Cryptocurrency and RWA: What if we could invest in stocks using stablecoins?
The rise of cryptocurrencies was once seen as a challenge to traditional finance, but with the rise of tokenization of Real World Assets (RWA), we may be witnessing a deeper integration—not disruption, but an upgrade. The true value of RWA lies in its ability to transform cryptocurrencies from mere speculative tools into a bridge connecting the real economy with the digital world. Conversely, can we also use the existing legal framework (such as joint stock companies) combined with blockchain technology to open up more participation rights, allowing people worldwide to easily invest in Taiwan's early-stage startups? This is not just a technical issue but also about envisioning the future.
The Potential of RWA: From Crypto to Reality
Taking Bitfinex Securities as an example, this platform is regulated in Kazakhstan and El Salvador, offering trading of tokenized stocks, bonds, and even funds. Products like USTBL tokenize U.S. short-term treasury bonds in ETF form, allowing you to invest directly using USDT, starting at just $1. This means that cryptocurrencies are no longer just speculation but can directly touch traditional financial assets. Another example is the Alternative series tokens, aimed at financing SMEs in emerging markets such as Italy and Romania, with an 11-month maturity and annualized returns of 9%-12.5%, with a minimum investment threshold of 125,000 USDT. This model hands the participation rights in the capital market to global users, breaking down geographical and wealth barriers.
The inspiration of RWA lies in its ability to give cryptocurrencies an 'anchor'—a support based on real-world value. Bitcoin may be the dream of liberalism, but tokenized securities represent a pragmatic evolution. It raises the question: if Taiwan's startups could also tokenize in this way, could retail investors globally become early investors? This not only expands the capital pool but may also accelerate innovation.
Upgrading the Traditional Framework: Globalized Joint Stock Companies
We do not have to completely abandon the existing legal framework. The concept of a joint stock company has matured, and the problem lies in the restrictions on participation rights—only a few can become angel investors or VCs, while most retail investors are excluded. Blockchain technology provides a solution: by tokenizing stocks, Taiwan's startups can issue shares globally from the outset. Imagine a certain AI medical startup established in Taipei issuing tokens through a platform similar to Bitfinex Securities, allowing people around the world to invest from as little as $10. This is not only the democratization of capital but also the globalization of creativity.
The advantages of Bitfinex Securities—around-the-clock trading, instant settlement, and low-cost issuance—are the cornerstones of this model. They claim to 'break free from global financial constraints,' which may sound exaggerated, but the direction is correct. Traditional IPOs have high costs and slow processes, making them burdensome for early-stage startups; tokenization streamlines everything and attracts the passionate participation of the crypto community. Of course, challenges are also evident: regulatory compliance (KYC/AML), insufficient liquidity, and gaps in investor education.
The Collision of Two: Possibility and Reflection
RWA provides more possibilities for cryptocurrencies, but conversely, the upgrading of traditional frameworks can also make RWA more grounded. If Taiwan can combine both—regulating the tokenized issuance of startups through corporate law while leveraging the transparency and global liquidity of blockchain—it may create a new capital market model.
Platforms like Bitfinex Securities, although still in the experimental stage, have already demonstrated potential. Their model allows SMEs to raise funds at low cost and enables investors to participate in traditional assets using cryptocurrencies, which is precisely the prototype of the future.
The latest trends from the U.S. SEC
According to recent online information, the new chair of the U.S. Securities and Exchange Commission (SEC), Paul S. Atkins, has proposed a significant plan: to allow registered institutions to simultaneously custody and trade securities (U.S. stocks, bonds, ETFs) and non-securities (BTC, ETH, USDC, NFT) on the same platform.
This means that in the future, you might be able to buy Tesla stocks with USDC on one app while holding Bitcoin, without needing to transfer funds. This is not just a technological upgrade but a transformation of the financial paradigm, potentially creating a U.S. version of a 'super app.'
More importantly, the liquidity of RWA will be greatly enhanced; for example, on-chain treasury bonds and mortgage rights can be traded seamlessly in both directions. It is expected that public consultations will begin in the third quarter of 2025, with the final rules passed by the end of 2026, and mainstream brokers potentially fully launching 'coin-stock co-trading' by 2028.
What does this mean for Taiwan? The regulatory framework in the United States may become the global standard. If Taiwan wants to lead in the RWA space, it must accelerate the formulation of similar rules to allow startups to legally issue tokenized equity and attract global capital. However, there are many challenges: jurisdictional conflicts between the SEC and CFTC, standards for crypto custody technology, and bankruptcy isolation design are all hurdles that cannot be avoided.
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