BlackRock and Goldman Sachs are frantically deploying RWA. Is it the next opportunity to get rich quickly?

——Space Viewpoints on March 18

Introduction      

In recent years, with the accelerated layout of the RWA track by traditional financial giants such as BlackRock and Goldman Sachs, the total scale of RWA assets on the chain has exceeded tens of billions of dollars. However, the rapid expansion of this field is also accompanied by multiple challenges such as compliance, liquidity, and asset quality. In a recent space AMA discussion titled "BlackRock and Goldman Sachs are crazy about their layout! Is RWA the next opportunity to get rich?", three senior industry observers: Mr. Mao, Sicheng and Wang Rui, partner of Asymmetry Capital and consultant of FINMETA, discussed the current situation and future of RWA from different perspectives.

1. Cyclical game of RWA and strategic considerations of institutions

1.1 Fed policy and market dynamics      

Mr. Mao analyzed from a macroeconomic perspective that the Fed's interest rate hike cycle has impacted the global real economy, and traditional financial assets are facing pressure in the short term. He took the 20% plunge in French real estate prices as an example, emphasizing that the decline in the yield of traditional assets is driving institutions to seek alternatives to tokenized assets.  

Mr. Mao proposed four core advantages of RWA to attract institutions:  

1. Lowering the investment threshold through tokenization, for example, assets such as gold and stocks can be divided into smaller units.  

2. DeFi combination: After assets are on the chain, they can be seamlessly connected to operations such as lending and liquidity mining, amplifying the potential for income.  

3. Reduced transaction costs: Blockchain technology reduces the intermediate links, for example, the cost of Hong Kong legal currency knocking has been reduced from 12% to a few thousandths.  

4. Risk hedging and diversification: The combination of traditional assets and encrypted assets provides institutions with new hedging tools.  

1.2 Strategic intentions of institutions to enter the market      

Regarding the motivations of institutions such as BlackRock and Goldman Sachs to enter the market

Wang Rui believes that traditional financial institutions value two major potentials of RWA:  

Improved liquidity: expanding products that were originally only for high-net-worth customers to the retail market.  

Cross-regional liquidity: For example, assets such as Dubai real estate and African minerals can be circulated globally through tokenization.  

He particularly mentioned that the fit between institutions' demand for transparency and blockchain technology is the key to promoting cooperation.  

II. RWA competition landscape and differentiation factors      

2.1 Key factors for project survival      

With the surge in the number of RWA projects, what are the key factors for standing out in future competition?

Sicheng proposed from the perspective of the project life cycle:  

Start-up phase: Compliance framework and legal agreement design are the "life and death line".  

Growth phase: Liquidity solutions determine user retention and market expansion.  

Maturity phase: The compliance framework needs to be further strengthened to adapt to globalization needs.  

Wang Rui: Business model innovation is also crucial. He cited the example that some projects attract users through high APY (annualized rate of return) and form a "liquidity flywheel" in combination with the platform coin repurchase mechanism. Although such models are effective in the short term, they need to rely on the quality of underlying assets in the long term.  

2.2 Legal Agreement and Compliance Disputes      

Mr. Mao, the current RWA market is still in the early stage of barbaric growth, and the phenomenon of bad money driving out good money is significant. He cited the failure of three projects at the Hong Kong conference as an example, pointing out that the lack of supervision has led to frequent fraud: "If compliance cannot be resolved, the industry will repeat the mistakes of the Metaverse." He suggested that project parties should give priority to regions with clear supervision such as Singapore and Hong Kong, and introduce third-party auditing agencies to verify the authenticity of assets.  

III. Bad money drives out good money: phenomenon and solution        

3.1 Adverse selection and market chaos      

Mr. Mao pointed out that some projects that did not disclose their underlying assets received higher capital inflows.

He analyzed that this phenomenon stems from:  

Information asymmetry: Investors lack unified cognition and are easily attracted by high-yield propaganda.  

Speculative psychology: The market pays more attention to short-term speculation rather than asset quality.  

Regulatory vacuum: Lacking audit standards and legal accountability mechanisms, project parties tend to hide risks.  

3.2 Solutions      

In response to the above problems, the three guests proposed different solutions:  

Mr. Mao: Calls for the establishment of a global regulatory framework, mandatory disclosure of underlying assets and the introduction of on-chain auditing tools.  

Si Cheng: It is recommended to increase the cost of doing evil through technical means, such as deploying multiple oracles to verify asset data.  

Wang Rui: It is believed that the market will naturally eliminate inferior projects, and institutions should focus on developing "interesting and practical" asset categories, such as the tokenization of real estate rents.  

Conclusion      

The rise of RWA marks the deep integration of traditional finance and the crypto world, but its development path is still full of uncertainty. Whether it is the improvement of the compliance framework, the breakthrough of technical bottlenecks, or the deepening of market education, all require the joint efforts of industry participants. As Sicheng said: "RWA is not a simple asset chain, but an experiment to reshape financial weight." The success or failure of this experiment will determine whether it is a sickle for traditional institutions to reap the crypto market or a true carrier of inclusive finance.  

Note: This article is based on the live discussion of the guests, and some data has been supplemented and verified. It does not constitute an investment advice. The market is risky and decisions must be made with caution.