Growth in RWA Issuance Faces Regulatory and Asset Quality Challenges

The overseas Real World Assets (RWA) issuance market sees significant growth in 2025, driven by Ant Digital Technology’s model amidst challenges in asset quality, pricing, and cross-border compliance.

This surge in RWA activities could reshape global asset markets, influencing private equity and wealth management strategies while facing regulatory scrutiny, especially in Hong Kong.

Ethereum’s Market Dynamics: Insights and Potential Paths Forward

A notable change is the increased involvement of private equity and local investors, as global institutional capital appears limited. Industry insiders believe the “domestic assets – Hong Kong confirmation – global circulation” model pioneered by Ant Digital Technology stands as a reference for this market growth.

Reactions from sectors involved in RWA indicate optimism tempered by regulatory limitations. Hong Kong’s SFC confirms that RWAs should remain exclusive to professional investors, aligning with similar frameworks globally. This approach, while fostering legal clarity, poses challenges for broader global engagement. Furthermore, key market players like Securitize and Ant Digital Technology have not issued specific statements, reflecting caution amid these evolving regulatory landscapes. Related insights can be explored in Google’s recent investment in blockchain technology as the market continues to evolve.

“Tokenized securities and RWAs remain restricted to professional investors, with secondary market trading explicitly prohibited under current pilot programs.” — Hong Kong SFC, Regulatory Body, Hong Kong Securities and Futures Commission [2]

Market Data and Future Insights

Did you know? Historically, real estate RWAs have faced regulatory exclusion within Hong Kong-based models due to asset-linked risks and compliance matters, highlighting the significance of asset quality in regulatory approval processes.

Recent data from Ethereum shows an 81.29% increase over 90 days, with a market cap now at $532.62 billion. The market dominance stood at 13.41%, reinforcing Ethereum’s integral role. CoinMarketCap reports a 2.66% increase over 7 days despite a 1.43% 24-hour downturn, underlining its volatile yet sustained market presence.

Coincu research team suggests continued regulatory evolution could shape RWA markets, venturing into new territories beyond current regulatory frameworks. They emphasize that market growth could accelerate, pending clearer regulatory directions, while engagement in new asset categories like new energy might redefine future pipelines.