RWA Project Investment Value Assessment: The Integration of Traditional and Digital Finance

Recently, a closed-door project selection meeting focusing on Real World Asset Tokenization (RWA) has attracted attention in the industry. This event brought together several experts from traditional finance and the blockchain sector, aiming to conduct an in-depth evaluation and screening of a series of RWA projects from the perspective of traditional investors, and to jointly explore high-quality assets with investment potential.

As the Hong Kong SAR government actively promotes a compliant digital asset strategy, particularly with the recently launched "LEAP" framework focusing on the tokenization of physical assets such as government bonds, artworks, gold, and energy, strong support has been provided for bringing these assets on-chain. Against the backdrop of the increasingly完善 Web3 infrastructure and regulatory system in Hong Kong, RWA is rapidly becoming an important channel and core bridge for traditional finance to enter the digital asset space. Currently, the industry's focus has shifted to how to effectively implement RWA projects in a compliant environment.

The in-depth discussions and voting results of this product selection meeting have formed a clear industry consensus: the real utility of RWA is far more important than the tokenization itself. The RWA projects under discussion all focus on solving liquidity issues in the real market and adopt a reasonable and transparent trading structure. Although the motivations of various RWA issuers differ, the investment value of RWA for traditional financial investors essentially depends on fundamental elements such as the credit quality, risk structure, and inherent liquidity of the underlying assets. As pointed out by the experts present, an asset that lacks liquidity in traditional markets will not automatically gain liquidity simply by being tokenized and put on the chain.

The types of RWA projects discussed at this selection meeting are representative, and the underlying assets of the tokens cover the following categories:

1. Money Market Funds: The meeting discussed tokenized money market fund products, including US Treasury funds anchored by top asset management firms and money market fund projects issued by leading public funds in Asia. The underlying assets of these products have extremely high credit ratings, providing stable returns and inherent liquidity, along with a complete compliance framework. Under the premise of ensuring reliable asset custody, compliance frameworks, and liquidity mechanisms, the attractiveness of these products depends on the accessibility brought by tokenization and whether they can seamlessly integrate into the digital asset ecosystem, providing yields that are more competitive than traditional money market funds. The voting results show a strong market demand for products that combine the safety of traditional finance with the native convenience of Web3.

2. Physical Commodities: This type of RWA project maps the ownership of recognized value assets such as gold onto the blockchain, providing investors with convenient on-chain holding, trading, and hedging tools. In a gold token project discussed at the conference, the token's value is linked to 100% of physical gold reserves, ensuring asset security through transparent auditing and custody mechanisms. The high homogeneity and non-physical delivery characteristics of gold make it an ideal underlying asset for commodity tokenization. Voting data on product selection shows that this project has garnered significant investor interest, confirming gold's strong appeal as a traditional safe-haven asset in the digital world.

3. Debt-type assets: This type of RWA tokenizes traditional credit assets, providing investors with relatively high fixed income but requiring them to bear corresponding credit risks. For example, personal consumption loan projects guaranteed by listed companies have core risks that need to assess the credit quality of the underlying unsecured loans and the actual performance capability of the guarantor. In contrast, projects adopting a "fixed income + options" convertible bond model have their value highly dependent on the future operational performance of the issuing entity. These tokenized debt assets meet the needs of investors seeking clear cash flow and higher returns, who are willing to bear certain risks of corporate or project defaults.

4. Future Cash Flows and Rights to Income: This type of RWA is a structured financing arrangement that tokenizes the expected future revenues of specific commercial projects, with risks and returns directly linked to the operational status of the underlying business. For example, a certain ship leasing project discussed in the selection meeting ensures stable and predictable rental dividends by signing long-term leases with high-credit-rated tenants. Another project allows investors to participate in sharing the potential price difference profits generated by the emerging business of AI computing power distribution. The evaluation logic for such investments is closer to project investment and is suitable for investors who have a deep understanding of specific industry prospects and corresponding risk preferences.

5. Functional Tokens: This is a special category discussed in this selection meeting. The value of such tokens is not anchored to tangible real assets or stable cash flows, but rather derives from their utility within a specific ecosystem and market demand. Its price trend mainly depends on the popularity of the IP and the speculative sentiment in the secondary market, thus primarily attracting participants who have an in-depth understanding of the relevant industry or IP content. Traditional financial investors tend to be relatively cautious towards such tokens.

The voting results clearly indicate that tokenization is merely a technological path for putting assets on the blockchain, and the foundation for the development of RWA lies in its ability to meet the genuine needs of market participants. The liquidity and scalability potential of the project are key prerequisites for the long-term development of the entire RWA ecosystem; as real-world assets, the credit quality of the underlying assets, the stability of cash flows, the legal structure, and the risk status of the issuer directly determine the long-term value and security of the project.

The discussions and voting results from this closed-door product selection meeting provided valuable market insights for the evaluation of RWA projects, contributing to the healthy development of the RWA ecosystem and the deep integration of traditional finance with digital assets. With the continuous improvement of the regulatory environment and the deeper understanding of market participants, we have reason to believe that RWA projects that can genuinely solve practical problems and are supported by solid underlying assets will play a significant role in the future of the digital finance sector.