Opportunities and Challenges of RWA Project Implementation

At the beginning of 2025, two major announcements were made in the Hong Kong region: the first retail tokenized fund in the Asia-Pacific region was launched in Hong Kong, and the Financial Secretary of Hong Kong announced that the second "Hong Kong Virtual Asset Development Policy Declaration" would be released soon. These positive news are widely seen as a representation of the realization of RWA project compliance. At the same time, the first RWA project in the agricultural sector on the mainland, "Malou Grapes," successfully raised 10 million at the Shanghai Digital Asset Exchange, further confirming the shift of RWA tokenization from concept to implementation.

Recently, asset providers, intermediary service providers, and primary investors have been actively working on related tasks, with frequent project consultations and discussion meetings. The underlying assets involved cover a wide range, including bonds, gold, rare metals, non-performing assets, agricultural products, property rents, bulk commodities, digital copyrights, fan economy, and many other fields.

However, as the project validation deepens, many project parties begin to return to the essence and continuously ponder the following questions:

• Is the project suitable for RWA?
• What kind of projects are most suitable for RWA?
• What are the requirements for RWA regarding underlying assets? Are all real assets applicable?
• What type of tokens are issued?
• Are cryptocurrency investors interested in asset-backed by physical commodities?

Based on practical experience, we believe the ideal RWA path is: mainland assets + data compliance for outbound transfer + raising overseas funds, achieving controllable assets, trustworthy data, and fund availability.

1. The Essence and Characteristics of RWA

RWA(Real-World Assets Tokenization) refers to the process of packaging and storing the value, operations, earnings, and other data of real-world assets on the blockchain, creating digital tokens that are issued to investors for financing and trading on-chain.

The main features of RWA financing include:

1. Core assets as the foundation

RWA financing revolves around underlying assets rather than corporate credit. As long as a certain batch of assets owned by the enterprise is valuable and has potential, it can be packaged and financed on-chain. Assets suitable for RWA include:

• Stablecoins: such as USDT, USDC, etc.
• Bonds and Stocks: such as USYC
• Real Estate: such as RealT
• Commodities: such as PAXG

2. High financing speed

With the help of blockchain technologies such as smart contracts, RWA has digitized the entire financing process, achieving the structuring and standardization of data. From asset evaluation to fundraising, the efficiency of the entire process has greatly improved.

3. Improve asset liquidity

RWA lowers investment thresholds and increases asset liquidity through tokenization, fragmentation, and internationalization. Although token prices may fluctuate with market sentiment, the underlying asset value provides a stable benchmark.

2. Challenges Faced by Enterprises in RWA

1. Compliance Challenges

Mainland China clearly prohibits virtual currency trading platforms from exchanging, buying, selling virtual currencies, or providing pricing services. Therefore, companies in the mainland must plan a compliant path:

• Tokens issued overseas
• The underlying assets can be located domestically or overseas.
• Projects can be linked domestically and internationally or only overseas.

For cross-border projects, it is necessary to first achieve asset financialization, linking products to standardized financial products such as stocks, bonds, and shares ( to adapt to the existing legal framework.

) 2. Attracting Investors

After the issuance of tokens, generating value and attracting investment is a key challenge. Investors in the Web3 world often pursue high returns, while RWA tokens are anchored to assets, making their value relatively stable and difficult to achieve explosive growth.

Investors wishing to purchase RWA tokens must meet the following conditions:

• Interested in underlying assets
• Meets the conditions of qualified foreign investors ###

This significantly narrows the potential pool of investors.

3. Implementation Path for RWA Projects

( 1. Initial screening of feasible projects

Enterprises should fully understand their asset situation, clarify the underlying assets, and ensure their relevance to business operations. It is necessary to have cross-domain talent while understanding business operations, asset characteristics, and Web3 rules.

) 2. Technology and Compliance First

In-depth study of RWA solutions, including:

• Design token economic model
• Develop technical architecture
• Develop data collection methods
• Evaluate costs and timelines
• Plan compliance path

3. Project Execution Implementation

• Conduct due diligence
• Write a white paper
• Develop and deploy smart contracts
• Prepare legal documents
• Connect with relevant resource parties
• Achieve asset tokenization

4. Secondary market circulation

• Adjust according to policies, demands, and changes in investors.
• Assist enterprises in going online
• Customized investment and financing legal documents
• Provide dynamic compliance solutions

5. Continuous Operation Management

• Design and implement community operation plans
• Connect media and KOL resources
• Monitor and optimize operational processes
• Implement market capitalization management strategy

Through the full-process services of a professional team, enterprises can effectively avoid risks and improve the success rate of RWA project implementation. Choosing suitable underlying assets, designing reasonable token models, and complying with regulatory requirements are the keys to the success of RWA projects.