Hosted by the Financial Technology Innovation Park, “Regulatory Salon: ‘RWA Tokenization'” Successfully Concluded on April 29
The event focused on the current global fintech trend—Real World Asset (RWA) tokenization. Representatives from the Financial Supervisory Commission’s Securities and Futures Bureau, financial industry players, virtual asset service providers (VASPs), and representatives from the Institute for Information Industry gathered to engage in in-depth discussions on RWA technology, regulations, asset custody, and international alignment. Peng Yunxian, founder of Taiwan’s cryptocurrency exchange HOYA BIT, was invited to share insights on the potential and challenges of RWA trends on behalf of VASP operators, providing a detailed analysis of the technological framework and future layout of RWA tokenization.
What is RWA? Tokenization of Real World Assets Makes High-Value Assets More Accessible
Peng Yunxian shared that the core concept of RWA is to convert high-value physical assets such as real estate, artworks, bonds, and precious metals into digital tokens through blockchain technology. This not only enhances asset liquidity but also significantly lowers investment thresholds, making markets that were previously accessible only to institutions and high-net-worth investors more “accessible.” He further stated, “Taking luxury homes as an example, with RWA technology, even ordinary investors can easily participate and share in the potential for appreciation.” As global regulations mature, by early 2025, the overall tokenized asset market size is expected to exceed $200 billion; even excluding stablecoins, the total on-chain value of RWA has surpassed $20 billion. According to data analysis from Boston Consulting Group (BCG), the future of the RWA market is promising, with projections estimating that by 2030, the market size will reach $16 trillion, accounting for about 10% of global GDP, showcasing immense market potential and business value.
Tracing the development history of RWA, the issuance of the stablecoin USDT by Tether in 2015 marked the beginning of asset tokenization by anchoring to the US dollar to reduce the volatility risk of digital assets. Subsequently, the RealT platform in the US actively attempted to convert real estate ownership into tokens, allowing global investors to participate in high-value asset investments through lower thresholds. Moreover, major asset management companies like BlackRock and Fidelity have also managed part of their asset portfolios through tokenization, with BlackRock launching the world’s first tokenized fund product—BUIDL—in 2024, operating on the Ethereum blockchain through partner Securitize, representing an innovative attempt to tokenize traditional money market funds. Additionally, the well-known German company Siemens issued a tokenized bond worth 60 million euros on the Polygon blockchain in 2023, followed by another bond issuance of 300 million euros through the SWIAT licensed blockchain the following year, further proving the maturity of the integration of blockchain technology with traditional financial systems.
Challenges and Opportunities of RWA: Cross-Chain Interoperability and Integration with Financial Systems
Peng Yunxian pointed out that one of the biggest challenges currently promoting RWA is the issue of cross-chain interoperability and the integration with traditional financial systems. On the cross-chain front, technical protocols are needed to overcome asset transfer barriers between different public chains; while for financial institutions, it involves seamless integration of blockchain assets with banking cash flows and asset custody systems. “The implementation of RWA must go through three core phases: first, the authenticity verification of assets, including legal validity and ownership confirmation; second, using smart contracts to put assets on-chain, establishing clear transaction rules and rights structures; and finally, using professional platforms to facilitate asset transaction liquidity, allowing assets to circulate freely and efficiently,” emphasized Peng Yunxian. He noted that currently, the integration of cross-chain technology and the connection with traditional financial systems are among the biggest challenges in promoting RWA, but they also harbor vast market opportunities.
“In the United States, companies like BlackRock and JPMorgan Chase & Co. are actively engaged in fund and bond tokenization, while HSBC has also initiated digital asset custody services, indicating that traditional finance is accelerating its embrace of blockchain.” Peng Yunxian emphasized that for Taiwan, now is the most critical window period, “Taiwan has solid financial foundations, mature regulatory awareness, and abundant technological talent. We have the opportunity to establish Asia’s first set of RWA standards that integrate regulatory compliance and technological innovation.”
Learning from International Examples: Peng Yunxian Analyzes the Establishment of ‘Asian RWA’
Peng Yunxian observed the development of RWA internationally and summarized two major directions: “One is for financially mature countries like the United States and Europe, where they tokenize existing assets such as government bonds, private equity funds, and gold, and integrate them into existing financial processes like clearing and collateral. The other direction involves regulations leading the way, as seen in Switzerland, which has legally established the operation of custody, trading, and issuance on the blockchain through the design of a digital asset banking system, which is very helpful for the subsequent expansion of asset types.”
“Returning to Taiwan, we are actually at a very critical starting point. On one hand, we have strong financial infrastructure and regulatory awareness; on the other hand, we also possess considerable technological capabilities and blockchain talent. The RWA tokenization task force promoted by the Financial Supervisory Commission, including banks, securities firms, and asset management companies, has already formed a significant prototype of cross-industry collaboration.” Peng Yunxian explained that Taiwan has the opportunity to establish an “Asian version of the RWA standard,” combining Taiwan’s regulatory compliance capabilities, technological research and development capabilities, and even its understanding of ESG and sustainable finance, which will provide us with differentiated space in the international arena.
Peng Yunxian Optimistic About the Development Prospects of RWA in Taiwan, Aiming to Achieve New Heights in Financial Technology
Peng Yunxian concluded, “RWA in Taiwan is not just a technical competition, but a comprehensive project that integrates trust, collaboration, and long-term institutional design. If we can successfully promote this initiative, not only can we achieve localized applications, but we can also export Taiwan’s rules and platform models, becoming a new benchmark for the digitization of financial assets in Asia.” In the future, as related technologies and regulations gradually mature, Taiwan’s practice in the field of RWA is expected to drive the comprehensive digital transformation of the financial industry, providing valuable practical examples for innovation in the global financial market and further consolidating Taiwan’s international position in the fintech sector.