Today, let's talk about what RWA is. Why are stablecoins considered a form of RWA?

Imagine a scenario: you own a house in Iceland and want to sell it. The traditional process requires going through an agent, signing contracts, and cross-border transfers, which can take several months. Now, with just a few taps on your phone, you can sell the house to a buyer anywhere in the world, and the money is automatically transferred to your wallet. Can't sell it? You can split it into 10,000 small shares for sale.

This is the revolution brought by RWA(Real World Assets, tokenization of real assets).

RWA uses smart contracts and blockchain technology to issue tokens representing real-world assets—such as real estate, bonds, gold, collectibles—and enables them to be traded, split, circulated, and settled on-chain. Assets traditionally constrained by geography, financial systems, and time now achieve global value flow.

Stablecoins: The most mature form of RWA

Stablecoins are like "digital dollars" on the blockchain. Although they circulate on-chain, they are backed by real assets—bank deposits, government bonds, or short-term notes. The value of stablecoins you hold is guaranteed by real-world assets—1 stablecoin is pegged to 1 USD. From this perspective, stablecoins are the earliest and most mature practical form of RWA.

The potential of RWA

RWA makes assets that are "slow, expensive, and difficult" become global, instant, and accessible to everyone.

In the future, you won't need to be a bank customer or a fund investor to easily buy a small portion of U.S. Treasury bonds, participate in overseas real estate projects, or even invest in a piece of art. Real estate, gold, notes, intellectual property, corporate receivables—all could be brought on-chain.

Challenges and prospects

RWA is still in its early stages, facing challenges such as regulatory uncertainty, lack of unified standards, and the underdevelopment of secondary markets for ordinary investors.

But these do not hinder RWA from becoming a highly imaginative narrative. It allows ordinary investors to participate in the global financial system's value flow for the first time, which is significant for the integration of traditional finance and blockchain.

RWA is not just a technological innovation; it is a redefinition of the financial paradigm. It redefines the boundaries of "assets" and changes our understanding of investment and finance—perhaps in the future, bringing real assets on-chain and enabling global value flow will become the new normal in finance.