Investments

RWA (Real World Assets) refers to the conversion of physical assets (such as real estate and gold) or intangible assets (such as intellectual property and carbon credits) into tradable and programmable digital tokens through blockchain technology. The core value lies in:

Enhance liquidity: Split low liquidity assets (such as real estate and art) into standardized tokens to lower investment thresholds.

Enhance transparency: Through the tamper proof feature of blockchain, achieve full lifecycle traceability of assets.

Automated management: utilizing smart contracts to perform operations such as profit distribution and collateral settlement.

RWA has reconstructed the liquidity and trading paradigm of traditional assets through blockchain technology, providing a new path for the integration of the real economy and the digital economy. From real estate to carbon credits, from supply chain finance to art, the innovative applications of RWA are accelerating globally, but we need to be vigilant about compliance risks and technological loopholes to ensure sustainable development.

(1) Enhancing Transparency: The open and transparent nature of blockchain makes the information disclosure of RWA projects more comprehensive. The underlying data, transaction records, and income distribution of assets can be viewed in real-time on the chain and cannot be tampered with. This reduces the risk of fraud and enhances investors' trust in the project. Compared to traditional private equity assets with information asymmetry and delayed regular reporting, RWA allows investors to have a more timely and comprehensive understanding of asset conditions.

(2) Reduce costs: RWA automatically executes many traditional intermediary processes through smart contracts, significantly reducing intermediary agencies and cumbersome procedures. For example, traditional real estate transactions involve lawyers, notaries, and a large number of paper documents, while tokenization can simplify the property transfer process, saving time and costs. In addition, the peer-to-peer transaction mode of blockchain avoids layers of transfer and clearing, shortens the settlement cycle, and reduces the operating costs of financing and transactions.

(3) Improving liquidity: Many real assets, such as real estate and non listed equity, originally have poor liquidity and are difficult to trade frequently. RWA splits large assets into small shares of tokens (even $1), allowing global investors to trade in the secondary market 24/7. In this way, real estate that originally took several months to trade and exit is expected to be transferred within minutes through RWA. Higher liquidity also improves the market efficiency of asset pricing.

(4) Composability and innovation: RWA, as an on chain token, can be easily integrated with other financial protocols and products, giving rise to new financial innovations. Developers can include different types of RWA tokens in the same investment portfolio or design automated collateralized lending schemes. For example, some DeFi platforms already support incorporating RWA tokens as collateral into lending agreements, providing a more stable source of collateral. This composability amplifies the utility of RWA, making it not only a single asset, but also a fundamental module for building various financial services.