Zheshang Securities: The regulatory difficulties brought by RWA may lead to the expansion of US dollar credit in stages

Planet Daily News: Zheshang Securities released a research report stating that the macro impact of RWA (Real World Assets) lies in building a "global capital market" on the blockchain, accelerating the replacement of traditional finance with on-chain finance, which may periodically lead to further expansion of US dollar credit. RWA, stablecoins, and decentralized finance (smart contracts) are mirroring investment targets, fiat currencies, and financial intermediary functions of the traditional financial system on the blockchain, and the three are working together to form a new financial closed loop on the blockchain. In the long run, the RWA on-chain mechanism poses a potential challenge to traditional financial institutions, including banks, securities firms, insurance companies, and exchanges. (Jintian)