Zhejiang Merchants Securities: RWA brings regulatory challenges, which may temporarily lead to the expansion of US dollar credit

ChainCatcher news, according to Jinshi Data reports, Zheshang Securities released a research report stating that the macro impact of RWA (Real World Assets) lies in building a "global capital market" on the blockchain, accelerating the replacement of traditional finance by on-chain finance, which may lead to a further expansion of dollar credit in stages.

RWA, stablecoins, and decentralized finance (smart contracts) mirror the investment targets, fiat currencies, and financial intermediary functions in the traditional financial system on the blockchain. The three are working together to form a new financial closed loop on the blockchain.

In the long run, the RWA on-chain mechanism poses a potential challenge to traditional financial institutions, including banks, brokerages, insurance companies, and exchanges.