1、 Latest Developments in RWA International Market

1. Hong Kong's financial regulatory innovation: Internet giants enter the sandbox to stabilize the currency

In July 2023, the Hong Kong Monetary Authority announced the launch of the stable currency supervision sandbox plan, and announced the list of the first batch of participants, including Jingdong and other mainland Internet leading enterprises. Subsequently, JD.com teamed up with Xiaomi Group's Hong Kong virtual bank -; Tianxing Bank, in collaboration with JD Coin Chain Technology, has officially announced its entry into the Hong Kong stablecoin market through a stablecoin issuer sandbox partnership. This series of measures not only highlights the Internet giants' high attention to the Hong Kong RWA (real world asset) market, but also marks the deepening and expansion of their layout in this field.

2. Ant Digital Charging Pile Digital Assets: RWA Leader and Cross border Practice of New Energy Assets
As a leading enterprise in the RWA field, Ant Group is accelerating the promotion of cross-border RWA projects involving new energy assets. In addition to actively participating in the research of the Hong Kong Monetary Authority's digital currency project, Ant Group also successfully assisted Longfor Group in completing the first RWA issuance based on new energy physical assets in China, marking a milestone in the innovative application of RWA in the new energy industry and providing valuable experience and case support for RWA's expansion in more fields.

By converting the revenue rights of charging piles into digital assets and successfully issuing them on the blockchain, Langxin Group not only effectively alleviates the financing difficulties faced by small and medium-sized enterprises, but also opens up new financing paths and market opportunities for the new energy sector. This groundbreaking practice not only validates the enormous potential of blockchain technology in financial innovation, but also heralds the important role of RWA in driving industrial transformation and economic transformation.

3. Global giants compete for RWA blue ocean, reshaping the financial market landscape
As the RWA market matures and its scale continues to expand, internationally renowned enterprises such as Goldman Sachs, Siemens, and financial giants HSBC, JPMorgan Chase are accelerating their strategic layout in the RWA field. These institutions have further promoted the development of the RWA market by introducing new treasury bond products and T-bills funds on the chain.

BlackRock, the world's largest asset management company, launched its first digital fund based on public blockchain in 2024, further accelerating the booming development of the RWA market and signaling that RWA is gradually becoming an indispensable component of the mainstream financial system.
The application scenarios of RWA have expanded to multiple fields such as stablecoins, private credit, government bonds, commodities, real estate, and stock securities. In particular, the digital US treasury bond bonds and private credit markets have shown great growth potential and market value.

2、 Development Trends of RWA International Market

With the continuous development of the RWA market, regulatory agencies in various countries are gradually intervening and attempting to formulate regulatory frameworks related to RWA. This will help enhance the compliance and security of the RWA market, laying the foundation for its long-term development.

According to data from Dune Analytics, RWA narrative has ranked second in growth since 2024, demonstrating its strong market potential. RWA is one of the fastest-growing DeFi fields, with TVL (total lock up volume) doubling for the full year of 2023, and on chain asset value increasing by 50% since the beginning of 2024, reaching up to $12 billion (excluding stablecoins).

According to predictions, the total value of digital assets is expected to grow to $6.8 trillion under basic market conditions by 2030. According to a report by Boston Consulting Group, the size of the tokenization market may reach $16 trillion by 2030, demonstrating the enormous growth potential of the RWA market.

With the continuous innovation and application of technologies such as blockchain and artificial intelligence, the RWA market will usher in more development opportunities and challenges. These technologies will further enhance the transparency, liquidity, and security of the RWA market, driving the market towards a higher level of development.

3、 RWA leads financial innovation

1. The artifact for improving liquidity
Lowering transaction barriers: RWA digitizes real-world assets, allowing them to be traded on the blockchain. This digital form lowers the investment threshold, allowing more investors to participate in markets that may have been difficult to enter due to high costs or complex processes.
Increasing market depth: Through RWA, assets with low liquidity such as real estate and art can be divided into smaller shares, thereby increasing the depth and breadth of the market and improving asset liquidity.


2. Transparency visible to the naked eye
Information cannot be tampered with: The decentralized nature of blockchain technology ensures the immutability of transaction records, and all transaction data is permanently stored on the blockchain, which can be viewed by anyone, greatly improving the transparency of transactions.
Real time traceability: The trading process of RWA is real-time and can be traced throughout the entire process. This means that investors can monitor their investment status in real-time, enhancing their trust in the market.


3. Clearly low-cost
Reduce intermediate links: RWA automatically executes transactions through smart contracts, reducing the need for multiple intermediaries to participate in traditional financial transactions and thus lowering transaction costs.
Optimizing operational efficiency: The automation features of blockchain not only reduce labor costs, but also improve operational efficiency, making asset management more efficient.


4. Encryption enhances security
Encryption protection: RWA utilizes advanced encryption technology to protect transaction data and user privacy, reducing the risk of fraud and hacker attacks.
Smart contract protection: The use of smart contracts ensures strict execution of trading terms, reduces the possibility of default, and provides investors with higher security protection.



5. Great opportunities for financial innovation
New investment opportunities: RWA provides investors with new investment opportunities, especially in asset classes that are difficult to obtain in traditional financial markets, such as renewable energy projects, green assets, etc.
Cross border integration: RWA promotes the integration of traditional finance and decentralized finance (DeFi), driving innovation and development in financial services.


6. Embrace regulatory compliance
Legal framework support: With the development of RWA, the legal and regulatory frameworks in Vanuatu and globally are gradually improving, providing support for RWA's compliant operation.
Regulatory recognition: More and more regulatory agencies are recognizing the potential of RWA and taking measures to promote its healthy development.


7. Convenient trading with a large market
Global Investor Access: RWA enables global investors to access and invest in assets that were originally limited to specific regions or countries, expanding market coverage.
Cross border transaction convenience: The application of blockchain technology makes cross-border transactions more convenient and reduces friction costs in international trade.

8. Capital formation shows its divine power
Improving financing efficiency: RWA provides new financing channels to help enterprises, especially small and medium-sized enterprises, raise funds more efficiently, promoting capital formation and economic development.
Diversified funding sources: RWA has attracted a diverse range of funding sources, including traditional financial institutions and cryptocurrency investors, providing businesses with a wider range of financing options.