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Focus on RWA at Present
The current focus and discussion on RWA (Real-World Assets) is about tokenizing real, income-stable, and highly liquid assets using blockchain technology to enhance their liquidity more efficiently. This also provides a more diverse range of asset allocation opportunities for more people.
Recently, due to Sino-US trade frictions and tariff barriers, our team has noticed an interesting topic from the market—barter. Combining our observations, research, and learning of RWA, we would like to share our thoughts:
When you tokenize real assets, if the operating data is good and the asset return rate is high, it can provide stable and reliable returns for token holders. If the operation is not good and the tokens are not subscribed, can your tokens be exchanged with other tokens? This is because the core of RWA is that each token corresponds to the rights and interests of real-world assets.
Or, to put it another way: If a company issues RWA not for financing, or cannot raise funds, what other meanings does asset tokenization have?
Efficient allocation of physical resources and assets through digital mapping may evolve into digital barter of physical assets under the RWA technology framework in the future.
The UAE Is Advancing RWA Development
1. Barter
Throughout the long history of commercial and economic development, barter, as an ancient and fundamental trading model, has always occupied a unique position.
Domestic Example: Yiwu’s “Chicken Feather for Sugar” Tradition
Looking back at home, Yiwu’s “chicken feather for sugar” tradition is a classic case of barter. In the early days of reform and opening up, Yiwu merchants made full use of local resources, holding chicken and goose feathers, and wandered through the streets and alleys to exchange for daily necessities such as brown sugar and needles. This seemingly simple barter not only met the living needs of people at that time but also laid a solid foundation for the rise of Yiwu’s small commodity market. It started as a spark and gradually grew stronger, eventually forming the globally renowned Yiwu small commodity trading system, showing the strong vitality of barter in promoting regional economic development.
International Example: Kyle MacDonald’s Creative Barter
Abroad, in 2005, the barter practice of Kyle MacDonald, an American deliveryman, was equally eye-catching. He started with a red paperclip and began a creative and challenging exchange journey. In 14 chain exchanges, the items kept upgrading, from a fish-shaped pen, ceramic doorknob, to a stove, generator, then to a Budweiser beer keg, old snowmobile, convertible, and finally, he exchanged for the right to live in a beautiful duplex apartment. MacDonald recorded this process in real-time through his blog, which was widely reported by more than 300 media outlets, including CNN, successfully pioneering “social trading.” This case not only shows the innovative application of barter in modern society but also highlights the important role of the Internet and social platforms in promoting the development of new trading models.
Whether it is Yiwu’s “chicken feather for sugar” at home or Kyle MacDonald’s creative practice abroad, barter has solved some problems in the development of commercial economy in different eras and regions in unique ways, providing valuable references and inspirations for the innovation of modern economic models.
2. Currency for Currency
Real-world assets using blockchain and other technologies:
—"Can achieve second-level exchange (Shanghai’s grape tokens ↔️ Thailand’s real estate hotel usage tokens). The platform uses blockchain technology to convert various real-world assets, such as goods, artworks, hotel usage rights, and intangible cultural heritage, into digital tokens, enabling rapid circulation and global trading of assets. Users can easily digitize assets and enjoy a transparent and efficient trading experience, while also injecting the vitality of the digital economy into the real economy. For example, the right to pick up grapes in Shanghai can be issued as tokens on the blockchain. Users can use digital wallets to exchange the tokens for the right to pick up grapes in Shanghai for the right to use real estate hotels in Thailand, or transfer or sell them to others. Then users can pick up the corresponding goods based on the held commodity tokens on the platform.
—Tokens bind three core rights: usage rights + dividend rights + traceability query rights. In the RWA (Real-World Assets) tokenization experiment, tokens can bind three core rights through smart contracts: usage rights (can be instantly exchanged for physical goods or services, such as directly exchanging for the right to use real estate hotels in Thailand), dividend rights (automatically distribute asset income according to the holding ratio, such as dividends from the profits of real estate hotels in the country and liquidity mining rewards), and traceability query rights (record the entire life cycle data through the tamper-proof blockchain, footprint certification), forming a closed-loop ecosystem of "consumption is investment, trading is trust."
3. RWA Transactions: Internet of Everything + Internet of Chains
Imagine if blockchain technology promotes the construction of vertical dedicated chains in various industries (such as agricultural chains, livestock chains, tourism chains, real estate chains, etc.), and realizes a global liquidity network for RWA assets through cross-chain protocols. Suppose: A grape plantation in Shanghai, China completes the digital certification of a 500-acre park through blockchain, and the grape plantation completes the full coverage of IoT devices, with the growth data of each grape vine being uploaded to the chain in real time, forming an RWA asset package that can be traded across borders. Real estate hotel companies in Thailand use cross-chain protocols to directly exchange Thai real estate hotel RWA tokens for the right to pick up grapes in Shanghai, avoiding the risk of exchange rate fluctuations and achieving real-time barter of Sino-Thai products.
RWA assets can be combined and split for borderless transactions, which will reshape the financial infrastructure. Suppose: A grape plantation in Shanghai, China forms a tradable RWA asset package through blockchain digitalization of the park. Global investors (who can also be consumers) can purchase in a combined or fragmented manner. The grape pick-up right asset tokens can be combined with other asset tokens to form LP pools for borderless real-time trading in DeFi. This not only greatly reduces the financing threshold for grape plantations but also enhances the globalization of asset liquidity, becoming a new model of RWA empowering the real economy.
Consumption as Investment: Two-Way Value Flow
If physical assets are fragmented into RWA, consumers can obtain corresponding digital asset tokens during the consumption process. These tokens not only represent the ownership of the assets but can also be used for liquidity mining on decentralized trading platforms to achieve secondary asset appreciation, thereby transforming consumption behavior into investment behavior and forming a two-way value flow.
Super Liquidity Pool of Virtual and Real Integration
If blockchain technology converts physical assets (such as factories, port berths, scenic area cable cars, etc.) into combinable liquidity pools (LP Tokens). Investors can dynamically adjust the allocation ratio of physical assets like configuring decentralized finance (DeFi) assets, achieving efficient asset allocation and liquidity management. This model can quickly increase the scale and return rate of asset management.
Rise of the Digital Twin Economy
If physical assets such as land development rights are RWAized and minted into digital tokens with governance rights. Holders can not only share the asset appreciation benefits but also participate in asset planning and decision-making through decentralized autonomous organizations (DAOs). This model achieves digital governance of physical space, improves development efficiency, and enhances the effectiveness of attracting investment, promoting the development of the digital twin economy.
Evolution of Financial Development
In the historical process of financial development, from the silver bills issued by ancient money shops to the token certificates based on modern blockchain technology, the forms of payment and value storage have undergone profound changes. The silver bills issued by traditional money shops are paper vouchers obtained after storing physical silver; while token certificates are issued based on blockchain technology and have significant characteristics such as traceability and tamper-proof, which bring higher transparency and security to the financial system.
With the development of blockchain technology, the concept of the “blockchain value Internet” has emerged. When various physical goods such as wheat, corn, pork, and equipment, as well as commodity coupons, are exchanged in kind, blockchain technology provides a trustworthy value exchange platform for them. At the same time, standardized commodity warehouse receipts such as minerals, crude oil, silver, and rubber, as well as receivables, have shopping functions after digitization, effectively promoting the activity of the consumer market and the efficient circulation of goods.
Focus on RWA at Present
The current focus and discussion on RWA (Real-World Assets) is about tokenizing real, income-stable, and highly liquid assets using blockchain technology to enhance their liquidity more efficiently. This also provides a more diverse range of asset allocation opportunities for more people.
Recently, due to Sino-US trade frictions and tariff barriers, our team has noticed an interesting topic from the market—barter. Combining our observations, research, and learning of RWA, we would like to share our thoughts:
When you tokenize real assets, if the operating data is good and the asset return rate is high, it can provide stable and reliable returns for token holders. If the operation is not good and the tokens are not subscribed, can your tokens be exchanged with other tokens? This is because the core of RWA is that each token corresponds to the rights and interests of real-world assets.
Or, to put it another way: If a company issues RWA not for financing, or cannot raise funds, what other meanings does asset tokenization have?
Efficient allocation of physical resources and assets through digital mapping may evolve into digital barter of physical assets under the RWA technology framework in the future.
The UAE Is Advancing RWA Development
1. Barter
Throughout the long history of commercial and economic development, barter, as an ancient and fundamental trading model, has always occupied a unique position.
Domestic Example: Yiwu’s “Chicken Feather for Sugar” Tradition
Looking back at home, Yiwu’s “chicken feather for sugar” tradition is a classic case of barter. In the early days of reform and opening up, Yiwu merchants made full use of local resources, holding chicken and goose feathers, and wandered through the streets and alleys to exchange for daily necessities such as brown sugar and needles. This seemingly simple barter not only met the living needs of people at that time but also laid a solid foundation for the rise of Yiwu’s small commodity market. It started as a spark and gradually grew stronger, eventually forming the globally renowned Yiwu small commodity trading system, showing the strong vitality of barter in promoting regional economic development.
International Example: Kyle MacDonald’s Creative Barter
Abroad, in 2005, the barter practice of Kyle MacDonald, an American deliveryman, was equally eye-catching. He started with a red paperclip and began a creative and challenging exchange journey. In 14 chain exchanges, the items kept upgrading, from a fish-shaped pen, ceramic doorknob, to a stove, generator, then to a Budweiser beer keg, old snowmobile, convertible, and finally, he exchanged for the right to live in a beautiful duplex apartment. MacDonald recorded this process in real-time through his blog, which was widely reported by more than 300 media outlets, including CNN, successfully pioneering “social trading.” This case not only shows the innovative application of barter in modern society but also highlights the important role of the Internet and social platforms in promoting the development of new trading models.
Whether it is Yiwu’s “chicken feather for sugar” at home or Kyle MacDonald’s creative practice abroad, barter has solved some problems in the development of commercial economy in different eras and regions in unique ways, providing valuable references and inspirations for the innovation of modern economic models.
2. Currency for Currency
Real-world assets using blockchain and other technologies:
—"Can achieve second-level exchange (Shanghai’s grape tokens ↔️ Thailand’s real estate hotel usage tokens). The platform uses blockchain technology to convert various real-world assets, such as goods, artworks, hotel usage rights, and intangible cultural heritage, into digital tokens, enabling rapid circulation and global trading of assets. Users can easily digitize assets and enjoy a transparent and efficient trading experience, while also injecting the vitality of the digital economy into the real economy. For example, the right to pick up grapes in Shanghai can be issued as tokens on the blockchain. Users can use digital wallets to exchange the tokens for the right to pick up grapes in Shanghai for the right to use real estate hotels in Thailand, or transfer or sell them to others. Then users can pick up the corresponding goods based on the held commodity tokens on the platform.
—Tokens bind three core rights: usage rights + dividend rights + traceability query rights. In the RWA (Real-World Assets) tokenization experiment, tokens can bind three core rights through smart contracts: usage rights (can be instantly exchanged for physical goods or services, such as directly exchanging for the right to use real estate hotels in Thailand), dividend rights (automatically distribute asset income according to the holding ratio, such as dividends from the profits of real estate hotels in the country and liquidity mining rewards), and traceability query rights (record the entire life cycle data through the tamper-proof blockchain, footprint certification), forming a closed-loop ecosystem of "consumption is investment, trading is trust."
3. RWA Transactions: Internet of Everything + Internet of Chains
Imagine if blockchain technology promotes the construction of vertical dedicated chains in various industries (such as agricultural chains, livestock chains, tourism chains, real estate chains, etc.), and realizes a global liquidity network for RWA assets through cross-chain protocols. Suppose: A grape plantation in Shanghai, China completes the digital certification of a 500-acre park through blockchain, and the grape plantation completes the full coverage of IoT devices, with the growth data of each grape vine being uploaded to the chain in real time, forming an RWA asset package that can be traded across borders. Real estate hotel companies in Thailand use cross-chain protocols to directly exchange Thai real estate hotel RWA tokens for the right to pick up grapes in Shanghai, avoiding the risk of exchange rate fluctuations and achieving real-time barter of Sino-Thai products.
RWA assets can be combined and split for borderless transactions, which will reshape the financial infrastructure. Suppose: A grape plantation in Shanghai, China forms a tradable RWA asset package through blockchain digitalization of the park. Global investors (who can also be consumers) can purchase in a combined or fragmented manner. The grape pick-up right asset tokens can be combined with other asset tokens to form LP pools for borderless real-time trading in DeFi. This not only greatly reduces the financing threshold for grape plantations but also enhances the globalization of asset liquidity, becoming a new model of RWA empowering the real economy.
Consumption as Investment: Two-Way Value Flow
If physical assets are fragmented into RWA, consumers can obtain corresponding digital asset tokens during the consumption process. These tokens not only represent the ownership of the assets but can also be used for liquidity mining on decentralized trading platforms to achieve secondary asset appreciation, thereby transforming consumption behavior into investment behavior and forming a two-way value flow.
Super Liquidity Pool of Virtual and Real Integration
If blockchain technology converts physical assets (such as factories, port berths, scenic area cable cars, etc.) into combinable liquidity pools (LP Tokens). Investors can dynamically adjust the allocation ratio of physical assets like configuring decentralized finance (DeFi) assets, achieving efficient asset allocation and liquidity management. This model can quickly increase the scale and return rate of asset management.
Rise of the Digital Twin Economy
If physical assets such as land development rights are RWAized and minted into digital tokens with governance rights. Holders can not only share the asset appreciation benefits but also participate in asset planning and decision-making through decentralized autonomous organizations (DAOs). This model achieves digital governance of physical space, improves development efficiency, and enhances the effectiveness of attracting investment, promoting the development of the digital twin economy.
Evolution of Financial Development
In the historical process of financial development, from the silver bills issued by ancient money shops to the token certificates based on modern blockchain technology, the forms of payment and value storage have undergone profound changes. The silver bills issued by traditional money shops are paper vouchers obtained after storing physical silver; while token certificates are issued based on blockchain technology and have significant characteristics such as traceability and tamper-proof, which bring higher transparency and security to the financial system.
With the development of blockchain technology, the concept of the “blockchain value Internet” has emerged. When various physical goods such as wheat, corn, pork, and equipment, as well as commodity coupons, are exchanged in kind, blockchain technology provides a trustworthy value exchange platform for them. At the same time, standardized commodity warehouse receipts such as minerals, crude oil, silver, and rubber, as well as receivables, have shopping functions after digitization, effectively promoting the activity of the consumer market and the efficient circulation of goods.
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