Compiled by: Golden Finance
On July 10, an exclusive column jointly launched by Bitcoin Master, MetaBridgeCN, Golden Finance and Twinkle focused on the hot topic of RWA, and invited senior industry professionals such as HashKey Chain Senior Director Yuyi, Injctive Developer Vincent, UWEB Co-founder Romeo, and Asteroid X Co-founder Ben to have an in-depth dialogue on "Risks, Challenges and Future Development of RWA". In the dialogue, the guests not only shared the practical experience of their respective projects, but also presented the real ecology of the RWA track from all aspects, from definition analysis, user participation path, risk identification to future prospects.
This dialogue aims to break the information barriers in the industry and enable new and old investors to more clearly understand how RWA "increases wallet balance". The following is a complete transcript of this dialogue.
At the beginning of the dialogue, the guests introduced the core business and recent developments of themselves and their projects in turn.
"I come from HashKey Chain," Yuyi first introduced, "HashKey Chain is a blockchain authorized by financial institutions and tokenized assets. It is committed to promoting compliant and scalable on-chain financing. As a compliance-friendly blockchain infrastructure, it provides institutions with a secure on-chain environment and can provide a secure on-chain infrastructure for traditional and non-traditional financial assets."
As a blockchain platform focusing on tokenized assets, the core goal of HashKey Chain is to solve the compliance and security issues of real-world assets on the chain. Its recent cooperation with traditional financial institutions such as GF Securities is an important practice on its road to compliance.
"Injctive is a modular blockchain designed for the next generation of decentralized finance." Vincent introduced that its technical features include "up to 25,000 TPS, almost zero handling fees", and "very powerful native modules and functions designed specifically for some decentralized transactions."
He further explained: "Any business project that accesses our ecosystem can automatically obtain shared liquidity. The convenience of these two functions is a value-added function that can provide their assets with shared liquidity and anti-MEV order library."
Recently, Injctive released the EVM test environment. "In the future, Injctive can also experience the same EVM usage environment, and integrate 25,000 TPS, almost zero handling fees and other advantages." It is worth noting that Injctive has been firmly transforming the trend of RWA since the creation of the project. It has not only become a member of the American Blockchain Association (contemporary members include giants such as Circle and Coinbase), but also promoted the implementation of the US RWA policy. Its ecological project Halo X decentralized exchange "began to go online on the US stock market about a year ago, and the daily trading volume is very good."
Ben, co-founder of Asteroid X: "In the past few years, I have been engaged in research related to web3 and financial technology in Australia. I am currently the director of the Web3 project at Monash University. I have also participated in the development of some federal-level Web3 projects and have been investing in some mining rights in Australia."
Asteroid X is "an e-commerce financing platform focusing on the field of mining exploration". The core logic is "to use web3 technology to transform high-quality early-stage mineral assets that used to have high thresholds and low liquidity, which were completely inaccessible to ordinary investors, into NFTs in a fragmented form and put them on the chain, so that everyone can participate in the early investment of these assets."
Ben took the latest project PC go as an example: "It is a gold mining project in New South Wales, with proven reserves of more than 800,000 ounces. Since it has not been mined, the financing price is only more than 30 yuan per ounce, while the market price of gold is more than 3,000 US dollars. If all of it is mined in the future, according to the current gold price, the capital opportunity will increase by about 1,000 times." Through a sound legal framework, Asteroid X will "put this type of project on the chain in the form of NFT, on a public chain such as Hashkey Chain, and each user can participate with only a dozen yuan."
Romeo, co-founder of Uweb: "Uweb is a platform that focuses on education and training in digital asset investment. Yesterday, it was officially announced that it had promoted a round of financing. The first is equity financing, and of course there are some plans for tokens."
The team was formerly an international university team, "which has been rooted in education and training in the crypto industry." Romeo mentioned that in the field of RWA, UWEB focuses on "the combination of the real world and traditional assets" and has reached a strategic collaboration with the "Institute of Certified Public Accountants and Asset Analysts" in Hong Kong. I was hired as the Secretary-General of the Institute, and my important work is to promote the professional certification examination for digital asset analysts." He explained: "Hong Kong is a licensed culture, and the key is talent. We hope to help the Hong Kong government promote standards and allow more professionals to enter the encryption or Web3 industry." (V) KiKi: Twinkel - Empowering the Web3 content ecosystem with Web2 film and television standards KiKi, business director of Twinkel: "Twinkel plans to bring the mature film and television shooting standards of web2 to web3, and shoot and produce high-quality film and television short dramas and light-hearted and interesting entertainment programs." Previously, the short drama "Black Amber" was launched, and the "Chain Big Players" series of variety shows are currently being filmed, and "a new love variety show will be filmed next week." The first episode of "Big Players on the Chain" has been launched and can be watched through platforms such as Twinkel and Golden Finance. "Yesterday, we held a special space and invited 16 guests to share interesting stories about filming. The scene was very lively." The second episode is expected to be launched next Wednesday, and "partner benefits will continue to be distributed throughout the month."
"I am a trader and I am currently working on a quantitative fund, mainly doing arbitrage." As the initiator of the column, Bitcoin Master emphasized that the core of this dialogue is "talking about the market and caring about how to increase the balance of the wallet", and RWA is the track worth in-depth discussion in the current market.
"Use a life case to illustrate what RWA is?" The host's first question allowed the guests to start from practice and dismantle the core logic of RWA - "Converting real assets into tradable tokens on the chain, with real assets backing them."
“Stablecoin is a synonym for RWA. For the current stablecoins that are slightly more compliant, such as USDC, the issuer must have $1 in real assets or U.S. bonds to mint stablecoins.”
He further explained: “This is the core of RWA - any valuable thing with real-world wealth or asset attributes, as long as it comes to the chain, is an RWA. For example, real estate is put on the chain as NFT, and stock tokenization is traded on the chain. The essence is the same. There must be real-world things or wealth endorsement behind them.”
“For example, a house that is being rented out, the rent is assumed to be 3,000. RWA is equivalent to splitting the equity of the house into 3,000 shares, each worth 1 yuan, which can earn rental income every day and can also be exchanged for other digital assets in the market.” Yuyi explained with a real-life example.
Yuyi highlighted the cooperation with GF Securities: "GF Securities (Hong Kong) has become the first securities firm to issue tokenized securities in Hong Kong, and has fully connected to HashKey Chain as the core on-chain issuance network." The project is limited by Hong Kong regulations and can only be issued at the primary level at present, "targeting high-net-worth individuals and institutional professional investors", but it marks "Hong Kong has taken an important step in the tokenization of physical assets RWA."
"GF Token has launched three currencies: USD, HKD and offshore RMB. It uses Web3 technology to achieve transparent and traceable transactions, allowing GF to truly provide on-chain products. In the future, it will also launch secondary issuance for public investors, depending on the overall plan."
"Bitcoin is actually the best representative of RWA. It is a real-world asset and can even become a production machine for encrypted cash flow, but it has not been properly tokenized."
He believes that the concept of RWA is even bigger: "As long as real-world assets are initiated on the chain, whether through compliant or non-compliant channels, they are considered RWA. But the long-term trend is compliance - assets with underlying assets, collateral, and good cash flow have more opportunities."
Romeo takes Hong Kong as an example: "Now Hong Kong has made some monetary funds the underlying, and first RWA the easiest products to solve. This is very important for the industry - Only by allowing more investors to obtain real returns can the industry go further. High-liquidity money funds may be a landmark event. ”
“In the past, during the ICO boom and NFT boom, many physical assets were put on the chain, but now there are basically no projects that can survive. Why not? Maybe these assets themselves do not need the liquidity and fragmentation services of Web3. For example, after buying a house, will you really trade it?”
He further analyzed: “Web3 users expect ‘ten times in two months’, but houses ‘doubling in two or three years’ cannot meet this requirement at all, which is why many RWA concepts have not gone on.”
The mining rights project is different: “It is very similar to Meme, a zero-sum game. It is known that mining rights have resources, but mining requires drilling and reporting. These costs need to be digested by fundraising, and there is uncertainty behind them.” This “high risk and high return” feature is more suitable for Web3 users to participate.
“Is RWA now just a game for the rich? How can ordinary users participate at low cost?” The guests unanimously agreed that the threshold is decreasing and ordinary users already have multiple paths to explore.
“RWA is indeed a bit of a rich person’s game at this stage,” Yuyi admitted. “Hong Kong’s compliant RWA initially targeted institutions and high-net-worth individuals, but the threshold is dropping rapidly.”
Yuyi gave an example: “We have cooperated with China Taiping Insurance (CPIC) and Bosera. Traditional financial assets such as high-quality US dollar bonds, US dollar compensation, and Hong Kong dollar compensation used to start at 100,000 yuan, but now only require a few hundred yuan.”
In terms of non-traditional financial assets, “the starting threshold for RWA of large-scale income rights in Hong Kong and Southeast Asia has been reduced from 100,000 yuan to a few hundred yuan, and users can use brokerage APPs to obtain income”, and “the income of traditional financial assets is guaranteed, which is suitable for ordinary users”.
“At this stage, policies and product forms are still being explored, and large users dominate the game, but ordinary users have opportunities.” Vincent suggested, “You can first participate in the on-chain U.S. stock tokenization products.”
He also mentioned: “You can also study the infrastructure of the RWA ecosystem, such as Chainlink, which may have potential opportunities. RWA is not used to get rich overnight, but to do asset allocation and reduce volatility risks.”
“RWA provides a kind of inclusiveness,” Romeo believes, “Not everyone will buy U.S. Treasuries, but through tokenized products, ordinary people can easily participate.”
He observed: “Hashkey The expected rate of return of the tokenized products of the exchange is slightly higher than that of the money market funds purchased with traditional fiat currency. This may be a subsidy from the platform, just like the welfare of Internet startups in the past, where investors can ‘take advantage of the situation’.”
But he also emphasized: “High-value assets are still a game for the rich. Only money market funds have a huge carrying capacity. Most RWA opportunities lie in ‘price mismatch’ - the assets themselves are valuable, but have not been tapped yet, and the financing threshold for small-scale high-quality assets has been lowered, which may generate a high premium, but such scarce projects are likely to be intervened by institutions at an early stage.”
For ordinary users, “you can pay attention to RWA-related companies in the US and Hong Kong stocks. When they promote the implementation of RWA, buying stocks may be a phased opportunity (not investment advice)”.
"Good assets will never belong to ordinary people," Ben said bluntly, "Hashkey faces high-net-worth people. Only with millions of assets and connections can you invest in good projects. This is a game for the rich."
But Asteroid X is challenging this rule: "We lower the threshold. For example, PC go, the traditional IPO raised more than 2 million US dollars, which was snatched up by mining funds and big banks. Retail investors have to start with 50,000 Australian dollars, and the number of shareholders is limited to no more than 50. After we negotiated, we split it into thousands of shares, and each person can participate with more than ten yuan."
He also mentioned the incentive mechanism and liquidity design: "Traditional equity investment can only make money at IPO, but through tokenization, users can pledge tokens to generate additional income without affecting future equity conversion; our product has a built-in market place, and if you don't want to hold early equity, you can place an order to sell it."
"RWA is not an absolute game for the rich," Ben In summary, "The key is whether the project party has done a good job of compliance and designed a good mechanism so that users can understand, afford and exit, and realize the democratic redistribution of investment methods."
"The annualized returns of RWA projects range from 5% to 50%. How to identify whether the assets are real and not Ponzi schemes?" The guests proposed the core judgment criteria based on their anti-fraud experience.
"Whether an asset is reliable depends on five aspects:" Yuyi summarized, "First, the authenticity and verifiability of the asset, including law firm audits and disclosure by custodians; second, compliance, whether it has obtained local regulatory approval; third, financial implementation, whether blockchain technology is really used, otherwise it is not a blockchain project; fourth, whether the income structure is reasonable, and when the annualized rate is 30%-50%, it must be transparent; fifth, partners, which indirectly judge the reliability."
Yuyi emphasized: "Hong Kong's supervision is very friendly to most investors. If these five standards are met, it is basically a formal project."
"All risks and returns are proportional in theory, but in reality, there are more cases where risks outweigh returns, especially when the returns are high." Romeo reminded, "RWA is something that exists in the real market, and the U.S. Treasury benchmark interest rate is 4.25-4.5%, the yield of money market funds can be checked. If the yield of tokenized products far exceeds this, be highly alert. ”
"Now there are frauds, pyramid schemes, and Ponzi schemes under the banner of RWA, taking advantage of users' eager mentality, fabricating high returns, and packaging old scams with web3 terms." Vincent suggested, "Everyone should be familiar with the scam words, watch anti-fraud propaganda films, and have basic anti-fraud knowledge."
He emphasized: "You must have a correct mentality. Retail investors participate in asset allocation. After in-depth research, invest again. Don't bet your life on it. The yield of US bonds is only about 3%. It is impossible to turn over by relying on this. If you want to find opportunities in RWA, it is better to focus on ecology and innovative protocols."
"Every year, Chinese people are scammed by web3 Project scams, the subject matter changes from the metaverse to RWA, but the scammers can always make you believe it is true. "Ben combined with Australia's anti-fraud experience, "For RWA, the key is not what the project party shows you, but that you find out by yourself or through third-party channels that 'there is this thing, and it is under the name of the project party'." He took his own project as an example: "We cooperate with the world's leading mining auditing company, first audit, invest first, and then take out the project. The mining right number, location, owner, and validity period can all be checked on the platform, and the contract and statement can be downloaded and saved. In a real RWA project, users earn the money they should have, not the money given out of thin air by the project party." 5. Future Outlook: Which fields will explode? - Potential tracks from traditional finance to computing power leasing "Which fields of RWA may explode in the near future?" The guests gave their own judgments from the perspectives of asset characteristics, technical adaptation, and market demand.
"RWA that can be issued on the chain must meet three conditions: fair value, circulation value and profitability." Yuyi is optimistic about two categories, "First, traditional financial assets have a large amount of funds and markets, and the bottom price is clear, such as bonds; second, bulk futures are relatively solid and quantitative, and can maintain and increase value, including energy, metals, non-ferrous metals and other technical derivatives."
She specifically mentioned: "AI computing power leasing may explode in the next few years, which is in line with hot spots and technology trends."
"RWA is greatly affected by policies," Vincent believes, "For example, after the passage of the stablecoin bill, it may prompt a breakthrough in dollar-denominated assets on the chain, but it is difficult to determine which specific field will explode, and it still depends on the implementation of the policy."
"I personally like computing power products," Romeo explained. "Computing power assets are digitally friendly in nature. The delivery is the delivery of names and numbers. The on-chain data is smoother and the offline friction cost is low. Moreover, the return rate of computing power assets is good, 8-12%, which is higher than money market funds (5-8%), and is very attractive to investors."
He is also optimistic about bonds: "Bonds have a long-tail effect and fixed interest rates. Except for some corporate bonds with high risks, they are generally stable. When investors hear about 'collecting rent' and 'computing power income', they feel stable and easy to accept."
"First, heavy assets with low investment thresholds," Ben It is believed that "the threshold is high and retail investors cannot participate, such as our mining rights project; the second is the on-chain mapping of traditional stocks, as well as the financing and trading of unlisted equity, which echo the lowering of the threshold; the third is financial assets, such as bonds and accounts receivable, which are already in the market and may become mainstream in the future."
From stablecoins to mining rights NFTs, from compliant bonds to computing power leasing, in this dialogue, the guests outlined the diverse picture of RWA: it is both an inclusive tool that "breaks 100,000-level assets into hundreds of pieces" and a battlefield for "high-net-worth people and institutions to compete for high-quality assets"; it requires the underlying logic of "real asset endorsement" and relies on the dual drive of "compliance and technological innovation".
The RWA market size predicted by Boston Consulting Group will reach 16 trillion US dollars in 2030, which is both potential and challenge. When technological innovation and regulatory adaptation find a balance, and when more projects like HashKey Chain, Injctive, and Asteroid X are put into practice, RWA may be able to truly realize the vision of "allowing everyone to invest in high-quality assets." For ordinary users, only by staying rational, learning to judge, and choosing the right path in this wave can they truly seize opportunities and let the "wallet balance" grow with the industry.
This may be the ultimate meaning of RWA - connecting reality with the chain, making wealth distribution more equitable, and making investment opportunities more inclusive.
Live playback link: https://x.com/i/spaces/1MnGnwQZqYdJO
Note: This article is based on the live discussion of the guests and does not constitute an investment advice. The market is risky and decisions need to be made with caution.
As a leading international financial center in the world, Hong Kong is actively exploring the tokenization of real-world assets (RWA), striving to promote the further development of the financial market through innovative technologies.
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