Chainfeeds Introduction:
"In 2025, the influx of traditional financial giants and crypto retail investors will give birth to new tracks"
Article Source:
https://www.techflowpost.com/article/detail_28329.html
Article author:
TechFlow
Viewpoint:
Alec Goh: From HTX Ventures' perspective, we've always been very bullish on the Reliable Transaction Approach (RWA) sector. Following product-market fit (PMF) in sectors like stablecoins, payments, and DeFi lending, RWAs are a crucial force in driving Web3 towards the next stage of broader mainstream adoption. I say this because there's already a significant amount of liquidity in the Web3 space—approximately $200-300 billion in circulating stablecoins alone—and this capital needs to be deployed. DeFi users are continually seeking strategies with more efficient capital allocation and clearer risk-return profiles, and RWAs provide a legitimate and legitimate way to deploy capital. In our view, the value of RWAs lies primarily in four key areas: First, RWAs unlock liquidity. Many traditional assets, such as real estate and private equity, are illiquid in the traditional financial system, often trading at significant discounts of 20-30%. Bringing these assets on-chain in the form of RWAs can unlock pent-up liquidity, create more value for traditional finance, and allow DeFi investors to access previously inaccessible products. Second, RWAs open up global markets. Some assets in traditional finance can only be invested in within specific jurisdictions. By tokenizing these assets, they can be traded globally on-chain through DeFi. Blockchains are borderless, making RWAs accessible to a wider investor base, a feat difficult to achieve with traditional structures. Third, RWAs reduce costs and improve efficiency. In traditional finance, asset transactions involve multiple layers of intermediaries, resulting in slow processing and typically operating only on weekdays. DeFi operates 24/7, is cost-effective, and highly efficient. This efficiency makes previously difficult-to-trade, illiquid assets more accessible and accessible. Finally, RWAs provide transparency and security. Blockchain ensures that every transaction is immutable and traceable; once recorded, it cannot be altered. The trust foundation built by this transparency and consensus is crucial for investors. Regarding our portfolio, we are actively exploring the most appropriate capital allocation options within the RWA sector. Tokenized stocks and US Treasury bonds are already quite mature, and bringing them to blockchain presents few technical challenges. We believe the next major challenge will be bringing unlisted assets from traditional finance into DeFi, which represents the real challenge. The most significant issue is how to prove legal ownership of these assets? In other words, when something is traded on-chain, how can we ensure that valid legal ownership exists? This problem hasn't yet been fully addressed by any one project, as it involves cross-jurisdictional issues. What's recognized in one jurisdiction may not be recognized in another, creating complexity. I believe this area is very interesting for projects to explore and worth watching for investors, as solving this problem will bring significant value to them. However, I don't believe it's an issue that can be solved immediately; it requires time, resources, and careful coordination with market demand. Not all assets can or should be put on-chain; much depends on whether there's real demand. As I mentioned, RWAs are currently focused on well-known assets, such as US Treasuries and stocks, which can be tokenized relatively easily. For RWAs to achieve further development, it requires not only VCs and crypto startups, but also the participation of traditional financial institutions to provide the infrastructure and framework that can bring trust to the community. From HTX Ventures' perspective, we see a clear gap and are actively seeking opportunities to fill it. But we have not taken any action yet because, in terms of the dimensions just shared, we have not yet seen sufficiently convincing infrastructure that can directly address these challenges.
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