Currency stocks? RWA？ How to do cryptocurrency to stock trading pairs (2) Many people think that RWA is just a cryptocurrency stock, either adding narrative through cryptocurrency strategic reserves or putting stocks on the chain, but these are not the best ideas. I have also talked about helping cryptocurrency companies go public before, and in fact, these are the most basic applications. For stocks, especially Nasdaq stocks, liquidity is much better than on chain stocks. For example, Nvidia NVDA has a daily trading volume of around 30 billion US dollars, while the highest Ondo on chain stocks I see is 106 million US dollars per day, which is less than 1% of the market share. This means that the listing of stocks on the blockchain itself is a "pseudo demand", and most traditional investors can open centralized brokerage accounts. Except for some currency controlled countries, trading US stocks is not difficult, so how much demand can there be for traditional IPO stocks on the blockchain? Even if we help cryptocurrency companies go public in reverse, although the demand will be greater than that of listing on the US stock market, the ceiling is actually very limited. However, if we can achieve real-time trading of cryptocurrencies and US stocks, then this meaning will be even greater. This is also the direction I am currently researching. Currently, compliance is not a problem for professional investors, but for retail users (individual investors), except for Switzerland and Germany, there is no compliance channel. I have made a hypothesis about the application scenario of cryptocurrency and stock trading pairs. Suppose a listed company has dividends, with a monthly dividend of 0.5% on the first day of each month. If this company is called ABC and issues stocks called ABC, and has opened trading pairs for ABC and BNB, why BNB? Let's assume that the current BNB position yield is 1% per month, four times a month, but the timing is uncertain. Then, users can already receive 1% of the BNB yield within one natural month. If they switch to ABC the day before the ex dividend date, they can enjoy a 0.5% dividend from ABC. After the dividend, they can exchange ABC back into BNB (or continue to hold ABC). Some friends here may ask, isn't it possible for the stock price to fall after ex dividend? This issue can be mitigated by CME's hedging to lock in the price of BNB after switching to ABC, thereby avoiding losses caused by the decline in ABC prices. It's relatively simple, but the implementation logic will be more complex. I drew a diagram to illustrate it. I have also considered here that if it is on the chain, there may be slippage and free losses, which may not cover the 0.5% return obtained by users through redemption. If it is a centralized approach and the solution of reducing transaction fees should reduce wear and tear. Further thinking!! Very important!!! What would happen if ABC, a listed company or ETF, essentially holds 100% of BNB and BNB can achieve a monthly dividend of 1%, and this company uses all BNB earnings to distribute dividends to its shareholders? Furthermore, this company not only holds BNB but also quantifies its earnings, resulting in a monthly dividend of 3% (assuming)? Smart you must have thought of it! This is the real application of cryptocurrency stock trading pairs or RWA in my mind. Connect the liquidity between cryptocurrencies and listed companies (ETFs). This is the combination of real assets and virtual assets, but of course, it is still in its infancy. There are still many challenges and difficulties to face, and there are many compliance troubles. In addition, how to design a business profit model that allows stocks or ETFs to achieve a flywheel through dividends, and this flywheel still needs to exceed the wear and tear of trading pairs. These are all details that need to be polished. But as the saying goes, there are always more solutions than problems. The essence of this solution is dual delivery on and off the chain. I never worry about trouble, what I'm afraid of is that the road may go wrong. As long as the road is not wrong, I will definitely see the results. This article is sponsored by Bitget | @ Bitgetzh