RWA Track Analysis: Financial Giants Actively Layout, New Opportunities in the Crypto Market?

Recently, a new market space is emerging, attracting the attention of numerous financial giants and top DeFi protocols. This emerging field is referred to as RWA (Real World Assets), seemingly targeting a trillion-level incremental market, expected to inject substantial liquidity and vast market opportunities into the DeFi market.

On the evening of June 30, an online live broadcast themed "RWA - Current Status and Trends of the Future 10 Trillion Track" was held on social media platforms. This event invited several industry experts to delve into hot topics such as the importance of RWA, its operational mechanisms, conditions for explosion, tokenization process, and how to layout.

Here are some wonderful insights shared by the guests during this live broadcast:

• RWA is a bridge and tool connecting the real world and the encryption world, and it is an important step for the integrated development of the two fields.
• 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, its unique financial ecosystem and regulatory environment make it an ideal location for the development of RWA.

Regarding the definition and operating mechanism of RWA, the guests put forward the following views:

RWA essentially tokenizes real-world assets, and this process is divided into three stages: asset digitization, standard data verification, and trusted data tokenization. In this way, credible assets from the real world can be transformed into on-chain assets, enabling rapid trading and circulation, and can be used for financial derivatives through various DeFi protocols.

RWA can generally be divided into three categories: assets that are already securities off-chain; non-standard financial assets off-chain (such as debt, private equity, private fund shares, etc.); and consumer rights with non-financial attributes. Each type of asset requires different qualification standards and governance methods.

Regarding the prerequisites for the explosion of the RWA track, experts believe that regulatory certainty is crucial. If traditional financial capital cannot enter the blockchain industry, the development of RWA will be limited. Conversely, if regulation is clear, it will bring double benefits: on one hand, speculative projects will struggle to survive; on the other hand, traditional financial capital will flood in.

In the process of RWA tokenization, the most important factor is credit. The concept of de-credibility pursued in the blockchain native ecosystem does not apply in the RWA field. The key is how to transfer demonstrable credit from off-chain to on-chain.

Regarding the connection between RWA and DeFi, experts believe that DeFi projects need to first clarify whether they care about credit and consider how to operate credit and compliance systems efficiently and transparently within a decentralized framework. This is the only way for DeFi to connect with RWA.

For how to layout the RWA track, it is recommended to include:

1. Establish a secure and reliable technological infrastructure to ensure the compliance and credibility of the tokenization process.
2. Obtain recognition and support from regulatory authorities.
3. Establish strong partnerships to promote the widespread adoption and liquidity of real assets.
4. Integrate with the DeFi ecosystem to promote the use and liquidity of RWA tokens.

Overall, RWA, as a bridge connecting traditional finance and the encryption world, is expected to be an important driving force behind the next bull market in the crypto market. However, its development still faces many challenges, including asset valuation, legal regulation, and other issues. In the future, with the improvement of related technologies and the clarification of regulatory frameworks, RWA is expected to bring more changes and innovations to the financial industry, providing new investment and profit opportunities for investors and asset holders.