[Perspective] Cryptocurrencies and RWA: What if Stablecoins Could Be Used to Invest in Stocks?

Cryptocurrency and RWA: Can Stablecoins Invest in Stocks?

The rise of cryptocurrency has been seen as a challenge to traditional finance, but with the emergence of tokenization of Real World Assets (RWA), we may be witnessing a deeper integration—not a disruption, but an upgrade. The true value of RWA lies in its ability to transform cryptocurrency from a mere speculative tool into a bridge connecting the real economy and the digital world. Conversely, can we also utilize existing legal frameworks (such as limited liability companies) combined with blockchain technology to open up more participation rights, enabling people worldwide to easily invest in early-stage startups in Taiwan? This is not just a technical issue, but a vision for the future.

The Potential of RWA: From Crypto to Reality

Take Bitfinex Securities as an example; this platform, regulated in Kazakhstan and El Salvador, offers trading of tokenized stocks, bonds, and even funds. Products like USTBL tokenize U.S. short-term treasury bonds in ETF form, allowing you to invest directly using USDT, starting at just $1. This means that cryptocurrency is no longer just speculative; it can directly touch traditional financial assets. Another example is the Alternative series of tokens, targeting financing for SMEs in emerging markets like Italy and Romania, with a maturity of 11 months and an annual yield of 9%-12.5%, with a minimum investment threshold of 125,000 USDT. This model grants participation rights in the capital markets to users globally, breaking geographical and wealth barriers.

The inspiration of RWA lies in its provision of an “anchor” for cryptocurrency—the support of real-world value. Bitcoin may embody the dream of liberalism, but tokenized securities represent a pragmatic evolution. This leads us to ponder: if Taiwanese startups could also be tokenized in this manner, could retail investors worldwide become early investors? This not only expands the pool of funds but could also accelerate innovation.

Upgrading Traditional Frameworks: Globalized Limited Liability Companies

We need not completely abandon existing legal frameworks. The concept of limited liability companies is already mature; the issue lies in the restrictions on participation rights—only a few can become angel investors or venture capitalists, while most retail investors are excluded. Blockchain technology offers a solution: through tokenized stocks, Taiwanese startups can issue shares globally from the outset. Imagine an AI healthcare startup established in Taipei, issuing tokens through a platform like Bitfinex Securities, allowing people worldwide to invest starting at $10. This represents not only the democratization of capital but also the globalization of creativity.

The advantages of Bitfinex Securities—around-the-clock trading, instant settlement, and low-cost issuance—are the cornerstones of this model. They claim to “break free from global financial constraints”; while this may sound exaggerated, the direction is correct. Traditional IPOs are costly and slow, burdensome for early-stage startups; tokenization streamlines everything and attracts passionate participation from the crypto community. Of course, challenges are evident: regulatory compliance (KYC/AML), insufficient liquidity, and gaps in investor education.

The Collision of Both: Possibilities and Reflections

While RWA offers more possibilities for cryptocurrency, conversely, the upgrade of traditional frameworks can make RWA more grounded. If Taiwan can combine both—regulating the tokenization of startups through company law while leveraging the transparency and global liquidity of blockchain—it may pave the way for a new model of capital markets. Platforms like Bitfinex Securities, although still in the experimental phase, have already demonstrated potential. Their model allows SMEs to raise funds at low costs and enables investors to participate in traditional assets with cryptocurrency, which is precisely the prototype of the future.

The Latest Developments from the U.S. SEC

According to recent online information, the new head of the U.S. Securities and Exchange Commission (SEC), Paul S. Atkins, has proposed a significant plan: to allow registered institutions to simultaneously custody and trade securities (U.S. stocks, bonds, ETFs) and non-securities assets (BTC, ETH, USDC, NFTs) on the same platform. This means that in the future, you might be able to buy Tesla stocks using USDC on one app while simultaneously holding Bitcoin, without needing to move funds. This is not just a technical upgrade but a transformation of the financial paradigm, potentially creating a U.S. version of a “super app.”

More importantly, the liquidity of RWA will thus be greatly enhanced; for instance, on-chain treasury bonds and mortgage rights can be traded seamlessly in both directions. A public consultation is expected in the third quarter of 2025, with final rules anticipated by the end of 2026, and mainstream brokerages could fully launch “coin-stock integration” by 2028. What implications does this hold for Taiwan? The U.S. regulatory framework may become the global standard; if Taiwan wishes to lead in the RWA space, it must accelerate the formulation of similar rules to allow startups to legally issue tokenized equity and attract global funds. However, there are numerous challenges: jurisdictional conflicts between the SEC and CFTC, standards for crypto custody technology, and designs for bankruptcy isolation are all hurdles that cannot be overlooked.