At Bangkok Blockchain Week, the RWA2024 Technology Exchange Summit, co hosted by renowned RWA venture capital firm Global Asset RWA Management Group (Vanuatu), fintech companies, and other well-known cryptocurrency media outlets, was successfully held in Bangkok. This conference attracted cryptocurrency institutions, investors, developers, and media from around the world. The participating institutions include HashKey, a compliant digital asset exchange in Hong Kong, rwa.com. vu, a compliant digital asset exchange in Vanuatu, Matrixdock, MADAO, DigiFT, and other digital asset management companies.
The core topics of this summit focus on real-world asset (RWA) tokenization, payment finance (PayFi), and decentralized finance (DeFi). RWA, as an innovative model that combines traditional financial assets such as real estate, securities, commodities, etc. with blockchain technology, has gradually shown great potential and transformative power in the financial market. By transforming real-world assets into digital tokens, RWA provides new liquidity, transparency, and efficiency for the capital market. In some regions of Asia, regulatory authorities have begun to allow experimental release of such innovative products.
(Figure 1: Hackathon organized by Global Asset RWA Management Group (Vanuatu))
As a professional scholar in the field of RWA, Kong Ling deeply analyzed the theoretical basis of RWA tokenization and its application prospects in the global capital market in her keynote speech. He believes that RWA tokenization is not only a process of digitizing traditional assets, but also an inevitable trend for financial assets to cross the physical and digital boundaries. Through blockchain technology, RWA can break geographical restrictions and enable investors to participate more efficiently in the global capital market.
Combined with the increasingly clear RWA regulatory policy trends in some regions, achieving RWA assetization and innovation in encrypted finance in different regulatory environments will obviously become an unstoppable trend. As a national level infrastructure, Vanuatu Global Asset RWA Management Group also stated its mission as an exchange initiated by sovereign funds.
(Figure 2: Teacher Kong Ling is giving a speech on space exploration while selling tickets to RWA.com. vu)
In his speech, Kong Ling listed the views of the CEO of well-known Wall Street investment firm BlackRock: RWA is the next generation of financial markets. And some investment research institutions predict that the global RWA market size will reach as high as $30 trillion.
(Figure 3: Global Asset RWA Management Group (Vanuatu)'s web3.0 activities are exciting and diverse)
Dr. Huang, the head of Openservices Middle East, elaborated on the advantages of RWA from the platform practice of RWA.com. vu:
Liquidity Enhancement Artifact
Lowering the transaction threshold: RWA tokenizes 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.
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.
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.
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.
Great opportunity 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.
Embracing Regulatory Compliance Beyond 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.
Convenient trading 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.
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.