RWA from the Perspective of Hong Kong Regulation: Insights from Professionals

Recently, three professionals from well-known virtual asset institutions in Hong Kong conducted an in-depth discussion on the regulation and development prospects of RWA(Real World Asset). They are Junfei, CEO of Pandu Fund, Wang Yi, Director of the Southern Eastern Quantitative Investment Team, and Marco Lim, Managing Partner of MaiCapital.

RWA Regulatory Trends

Experts point out that the regulatory perspective of Hong Kong regulators on RWA is changing. They are currently inclined to formulate regulatory approaches based on the nature of the underlying assets, rather than categorically viewing all tokenized assets as virtual assets. This means that if the underlying RWA consists of traditional financial assets such as stocks, the regulatory approach will be closer to traditional financial regulation.

Wang Yi stated that Hong Kong's regulation follows the "same principles, same practices". After RWA tokenization, it may also be necessary to consider regulatory requirements regarding virtual assets. Marco added that if a product has already been opened to retail investors in the traditional market, its tokenized version could theoretically also be sold to retail investors.

The Appeal of RWA to Ordinary Users

Experts believe that the appeal of RWA to ordinary users mainly lies in its potential for high returns. Wang Yi pointed out that some RWA projects can achieve returns higher than traditional risk-free assets by stacking yields (, such as the token's own yields plus mining yields ), thereby attracting investors.

Marco emphasized that tokenizing traditional risk-free assets and issuing them in the cryptocurrency market could yield higher returns than traditional markets, which is a significant advantage of RWA. Junfei believes that funds will always flow into the asset classes with the greatest appreciation potential, and the current high interest rate environment creates opportunities for RWA.

Development of RWA Under Regulatory Compliance

Under the compliance regulatory framework, the development of RWA faces opportunities and challenges. Marco pointed out that KYC( Know Your Customer) remains a key issue, and in the future, stablecoins in Hong Kong may become a bridge connecting virtual currency funds and RWA.

Junfei believes that as the bridge between the fiat currency world and the virtual asset world continues to widen, the conversion costs will gradually decrease, creating more opportunities for the development of RWA.

Opportunities for No. 9 Institutions in the RWA Track

As a licensee holding a No. 9 license, experts believe they have a unique advantage in the RWA field:

1. Junfei stated that they will focus on emerging asset areas such as blockchain, Web3, and AI-related innovative stocks, bonds, and virtual assets.

2. Wang Yi believes that the No. 9 license institution can serve as a bridge to help Web3 project parties manage traditional asset sides, while needing to gain a deeper understanding of the advantages of tokenized products.

3. Marco pointed out that a new trend has emerged this year: many cryptocurrency holders want to invest in traditional assets but do not want to convert their virtual assets back to fiat currency. This creates new business opportunities for institutions with license number 9.

Overall, experts believe that there is great potential for developing RWA products within a regulatory framework, but it is still necessary to maintain close communication with regulatory authorities and seek suitable partners to advance together.