Key Elements and Challenges for RWA Project Implementation

At the beginning of 2025, the Hong Kong financial market welcomed two significant developments: the launch of the first retail-oriented tokenized fund in the Asia-Pacific region in Hong Kong, and the upcoming release of the second virtual asset development policy declaration by Hong Kong. These movements bring positive prospects for the compliant implementation of the RWA( real-world asset) project.

At the same time, the first RWA project in the domestic agricultural sector successfully raised 10 million at the Shanghai Digital Asset Exchange, indicating that RWA is moving from concept to practice. Therefore, the asset side, intermediary services, and investors have been actively carrying out related work recently.

However, as the project verification deepens, many project parties begin to reflect: Is my project suitable for RWA? If not, what kind of project is appropriate? What are the requirements of RWA for underlying assets? What is the nature of the issued tokens? Do investors have the investment motivation for physically anchored assets?

This article will combine practical experience to attempt to answer these questions. We believe that the ideal RWA path is: mainland assets + data compliance for outbound transfer + raising overseas funds, achieving controllable assets, trustworthy data, and fundraising capability.

1. The Essence and Characteristics of RWA

RWA refers to the packaging of data related to the value, operations, and income of real-world assets onto the blockchain, forming digital tokens for issuance and financing. Its main features include:

1. Focused on underlying assets rather than the credit of the主体. Suitable for assets that are high in value, of high quality, need to improve liquidity and reduce investment thresholds, such as stablecoins, bonds, stocks, real estate, and commodities.

2. Fast financing speed. Utilizing smart contracts and blockchain technology to achieve full-process digitization and standardization.

3. Improve asset liquidity. By tokenization, fragmentation, and internationalization, make assets easier to circulate in the market.

2. Challenges Faced by Enterprises

Despite the obvious advantages of RWA, successful cases among mainland enterprises remain limited, mainly facing two major challenges:

1. Compliance Challenges

Mainland China prohibits activities related to virtual currencies. Therefore, the RWA project must plan a complete compliance path:

• Tokens are issued overseas
• Underlying assets can be located domestically or abroad.
• Projects can be linked domestically and internationally or carried out only abroad.
• Assets need to be financialized first, and then tokenized through smart contracts.

2. Investor Attraction

Although the technical barriers for issuing tokens and listing on exchanges are not high, the key lies in how to attract investors. RWA tokens must meet two conditions:

• Investors have purchasing power.
• Investors belong to ( overseas ) qualified investors

Due to the asset-backed nature of RWA tokens, their value is relatively stable and lacks the "explosive growth" potential. Investors need to be interested in the assets themselves to enter the market. At the same time, exchanges usually have entry requirements for investors, further narrowing the potential investor pool.

Three, Key Steps for RWA Project Implementation

1. Initial screening of feasible projects: Companies need to have a comprehensive understanding of their asset situation and determine the underlying assets.

2. Technology and Compliance First: Design token economic models, develop technical architecture, and plan compliance pathways, etc.

3. Project execution: Complete due diligence, white paper writing, smart contract development, etc., to achieve asset tokenization.

4. As planned above: Assist enterprises in completing secondary market circulation according to policy and demand changes.

5. Community Operations and Promotion: Provide ongoing comprehensive consulting services, including community management, media liaison, etc.

Enterprises need to have cross-domain talents who understand both business operations and asset characteristics, as well as the Web3 ecosystem. At the same time, professional legal and technical support is also essential to ensure that projects are compliant and achieve their expected goals.