According to the Zhitong Finance APP, AVIC Securities has released a research report stating that the role of stablecoins in the RWA (Real World Assets) framework mainly includes stable pricing, enhanced liquidity, connecting DeFi, optimizing compliance, and attracting institutional funds. The industry forms a closed-loop industrial chain through multi-party collaboration, where asset issuers provide underlying value, technology service providers achieve digitization, liquidity providers activate the market, compliance parties ensure legality, investors inject funds, and support service providers maintain operational safety. The RWA ecosystem is diverse, and with more projects entering the market in the future, it may quickly enter a robust growth phase. It is recommended to focus on three major growth lines: blockchain + fintech, new energy + RWA, and cross-border payments.

The main points of AVIC Securities are as follows:

RWA (Real World Assets), that is, the tokenization of real-world assets

The core is to convert traditional physical assets (such as real estate, equipment, bonds, new energy facilities, etc.) into digital tokens that can be traded online through blockchain technology, facilitating real-time trading and circulation of real-world assets on the blockchain digital network. This effectively addresses the practical challenges of insufficient liquidity, lack of trust, and high transaction costs of traditional assets under the impact of the anti-globalization cold wave, bringing new development opportunities for global economic and financial digital innovation. Stablecoins, which belong to the broad category of RWA, are also the basic payment and settlement medium for the digital trading of RWA assets.

RWA business and regulation

In RWA business, first, during the process of converting real-world assets into digital token products, it is essential to clarify the value, ownership, and legal status of the underlying assets. Secondly, a digital information bridge must connect the real asset world and the digital asset world. If the assets fall within the scope of securities regulation, the entire tokenization process must also comply with government regulatory framework requirements.

Profit sources are diversified, covering issuance, trading, and operational links, mainly including issuance service fees, liquidity management income, asset operation sharing, data services, and compliance pricing.

Industry regulation: Hong Kong has proactively laid out the regulation and development of virtual assets and stablecoins. The Hong Kong Securities and Futures Commission announced the "Regulatory Framework Statement for Management Companies, Fund Distributors, and Platform Operators Targeting Virtual Asset Portfolios" as early as 2018. The United States and Hong Kong have begun to promote stablecoin regulatory legislation.

RWA technology, market, and ecosystem

Technical architecture: RWA converts physical assets into tradable digital tokens through blockchain technology, with its technical support divided into three layers: core architecture layer, middleware layer, and application layer. The role of stablecoins in the RWA framework mainly includes stable pricing, enhanced liquidity, connecting DeFi, optimizing compliance, and attracting institutional funds.

Potential market: According to Citibank's forecast, by 2030, the scale of tokenized digital securities will reach USD 4-5 trillion, and the scale of trade financing based on distributed ledger technology (DLT) will reach USD 1 trillion.

Industrial ecosystem: The industry forms a closed-loop industrial chain through multi-party collaboration, where asset issuers provide underlying value, technology service providers achieve digitization, liquidity providers activate the market, compliance parties ensure legality, investors inject funds, and support service providers maintain operational safety The RWA ecosystem is diversifying, and it may quickly enter a growth phase as more projects enter the market in the future.

Investment Advice

AVIC Securities believes that RWA effectively addresses the real challenges of insufficient liquidity, lack of trust, and high transaction costs of traditional assets under the impact of the reverse globalization cold wave, bringing new development opportunities for global economic and financial digital innovation. It is recommended to focus on three major growth lines: blockchain + fintech, new energy + RWA, and cross-border payments:

1. Blockchain + Fintech: Zhongke Jincai (002657.SZ), Sifang Jingchuang (300468.SZ), Shenzhou Information (000555.SZ), Yuxin Technology (300674.SZ), Hengbao Co., LTD. (002104.SZ); 2) New Energy + RWA: Langxin Group (300682.SZ), GCL-Poly Energy (002015.SZ); 3) Cross-Border Payments: Hailian Jinhui (002537.SZ), Newland (000997.SZ), Lakala (300773.SZ), XGD (300130.SZ), Tianyang Technology (300872.SZ).

Risk Warning

Domestic regulations on RWA are not yet clear, and changes in pilot policies may lead to business stagnation; uncertainty brought by macroeconomic fluctuations; underlying assets may be fraudulent or have unclear ownership, leading to tokens lacking actual value support; the company's actual business may have low relevance to RWA; lack of core capabilities in cross-chain/asset on-chain, project advancement may fall short of expectations; RWA projects require significant upfront investment but have long profit cycles, making it difficult to contribute profits in the short term; tokenization of overseas assets may trigger foreign exchange controls; the progress of RWA advancement may not meet expectations