Fidelity, Tether, Maxtriport, and BSOS Gather at the Taipei RWA Forum
On April 2, the “Taiwan Stablecoin and Real World Asset Tokenization Forum” was held at N24 Taipei Ark. Daniel, the CEO of Bay Valley Technology (BSOS), served as the host for the discussion session “RWA Global Practices: International Perspectives and Success Cases,” inviting three industry representatives from Fidelity International, Tether, and Maxtriport for an in-depth dialogue. They analyzed the global progress of RWA and opportunities in Taiwan from the perspectives of traditional finance, stablecoin issuers, and Web3 natives.
Has the Discourse Power of RWA Shifted? What Role Remains for Web3 Native Teams?
Daniel opened by stating, “RWA was initially proposed by the crypto community, but in the past two years, the discourse power has gradually returned to traditional financial institutions due to their asset scale and credit advantages. In light of this shift, what role can Web3 natives still play?”
Ethan Yang, head of Maxtriport Taiwan and co-founder of Ocean Finance, responded, “Trust is the core of finance. On-chain assets (like BTC or ETH) can ensure trust through smart contracts and private keys, but RWA is different; in addition to token control, we must ensure a strong connection between the tokens and real-world assets. This connection is typically secured through custodial structures and bankruptcy isolation protections provided by traditional financial institutions (like Fidelity and BlackRock). Traditional finance has rich experience in strengthening trust. Tokenization is akin to securitization; it’s just the medium that differs, and they already have a good framework.”
Ethan further elaborated on the value of Web3 native teams: beyond technical services (such as assisting in building tokenization platforms, regulatory processes, and cash flow tracking blockchain infrastructure), the more crucial aspect is that Web3 companies understand how to bring RWA tokens to life, which is the core know-how of Web3!
“Professor Hsieh Ming-hua mentioned at the start that RWA must avoid island-like issuance!” Ethan pointed out, “The most unsuccessful RWA is one that is issued but has no buyers; the second-degree failure is when someone buys but holds to maturity, with no trading or other application scenarios. If it’s just like this, we might as well use traditional financial instruments like trusts or fund certificates; why tokenize?”
Ethan cited an example: “The first tokenized fund wasn’t BUIDL but rather Franklin Templeton, which took five years to reach $360 million in AUM, whereas BlackRock’s BUIDL achieved $1.8 billion in the past year alone. The key difference lies in the involvement of Web3 teams like Securitize, Ethena, and Ondo, which helped to create a complete liquidity mechanism. The significance of tokenization lies in its application: payments, lending, collateral, etc., which requires liquidity. Traditional financial institutions do not sufficiently understand Web3, so Web3 companies, in addition to technical services, must guide traditional financial institutions on how to connect with Web3 liquidity and the RWA tokens they need to issue!”
How Can Traditional Finance Participate in Blockchain? Fidelity’s Path
Daniel then asked, “Fidelity is one of the largest asset management companies in the world and has invested in blockchain in recent years. How do you view the potential of RWA? What explorations have you actually undertaken?”
Giselle Lai, Director of Digital Asset Investment at Fidelity International, stated, “Fidelity International’s vision for RWA is to provide investors with a safe and trusted window to enter digital assets. We also see the potential of blockchain in inclusive finance.”
Fidelity’s direction for RWA mainly revolves around two key areas:
- Fund Tokenization: Promoting trading efficiency and liquidity, opening up new asset allocation opportunities for investors.
- Tokenization of Physical Assets: More assets will be issued on the blockchain in the future, and how to effectively incorporate these assets into investment portfolios is the financial infrastructure adaptation direction we are researching.
She pointed out that Fidelity has participated in several significant RWA projects in recent years, piloting with regulators and financial institutions to understand how RWA can operate under controllable regulation:
- Investing in Hong Kong’s first tokenized green bond
- Joining the Monetary Authority of Singapore’s Project Guardian
- Joining the Hong Kong Monetary Authority’s HKD Pilot Program
Tether’s Strategy: From Infrastructure to Liquidity Creation
When discussing RWA, Tether, the world’s largest stablecoin issuer, also drew significant attention. Daniel asked, “What is Tether’s current strategy regarding RWA? How do you view this market?”
Peter Chen, Tether’s Business Director, outlined three main directions:
- Direction One: Hadron Technology Platform
Over the past decade, USDT has grown from zero to a $140 billion issuance scale. We have integrated our know-how and technology into the Hadron platform, providing financial institutions with a complete issuance technology platform for AML/KYC, automated issuance, and bank integration. He emphasized, “This is not something Tether can accomplish alone; it requires more local partners like BSOS to collaborate and expand the ecosystem!”
- Direction Two: Liquid Network (Bitcoin Layer 2)
We are promoting the Liquid Network ecosystem in collaboration with Blockstream. “In the past, people criticized Bitcoin’s technology for not being flexible enough, but after some cybersecurity incidents, it has become evident that Bitcoin’s technology remains the safest and most reliable. For RWA, the Liquid Network, which is based on Bitcoin technology, actually has a security advantage.”
- Direction Three: Bitfinex Security Liquidity Platform
This is independent of Bitfinex, focusing on STO and RWA tokenization trading platforms backed by real financial assets, including primary market fundraising and secondary market trading. In terms of asset categories, customer acceptance is higher for assets like U.S. Treasury bonds and gold, which are easily understood. In the future, after relevant approval processes, there may also be opportunities to purchase RWA from stocks listed on NASDAQ, such as MicroStrategy.
From the history of Web3 development, Tether has accumulated countless experiences, consistently providing clients with secure technical support. Peter also emphasized, “We can help traditional financial institutions quickly onboard; once there is a secure platform, liquidity is key, and this is also our focus.”
What is the Next Phase for RWA? Can Taiwan Become an RWA Exporter?
In the second round of questions, Daniel asked Ethan to assess the current international development of RWA and opportunities for Taiwan. Ethan believes:
Currently, international RWA is mainly concentrated in financial assets (like U.S. Treasury bonds and funds) because:
- High Standardization: Each tokenization incurs costs, but financial assets can be issued additionally without needing to rework legal frameworks; bond structures are similar, resulting in low marginal costs.
- High Market Acceptance: Financial assets are inherently virtual (numerical values on the balance sheet), making the transition from numbers to wallet tokens painless and widely accepted. However, tokenization of physical assets such as real estate, art, and IP diverges from past habits, leading to investor resistance in psychological shifts.
The next explosion point will come from:
- Diverse Assets: Financial assets alone hold little significance. Tokenization of movie rights, real estate, and patents is far more interesting.
- Cross-National Trading Platforms: Over the past decade, the promotion of cryptocurrencies has been greatly aided by exchanges (despite criticisms of violating decentralization). RWA also requires large platforms to buy and sell global assets, supporting conversions and lending to become more widespread.
Ethan further highlighted Taiwan’s advantages: “Taiwan has historically been an importer of financial products (overseas funds, offshore insurance policies, U.S. Treasury bonds, etc.). Due to low yield and a small market, it’s challenging for Taiwanese financial institutions to penetrate overseas. However, RWA presents an opportunity for Taiwan to become an exporter. For instance, after the pandemic, Taiwan’s stock market has performed well, with funds like Yuanta Technology ranking among the top in global stock fund performance, yet foreigners find it hard to buy (only knowing TSMC ADR). RWA has the potential to allow Taiwanese financial institutions to issue products overseas. We should not be absent.”
The Biggest Barrier for Institutions Participating in RWA is Cognition
Daniel shared his observations: “When we discuss RWA with institutions, in a two-hour meeting, the first 90 minutes are often spent explaining the ‘background knowledge of blockchain,’ with the remaining 30 minutes focusing on the product. In the past, asset records were stored in the institution’s databases, while RWA records are now kept in an external ledger controlled only by users’ private keys, which indeed represents a significant cognitive leap.”
In response, Giselle stated, “Education is indeed very important. Fidelity began researching blockchain a decade ago, and in 2015 we started mining Bitcoin to understand the technology. In 2022, we established a blockchain team to study applications and increase our budget. Fidelity has put considerable effort into cross-department blockchain training to help everyone understand the differences. We also invest in Web3 teams through our venture capital department to gain firsthand market information, fill ecosystem gaps, and help internal teams understand trends.”
She emphasized, “All efforts come back to one point — customer demand. When there is a demand for tokenized funds in the market, we will push forward with that line!”
Convergence: Web3 x Traditional Finance, Co-Creating a New Market
Daniel finally asked Peter, “There are increasingly more collaboration cases like Securitize and Ethena, where Web3 and traditional finance no longer look at each other unfavorably; ‘convergence’ is the biggest change I have seen in the past year. What cross-industry cooperation experiences does Tether have?”
Peter also shared, “In the past, there was a significant gap between the crypto industry and banks, but in recent years, policies have loosened. For example, the favorable and open attitude of the Trump administration toward digital assets has begun to create opportunities. In terms of government collaboration, we focus on emerging markets, such as El Salvador, where there is no traditional financial infrastructure, so they are more willing to try blockchain solutions.”
Peter added, “Earlier this year, I attended the Plan B Forum in El Salvador, and I was deeply impressed by the local government’s commitment to promoting the popularization of digital assets and the development of high-tech industries. Google has an office there, and major financial institutions are gradually moving in. Tether will continue to invest resources, and even some headquarters may relocate there.”
Looking Ahead to 2025: RWA Enters the Practical Year
At the end of the discussion, the guests provided their outlook on the development of RWA this year:
Ethan: “This year is the year of institutions. The success of BUIDL and USDY has shown the financial sector opportunities, and with policy loosening, it will be a significant turning point.”
Giselle: “I look forward to seeing more institutions join RWA. Liquidity, on-chain interoperability, and regulatory discrepancies across different regions still need to be addressed. The combination of stablecoins and RWA will be key; this is an exciting time.”
Peter: “Tether has rarely made public appearances, but we are willing to support Taiwan, pushing good projects internationally under the premise of policy permission and legal compliance, helping funds flow back to Taiwan, which is our big expectation for this year.”
Daniel: “Convergence is not just a trend; it is an ongoing process; it will reshape the landscape of RWA and redefine the roles of participants!”