On April 6, the Unlocking RWA: Insights into Opportunities, Challenges and Cooperation in the Blockchain Era roundtable forum event held during the 2024 Hong Kong Web3 Carnival came to a successful conclusion. Frank Zhang, executive director of OKX Hong Kong, and Devon Sin, general manager of ZA Bank, Paolo Chen, chief strategy officer of VDX, Darshan Vaidya, co-founder of Credora, and other industry veterans discussed the opportunities, risk management strategies and traditions in the field of RWA (Real World Asset On-Chain) Topics such as finance and decentralized financial ecology were discussed in depth.
As one of the Executive Directors of OKX Hong Kong, Frank oversees the business growth and operations of OKX Hong Kong, a leading virtual asset platform. In addition, he leads the exchange’s business strategy to provide industry-leading virtual asset services to the Hong Kong market while adhering to strict regulatory compliance standards under Hong Kong’s Virtual Asset Service Provider (VASP) regime. In the past, Frank has more than ten years of experience in traditional finance, having worked at well-known financial institutions such as Daiwa Capital, CLSA and Liquidnet Asia, and led the design and implementation of complex algorithmic trading strategies for these companies.
During the event, the guests discussed development opportunities in the field of RWA (Real World Asset On-Chain). Frank said: The traditional financial ecosystem has a history of more than 600 years. In the past 600 years, people have made the world more efficient through their understanding of the nature of traditional finance and the application of science. But with the advancement of technological innovation, RWA The development of RWA is obviously a trend, and people can use technology to further improve efficiency and further save related costs. Of course, some traditional financial companies are now very mature and do not necessarily need to add RWA-related business, but other companies are likely to deploy RWA The track improves its own development space and competitiveness.
When it comes to how the RWA platform deals with risk factors. Frank believes that it is very important for the RWA platform to implement various strong measures to mitigate risks and enhance investor confidence for the long-term and stable development of the RWA track. The platform should have strong security infrastructure, smart contract auditing, self-regulation (such as POR), compliance with regulatory requirements, full transparency, appropriate investor communication, continuous monitoring and incident response, insurance coverage, etc.
“We look forward to more institutions using a model that mixes traditional financial industry standards and blockchain technology to explore and adopt blockchain technology solutions for all aspects of RWA operations. This model can combine the advantages of traditional finance (such as supervision expertise and established client relationships) with the efficiency and innovation of blockchain platforms, which can drive the virtual asset industry to form a set of best practice standards and promote seamlessness between the two ecosystems of traditional finance and virtual assets. Integration, data sharing and asset transfer.”
In addition, when Frank participated in the discussion of RWA’s future application scenarios and related innovation directions, he said that the following three areas may attract the interest of innovators:
The first is to standardize the protocol for putting assets on the chain. The standardized protocol will enable seamless integration and interoperability between different RWA platforms, which will facilitate efficient transfer and exchange of cross-platform assets.
The second is to strengthen security and privacy measures. With the advancement of blockchain technology, such as improved consensus mechanisms (such as proof of stake), privacy protection technologies (such as zero-knowledge proof), and advanced cryptography, the security and privacy of the RWA platform will be enhanced. This will enhance investor confidence, mitigate cybersecurity risks, and address regulatory issues related to data protection, promoting the adoption of RWA in the traditional financial ecosystem.
The third is to apply AI and data analysis to the RWA platform. This will enable advanced data processing, risk assessment and predictive modeling. AI-driven algorithms can analyze large amounts of data, identify patterns, and provide valuable insights for investment decisions, risk management, and asset valuation. This integration will increase operational efficiency, improve investment strategies, and reshape traditional financial analysis.
Regarding the development of RWA-related innovations in the Hong Kong market, Frank analyzed: Hong Kong has the potential to play an important role in the global adoption of RWA platforms and technologies. As one of the worlds three major financial centers, Hong Kong has excellent connectivity, resources, Talent, mature financial infrastructure and regulations, a large number of Web3 companies and ideas. At the same time, Hong Kong also has a mature investor base, which provides a favorable and solid environment for the adoption of RWA. More importantly, Hong Kong is the gateway to Asia As a gateway to other regions, its strategic location and strong international connections may help the RWA platform enter the Asian market on a large scale.
Disclaimer
This content is for reference only. This announcement is not intended to provide any investment, tax or legal advice and should not be considered an offer to buy, sell or hold virtual assets. Holding virtual assets, including stablecoins, is risky, the market may fluctuate significantly, and you may even lose the entire value of your assets. You should carefully consider whether you are suitable for trading or holding virtual assets based on your financial situation and risk tolerance. OKX does not provide any investment or asset advice. You must take full responsibility for the investment decisions you make, and OKX will not be held responsible for any losses. Past performance is not indicative of future results. If you have any questions about your specific situation, please consult your legal/tax/investment expert.
