Securities Times: China's RWA market's real breakthrough is non-financial assets

According to the Securities Times, the innovative value of China's RWA market is first reflected in the improvement of liquidity of non-financial assets. A large number of "sleeping assets" that exist in reality have failed to effectively release their potential due to the lack of market-oriented circulation channels. Through RWA, enterprises can convert orders, equipment, inventory and other assets into digital equity, and realize financing and transactions on the chain, which provides new development impetus for small and medium-sized enterprises, especially technological innovation enterprises. The tokenization of non-financial assets helps lower investment thresholds and promote inclusive finance. In the past, these assets were often only able to participate in a few institutions or large enterprises, and through the blockchain splitting mechanism, more ordinary investors could also participate in it at a lower cost. Relying on the technical characteristics of blockchain, RWA can improve market transparency and transaction efficiency, reduce the risks of fraud and tampering, and provide new means for investor protection. The introduction of non-financial RWA assets can also provide more robust underlying support for on-chain financial activities, allowing emerging financial forms such as DeFi to break away from the single dependence on cryptocurrencies and obtain a more stable asset base.