Decoding RWA: Can "Dubai WEB3 New Trends" serve as a reference for "Hong Kong's Crypto Narrative"?
On-chain native applications represented by BG Trade can serve as a reference for the narrative of Hong Kong's crypto economic center—this will help leverage DeFi and the capital of the crypto space to empower the web3 industry, achieve the development of the native web3 technology application market, and promote the integration of virtual assets in the crypto economy with the real-world financial system.Author: Jerry@TPDAO, Daoist@TPDAO
In the context of Hong Kong's new policies and U.S. regulations, we believe that RWA (Real World Assets) is the most valuable wealth code under the global crypto regulatory framework. This topic deserves a dedicated article, which we plan to publish next week.
Yesterday (June 26), a thematic forum titled "New Trends in Dubai WEB3" was held at the Dubai Silicon Valley Digital Industry Park, featuring deep participation from Chinese individuals, including MetaTdex founder Li Jun, BG Trade CEO Ali Nauman, and MetaDAO founder Xu Weizhuo. The main focus was to explore the practices and possibilities of RWA. This prompted us to pause our topic on "Decoding RWA: The Most Valuable Wealth Code in a Compliance Context" to observe whether the "New Trends in Dubai WEB3" could provide insights for Hong Kong's RWA.
In "Opportunities and Challenges under 'U.S. Regulations and Hong Kong's New Policies'," we discussed the opportunities presented by Hong Kong's new policies and its potential as a crypto hub. However, we still believe there will be challenges for Hong Kong to become a global crypto center. Of course, we also agree that the Hong Kong government's current choice to bring trillion-level off-chain assets on-chain (RWA) is a wise decision—over the next one or two bull-bear cycles, Hong Kong's main battlefield will be to promote the integration of the crypto economy's virtual assets with the real-world financial system, allowing for both offensive and defensive strategies. So, how can off-chain assets be brought on-chain (RWA)?
We observed that in mid-June, China International Capital Corporation (CICC) issued a successful RWA practice by UBS, targeting the Hong Kong market with a 200 million digital note—UBS Group stated that this transaction marks the first of its kind in the Asia-Pacific region to comply with Hong Kong and Swiss laws and to be tokenized on the Ethereum blockchain.
However, some opinions and suggestions have been raised—what UBS referred to as the "main Ethereum blockchain" is actually not the Ethereum mainnet but a centralized consortium chain deployed using Ethereum's open-source code. Under the uncontrollable risks of policy compliance, regulation, and transaction efficiency, traditional institutions still have a long way to go in deploying business on public chains.
This is also why we set aside our topic to focus on the "New Trends in Dubai WEB3." We hope that by observing the practices and discussions around RWA in Dubai, we can provide insights for Hong Kong's RWA.
The "New Trends in Dubai WEB3" forum analyzed how investors can enter the RWA space and implement global digital asset investment strategies based on discussions about the RWA track and emerging dark horses. Among them, BG Trade, with its more native crypto genes and genuine deployment of business on public chains, is worth our analysis and introduction:
BG Trade changes the issuance and trading of real-world assets (RWA) through a platform built on the Ethereum Virtual Machine (EVM).
By providing efficient connection opportunities for heterogeneous RWA, BG Trade aggregates a multi-dimensional asset investment platform.
BG Trade is based on leveraging the Ethereum Virtual Machine to ensure seamless compatibility with the existing Ethereum ecosystem. By utilizing the functionality and security of EVM, BG Trade establishes an on-chain environment for users to participate in RWA trading.
BG Trade currently has an average daily trading volume of approximately $3 million, with over 300,000 community members across more than 50 countries and over 7,000 holding addresses.
We will analyze "how BG Trade provides a range of features and services tailored to enhance the RWA trading experience" in future articles.
In the context of observing Dubai's RWA practices and discussions as a mirror for Hong Kong's RWA, we aim to highlight our consistent attitude—Hong Kong needs to integrate its role as a "financial center" into the narrative of Web3/crypto economy and transform the speculative energy of the crypto space into capital that supports the development of the Web3 native market. The key point lies in how the Hong Kong government can effectively utilize the capital allocation role of native DeFi within the crypto economic system.
Therefore, on-chain native applications represented by BG Trade can serve as a reference for the narrative of Hong Kong's crypto economic center—this will help leverage DeFi and crypto capital to empower the Web3 industry, achieve the development of the native Web3 technology application market, and promote the integration of crypto economic virtual assets with the real-world financial system.
