Practical application cases of RWA (Real World Asset Tokenization)

Introduction to the Hong Kong Ensemble Project

• What is the Ensemble Project: The Ensemble Project is an experiment initiated by the Hong Kong Monetary Authority (HKMA) aimed at testing and exploring how to convert real-world assets (such as real estate, charging stations, etc.) into digital tokens on the blockchain (RWA).
• Case Background: Longxin Group, in collaboration with Ant Group, launched an innovative project that transforms the revenue rights of certain charging stations into digital assets through blockchain technology, which is an important case in the Hong Kong Ensemble Project.

Charging Station Digital Asset Case

• Project Details: Longxin Group has converted the revenue rights of certain charging stations into digital tokens on its new energy platform. Each token represents a portion of the revenue from a specific charging station, similar to owning a small piece of ownership in the charging station.
• Role of Partners: Ant Group provided technical support to ensure that the information of these digital assets on the blockchain is secure, transparent, and immutable.
• Significance of the Project: Through this innovative financing method, Longxin Group successfully raised 100 million yuan. This case demonstrates how to utilize RWA to raise funds for the new energy sector while also proving the practical operation of RWA is feasible.

RWA Cases in Other Countries

• Goldman Sachs' Digital Bonds: Goldman Sachs assisted the European Investment Bank in issuing 100 million euros of digital bonds on the blockchain. This tokenized bond makes it easier for investors to buy and sell, enhancing the transparency and efficiency of the bond market.
• Siemens' Digital Bonds: Siemens issued 60 million euros of digital bonds on the blockchain, showcasing how traditional large companies use RWA for financing.
• BlackRock's Tokenized Fund: BlackRock launched a tokenized fund issued on the blockchain, further promoting the application of RWA in financial investments.

Advantages of RWA Applications

• Easier Investment Participation: Through RWA, ordinary people can easily invest in assets that were previously difficult to access, such as large real estate or corporate bonds.
• Higher Transparency and Security: Blockchain technology ensures that every transaction can be traced and cannot be altered, increasing the security of investments.
• Increased Asset Liquidity: RWA makes some hard-to-trade assets (like real estate) as easy to trade as stocks, enhancing the market liquidity of these assets.

Challenges and Opportunities of RWA Applications

• Challenges Faced: There are technical difficulties to overcome, compliance with different countries' regulatory requirements, and the need to gain market trust.
• Opportunities Presented: RWA provides businesses and investors with more financing methods and investment options, allowing more people to participate in these markets.

Future Prospects of RWA

• Global Trends: RWA is rapidly developing not only in Hong Kong and Western countries but also has significant potential globally, which may fundamentally change how we invest and trade assets in the future.