As Web2.5, Hong Kong RWA is like Hong Kong stocks 20 years ago, which is equivalent to Crypto "Hong Kong stocks". For the old guns of Central Finance, it can be understood as Hong Kong stocks 3.0, or the tokenization of Hong Kong stock assets. The biggest similarity between Hong Kong RWA and Hong Kong stocks is that most of them are high-quality assets in the Mainland, which are open to global funds.
Although the previous article "RWA Model of Coin-Stock Linkage" introduced the coin-stock linkage of several Web3.0 and Bitcoin concept stocks, in general, Hong Kong listed companies have not yet fully found the "RWA" model with virtual assets and Web3.0, and there is still a lot of room for imagination.
Web3 asset allocation and investment
The simplest RWA model of currency-stock linkage is that listed companies announce their Web3.0 strategies to realize the linkage between traditional financial stocks and virtual assets. After listed companies configure Bitcoin or invest in related Web3.0 compliance projects, the company's stocks are linked with the investment allocation of virtual assets and the layout of Web3. While the price or value of virtual assets, mainly Bitcoin, continues to rise, the value of listed companies' stocks in the real world also doubles. This kind of linkage growth is often a premium or doubling.
For listed companies, the simplest first step is to allocate Bitcoin or entrust the allocation of Bitcoin assets to allow listed companies to have unrealized profit assets in their balance sheets. The second step is to combine the main business or related layout of Web3.0 investment and construction, and promote the rise of listed companies' stocks through the increase in Web3.0 traffic and token value.
Hong Kong stock bonds and RWA bonds
Hong Kong finance has a rich ecosystem around Hong Kong-listed companies. The fundraising, investment, management and exit of an asset-listed company are very mature, even on and off the table. The investment banking business, distribution channels and PI clients of Hong Kong-funded securities firms are basically centered around listed companies.
The debt of a listed company can be either the corporate debt of the listed company or convertible debt (a combination of debt and equity), with a simple issuance system, convenient issuance and guarantee structures, and market trading of convertible bonds.
RWA bonds use high-quality mainland assets or high-quality corporate bonds through red chip structures similar to Hong Kong-listed companies and SPV companies to issue corporate bond funds, which are then tokenized and issued as RWA projects.
It is also possible to issue RWA equity-based NFTs based on the endorsement of listed companies, and the liquidity pool of the SPV company's cash flow NFT; if yield Tokens are derived based on the underlying assets of RWA, you can airdrop yield Tokens to RWA NFTs, or airdrop listed company stocks at the same time.
These can benefit listed companies in emerging fields with large revenue and transaction flows, such as live film and television, pharmaceutical and biohealth, green energy, AI computing power, interactive games, commodities or durable goods, etc., which can achieve value growth through RWA token premium and cash flow without considering the traditional price-to-earnings ratio model.
Regarding the supervision of Hong Kong stocks and RWA, for specific projects, the SFC regulatory requirements are currently case by case, and then it depends on whether the product design is simple or complex. For those endorsed by listed companies and supported by convertible bonds and stock options, it is suitable to design simple corporate bonds. Through the bonds or funds of listed companies, and then tokenized, the core is to do a good job of issuance and underwriting with long-term cooperative securities companies; and the conventional operations of Hong Kong stocks in the past, such as additional issuance and allotment, RWA bonds can also be additionally issued and split, and the financial Lego around corporate financing is actually very similar.
The design of complex STO/RWA will be based on a certain asset package or income right of a listed company, and will be designed as ABS or REIT-like. However, because complex RWA products are subject to stricter supervision, especially when turning to the retail market, it is not recommended to make similar designs in the initial stages.
Hong Kong-listed companies still need to do some preparatory work, such as opening an account at a licensed and compliant exchange and PI certification. This is still quite troublesome at present, such as the penetration of actual controllers and shareholders, etc. The certification and account opening of our funds and listed companies has been a torment for a long time.
At the same time, considering that in the structural design, there may be a second-layer token design above the compliant RWA assets, it is also necessary to make use of international or offshore alternative investments to prepare for account opening, TGE, etc.
Web3.0’s Crypto Hong Kong Stock Airdrop Model
Previous articles discussed "licensed and compliant to the right, retail tokens to the left", which is actually the left and right classification of RWA exchanges. Licensed and compliant exchanges are similar to H's Hong Kong station, and alternative investment exchanges are similar to H's international station or offshore RWA exchanges (not the current native cryptocurrency exchanges).
Hong Kong Station, compliant securities products, targeting different users, mainly Hong Kong PIs and compliant retail investors;
International station, non-securities RWA tokens, for global Crypto users who are interested in the RWA track or novice users who have converted from the traditional financial market;
Judging from the global funding trends, high-quality corporate bonds, fixed income products, private equity, etc. will become the mainstream products of RWA.
The target user groups of RWA tokens and Hong Kong stocks are different, and the ecology is overlapping and different. Many ways of playing Hong Kong stocks can actually be inherited and innovated in Web3.0 and RWA tokenization. For example, RWA projects can give RWA tokens for recharging when consuming; for example, RWA token issuance, purchase of RWA tokens, airdrops (gifts) of listed company stocks (physical financial assets, which can be restricted paper bill custody), etc.
Some unique ways of playing Web3.0 can also reflect the difference between RWA and Hong Kong stocks. For example, by learning from the airdrop gameplay of Runes and Runestone, fairplay can be achieved for community retail investors in the early stage, and retail investors can counterattack institutional clients.
No matter how it is played, the key is that people in Central Finance and Hong Kong stocks and people in Web3.0 crypto finance can move towards each other and realize the implementation and development of RWA on the moderate track of Web2.5.
Welcome to BlockBeats the BlockBeats official community:
Telegram subscription group: https://t.me/theblockbeats
Telegram group: https://t.me/BlockBeats_App
Twitter Official Account: https://twitter.com/BlockBeatsAsia
