RWA: Why Is It the True 'Favorite Child' of Regulation?

RWA (Real World Assets) has become the most 'favored' crypto track by regulatory agencies in recent years, as it perfectly hits the intersection of traditional finance and on-chain finance.

Why do regulators like RWA? Essentially, RWA is not about 'deregulation,' but rather **'bringing real assets on-chain, improving efficiency with smart contracts, and enhancing transparency with blockchain.'** It does not challenge fiat sovereignty, nor does it attempt to overthrow the financial system; instead, it strengthens asset tracking and regulatory compliance.

More importantly, RWA allows on-chain dollars to actually earn interest. Projects like MakerDAO and Ondo have brought real assets such as government bonds and securities on-chain, enabling the monetization of stablecoin returns, and traditional financial giants like BlackRock and Goldman Sachs are also entering the space.

From a narrative perspective, RWA's greatest advantage is its 'interconnectivity'; it can coexist with banks, funds, and payment systems without needing to 'confront the system.'

However, the challenge lies in the immutable nature of on-chain data, which cannot resolve the trust issues of off-chain assets. What you see is a Token, which may not necessarily guarantee the redemption of the asset itself. This also means that RWA's core competitiveness lies not in technology, but in compliance capabilities and asset integration resources.

RWA is not a disruptor, but a collaborator. In an increasingly stringent policy cycle, it may be the only 'right path' to navigate regulatory red lines.