RWA Tokenization

Wang Yang and Zhu Haokang initiated a policy suggestion: Hong Kong should focus on promoting RWA tokenization in the next step, establishing a public chain and regulatory environment for RWA

ChainCatcher news, Wang Yang, Vice President of the Hong Kong University of Science and Technology and Chief Scientific Advisor of the Hong Kong Web3.0 Association, along with Zhu Haokang, a PhD student in Financial Technology at the Hong Kong Polytechnic University and a founding member of the RWA and Stablecoin Working Group of the Hong Kong Web3.0 Association, proposed policy recommendations, stating that Hong Kong should focus on the deep integration of virtual and real-world assets, fully utilizing blockchain technology. Based on the Hong Kong dollar stablecoin, a robust Web3 ecosystem should be built, with a focus on the digitization and tokenization of real-world assets (RWA), such as bonds, private credit, trade finance, real estate, carbon credits, and precious metals. Furthermore, to ensure a good regulatory environment for RWA, it is recommended to adopt Zhu Haokang's earlier advocated "RWA 2+4" as a starting point for feasibility studies. This methodology revolves around two types of tokens (security tokens and utility tokens) and four core elements (legal foundation, financial framework, technological tools, and data-driven) to explore opportunities amidst challenges and promote the healthy development of RWA.To promote the development of RWA tokenization in Hong Kong, it is suggested that a compliant and robust infrastructure needs to be established, with blockchain technology being the core component. Organizations such as the Hong Kong Web3.0 Association have proposed to establish a new public blockchain for RWA in Hong Kong, incorporating the corresponding KYC mechanisms. Additionally, the author once again strongly urges Hong Kong to launch a unified stablecoin, guided by a global plan, to be issued by licensed institutions (which can include government and financial institutions such as banks, insurance companies, and funds), along with a corresponding profit distribution scheme.
ChainCatcher Building the Web3 world with innovators