According to Foresight News, the Chinese Real World Asset (RWA) market is innovating by improving the liquidity of non-financial assets. Many dormant assets in reality have not been able to realize their potential due to a lack of market circulation channels. Through RWA, companies can convert orders, equipment, and inventory into digital rights, enabling financing and trading on the blockchain. This development offers new growth opportunities for small and medium-sized enterprises, particularly those focused on technological innovation.
The tokenization of non-financial assets helps lower investment barriers and promotes inclusive finance. Previously, these assets were accessible only to a few institutions or large enterprises. However, blockchain's fractionalization mechanism allows more ordinary investors to participate at lower costs.
RWA leverages blockchain's technical features to enhance market transparency and transaction efficiency, reducing fraud and tampering risks, and providing new means for investor protection. The introduction of non-financial RWA assets also offers robust support for on-chain financial activities, enabling emerging financial forms like DeFi to move beyond sole reliance on cryptocurrencies and gain a more stable asset foundation.