In the crypto world, many pursue 'decentralization, anonymity, freedom', but in the RWA space, the situation is completely different.
Because the essence of RWA is: moving real-world assets (real estate, government bonds, gold, debt rights) onto the blockchain. And in the real world, there are laws, regulations, and custodial responsibilities. This also means —
✅ Compliance is not an obstacle, but the only pathway for RWA to mainstream and connect with large funds.
Today, let's talk about how RWA projects achieve compliance. Why is compliance their biggest competitive advantage?
🎯 Why must RWA talk about 'compliance'?
Just compare the differences between ordinary DeFi and RWA projects and you'll understand 👇
📌 Simply put, DeFi can be a technology innovation laboratory, while RWA must be a 'legal container'.
✅ 1. Compliance = The moat of the project
For RWA to go far, three things must be addressed:
📌 1) Asset compliance
Are assets like gold, bonds, and real estate legally registered? Is there custody, auditing, and ownership documentation?
Does it meet the definition of a security? Is an exemption or filing needed?
📌 2) Token issuance compliance
Is it pure physical mapping, or does it include securities rights?
Does it constitute a Security Token? Does it comply with local regulatory frameworks?
📌 3) User participation compliance
Has KYC/AML verification been completed?
Are there investment qualification thresholds?
✅ Those who can excel in these three aspects will gain the regulatory 'green light' — only then will large funds dare to enter, and traditional institutions will accept it.
✅ 2. Which countries are more friendly to RWA?
The following jurisdictions are currently the most suitable for RWA projects:
✅ Therefore, you will find that leading RWA projects are almost all established in these places, for example:
Ondo: Registered in the US, but connects with platforms in Hong Kong and Singapore to issue compliant products
RealT: Based on US legal structure, each property is held in trust agreements
Backed Finance: Registered in Switzerland, tokenizing US stock ETFs
✅ 3. The 'ticket effect' of compliance: ordinary projects cannot replicate
A compliant RWA project, from registration to landing, may follow this process 👇:
Register funds or SPVs in suitable regions (e.g., Cayman, Labuan, Singapore)
Cooperate with compliant financial institutions: brokerages, custodians, audit firms
Clarify the legal ownership of each asset & how it is mapped on-chain
Integration of KYC and AML systems of the landing platform
Complete legal review and disclosure before project launch
📌 These are not something an 'imitative project' can replicate, so compliance is the moat of RWA and also the source of long-term competitiveness.
✅ 4. Compliance also means RWA is an 'institution-friendly' track
Traditional funds, insurance companies, family offices, etc., place great importance on 'asset authenticity + legal risk'
Only after the project passes KYC, audit, and registration processes will these institutions be willing to participate
🟢 Thus, you will find that RWA is the only Web3 space where institutions actively seek entry; it's not Web3 catering to TradFi, but TradFi queuing to enter Web3.
✅ Summary: In the end, RWA is not about 'telling stories', but about 'obtaining licenses'
✔️ The more compliant, the more it can tap into traditional finance's resources
✔️ Compliant RWA projects = The most institution-attractive asset channel in Web3
✔️ Projects that genuinely want to grow and strengthen in the long term will take a compliant route from the very beginning
📣 Next issue preview:
(Step one of merging Web3 and traditional finance: How RWA is adopted by large institutions?)
We will illustrate how giants like Blackstone, BlackRock, and JPMorgan enter the on-chain world through RWA, and also tell you how retail investors can 'follow institutions to benefit.'
📬 If you want to receive our compiled 【Global Compliance Map for RWA】, feel free to comment: 'RWA Compliance'
📌 Click 【Looking】 to let more people know: It's not about the hype, but the implementation that is the true revolution of Web3