RWA: Building a World of Public Ledgers for Real Assets

Recently, several centralized institutions and decentralized projects have been actively promoting the development of RWA (Real World Assets) sector. Currently, the RWA market size has reached $36.5 billion, with a year-on-year growth of approximately 60%. It mainly involves areas such as private credit, US Treasury bonds, commodities, real estate, and stock securities, with Hong Kong focusing primarily on new energy assets.

Despite the many challenges RWA still faces, such as compliance implementation and global liquidity issues, the involvement of traditional financial giants and proactive attempts by various governments have made it possible for RWA to genuinely change the hollowing out and scaling issues of blockchain finance. As a blockchain financial derivative of the traditional asset world, RWA perfectly fills the gap in value capture within the blockchain realm, becoming an important bridge for the encryption of traditional finance and the traditionalization of cryptocurrencies.

To some extent, RWA can be seen as the "sword bearer" of this parallel world. The true goal of RWA is to seamlessly connect traditional finance with decentralized finance, reshaping traditional finance while also bringing real-world opportunities onto the blockchain. We look forward to RWA bringing global borderless asset investment and financial expressions, allowing people to freely participate in investment opportunities around the world across different time zones.

RWA is building a world on a public ledger of real assets, a greater borderless world!

Recent Market Trends and Key Events

Market-related dynamics

1. The market size continues to grow, with the total market value of the RWA market reaching $36.5 billion as of April 21, 2025, increasing by 0.7% within 24 hours. The number of related cryptocurrencies exceeds 185, with a total market value of over $10.62 billion, a year-on-year increase of 61%.

2. Traditional financial giants like BlackRock and JPMorgan are actively laying out plans in the RWA sector. BlackRock is seeking regulatory approval for the tokenization of bonds and stocks, while JPMorgan has launched an internal tokenization platform. This sector is expected to surpass a trillion dollars in scale over the next five years.

3. In terms of regulatory compliance, Mantra Chain has obtained the virtual asset service provider license from the Dubai Virtual Assets Regulatory Authority ( VARA ), becoming the first DeFi platform to receive this license.

4. Stellar blockchain announced partnerships with multiple institutions, planning to put $3 billion worth of real-world assets on-chain by the end of 2025.

5. The crypto payment company Alchemy Pay announced that its products will integrate RWAs by collaborating with mainstream RWA providers to introduce high-quality traditional financial assets such as U.S. Treasuries and blue-chip stocks.

6. The Bitcoin liquidity protocol Yala has launched the Yala RealYield platform, the first structured yield market platform based on Bitcoin that integrates RWA.

( Technology Innovation Dynamics

1. Quant Network launched Overledger, a multi-chain application interoperable blockchain operating system that enhances the liquidity of RWA across different blockchains.

2. Securitize launched the sToken Vault feature, based on ERC-4626 vault technology, enhancing the liquidity and composability of RWAs in DeFi.

) Project Financing Dynamics

1. Plume secured $20 million in funding to build a RWA financial ecosystem.

2. Tether invests in Quantoz, planning to launch a stablecoin that complies with MiCAR regulatory standards.

Hong Kong and China's RWA development event

1. Conflux Network collaborates with Ant Group to promote the growth of RWA in Hong Kong and participates in China's first renewable energy battery swapping RWA project.

2. The Hong Kong Monetary Authority has launched the "Digital Bond Grant Scheme" and the "Project Ensemble" sandbox initiative to support the adoption of tokenization technology in the capital markets.

3. The 2025 Web3 Festival will be held in Hong Kong, with RWA tokenization becoming the focal topic.

4. China Pacific Insurance Investment Management Company launched a tokenized US dollar money market fund on HashKey Chain, raising 100 million US dollars on the first day.

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Industry Observation and Reflection

( The main challenges in the current development of the RWA industry.

1. Regulatory Uncertainty: Significant differences in regulatory frameworks across countries affect global promotion and compliance costs.

2. Adoption barriers: There is a need for a broader user base to accept and use it, currently dominated by institutional participation.

3. Sustainability and Volatility: Tokenization may lead to excessive speculation, affecting the confidence of long-term investors.

4. Technical challenges: Smart contract vulnerabilities and blockchain scalability issues may affect security and reliability.

5. Liquidity issues: Some RWAs may still face insufficient liquidity after tokenization, especially during unfavorable market conditions.

6. Investor Confidence: Lack of transparency, security, and regulatory compliance may undermine investor confidence.

![Industry Observation｜RWA: A World on a Public Ledger of Real Assets])https://img-cdn.gateio.im/webp-social/moments-aca39ef6ff0012e4a716aa5609b802f5.webp###

( Industry Observation and Reflection

1. The ultimate expression of RWA may be a combination of centralized pre-chain regulation and decentralized post-chain circulation.

2. Activating the secondary market vitality of RWA is the key to the industry's leap forward, and the distributed digital identity )DID### system may become an important strategic watershed.

3. RWA can both tokenize traditional finance and traditionalize cryptocurrencies, with both moving in opposite directions. RWA is expected to facilitate the process of good money replacing bad money in the cryptocurrency space, providing real value support for the crypto world.