Exploration of RWA Asset Attributes and Compliance Points for Domestic Investors

RWA( Real World Assets ) is the process of transforming physical or traditional financial assets in the real world into digital tokens through blockchain technology. These tokenized assets are introduced into the decentralized finance ( DeFi ) ecosystem, enhancing the liquidity, transparency, and accessibility of assets, and opening up new investment opportunities for investors.

In recent years, the RWA tokenization market has developed rapidly. By the end of 2025, the global market size is expected to reach $50 billion, with long-term potential soaring to $18.9 trillion. The United States, with its mature financial markets and clear regulatory framework, has become a bellwether for this trend. However, Compliance remains a core challenge that cannot be overlooked.

For investors in mainland China, participating in RWA investments is both attractive and requires caution. Due to the varying regulatory environment of the Web3 industry from country to country, investors must comply with both domestic and international laws and regulations, including Anti-Money Laundering ( AML ) and Know Your Customer ( KYC ) requirements, capital control policies, as well as tax reporting and regulatory requirements related to digital assets.

This article will delve into the investment in RWA assets, exploring the compliance points for mainland investors to help readers seize opportunities while avoiding potential risks.

RWA Global Trends

According to data from the security token market, by the end of 2024, over $50 billion in assets have been tokenized globally, with real estate accounting for $30 billion. As institutions adopt blockchain technology, these figures are expected to rise significantly by 2025. In the long term, the RWA market could reach $18.9 trillion by 2033, demonstrating enormous potential.

The year 2025 is seen as a key turning point for the development of RWA, as the market shifts from the experimental phase to practical applications, with institutional participation and the maturation of regulatory frameworks becoming the main driving forces.

1. USA

The RWA tokenization market in the United States is booming, with an expected market size of $50 billion by the end of 2025, driven primarily by U.S. Treasury bonds. The U.S. market benefits from a stable regulatory environment and institutional participation. The SEC has issued guidance on the registration of tokenized securities, considering allowing the use of distributed ledger technology for the issuance, trading, and settlement of securities.

Large financial institutions are actively laying out their plans, such as BlackRock's BUIDL fund launching in March 2024, attracting over $460 million in funding. Robinhood submitted a proposal in April 2025 calling for the establishment of a federal regulatory framework, marking a key step in the integration of traditional finance and blockchain.

2. EU

The EU's "Markets in Crypto-Assets Regulation" ( MiCA ) will come into full effect on December 30, 2024, providing a comprehensive regulatory framework for crypto assets, including RWA. MiCA covers the issuance of asset-referenced tokens ( ARTs ) and electronic money tokens ( EMTs ), aiming to balance transparency, security, and innovation, promoting the widespread use of RWA in Europe. In 2025, the EU will continue to refine Level 2 and Level 3 measures to ensure the implementation of the regulatory framework.

3. Singapore

As a global hub for blockchain and fintech, Singapore is showing strong momentum in the field of RWA tokenization. The Monetary Authority has issued guidelines for the issuance and custody of digital payment tokens, detailing business conduct and consumer protection measures.

Companies like Emurgo, Helix, and D3 Labs are thriving, and InvestaX has obtained MAS licensing as a leading tokenized SaaS platform, further promoting the construction of the RWA ecosystem.

4.Hong Kong

Hong Kong, leveraging its position as a financial center in Asia, demonstrates significant potential in the field of RWA tokenization. The Securities and Futures Commission and the Monetary Authority are actively promoting the development of digital assets and RWA tokenization through forward-looking policies.

During the Web3 Festival in 2025, RWA tokenization became the focus of discussion, with an expected increase in projects in the real estate and financial securities sectors. It is predicted that the tokenized assets in Hong Kong will exceed $30 billion in 2025.

5. Other Asian countries

Thailand: Bangkok will host the ONCHAIN 2025 conference on April 25, 2025, which is the first conference in Asia focused on RWA, attracting over 200 leaders from traditional finance, FinTech, and Web3 to discuss trends, regulations, and innovations in RWA.

Japan: Saison Capital participated in ONCHAIN 2025, indicating that Japan is also actively exploring the potential of RWA.

Current Status of RWA Development in Mainland China

In mainland China, the tokenization of physical assets ( RWA ) is currently in a "gray area" of regulation, lacking a clear legal and policy framework. In terms of blockchain and related derivative technologies and financial regulation, the implementation of RWA in China mainly faces obstacles in the issuance and circulation of homogeneous tokens.

According to the "Announcement on Preventing Risks of Token Issuance Financing" jointly issued by the People's Bank of China and seven other departments, the behavior of financing entities raising funds from investors through the illegal sale and circulation of tokens is essentially an unapproved public financing activity. RWA projects may be regarded as securities or financial products and must comply with strict issuance and trading requirements. If publicly issued without approval, they may be deemed illegal fundraising.

RWA assets within the mainland often adopt strategies such as overseas issuance, using non-cryptocurrency digital assets, or focusing on specific areas like supply chain finance ( to avoid compliance risks. However, the protective effect of these measures is limited. Regulatory authorities may look at the substance through the form and classify relevant activities as financial behaviors, and overseas issuance cannot completely evade the mainland's regulatory reach. Cross-border issuance must simultaneously meet the legal requirements of both the mainland and overseas, increasing the complexity of compliance.

Regulatory uncertainty has led project parties and investors to face multiple compliance risks. Investors need to carefully assess the risks of participating in RWA projects to avoid losses due to policy changes or legal liabilities.

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Advantages of Asset Tokenization

Asset tokenization not only provides a decentralized and trust-minimized alternative to replace real-world products, investment instruments, or services, but also brings many significant advantages. By utilizing blockchain technology to tokenize real-world assets, it can enhance the value, accessibility, and utility of assets, while also creating conditions for the broader application of off-chain data in the decentralized finance ) DeFi ( ecosystem. Here are the core advantages of asset tokenization:

) 1. Improve liquidity

In traditional markets, financial events are usually recorded in their own separate ledgers, leading to inefficiencies such as increased transaction costs and extended settlement times. The lack of interoperability between different systems further exacerbates the fragmentation of liquidity. Asset tokenization effectively addresses this issue by creating interoperable tokenized assets.

In addition, tokenization can transform traditionally illiquid assets into millions or even billions of tokens, enabling fractional ownership. These tokens can be listed and traded on widely circulated exchanges, eliminating the need for high-cost trading intermediaries, significantly broadening the potential buyer base, thereby enhancing the liquidity and market efficiency of the assets.

2. Enhance Accessibility

Many high-yield assets are out of reach for ordinary investors due to financial or regulatory thresholds. For example, film financing often involves high upfront costs and budget-overrun risks, allowing only the wealthiest investors to participate. However, a successful film can yield multiple returns in a short time. Similar investment opportunities include the purchase and leasing of collectible sports cars, distressed overseas assets, or multi-family properties.

Tokenization breaks these restrictions through a crowdfunding-like model. Investors can purchase tokens linked to assets, allowing them to participate in asset classes that were previously difficult to access with lower capital. This approach not only lowers the investment threshold but also provides a broader group of investors with the opportunity to share in economic returns.

3. Enhance Transparency

High-value assets often lack reliable and easily accessible information, such as earnings records, ownership history, or sales data. This lack of transparency is particularly prominent when evaluating foreign assets or when buyers cannot physically inspect the assets. Tokenization leverages the transparency and immutability of blockchain to provide a solution.

Through tokenization, information such as ownership records, interest, or dividend returns can be publicly tracked and audited, depending on the logic of the smart contracts tied to the assets. This traceability feature minimizes the risks of counterfeiting and fraud, especially applicable to high-priced luxury goods such as wine and caviar, as well as in fields like fashion and art, thereby enhancing the security and credibility of investments.

4. Release Composability

One of the most promising advantages of asset tokenization is its composability with the DeFi ecosystem. By bringing the value of real-world assets into decentralized finance, users can benefit from the interest generated by off-chain collateral. For example, decentralized money markets built around tokenized assets not only enhance liquidity in the DeFi space but also provide retail investors with new avenues to access high-end investment categories.

In the future, tokenization will bring more innovative opportunities for smart contract developers. By combining tokens linked to different assets, entirely new synthetic assets, indices, or token baskets can be created. The ability to convert real-world income streams into collateral will further accelerate the rapid development of the DeFi ecosystem, unlocking unprecedented potential.

Nature of RWA Assets

RWA digitizes tangible or intangible assets from the real world through tokenization and records them on the blockchain, allowing for trading via the blockchain or exchanges. This process provides liquidity, transparency, and accessibility for RWA assets, but also brings legal and regulatory complexities.

1. Classification of RWA Asset Attributes

The property classification of RWA assets is mainly based on the type of underlying assets and the legal structure of tokenization. Generally speaking, the underlying assets of RWA can be divided into the following categories:

• Securities: including stocks, bonds, ABS and other financial instruments, these assets typically represent ownership or debt relationships.
• Physical Assets: Including tangible assets such as real estate and commodities, emphasizing their physical existence and utility value.
• Intangible assets: such as intellectual property, copyrights, etc., which more reflect economic value rather than physical form.

After tokenization, the legal classification of assets may change, especially in terms of whether they are regulated as securities.

If tokenized assets are designed as tradable investment tools ### and are split into smaller shares (, similar to REITs or ABS, they may be classified as securities by regulatory authorities and must comply with relevant securities laws. Therefore, tokenized RWA assets in the U.S. market need to adapt to existing securities laws and face regulatory challenges.

) 2. Specific Asset Analysis

Due to the fact that the laws and policies regarding RWA may vary from country to country, this analysis will focus on the most representative regulations of the United States.

• Tokenization of US Stocks

In the United States, tokenized US stocks are typically regarded as securities because they represent an investment in company ownership, similar to the nature of traditional stocks. Since asset tokenization often involves converting ownership or rights into tradable on-chain tokens, stocks, as a typical representative of financial assets, are still considered securities after tokenization.

• Tokenization of US Treasuries

Tokenized U.S. Treasuries are typically regarded as bond-type securities, as bonds themselves are a form of debt instrument, retaining their debt nature after tokenization. The classification of tokenized assets is closely related to the underlying assets; U.S. Treasuries, as representatives of government or corporate debt, are still considered securities after tokenization, but specifically categorized as bonds.

• Real Estate Tokenization

Tokenized real estate projects are often viewed as real estate, but there is controversy regarding their classification. If the tokenization structure allows for the division of real estate into small shares that can be freely traded, it may be considered a security. Additionally, tokenized real estate may involve compliance issues with securities law, particularly under the definition of investment contracts.

On the other hand, if tokenization merely represents direct ownership and does not involve the distribution of investment returns, it may be considered a physical asset. Regulatory frameworks in different jurisdictions may lead to classification differences; for example, the United States may view it as a security, while certain European countries may lean towards classifying it as a physical asset.

3. Attributes of tokenized assets

After tokenization, RWA is usually regarded as a financial asset because they can be