The Integration of Blockchain Technology and TradFi: CEO of Taibao Hong Kong Discusses RWA Asset Tokenization

At a recent Web3 event, a fascinating discussion took place around the theme of "the combination of TradFi and Web3." The dialogue featured the CEO of an asset management company and the head of a blockchain infrastructure provider.

The venue was bustling with activity, with every seat filled, fully reflecting the industry's high attention to the RWA( real-world assets) sector. The dialogue focused on hot topics such as blockchain technology, digital assets, and future trends in RWA.

The Motivation and Challenges of Traditional Financial Institutions Entering Web3

The CEO of a certain asset management company stated that their entry into the RWA and asset tokenization field is a natural progression. As managers of traditional financial assets, they hope to tokenize these assets supported by stable returns and introduce them into the Web3 ecosystem, bringing a more solid value foundation to the field.

However, traditional institutions face many real challenges in transitioning to Web3. The CEO pointed out that the current Web3 infrastructure is not mature enough, especially in areas such as asset custody and banking interfaces, which still need improvement. They can currently meet 70%-80% of the standards of traditional funds, which is considered a relatively high level in the industry.

The Practical Path of Asset Tokenization

Regarding which assets are most suitable for early tokenization, the CEO believes that the current focus should be on financial assets rather than physical assets. The reason is that financial assets are easier to ensure a strong connection between the token and the underlying asset at a legal level.

He emphasized that the core of asset tokenization lies in whether it can bring actual value, such as lowering investment thresholds and improving transaction efficiency. If tokenization cannot bring new financial advantages and is merely for the sake of "going on-chain", then it loses its meaning.

Advice for Traditional Financial Institutions

For traditional institutions hesitant about venturing into Web3, the CEO offered the following advice:

1. RWA is a trending and highly certain field worth investing in.

2. A dedicated innovation team or Web3 business unit can be established in the organizational structure.

3. Reserve composite talents who understand finance and are familiar with on-chain mechanisms.

4. In terms of technology, it is possible to choose trustworthy, secure, and compliant cooperation platforms, without the need to build everything in-house.

He looks forward to more traditional institutions joining to jointly promote the development and maturity of the RWA ecosystem.

Overall, this conversation showcases the potential for the integration of TradFi and Web3. In the future, we can expect to see more financial assets efficiently flowing through the Blockchain, driving the entire industry towards maturity.