As an important track in Web 3.0 finance, RWA (Real World Asset) has been continuously increasing in activity recently.

In August of this year, the Hong Kong Monetary Authority officially launched the regulatory sandbox project Ensemble aimed at exploring tokenization, which has attracted the participation of multiple mainland institutions. In November, the mainland company Left Bank Xinhui (Shanghai) Data Technology Co., Ltd. launched an agricultural RWA project in Shanghai and completed a 10 million yuan equity financing.

As a rapidly developing emerging asset type globally, how should we objectively view the value of RWA in both the digital and real worlds? Regarding relevant issues, a reporter from China Business News recently interviewed Li Guoliang, the President of the Hong Kong Fintech Industry Association.

The Hong Kong Fintech Industry Association has been committed to connecting Hong Kong with other regional markets, focusing on promoting compliance innovation and standardization in fintech (digital payments and blockchain technology). Li Guoliang told reporters that the innovation of RWA assets lies in combining real-world assets with blockchain technology, greatly improving the transparency and liquidity of asset transactions. In his opinion, mainland institutions currently have sufficient technology and talent reserves to enter Web 3.0 finance, and can gradually explore compliant participation methods and application scenarios through cooperation with relevant institutions in Hong Kong.

The relevant mechanisms still need to be improved

RWA， It refers to a form of asset ownership traded in digital form (Token) on the blockchain. RWA can break down physical assets into multiple "on chain" digital assets, leveraging the interconnectivity of global blockchain networks to bring more liquidity to physical assets.

The widespread attention to RWA stems from the Ensemble project sandbox officially launched by the Hong Kong Monetary Authority in August 2024, which aims to further study and test real-world asset (RWA) tokenization cases. The first phase of the project's trial covers the tokenization of traditional financial assets and real-world assets, with a focus on four main themes: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain financing. Previously, some banks have also issued RWA products or services in Hong Kong.

Regarding the characteristics and innovative significance of RWA assets, Li Guoliang told reporters that the innovation of RWA assets lies in combining real-world assets with blockchain technology, greatly improving the transparency and liquidity of asset transactions. This combination provides more efficient ways for businesses and investors to trade and use capital. In the Web 3.0 ecosystem, RWA assets play an important role as a bridge connecting traditional finance and digital finance, driving the digital transformation of the economy and providing new opportunities and tools for investors and businesses.

Currently, most industries are facing the demand for digital transformation. In the future digital transaction process, even in transactions involving AI, traditional tools will face new digital challenges. You cannot expect AI or your digital person (17.880, -0.90, -4.79%) to use your bank card to help you sign a contract to rent a house. At this time, Web 3.0 tools such as RWA are needed to solve the problem. RWA is not just about putting real assets on the chain, but a tool that will inevitably be needed after the digital economy matures Li Guoliang stated.

It should be pointed out that a series of characteristics of RWA assets also make financial institutions concerned about their anti money laundering and anti fraud management. In the previous consultation summary on stablecoin sandbox released by the Hong Kong Monetary Authority, although no specific recommendations were given on anti money laundering for stablecoins, it was clearly stated that "separate guidelines consistent with the international standards set by the Financial Action Task Force will be issued, including anti money laundering regulations such as transaction supervision and compliance with transfer rules", reflecting the regulatory attention.

Li Guoliang also believes that technology plays a crucial role in ensuring the authenticity of RWA assets. For example, by applying artificial intelligence, big data analysis, and real-time monitoring systems, potential fraudulent activities can be more effectively identified and prevented. He also believes that technology alone is not enough to combat fraud, and a strong legal framework and regulatory mechanism must be combined to ensure the authenticity and security of assets.

Mainland institutions can explore cooperation with Hong Kong institutions

The reporter noticed that in the exploration of Web3.0 and RWA, traditional financial institutions, emerging fintech companies, and Web3.0 native companies have all participated to varying degrees. Regarding this, Li Guoliang told reporters that the inherent view in the market is that different institutions will definitely base their efforts in new fields on their own genes, Web3.0 products also require different ecological niches to form a mature ecosystem, where banks, fintech companies, and fintech banks have different missions.

Specifically, traditional banks mainly focus on how to ensure compliance and risk management within the Web3.0 framework, especially how to use blockchain technology to ensure transaction security; Fintech companies, on the other hand, place greater emphasis on technological innovation and improving user experience, exploring how to develop new business models based on this foundation; Fintech banks are at the intersection of innovation and compliance, striving to provide innovative financial services while ensuring that all activities comply with regulatory requirements.

But we can see that a trend that sets Web3.0 apart from other industries is that different institutions are currently focusing on both their own ecological niche missions and exploring other ecological niches in the Web3.0 field. This rapid pace of innovation and integration is rare in other industries Li Guoliang stated that traditional banks are exploring how to provide fiat currency channels for the Web3.0 industry within a compliance framework, exploring the application of CBDC in the banking industry, and also seeing some banks participating in more technologically innovative projects such as stablecoin sandboxes. At the same time, fintech companies not only continue to optimize user experience and refine new business models to provide more solutions for the market, but also actively embrace regulation and focus on security, with innovative achievements in asset custody, on chain anti money laundering, and other technologies. This may also be another sign of the rapid development of the Web3.0 industry, "he said.

The reporter also noticed that there are still regulatory restrictions on the Web3.0 industry in the mainland market, and some mainland institutions are both concerned and cautious about this field. Regarding this, Li Guoliang stated that although there are restrictions on Web3.0 applications such as cryptocurrency and decentralized finance (DeFi) in mainland China, the mainland is also actively promoting research and application of blockchain technology, especially in the fields of finance, logistics, and smart contracts. Therefore, in his opinion, mainland institutions have sufficient talent reserves in technology and have plans to enter various Web3.0 industries from a technical perspective. What needs to be explored is compliance based participation methods.

Li Guoliang suggested that mainland institutions can gradually explore the application scenarios of Web3.0 and accumulate experience by collaborating with Hong Kong institutions. During this process, it is crucial to closely monitor policy developments to ensure that innovation activities align with the regulatory environment. Meanwhile, by steadily advancing technology application and compliance construction, mainland institutions can find their own positioning in the global development of Web3.0 and contribute to the sustainable development of the industry. Actively embracing this technological revolution while ensuring compliance.