The standards and evaluation framework for real assets in the field of tokenization are being refined to ensure stability and transparency.
The rapid development of digitizing real assets (RWA) requires stringent criteria to filter suitable assets, avoiding the misunderstanding that all assets can be tokenized.
MAIN CONTENT
Not all assets are suitable to be tokenized into RWA.
Three important criteria include: value stability, clear ownership, and verifiable off-chain data.
A legal framework and an evaluation standard system are needed for large-scale implementation.
Why are not all assets suitable to become RWA?
In direct response, not all assets are eligible for tokenization into RWA due to factors concerning value, legality, and data transparency. The report 'Real-World Asset Warranty (RWA) Industry Development Research Report – Industry Edition 2025' emphasizes this information based on in-depth analysis from the digitized asset market in Hong Kong.
Tokenization needs to ensure that the underlying assets have stable value, avoiding excessive volatility that poses risks to investors. Additionally, ownership must be legally recognized and clearly protected to minimize disputes.
The lack of verifiable data from external (off-chain) sources also creates safety and transparency gaps. Therefore, the asset filtering process is considered an important step to ensure the feasibility and reliability of RWA in the market.
What criteria determine whether an asset can be scaled up as RWA?
Experts in the report propose three key conditions for an asset to be suitable for RWA: value stability, transparent ownership, and verifiable off-chain data.
Firstly, value stability helps RWA Tokens maintain their appeal, avoiding the risk of strong volatility that undermines investor confidence. For example, assets like real estate or commodities typically have higher stability than highly volatile assets.
Secondly, clear legal ownership helps accurately identify the Holder and minimize disputes over rights. Finally, verifiable off-chain data can help the blockchain platform ensure that asset information is accurate, transparent, and compliant with the law.
Tokenization of real assets must be based on transparent criteria and clear legal grounds to avoid posing risks to the market.
Cryptocurrency market analyst, report 2023
What proposed system framework is there to evaluate RWA assets?
To address the issue of asset selection, the report has established a standard system framework to evaluate the origin, legality, and value of assets in the tokenization process.
This framework includes a detailed verification step of ownership, stability analysis, and the collection of verifiable data from the off-chain environment. Thus, the Token issuer and trading platform can ensure the quality of RWA provided to investors.
The application of this standard system helps the cryptocurrency market increase professionalism and enhance reliability regarding digitized real assets.
Frequently Asked Questions
Can all assets be tokenized into RWA?
No, only those assets that meet the criteria of stable value, legal ownership, and have verifiable off-chain data are suitable for tokenization into RWA.
Why is clear ownership important for RWA?
Transparent ownership helps identify the legitimate subject, minimizes disputes, and protects investors' rights when assets are digitized.
How does off-chain data affect the tokenization of real assets?
Verifiable off-chain data provides accurate, transparent information that helps ensure security and accuracy in converting real assets into Tokens.
How does the RWA standard framework help the cryptocurrency market?
The standard framework enhances quality, increases reliability, and protects investors while promoting large-scale implementation of real asset tokenization.
What criteria regarding asset value apply when tokenizing into RWA?
Assets need to have stable value to minimize the risk of excessive volatility affecting investors and the market.
Source: https://tintucbitcoin.com/rwa-o-hong-kong-y-tuong-dung-hay-sai/
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