Opening remarks
Entrepreneurship Web 3, talking every Wednesday!
(Entrepreneurship Web 3.0) is a China Web 3.0 entrepreneur interview program initiated by Mankun Law Firm. Every Wednesday evening, we invite industry big shots, frontline institutions, and well-known entrepreneurs to guest in the live broadcast room, promoting the compliant and healthy development of China's Web 3.0 industry through positive voices, rational discussions, and experience sharing.
June is the RWA theme month for (Entrepreneurship Web 3.0). How does RWA inject 'real' value into stablecoins and open a new chapter for Web3? In this issue, we invite Spinach, the head of Pharos RWA Asia-Pacific strategy, to have an in-depth dialogue with lawyer Wang Lei from Mankun Law Firm. From entering the field in 2022 to the accumulation of content as the 'Research Report Sow', and then to deepening RWA and stablecoins, Teacher Spinach shares how Pharos is laying out in Asia-Pacific, how RWA empowers the compliance and liquidity of stablecoins, and how entrepreneurs can seize the opportunities of the great maritime era to inject real value and long-termism into the industry!
(The audio transcription text has been processed by AI and may contain omissions and errors.)
Welcome this episode's guest, please introduce yourself to everyone!
Wang Lei: Welcome to the (Entrepreneurship Web 3.0) column every Wednesday! June is our RWA theme month, and today we are particularly honored to invite Spinach, the head of Pharos RWA Asia-Pacific strategy, to discuss the hard-hitting theme: 'How does RWA inject “real” value into stablecoins?'. We will talk about how the combination of RWA and stablecoins empowers Web3.
Spinach: Thank you, Lawyer Wang! I am honored to participate in the live broadcast at the invitation of Mankun Law Firm, and you can just call me Spinach. I am currently the head of Pharos’ RWA Asia-Pacific strategy. Pharos was founded by core members of Ant Group, focusing on high-performance public chains and concentrating on RWA and payment fields. I entered the field in 2022, initially as a content creator, producing numerous research reports. Since 2023, I have been deeply involved in RWA, participating in pilot projects for CBDC (Central Bank Digital Currency) with the Reserve Bank of Australia, the Monetary Authority of Singapore, and the Bank of Ghana, focusing on RWA and payment scenarios. Now I have joined Pharos to continue promoting RWA development in Asia-Pacific, while sharing industry insights on Twitter. I am glad to talk about RWA and stablecoins with everyone today, welcome to follow Pharos and communicate anytime!
Q1: What does the new regulatory rule in Singapore mean for Web3?
Wang Lei: Teacher Spinach recently published an article analyzing the Web3 regulations in Singapore, which is very popular among friends. Can you share the background and implications of the new regulatory rules in Singapore?
Spinach: This article was written on May 30, originating from the Monetary Authority of Singapore's response to questions regarding the 2022 (Financial Services and Markets Bill). Starting from June 30, the terms for digital token service providers will officially take effect, which will have a significant impact. I previously collaborated with the Monetary Authority of Singapore, and I felt that the previous government was friendly towards Web3, but the attitude has become conservative after the change of government. At the 2024 Singapore FinTech Festival, I heard that some executives from major Web3 companies were denied PR applications, indicating that the regulatory winds have changed.
The core of the new regulations is that the scope of regulation is broad and vague, even working from home may be considered illegal, and the enforcement interpretation power is entirely in the hands of the Monetary Authority of Singapore. There is no buffer period, and the attitude is very firm. Web3 project parties, institutions, and individuals must consider whether to continue to stay in Singapore. I have friends whose entities in Singapore have already planned to leave. This is a big topic for practitioners and may trigger a wave of 'Web3 exodus'. For details, you can search for my article (Is Singapore trying to eliminate Web3? The era of regulatory arbitrage is over, and a wave of Web3 exodus is coming).
Q2: What is Pharos' positioning and focus in the RWA field?
Wang Lei: You are now the head of Pharos RWA Asia-Pacific strategy. Can you share your work focus and Pharos' layout in the RWA field?
Spinach: My work mainly involves formulating RWA strategies in the Asia-Pacific region, analyzing the regulatory attitudes and opportunity environments of various countries, planning key layout areas for Pharos, and expanding institutional partnerships. Pharos is a high-performance public chain founded by core members of Ant Group, focusing on RWA and payment. It is currently in the testnet phase and has not yet gone live on the mainnet; specific projects are still in preparation.
When choosing partners, we have several considerations:
Asset side: Look at the liquidity and stability of the assets. In the early stage of the RWA track, the infrastructure and compliance framework are not mature, so prioritize high-value and stable assets, such as government bonds and quality real estate.
Issuer side: Look at the backing from the traditional world, such as large institutions with the qualification to issue in Hong Kong like Ant Group and Fuxing Group.
DeFi projects: Look at the team's understanding of the track and project experience, such as collaborating with top projects like MakerDAO to ensure protocol design capabilities.
RWA combines traditional assets and blockchain, with the core being resource backing and compliance. We hope to empower the liquidity and transparency of RWA through high-performance public chains!
Q3: How did you connect with Pharos? What were the key milestones in entering the field?
Wang Lei: The transition from content creator to the head of Pharos Asia-Pacific strategy is very interesting! Can you share the process of your connection with Pharos and the key milestones in entering the field?
Spinach: This is a bit funny. In 2023, I was a panel speaker at the Singapore FinTech Festival, invited by Ant Group, and met their team. Later I found out that Pharos was founded by core members of Ant Group, and I felt it had great potential, so I joined.
My entry experience is:
In the second half of 2022: I interned in traditional finance in Shanghai and felt the industry was saturated with little upward mobility. I had previous blockchain investment experience, so I decided to go all-in on Web3, joining the largest CDAO in China, learning while being a teaching assistant, participating in the establishment of another DAO, and interning as a Web3 researcher, outputting extensive research reports, producing up to four reports a month, earning the nickname 'Research Report Sow'!
In 2023: I graduated from my undergraduate studies and chose to study blockchain in Australia (the only one in the country), met Professor Meng Yan, was attracted by his philosophy, joined the team, and participated in the CBDC pilot project with the Reserve Bank of Australia, and later collaborated with the Monetary Authority of Singapore and the Bank of Ghana.
In 2024: Due to my connection with Ant Group, I joined Pharos, focusing on RWA strategy.
The key is to seize opportunities, such as proactively seeking speaking engagements, joining DAOs, and outputting content. These have allowed me to accumulate knowledge and connections from scratch.
Wang Lei: From internship to DAO, and then to Pharos, Teacher Spinach's all-in spirit and ability to seize opportunities are impressive.
Q4: How can young people establish themselves in the Web3 industry?
Wang Lei: Your experience is very inspiring. You became the head of Pharos Asia-Pacific strategy right after graduating from university. What do you think is the most correct way for young people to establish themselves in Web3?
Spinach: The greatest advantage of young people is that they have no burdens and can try boldly. I have three suggestions:
Building a personal brand: I output content on Twitter, have 20,000 followers, and have accumulated industry exposure and influence. When others see your research reports and viewpoints, it lowers the trust cost and brings opportunities.
Proactively seek: Both of my jobs were proactively finding opportunities to talk with CEOs, demonstrating the value I can bring to the project. Web3 is a blue ocean; you don’t have to wait for official recruitment; directly contact the boss, and opportunities are always there!
Continuous learning: Web3 changes rapidly. I read news and write research reports every day to stay sharp. I majored in finance but self-studied Solidity and researched phishing logic to broaden my understanding.
For example, I wrote a research report on the NFT 3525 standard as a 'letter of introduction' to join Professor Meng Yan's team. Young people need to prove themselves through content and actions to naturally gain opportunities.
Q5: What are the trends and challenges in the RWA track, and why is the combination with stablecoins a focus?
Spinach: RWA is the tokenization of real estate, bonds, commodities, etc., enhancing liquidity, transparency, and accessibility. The 2018 STO (Security Token Offering) was the predecessor of RWA, but due to immature infrastructure and lack of compliance, no successful cases emerged. Starting from 2023, RWA has become hot again due to the embrace of traditional finance, with the core driving force being the Bank for International Settlements (BIS).
1. Trends:
Traditional finance entry: In 2022, BIS's annual report stated that cryptocurrency technology is the prototype of the future monetary system; in 2023, Citi's research report ignited RWA discussions; in 2024, BIS proposed the concept of 'financial internet', defining RWA and blockchain as the next generation of financial infrastructure. The Hong Kong stablecoin bill and the US crypto-friendly policies (like those from the Trump team) are accelerating the landing of RWA.
Stablecoins lead the way: Stablecoins are the liquidity foundation of RWA. USDT and USDC account for 90% of the market, but non-USD stablecoins (like HKD and JPY) are on the rise. 2025 is the year for stablecoin explosion, 2027 will see RWA fully take off, and by 2030 the market size could reach trillions.
Asia-Pacific opportunities: Hong Kong's policy support, Japan's real estate assets, and Southeast Asia's payment needs are all growth points for RWA.
2. Challenges:
Compliance complexity: Issuing RWA in Hong Kong requires dual regulation (private equity fund + token approval), which is costly and difficult for ordinary institutions to replicate, unlike large institutions like Ant Group.
Early infrastructure: The ecosystem is immature, with insufficient asset liquidity, requiring stablecoins to bridge on-chain and off-chain.
Insufficient awareness: Many people think RWA is just hype, ignoring its potential for combining reality and virtuality.
Stablecoins and RWA are a 'twin relationship'. On-chain assets are traded as tokens, with the underlying liquidity relying on stablecoins. The Hong Kong stablecoin bill provides a compliance channel for RWA, allowing HKD stablecoins to support local asset tokenization, and possibly even include investment immigration assets in the future. Stablecoins must explode first for RWA to scale!
Wang Lei: BIS's promotion, stablecoins leading the way, and the 2027 explosion. Teacher's trend analysis is very hardcore, and the 'twin relationship' clarifies the underlying logic of RWA.
Q6: How to acquire cutting-edge knowledge of RWA?
Wang Lei: Friends in the live broadcast room ask how you learn cutting-edge knowledge of RWA? How was the 'Research Report Sow' written?
Spinach: 'Research Report Sow' is a product of the times! The key to writing research reports is to settle down and find the right information sources. My approach:
English materials: Most Chinese information is processed and noisy. Google English materials, focus on BIS's official website, YouTube talks, and IMF academic papers. For example, BIS's report discusses how RWA reduces costs and increases efficiency, enhancing the liquidity of alternative assets, and the Vice Governor of the French Central Bank has also shared similar views.
Professional channels: BIS is a global trendsetter for central banks, with a wealth of reports and speeches on their official website revealing regulatory trends. IMF's papers (like the tokenization framework by French professors) analyze RWA from technical and legal perspectives and are very enlightening.
In-depth research: I often spend 7-8 hours reviewing documents and videos to deduce needs. For example, the communication between BIS and the Hong Kong Securities and Futures Commission indicates the landing of the stablecoin bill.
I suggest everyone spend less time on self-media and more on original materials from BIS and IMF, to deeply understand the underlying logic to grasp real opportunities.
Q7: What are the compliance obstacles for domestic assets to issue RWA in Hong Kong?
Wang Lei: A friend asked what compliance obstacles there are for domestic assets to issue RWA in Hong Kong? What are the differences in compliance requirements for different asset types?
Spinach: The Hong Kong Securities and Futures Commission has a conservative attitude towards RWA, and domestic asset issuance of RWA requires passing two regulatory levels:
Private equity fund approval: It is necessary to establish an SPV (special purpose vehicle) domestically to receive foreign funds, and then establish a private equity fund in Hong Kong.
Token approval:After the establishment of the fund, asset tokenization still requires separate approval.
The process is complicated and the costs are high: like Ant Group, which is in a regulatory sandbox due to regulatory exemptions, ordinary institutions find it hard to replicate. Different asset compliance requirements:
Low-risk assets (such as government bonds): High regulatory acceptance, relatively fast approval.
High-risk assets (such as real estate, artworks): Require stricter KYC/AML checks, and compliance costs are higher.
I suggest collaborating with professional law firms like Mankun to outline compliance paths and avoid pitfalls.
Q8: Are there opportunities for ordinary people to participate in stablecoins and RWA?
Wang Lei: Friends in the live room ask if ordinary people have the opportunity to participate in stablecoins and RWA? Can they make money?
Spinach: To be honest, ordinary people's opportunities to participate in stablecoins are limited. Stablecoins are a new form of currency that does not create new assets and have low volatility, so individuals can only earn meager stablecoin returns, such as the interest from holding USDT or USDC. The entrepreneurial threshold is high; institutions like JD, Ant, and Standard Chartered in the Hong Kong sandbox have strong backing, making it difficult for ordinary people to enter directly.
But opportunities do exist:
Stablecoin payments: In small countries like Africa and Latin America, there is a high demand for stablecoin payments, and payment apps or related businesses can be developed.
Employment opportunities: Join large institutions (like Pharos) or RWA projects, starting from positions such as researcher or market roles to accumulate experience.
For ordinary people wanting to participate, I suggest paying attention to recruitment by large institutions to find positions that match their skills, indirectly entering the track.
Wang Lei: The high threshold and payment opportunities for stablecoins; Teacher Spinach's suggestions are very practical! It's a good path for ordinary people to start from employment!
Q9: Where are the entrepreneurial opportunities in the RWA track?
Wang Lei: For friends who want to start a business in the RWA track, what trends and opportunities should they pay attention to? How can they layout in advance?
Spinach: The entrepreneurial opportunities in RWA are limited but present, mainly depending on resources and professionalism. Directly launching an asset issuance Launchpad has a high threshold, requiring strong backing and quality assets. Entrepreneurs can focus on:
DeFi protocols:Develop lending and derivatives trading protocols on the RWA public chain, such as RWA pledges and interest rate swaps, requiring strong product strength and industry awareness.
Stablecoin payments:The global stablecoin penetration rate is less than 1%, and there is space to develop payment apps, especially in Africa and Latin America.
Niche areas: Combine your own advantages and deepen niche tracks. For example, the Japanese market prefers stable cash flow from real estate RWA and can develop related derivatives.
Taking Japan as an example, the yen is one of the top three global currencies for foreign exchange settlement, with stable rental income from real estate, making it suitable for RWA. However, entry requires 2-3 years of deep cultivation due to high cultural barriers. I suggest entrepreneurs focus on niche areas, enhance product strength and awareness, avoid all-in, and steadily layout for the 2027 explosion!
Q10: Share some insights on RWA and life!
Spinach: The great maritime era of RWA is coming; we are standing at the starting point of RWA, just like explorers 500 years ago. Every entrepreneur is a Columbus linking the real world and the digital world; may everyone discover their own continent in this blue ocean!
Personal insight: Web3 is an interdisciplinary track. Maintaining curiosity, focusing on niche areas, and embracing uncertainty are essential to finding certainty amidst change. The combination of RWA and stablecoins will reshape the financial system. 2027 is a breakout point, and 2030 will see a full takeoff. I hope everyone reads more original materials from BIS and IMF, avoids noise, deepens expertise, and seizes their own opportunities!
Wang Lei: Columbus of the great maritime era, so vivid! Thanks to Teacher Spinach for an hour and a half of sincere sharing! From Singapore regulation to RWA trends, from 'Research Report Sow' to Pharos' strategic head, Teacher Spinach brings hardcore insights from a young perspective, clarifying the 'twin relationship' between RWA and stablecoins, and entrepreneurial opportunities! This episode ends here, see you next week!
Entrepreneurship is not easy, but your story must be very cool!
Welcome to join Mankun's 'Entrepreneurship Web 3 column', together injecting real and vibrant power into China's Web 3.
/ END.
Author of this article: Mankun Blockchain