RWA: The Blockchainization of Real-World Assets

Recently, RWA (Real World Assets) has become a hot topic in the blockchain field. From major financial forums to the startup community, discussions about "asset tokenization" and "real world mapping" are incessant. However, amidst this wave of enthusiasm, we need to think calmly: what problems can RWA actually solve? What key conditions are necessary for its implementation?

Many people describe RWA as "on-chain reimagining" of real-world assets. This statement is not incorrect, but true "reimagining" should break down the original information barriers and settlement processes. Unfortunately, many current RWA projects merely transfer data originally stored in traditional systems onto the Blockchain, while the entire business process remains unchanged. The stages of asset generation, value confirmation, yield calculation, and investment distribution still rely on offline operational teams to process step by step, making the Blockchain here more like a "premium version of a report."

Although this approach technically uses Blockchain, it does not fundamentally change the logic of financial operations. Converting asset information from paper contracts to JSON files on the Blockchain does not equate to achieving true "asset tokenization." If this cannot be overcome, RWA will forever remain at a primary stage.

The Two Core Standards of RWA

To judge whether an RWA project is truly valuable, it is necessary to see if it meets two key criteria: credible data and credible settlement.

1. Trusted Data: Refers to whether the Blockchain can record the status changes of real-world assets in real time and accurately. This is not just a technical issue, but a complete transformation of business processes. A true RWA project should achieve "events happening are recorded on-chain immediately," rather than relying on periodically manually uploaded "reports."

2. Trustworthy Settlement: This is the core value of RWA. It requires that the actions of value transfer such as profit distribution, principal return, default handling, and fee rollover can be executed automatically, be tamper-proof, and be publicly transparent. To achieve this, stablecoins must be involved on the Blockchain.

Many projects overlook the importance of trustworthy settlement. Even if data is on the blockchain and contract logic is complete, if the settlement process still requires manual operation or simulates cash flow through third-party platforms, then on-chain tokens are merely symbolic and not true executable financial rights.

Two Basic Questions for Measuring RWA Projects

1. Can the data be automatically added to the blockchain? For example, for the new energy charging pile project, can various data of the charging pile be directly written to the Blockchain from the sensors? For the accounts receivable financing project, can the buyer's ERP system immediately push the relevant information on-chain when the invoice is generated? If these processes still rely on manual collection and entry, then the meaning of "on-chain" for the data is lost.

2. Can the funds be settled on the blockchain? Taking the revenue tokens from new energy charging piles as an example, can the charging fees be automatically allocated to investors by the smart contract at the same time they enter the custody account? For accounts receivable financing, can the buyer's repayments trigger the contract to automatically repay the principal, calculate interest, and deduct service fees? If these operations still require manual verification and processing, then "on-chain settlement" becomes a mere empty talk.

True RWA should achieve the automatic flow of funds like data: with verifiable stablecoin reserves, public allocation algorithms, and contracts addresses that can be checked at any time. Otherwise, no matter how attractive the packaging of the rights to returns may be, investors will ultimately face the efficiency bottleneck of the traditional financial system.

Stablecoins: A Key Element of RWA

To build a truly viable RWA ecosystem, two conditions must be met: blockchain technology as the information layer and stablecoins as the value carrier.

The core value of stablecoins in RWA is not only reflected in enhancing the efficiency of cross-border payments or reducing costs, but in allowing funds to truly "come alive" in the blockchain world. Stablecoins enable funds to be programmed, invoked, and automatically executed for payments based on on-chain data.

The greatest significance of stablecoins lies in the fact that they allow funds to be programmable for the first time. You can define the payment time, recipient, and amount of the funds with precision, and you can even set specific on-chain events to trigger payments. This is no longer a passive wait for manual operations on funds, but rather a unit of value that can flow autonomously like data.

Only by introducing the application of stablecoins to RWA can the true on-chain management of the entire asset lifecycle be realized, running through the entire process in the form of smart contracts on the Blockchain, from asset generation, income distribution to exit recovery. Otherwise, no matter how many institutions participate or how many audit endorsements there are, it is essentially just another form of a centralized platform.

Therefore, we can assert that RWA projects without stablecoin applications find it difficult to achieve true Blockchain financial innovation.