Author: Liu Fuqi, Mo Yuxin

Introduction: What is RWA?

RWA (Real World Asset) refers to the process of utilizing blockchain technology to digitally map tangible or intangible assets from the real world, transforming them into tokens that can be issued, traded, and managed on-chain.

If Tether (USDT) is the "on-chain dollar," then RWA is the tokenization of any asset with clear ownership, enforceable rights, and measurable value. This concept gained traction after 2022 due to rising global interest rates and declining yields in the crypto market, and officially entered its "development year" in 2023 with the entry of asset management giants like BlackRock and clearer regulations.

From a technical process perspective, RWA tokenization encompasses three key stages:

• Off-chain rights confirmation: Completing asset ownership confirmation, value assessment, and compliance review through legal procedures, forming the basis of trust;

• On-chain mapping: Mapping the confirmed asset rights, data, etc., to the blockchain using smart contracts, connecting them with tokens representing ownership or revenue rights;

• On-chain governance: Automating the execution of management functions such as revenue distribution and transfer restrictions through smart contracts, enhancing efficiency and transparency.

RWA does not create trust out of thin air; rather, it explores the migration and expansion of existing asset credit from the real world to the global blockchain network at lower costs and higher efficiency. At the same time, the "RWA Industry Development Research Report · Industry Chapter 2025" clearly points out that the idea of "everything can be RWA" is overly idealistic, and not all assets are suitable for on-chain representation.

In fact, the success or failure of a project largely depends on the initial asset selection, the development stage of RWA, and the understanding and recognition of RWA. Among these, choosing the right assets is the cornerstone of success, achieving more with less effort.

This article will explore how to select real-world assets suitable for tokenization, analyze the common characteristics and typical cases of quality RWA assets, and point out the types of risky assets to avoid.

Macroeconomic Standards: Five Common Characteristics of Quality RWA Assets

Tokenization does not change the essential attributes of assets. The Hong Kong Securities and Futures Commission (SFC) clearly states that tokenizing real assets does not alter their legal attributes. If the underlying asset is a security, it remains a security after tokenization and must comply with existing securities regulations. In other words, "tokenized securities" essentially layer traditional regulated securities with a digital technology shell: the underlying assets are regulated under securities law, while the on-chain token layer must meet additional technical risk compliance requirements.

Given that regulation follows the principle of "substance over form" (Same Business, Same Risks, Same Rules), an ideal underlying RWA asset typically possesses the following five common characteristics:

• Clear ownership and legal transferability: The ownership or revenue rights of the asset must be unequivocal, and legally allowed to be transferred and traded.

• Stable and predictable cash flow: The asset should continuously generate cash flow, such as interest, rent, or fees from infrastructure. This stands in stark contrast to assets like "metaverse land," which lack stable cash flow.

• Well-established governance and information disclosure mechanisms: Having mature and transparent management and information disclosure processes facilitates ongoing operation and supervision after going on-chain.

• Economic structure suitable for tokenization: The value and rights of the asset can be clearly quantified and encapsulated in a corresponding structure, making it easier to mint standardized tokens for a broader range of investors.

• Simple and transparent product structure: Assets with simple structures, easily assessable risks, and sufficient collateral are more likely to gain regulatory approval.

Microeconomic Practices: Exemplary RWA Assets Meeting Quality Standards

Under the macroeconomic standards outlined above, the following types of assets have performed prominently in current RWA practices.

(1) Fixed Income Assets

These assets are highly standardized and have stable cash flows, making them the most natural targets for RWA. Among them, U.S. Treasury bonds stand out due to their lack of default risk and high liquidity. Besides U.S. Treasuries, sovereign bonds and corporate bonds from Europe and Asia are also gradually attempting to go on-chain, typically issuing tokenized notes through structures like BVI funds or Luxembourg SICAVs.

Participants in this sector include traditional financial giants like BlackRock and crypto-native institutions like Ondo Finance, which generally place a high emphasis on compliance, often holding actual assets through SPVs or regulated funds to ensure that token holders' rights are legally protected.

Typical cases:

• BlackRock's USD Short-Term Treasury Token BUIDL: Launched in March 2024 on Ethereum, it provides qualified investors with an on-chain investment channel for U.S. Treasury bonds, allowing holders to automatically receive interest daily, marking a substantial embrace of RWA by traditional finance.

• Hong Kong SAR Government Green Bond Tokenization: In 2023, it issued HKD 800 million in tokenized green bonds, allowing institutional investors to participate in repurchase operations with a 90% collateralization rate, enhancing capital utilization efficiency.

(2) Accounts Receivable and Franchise Rights

These assets are based on real trade contracts or government authorizations, with clear rights confirmation and stable cash flows, making them ideal targets in the supply chain finance sector.

The core model is "blockchain + supply chain finance." Core enterprises put their accounts payable on-chain, allowing credit to penetrate multiple levels of suppliers without loss, addressing the financing difficulties and high costs faced by small suppliers at the end of the supply chain.

Typical case:

• Centrifuge On-Chain Credit Matching: As an on-chain credit platform, Centrifuge tokenizes accounts receivable and other debt instruments, connecting lenders and borrowing enterprises through smart contracts, simplifying the financing process, reducing costs, and providing more convenient financing channels for small and medium-sized enterprises while creating revenue opportunities for lenders.

(3) Quantifiable Infrastructure Revenue Rights

Assets such as toll roads, photovoltaic power stations, and 5G towers typically have government backing and extremely stable cash flows, serving as a "ballast" for the social economy.

Typical cases:

• GCL-Poly Energy Photovoltaic Power Station Revenue Rights Tokenization (December 2024): Tokenizing the revenue rights of an 82MW photovoltaic power station, with real-time verification of power generation data through IoT devices and oracles.

• Longxin Group Charging Pile Revenue Rights Tokenization (May 2025): Tokenizing the revenue rights of thousands of charging piles, this project is the first cross-border RWA case of mainland new energy assets in the Hong Kong Monetary Authority's Ensemble sandbox.

(4) High-End Physical Assets

Assets like rare metals have potential for value storage and appreciation but lack liquidity in traditional markets. RWA addresses the four major challenges of "rights confirmation, authenticity, custody, and trading," unlocking their liquidity.

With the improvement of regulatory frameworks, precious metals have become acceptable RWA targets after meeting strict verification and storage requirements.

Typical case:

• PAXG: A gold-backed stablecoin issued by Paxos, with each token corresponding to a specific quantity of physical gold.

Cautious Pitfalls: Which Assets Should Be Avoided?

While selecting quality RWA, investors must remain acutely aware of the associated risks and pitfalls.

From a legal perspective, relevant domestic regulations have made it clear:

• "Notice on Preventing Bitcoin Risks" (Yin Fa [2013] No. 289): Defines certain currencies as "specific virtual goods," prohibiting financial institutions from engaging in activities related to virtual currencies. If RWA tokens are anchored to virtual currencies rather than real assets, this document's regulations will apply directly;

• "Announcement on Preventing Risks of Token Issuance Financing" (September 4, 2017): Clearly states that the essence of token financing is "illegal public financing," strictly prohibiting disguised ICOs through methods such as splitting shares or lowering investment thresholds;

• "Notice on Further Preventing and Handling Risks of Virtual Currency Trading Speculation" (September 15, 2021, "9.24 Notice"): Clearly categorizes virtual currency-related activities as "illegal financial activities," while distinguishing the essential differences between RWA and "air coins"—only projects that anchor real assets and do not engage in token speculation have compliance prerequisites;

• "Securities Law" (Revised in 2019): Article 2 clearly states that "securities include stocks, corporate bonds, depository receipts, and other securities recognized by the State Council in accordance with the law." If RWA tokens possess "revenue rights commitment + transferability" (such as agreed proportional dividends or support for secondary market trading), they may be classified as "other securities," requiring compliance with the full process of securities issuance and trading.

In terms of asset types, the following categories still require heightened vigilance:

• Virtual currency derivatives: Such as Bitcoin/Ethereum futures contracts, which are inherently highly volatile, and have been explicitly prohibited from tokenization in regions like Hong Kong for pure crypto assets like Bitcoin and Ethereum;

• Pure concepts with no physical backing: Such as "unopened pearl" or "high imitation jade," which can easily be deemed illegal fundraising or fraud;

• Legally prohibited circulating items and certain restricted circulating items: Such as cultural relics, drugs, ivory, products made from hornbills, uncut jade raw stones, and restricted circulating items without authorized operation (such as collectively operated construction land use rights);

• Others: Assets lacking clear legal ownership or with highly uncertain cash flows.

Conclusion: Asset Selection and Compliance First

The early enthusiasm for "everything can be RWA" will eventually fade, and asset issuance is accelerating towards quality credit institutions. In this context, the key to building quality RWA projects lies not only in prudent asset selection but also in compliance with legal regulations. If you are laying out in this area, the Mankun Law Firm team can provide professional compliance support to help you expand steadily!

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。