A comprehensive leap from 'static certificates' to 'programmable assets'

1. Redefining RWA 3.0: Modular principal and interest separation financial mechanism

In the current convergence of #DeFi and #TradFi , traditional #RWA (real-world assets) tokenization is often limited to simply mapping bonds, real estate, and other assets onto the chain, making it difficult to meet modern finance's demands for flexibility and combinability. #IOST proposes RWA 3.0, using a modular 'principal and yield separation' financial mechanism to shape on-chain assets into a new paradigm that meets institutional stability demands while considering the innovative vitality of DeFi.

Traditional practices package principal and yield together, making assets bound on-chain:

'Principal and yield cannot be separated, and neither can be independently collateralized for arbitrage nor easily compounded into new strategies.'


The RWA 3.0 proposed by IOST is centered on a special 'modular principal and yield separation mechanism', dividing RWA tokens into two independent asset modules:

  • P-Token (Principal Token): Represents the principal amount returned at maturity, serving low-risk and stable return demands, suitable for institutional investors;

  • Y-Token (Yield Token): Represents the ongoing income stream, which can be flexibly traded, collateralized, and combined, more closely aligning with the needs of DeFi native users.

Through this mechanism, IOST enables asset cash flows to achieve true on-chain programmability and combinability, pushing RWA from 'static certificates' to 'dynamic financial instruments', thereby achieving:

  • A secondary market for real yield pricing, attracting deep participation from institutions and market makers;

  • Dual enhancement of capital efficiency and leverage space, releasing more liquidity;

  • Providing developers with the space to build structured products and hedging mechanisms;

  • DeFi and TradFivalue intercommunication bridge, connecting on-chain and off-chain.

Static certificates ➔ Programmable assets
Static certificates refer to assets that lack secondary circulation and combination capabilities after issuance, which can only be passively held; while programmable assets mean that each P-Token and Y-Token can be flexibly used on-chain:

  • Transfer and trading: Holders can freely circulate assets in the secondary market at any time;

  • Collateral and lending: Supports collateral arbitrage in multiple lending protocols;

  • Combination and derivatives: Can participate in innovative DeFi products such as leveraged strategies and capital-protected strategies;

  • Customized docking: Developers can quickly build financial tools that meet their own needs based on the P/Y structure.

2. Why does IOST have the capability to be the first to realize RWA 3.0?

To achieve the grand vision above, it requires the combination of technology, compliance, and practical capabilities, and IOST is the industry's preferred choice:

(1) Technical foundation: High-performance, modular multi-chain architecture

  • Based on IOST's original modular subnet solution, IOST 3.0 can flexibly deploy Layer 2 on multiple mainstream public chains and seamlessly adapt to new on-chain environments;

  • Native EVM-compatible smart contracts, integrating cross-chain asset bridges, liquidity engines, oracles, DID, and payment components, building a one-stop RWA asset full lifecycle management capability;

  • Each subnet can expand as needed, customizing performance parameters and compliance modules based on L1 characteristics, truly achieving 'multi-chain pluggable, built on demand'.

(2) Compliance advantages: Full-link regulatory support aimed at the Japanese financial system

  • Certified by the Japan Virtual Currency Exchange Association (JVCEA) and launched on regulated trading platforms under the supervision of the Financial Services Agency (JFSA) (such as Coincheck, BITPoint);

  • Directly interfacing with financial institutions and regulators to provide legal and compliant guarantees for the issuance and circulation of RWA products.

(3) Practical implementation: Dual access paths for institutional and retail participants

  • Collaborating with the licensed platform DigiFT to participate in the on-chain issuance of institutional-level bond assets totaling over 5.7 billion dollars;

  • Launching the PayPIN Ring (kyc) integrated with biometric recognition;

  • Providing a convenient entry point for retail participants to comply with RWA.

The synergy of IOST's technical architecture, regulatory qualifications, and business implementation capabilities is effectively addressing the three structural challenges of the RWA industry: 'compliance difficulties, liquidity issues, and user mismatch', assisting RWA in transitioning from financial concepts to sustainable business models.

3. Why did IOST choose Japan as the starting point for RWA?

Japan is currently the most compliant experimental soil for RWA in the world. IOST chose Japan as the starting point for RWA 3.0 mainly based on the following three points:

(1) Clear regulatory path and institutional advantages

The Financial Services Agency of Japan (FSA) has clearly included crypto assets into the regulatory framework of the Financial Instruments and Exchange Act (FIEA), establishing a classification management mechanism for financing and non-financing assets, and has revised the Payment Services Act to provide legal basis for stablecoins and crypto asset brokerage business.

(2) Mature market foundation and capital demand

Japan is the largest holder of U.S. Treasury bonds in the world, with holdings exceeding one trillion dollars for years. On-chain dollar assets like Treasury bonds meet local investors' dual demand for dollar asset allocation and digital trading forms, forming a strong industry absorption capacity.

(3) Industry consensus and industry collaboration

The Japan Crypto Asset Business Association (JCBA) has released guidelines for the issuance and circulation of RWA, clearly supporting asset tokenization and compliance path construction, providing effective interfaces between project parties and regulatory bodies, and accelerating industry docking efficiency.


RWA 3.0 is not a simple narrative reconstruction, but a necessary evolutionary path where on-chain financial architecture intersects with real-world assets. IOST is building a compliant, flexible, and sustainable RWA ecosystem starting from Japan, using a modular technology framework, a regulatory-friendly environment, and established business practices.