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This episode of Mankun's Crypto Tavern focuses on the RWA (Real World Assets) craze, discussing the full chain roles of RWA, domestic projects, market prospects, regulatory changes, and opportunities for profit with guests. RWA, as a bridge between traditional finance and new finance, is attracting global attention. This episode features a strong lineup of guests covering technology, incubation, strategy, and compliance perspectives, bringing listeners in-depth yet relaxed interpretations through five questions!
The tavern is open for business; please introduce yourselves, guests!
Meg: Welcome everyone to the eighth episode of Mankun's Crypto Tavern! RWA is a hot topic right now, and we are stepping out of the traditional lawyer's perspective to discuss opportunities across the full chain. Each episode focuses on influential topics, co-hosted by me and Robin. Now, let's have the guests introduce themselves, starting with Dr. Beihai!
Dr. Beihai: Hello everyone, I am Beihai, who entered the scene in 2014, initially engaging in BTC development, with 11 years of industry experience. I participated in and witnessed the construction of DeFi from 0 to 1, and I am currently focused on BlockValley, building RWA full-chain liquidity infrastructure. Blockchain infrastructure is gradually merging the boundaries between real and virtual assets, with tremendous potential for the future.
In the project I work with, BlockValley, we build comprehensive liquidity infrastructure, similar to a bridge for cross-chain movement of stablecoins. In the future, there may be thousands of stablecoins, and cross-chain movement will require decentralized protocol support. We enable any asset to flow freely through smart contracts, upgrading the on-chain version of Web2 payment settlement. For example, users do not need to transfer between banks; on-chain assets can be settled directly, leading to higher efficiency. In the future, assets will no longer be limited to a single chain or single token; 100 stablecoins can flow freely through infrastructure.
Crypto flamboyant lawyer: Hello everyone, I am the flamboyant lawyer, who entered the space at the rise of Bitcoin inscriptions, active in on-chain investments. I do not have a legal background, but I was inspired by American dramas to pursue a legal path, later studying law in Hong Kong and working in court. I am glad to participate in today's RWA topic and discuss and learn with everyone.
Eliora: Hello everyone! I am Eliora, focusing on Web3 globalization, brand building, and market strategy, having participated in multiple on-chain projects. Today I'm excited to discuss RWA with you and look forward to some sparks of inspiration!
Dr. Zhao: Hello everyone, I am Dr. Zhao. I entered the space in 2018, focusing on exchange product operations and markets, and have participated in the construction of multiple exchanges in China, India, and Hong Kong. Now I am initiating the RWA Wave Laboratory, believing that RWA is the bridge between traditional finance and new finance, not just a short-term hot topic but also a long-term important track in the crypto space. We provide RWA consulting, legal sorting, and business building services.
Robin: I am Robin, co-hosting the Crypto Tavern with Meg. Tonight we have a rich lineup of guests with diverse backgrounds, looking forward to in-depth discussions! It's time, so let's get straight into the topic.
Q1: In this RWA craze, what roles and ways are BlockValley, the Wave Laboratory, PicWe, and Mankun participating?
Robin: The full RWA chain is complex, involving multiple segmented roles. How do BlockValley, the RWA Wave Laboratory, PicWe, and Mankun participate in this craze? First, let's have Dr. Beihai from BlockValley share.
Dr. Beihai: The implementation of RWA is not just about asset tokenization but also a transformation of production and social relations. Real world assets exceed the scale of the crypto circle and may exceed $16 trillion in the next five years; entering the crypto circle will reshape the industry ecosystem. Blockchain is returning to the essence of settlement and payment, becoming the underlying infrastructure, similar to the Internet's TCP/IP protocol.
BlockValley is positioned as a connecting hub, linking domestic and overseas, Web2 and Web3, on-chain and off-chain, as well as real and virtual assets. We connect 'people, goods, and venues' through consulting, platform incubation, distribution, and issuance to realize the value flow of RWA. For instance, listed companies can use us to tokenize assets and attract on-chain users, creating a second battlefield for long-term growth.
Robin: The pivotal role of BlockValley is impressive. You mentioned the flow of full-chain assets; can you elaborate on that?
Dr. Beihai: The flow of full-chain assets is at the core of RWA. Traditional financial assets are limited by banks or brokers, while on-chain assets are decentralized in circulation through smart contracts. For example, gold and real estate can be mapped as on-chain certificates, enabling transactions anytime without intermediaries. BlockValley provides infrastructure support to ensure seamless cross-chain and cross-asset flow, reducing trust costs.
Dr. Zhao: The RWA Wave Laboratory is an incubator collective that integrates technology, product, and brand resources to provide RWA services for listed companies and traditional enterprises. We help clients sort out equity, legal frameworks, and business logic, assisting in the issuance of RWA projects. RWA is similar to the big data or 'Internet+' wave of 2015; traditional companies need to transition from old finance to new on-chain finance. We eliminate cognitive and information gaps to help enterprises participate in the craze. For example, Hong Kong and US listed companies can design compliant RWA solutions through us to attract on-chain capital.
Robin: Traditional enterprises indeed need professional support to enter. Next, please share, Eliora, about PicWe!
Eliora: The concept of RWA is diverse, including stablecoins and tokenized assets, with varying forms and endpoints. PicWe plays the role of on-chain RWA issuer and solution provider, with the core being comprehensive liquidity infrastructure. We launched the native stablecoin VUSD, supporting bridge-less cross-chain transactions, enabling users to seamlessly use VUSD to purchase RWA assets issued on the HashKey public chain HSK, addressing on-chain liquidity pain points. RWA needs to meet the purchasing convenience for global users and the transparency of smart contracts. PicWe supports project parties to achieve full-chain asset circulation through infrastructure and tokenomics design.
Robin: Full-chain liquidity is indeed a key aspect of RWA.
Crypto flamboyant lawyer: Mankun plays a triple role in the RWA wave:
1. Concept popularization: Through live broadcasts, events, and sharing with judicial departments, we educate enterprises and regulatory agencies about RWA and answer inquiries from clients about whether they are suitable for issuing RWA.
2. Legal services: Design SPV structures for enterprises issuing RWA to isolate risks, recommending offshore registration locations such as the Cayman Islands and BVI, and providing support for Hong Kong compliance frameworks.
3. Future planning: Integrate resources from licensed institutions, technology companies, and consulting firms to create a one-stop RWA incubation service, helping clients to issue smoothly.
Mankun focuses on compliance, connecting enterprises with the on-chain ecosystem.
Meg: I would like to add something. Our law firm has recently received a large number of RWA inquiries, with three client meetings scheduled for tomorrow. I am in charge of commercial law and use my industry experience to judge whether clients are suitable for issuing RWA, distinguishing real needs from conceptual speculation. Before designing SPV structures, I will assess the business logic and collaborate with the Wave Laboratory, BlockValley, and others to provide strong joint services to clients and jointly promote the development of the RWA ecosystem.
Robin: Our guests cover multiple links in the RWA chain, from infrastructure, incubation, issuance to compliance, with diverse participation methods.
Q2: Which domestic RWA projects are worth paying attention to? Hainan Huatie RWA is widely discussed; what exactly is being played?
Robin: What RWA projects are you all paying attention to lately? The Hainan Huatie RWA has been a hot topic, with its Wasp Brother NFT rising from 200 yuan to a floor price of 15,000 yuan, binding three years of brand revenue rights, and the project claims to be a non-financial RWA. What do the guests think?
Crypto flamboyant lawyer: Hainan Huatie is a large construction equipment manufacturing and leasing company. Its NFT is bound to cash dividends of 50,000 shares annually from 2025 to 2027, and users can lock the NFT through a mini-program to become brand ambassadors. RWA digital products collaborate with Wei Yi Digital to map usage rights and operation rights of equipment, not ownership transfer.
But its operations pose compliance risks:
1. Technical shortcomings: Using only mini-programs instead of smart contracts for rights confirmation lacks on-chain transparency and insufficient user rights protection.
2. Regulatory gray area: Although self-proclaimed as non-financial products, they actually involve securitized returns, similar to US stocks and Hong Kong RWA requiring cooperation with licensed institutions (such as brokers and custodians). Domestic regulations view RWA as securities, posing greater risks in the future.
Hainan Huatie, with its state-owned background, may have 'domestic gameplay', but it's not user-friendly enough.
Regarding other RWA projects, I pay more attention to traditional finance, such as US stock tokenization projects like Robinhood and xStock, where the efficiency of on-chain asset flow is higher, representing the future trend.
Robin: The topic of tokenization of US stocks was discussed in previous tavern sessions, and it is an important branch of RWA. Next, please share, Eliora!
Eliora: I have learned about some domestic listed company RWA projects, most of which are self-buying and selling, not successfully financed, and heavily speculative in nature, with limited discussion value. The true value of RWA lies in its global influence, financing, and continuous value creation on-chain, but many domestic projects are more about 'Chinese people playing with Chinese people', lacking Crypto Native attributes and failing to achieve cross-border circulation or ecological landing. In contrast, projects with larger on-chain arbitrage space are more worth focusing on.
Dr. Beihai: Domestic RWA projects and the on-chain ecosystem are disconnected. Hainan Huatie targets Web2 users rather than on-chain players, operating similarly to digital collectible platforms. Domestic digital collectibles have been connected through third-party payments and secondary markets due to NFT bans, attributing speculative properties, but the goal is to reach off-chain users, not on-chain transactions. Public chains like Taikoo and IoT are currently laying out RWA infrastructure; in the future, as modularization improves, the disconnection between traditional and on-chain will reduce. Listed companies can attract on-chain users through compliant channels, opening a second battlefield and creating a virtuous cycle.
Recently, A shares have been hot on RWA, with companies like SenseTime financing billions for layout, but most are for strategic layouts or financing needs, rather than on-chain implementation. On-chain RWA trading volume is low; for example, some projects like gold tokenization have only about 60 institutional addresses holding, with few retail participants. Public chains like Taikoo and IoT are laying out RWA infrastructure; in the future, as modularization improves, the disconnection between traditional and on-chain will reduce. Listed companies can attract on-chain users through compliant channels, opening a second battlefield and forming a virtuous cycle.
Robin: Meg has recently encountered many inquiries related to RWA; could you share your thoughts?
Meg: I have received a large number of inquiries about RWA and agree with the view that 'not all enterprises are suitable for RWA'. The Hainan Huatie case is somewhat controversial, and after discussing with lawyers from law firms, it is considered to have high compliance risks. However, regardless of whether it is controversial, its Web2 breakout effect is significant. Traditional enterprises and listed companies (like Hainan Huatie with state-owned background, and Hong Kong Coolpad) have drawn market attention by announcing RWA, reflecting brand effects.
Some enterprises cannot bear the compliance costs of SPVs and choose non-financial RWA, similar to digital collectibles, focusing on brand premiums or pre-sale rights to enhance sales efficiency. These projects are often subscribed by institutional LP funds and are suitable for small and medium-sized enterprises. From a market perspective, RWA brings brand and commercial value to enterprises, but the on-chain implementation requires further exploration.
Dr. Zhao: Hainan Huatie has insufficient information disclosure and is currently in a speculative phase. RWA can be divided into physical and non-physical categories, needing to possess Crypto Native attributes. From a decentralized perspective, RWA is a bridge for traditional finance to transition to new finance, akin to the transitional period established by the Yuan Dynasty, where traditional capital may 'harvest' on-chain users a second time.
Evaluating RWA should consider the completeness of the IoT data on-chain. For example, the electricity-related projects from Ant Group and Longxin Technology (charging piles, energy storage) have clear and traceable data, possessing value potential. The US projects like SumPower and Charging Point's charging pile RWA also have a solid foundation. Conversely, physical projects with incomplete data have significant speculation potential but low long-term viability.
Robin: I also noticed that how to achieve credible on-chain implementation is a key aspect of RWA, and data completeness is crucial.
Q3: What is the market scale and prospects for RWA? Where are the main market opportunities concentrated in terms of countries, industries, and tracks?
Robin: What is the scale and prospect of the RWA market? In which countries, industries, and tracks are the opportunities concentrated? Dr. Zhao mentioned the electricity project; could you share more with us?
Dr. Zhao: The RWA market has huge potential, with the US, China, and the EU as major players. Projects with complete data are most promising, such as US stock tokenization due to clear trading data, making it easy to go on-chain and popular; stablecoins also enjoy wide popularity for their simplicity and transparency.
Industry directions include:
1. Electricity: Projects related to power generation (biomass, energy storage), charging piles, etc., have complete data. The Wave Laboratory has recently engaged with many electricity companies, which are capital-intensive and have traceable data.
2. High-end spirits: Such as Macallan whiskey, with a long brand history and comprehensive audits, its value increases over time, providing good annual returns. By splitting RWA (such as tokenizing oak barrels), we lower the threshold for retail investors.
At the national level, the US leads in data infrastructure, and I think RWA potential is significant in China's electricity and liquor sectors. Enterprises must seize market opportunities by ensuring data completeness and compliance.
Eliora: The market size for RWA can reach $16 trillion, far exceeding the crypto circle. In terms of prospects, RWA may not be suitable for Chinese Web3 users due to greater on-chain arbitrage opportunities. Developing countries (such as Indonesia) lack financial products, and their stock markets have poor liquidity, so RWA provides quality asset investment opportunities for them. For example, Southeast Asian users' monthly insurance demand of $20 can be met through RWA, enhancing asset preservation capacity.
Robin: I agree; RWA has the potential to provide investment opportunities in quality assets for people in underdeveloped regions and developing countries.
Dr. Beihai: The RWA market is huge, and all enterprises can issue multiple lines of RWA, with sustained growth in the next 5-10 years. Last year, enterprises achieved dual growth by purchasing BTC and ETH, but this year’s high entry risks make RWA a safer choice that can accommodate large amounts of capital.
Opportunities are concentrated in:
1. Regulatory-friendly areas: Hong Kong, Singapore, and the Middle East (such as Abu Dhabi) have both regulation and encourage innovation, suitable for RWA issuance.
2. Six major industries: mainstream financial assets (bonds, securities, precious metals), leasing rights (land, real estate, factories, vehicles), revenue rights (business operations, P2P, energy), easily redeemable physical assets (liquor, biscuits, textiles), emerging markets (carbon credits), and funds (family offices, private equity, public offerings through SPVs issuing RWA).
RWA carries a liquidity premium of 3%-8% on-chain, which is enough to determine life or death in the competition of traditional manufacturing industries, attracting enterprises to enter.
Crypto flamboyant lawyer: I believe the prospects for RWA are concentrated in the US, EU, and China, with the US leading the trend and China having 'unique gameplay'. Although the domestic scene has not fully kept up with the blockchain wave, truncated versions of RWA like digital collectibles are attracting capital participation. In the future, China may form two models, one inside the wall and the other outside, similar to the development path of the Internet. In industry terms, financial assets, electricity, and physical assets are the most promising, needing to combine local regulations and market demands.
Q4: What do you think about the new regulatory changes for global RWA in 2025?
Crypto flamboyant lawyer: RWA regulation is trending towards securitization management:
EU: The MiCA will fully come into effect in 2025, refining secondary and tertiary measures, treating some RWA as securities, requiring disclosure and registration, emphasizing KYC and AML.
USA: The SEC releases guidelines for tokenized securities registration, accelerating traditional institutions (such as BlackRock and JPMorgan) to layout strategies, combining Trump's crypto strategy with traditional finance to enhance on-chain markets.
Hong Kong: Longxin Technology and Ant Securities (such as Ruiying) operate RWA under sandbox policies, regulated by licenses 1, 4, and 9, with mature broker cooperation models.
Globally, regulations are both improving and loosening, accelerating the integration of traditional finance and crypto, with RWA needing to rely on licensed institutions for compliant issuance.
Robin: Improved regulation paves the way for RWA. The US Senate recently reviewed three crypto bills, including the Genius Bill and the Clarity Bill, which are closely related to topics we discuss. Next, please share, Dr. Beihai!
Dr. Beihai: Regulations show differences between internal and external perspectives:
1. Civil law systems: The EU and Hong Kong pre-set RWA as securities, regulated to the highest standards, requiring issuance by brokers, resulting in high compliance costs.
2. Common law systems: Singapore, Dubai, and other pioneers have flexibly defined RWA (such as exempting revenue sharing through the Howey test) to encourage innovation.
3. Trial and error: After the emergence of phenomenon-level products (such as XRP and Uniswap), regulations improve in response, and regulatory arbitrage spurs innovation.
RWA approved in Hong Kong and Singapore often go through, as the common law system is more flexible, suitable for early trials.
Dr. Zhao: Regulation will always lag behind innovation; there needs to be a balance between risk and innovation. The US (Tianwen Bill) sets high thresholds (like $10 billion), limiting small and medium innovations. Enterprises should boldly try under the premise of 'do no harm', running benchmark cases, and adjust after regulations improve. Common law systems (like Singapore) are more suitable for pilot testing first, then replicating to civil law systems, creating a flow back. Regulatory contradictions consume developmental space, but leading with innovation is key.
Eliora: The previous speaker has covered it comprehensively; I would like to add a point. The strictness of Hong Kong and mainland regulations seems excessive and contradicts the globalization and liquidity goals of RWA. In the future, a more open regulatory framework is needed to support new world rules.
Q5: From your project's ecological perspective, what is the one thing you most want to share about your understanding of RWA?
Eliora: RWA will create a new on-chain world, surpassing traditional financial rules. The strict regulations in Hong Kong and the mainland seem absurd and limit the global influence and liquidity of RWA. In the future, new rules and new habits are needed to attract new participants. We cannot use history to infer the future; we need to explore global opportunities with an open mindset, as RWA will bring about completely new business formats.
Robin: I agree. While it is certainly important to learn from history, we should also explore and expect more innovative models.
Dr. Beihai: Many people misunderstand RWA as real assets on-chain; in fact, it is on-chain asset mapping certificates. Blockchain has no concept of time; the core of RWA is to map real physical assets (such as real estate and product lines) into on-chain value certificates, and all valuable physical assets can be mapped.
BlockValley is positioned as a hub, similar to the Internet's TCP/IP protocol, with standardized interfaces allowing enterprises to go on-chain without understanding blockchain. In the short term, RWA brings arbitrage and positioning opportunities, while in the long term, the boundaries between the real world and the virtual world will disappear. RWA carries a 38% liquidity premium, changing the competitive landscape of traditional industries and driving the entire industry on-chain.
Dr. Zhao: The RWA Wave Laboratory integrates resources with an open perspective, serving traditional and Web3 enterprises. The RWA trend begins in mainstream countries (like the US and EU), where high-value assets (like finance and electricity) drive development. However, smaller countries and emerging nations have the opportunity to achieve leapfrogging through on-chain data collection (like ICO models). RWA is not just about asset mapping; it is also about complete on-chain four-dimensional data (MetaData), reflecting the decentralized potential of blockchain.
Crypto flamboyant lawyer: I believe RWA needs phenomenon-level products to drive it, similar to how ChatGPT has propelled AI. Currently, most RWA efforts are exploratory, and I look forward to the emergence of blockbuster applications that clarify the development direction and drive ecosystem implementation. We should embrace the future of RWA with an open mindset!
Robin: Let's wrap up for tonight; thank you all, guests! The Crypto Tavern brings insights into Web3 hotspots every Thursday evening at 7:30 PM. See you next time! Welcome to join the tavern listener group to get the latest news for each episode!
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Article authors: Zheng Hongde, Xu Xiaohui
