RWA Project Evaluation: The Fusion of TradFi and Blockchain

Recently, a closed-door evaluation meeting focused on the tokenization of real-world assets ( RWA ) has garnered widespread attention in the industry. Experts from both TradFi and the blockchain sector gathered to discuss the investment value and development prospects of the RWA project.

With the Hong Kong SAR government's active promotion of a compliant digital asset strategy, particularly with the launch of the "LEAP" framework, strong support has been provided for the tokenization of physical assets such as government bonds, artworks, gold, and energy. Against this backdrop, RWA is rapidly becoming an important bridge for TradFi to enter the digital asset space. The industry's focus has shifted from regulatory compliance to how to effectively implement RWA projects.

The discussion results of this evaluation meeting formed a clear consensus: the true utility of RWA is far more important than the tokenization itself. The RWA projects under attention are all dedicated to solving liquidity issues in the real market and have a reasonable and transparent trading structure. For traditional financial investors, the investment value of RWA mainly depends on the fundamental factors such as the credit quality, risk structure, and inherent liquidity of the underlying assets. Experts pointed out that simply tokenizing and putting it on the chain does not create liquidity for assets that originally lack liquidity.

The types of RWA projects discussed in the meeting cover the following aspects:

1. Money Market Funds: This includes money market fund projects anchored by top-tier asset management firms' U.S. Treasury funds and leading Asian public fund issuances. These products have extremely high credit ratings, providing stable returns and good liquidity, while equipped with a comprehensive compliance framework. Investors have shown strong interest in this product that combines the security of TradFi with the convenience of Web3.

2. Physical commodities: Asset ownership represented by gold is mapped onto the Blockchain, providing investors with convenient on-chain holding, trading, and hedging tools. A highly regarded gold token project ensures asset security through 100% physical gold reserves and a transparent auditing and custody mechanism, receiving high praise.

3. Debt-type assets: Tokenizing traditional credit assets to provide investors with higher fixed returns, while also bringing corresponding credit risks. For example, personal consumption loan projects guaranteed by listed companies and convertible bond projects adopting a "fixed income + options" model have sparked discussions.

4. Future Cash Flow and Revenue Rights: This type of RWA tokenizes the expected income from specific commercial projects, with its risks and returns directly tied to the underlying business operations. For example, the meeting discussed a ship leasing project and an AI computing power distribution business project.

5. Functional Tokens: This is a special class of tokens whose value derives from their utility within a specific ecosystem and market demand, rather than being pegged to physical assets or stable cash flows. These tokens primarily attract participants with in-depth knowledge of the relevant industry or IP content.

The voting results of the evaluation meeting show that investors have varying interests in different types of RWA projects. Overall, projects with stable cash flow, high credit quality, and good liquidity are more popular. This reflects that investors are not only concerned about the underlying assets themselves but also value whether the products can seamlessly integrate into the digital asset ecosystem to enhance the efficiency of capital operations.

The discussions and voting results of this closed-door evaluation meeting clearly indicate that tokenization is merely a technical pathway for asset on-chain. The foundation for the development of RWA lies in whether it can meet the genuine needs of market participants. The liquidity and scalability potential of projects are key to the long-term development of the RWA ecosystem. As assets from the real world, the credit quality of the underlying assets, the stability of cash flows, the legal structure, and the risk status of the issuer directly determine the long-term value and safety of the project.

As the digital asset market continues to mature, RWA projects are becoming an important link between TradFi and the Blockchain world. In the future, how to enhance liquidity and accessibility while ensuring asset security will be the key to the development of RWA projects.