The recent "Notice on Further Preventing and Handling Risks Related to Virtual Currencies" has classified RWA tokenization as a new securities activity, according to Caijing Magazine. This development is expected to benefit securities intermediaries licensed in both mainland China and Hong Kong. Analysts have identified three feasible types of cross-border RWA businesses: debt-related, equity-oriented, and gold-based tokenization.
Debt-related RWA tokenization involves external debt with a defined term, repaying principal and interest upon maturity. Equity-oriented RWA tokenization is based on domestic equity, conducted overseas in a securitization-like manner, typically involving dividends without a clear maturity date. Additionally, gold-based RWA tokenization represents another viable category.
China and Hong Kong to Benefit from RWA Tokenization in Securities
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