be.

Four years ago, we might still be able to say that we retail investors were ahead of traditional financial institutions and got on the train of crypto assets earlier than them.

But now I think that these traditional financial institutions, represented by BlackRock, have already gone far ahead of a considerable number of our retail investors in many aspects. They have greater ambitions and more alternative layout ideas.