Author: YBB Capital Researcher Ac-Core

1. Preface: Can RWA become the next watershed in the market

With the launch of Bitcoin spot ETFs, the crypto field is ushering in a new turning point in development. The trends during the Trump era laid the foundation for this field, and the entry of traditional financial giants such as BlackRock has further promoted the development of the RWA (real world asset) track. More and more financial institutions are beginning to explore how to implement on-chain transactions and management of traditional assets such as stocks and bonds through blockchain technology. This trend is reshaping the pattern of the financial market.

The recent series of measures such as Ondo Global Markets and Ondo Chain launched by Ondo Finance mark the gradual mainstream of the RWA track. This change has also triggered a new round of game on Wall Street, which is quietly changing the rules of the game between crypto markets and traditional finance.

2. Differentiation and commonality of RWA track projects

Source :Ondo official website

2.1 Relying on BlackRock's representative project Ondo Finance

Recently, Ondo Finance has made frequent moves. On February 5, they launched Ondo Global Markets platform mainly provides block linking services for stocks, bonds and ETFs. Immediately afterwards, Ondo Finance announced their new Layer 1 public chain Ondo Chain, with the goal of building a stronger financial infrastructure and promoting the tokenization of RWA.

Ondo Chain is the infrastructure of Ondo Global Markets (Ondo GM), focusing on the combination of RWA tokenization and blockchain. Ondo Chain supports global investors to obtain on-chain access to US listed securities (such as stocks, bonds, ETFs) through blockchain platforms, and breaks geographical restrictions to provide 24/7 uninterrupted trading services.

Ondo Chain launches aThe solution to embed organization-level compliance into the public chain architecture, and through innovative means such as license verification node mechanisms and native cross-chain protocols, we try to overcome the pain points of existing RWA chaining technology and institutionally. Ondo Chain ensures network security by using traditional financial assets as collateral and interoperates with traditional clearing systems, further opening up on-chain and off-chain liquidity.

2.2 Ondo Finance's competitiveness and limitations in the same track projects

This is not only related to its unique architectural design and strong institutional resources, but also reflects the region The power and interest game between blockchain and traditional finance.

Competitiveness

Build a A blockchain financial infrastructure that can support the large-scale tokenization of real-world assets ensures a balance between compliance and decentralization.

RWA's tokenization and free transfer: By pairing assets such as stocks, bonds, ETFs and other tokens 1:1, investors can use outside the United States Freely transfer these tokenized assets and integrate them with DeFi to participate in financial activities such as lending and income.

Combination of openness and compliance: Ondo Chain combines the openness of public blockchains with the compliance of license chains. The validator is licensed to ensure compliance, while any developer and user can issue tokens and develop applications on the chain to ensure innovation vitality.

机构参与与生态建设：Ondo Chain 的设计顾问团队包括Franklin Templeton、Wellington Management、WisdomTree 等金融机构，推动了其在TradFi 与DeFi 领域的Institutional-level application.

Original oracle mechanism and data security: The built-in oracle system can ensure the accuracy and real-timeness of on-chain data and reduce the risk of data manipulation. This design enhances the credibility of key data such as asset prices, interest rates, market indexes, etc.

Cross-chain functions and security guarantees: Cross-chain asset transfer is realized through Ondo Bridge, providing security guarantees for the decentralized verification network (DVN), and supporting institutional assets With liquidity management, adapt to large transactions.

Limitations

Highly relies on institutions, limiting the participation of ordinary users and decentralized communities, and has a high centralization component, mainly Power is still in the hands of a few institutions.

1. Highly dependent on institutions and lacks community driving force

Ondo Finance's architecture relies strongly on the participation of traditional financial institutions, and the credibility and liquidity of its tokenized assets are mainly derived from the endorsement of these institutions. Although this model ensures the quality and compliance of tokenized assets but also brings a core problem: its ecosystem is mainly designed for institutions, and ordinary users have low participation. Compared with the completely decentralized RWA project, Ondo is more like an extension of the traditional financial world, with its tokens The circulation and transaction of chemical assets are more carried out between institutions, and the influence of ordinary investors and decentralized communities is weakened.

2. Centralization The issue of distribution of power under control

Although Ondo Chain retains partial openness, its validators are licensed, which means that the core power is concentrated in a few institutions In hand. This is in stark contrast to some fully decentralized RWA projects that emphasize that any participant can be a key node in the network. Ondo's design reflects to some extent the power pattern of traditional finance, i.e., most of the controls Power remains in the hands of a few large financial institutions. This concentration of power may cause conflicts in future governance and resource allocation, especially when token holders conflict with institutional interests.

3. The speed of innovation may be limited by compliance and traditional institutions

Because Ondo Finance's core pillars are compliance and institutions Participation, which may also limit its innovation speed. Compared to fully decentralized projects, Ondo may need to undergo complex compliance processes and institutional approvals when introducing new financial products or technologies. This makes it rapidly changing The risk of slow response in the crypto field, especially when competing with more flexible DeFi projects, its compliance and organization-oriented architecture can become a burden.

III. Realistic obstacles faced by RWA projects

Although blockchain technology provides a technical basis for RWA's chain rollback, the current public chain still finds it difficult to meet the needs of traditional finance in terms of high-frequency trading, real-time settlement, etc.beg. At the same time, the separation and security issues of cross-chain ecosystems have further aggravated the difficulty of institutions in deploying RWA. The application of RWA in decentralized finance (DeFi) faces multiple practical obstacles:

First, the issue of trust and consistency between assets and on-chain data becomes RWA The core challenge of going on the chain. The key to RWA's on-chain is to ensure consistency between assets in the real world and on-chain data. For example, after real estate tokenization, the ownership, value and other information recorded on-chain must be exactly matched with the actual legal documents and asset status. However, this involves two key issues: one is the authenticity of the on-chain data, that is, how to ensure that the source of the on-chain data is trustworthy and tamper-free; the other is the synchronous update of the data, that is, how to ensure that the on-chain information can reflect real assets in real time Change of status. Solving these problems often requires the introduction of trusted third parties or authoritative bodies (such as or certification bodies), but this conflicts with the decentralized nature of blockchain, and the issue of trust remains a core challenge that RWA is inevitably on the chain.

Inadequate network security is also an important issue. The security of blockchain networks usually depends on the economic incentive mechanism of local tokens, but the volatility of RWA is usually Below cryptocurrencies, especially when markets are down, can lead to a decline in cybersecurity. Furthermore, RWA’s complexity requires higher security standards, and existing blockchain systems may not fully meet these needs.

RWA 与 DeFi 架构的兼容性问题也尚未解决，DeFi 的设计初衷是为加密原生资产服务，而非传统证券类资产。 RWA 上链涉及复杂的金融行为（如股票拆分、股息分配），这些操作难以通过现有的 DeFi 系统有效管理。 What is particularly important is that oracle systems also have obvious shortcomings in real-time and security in processing large-scale traditional financial data.

The problem of cross-chain liquidity dispersion and security further increases the difficulty of RWA on the chain. The cross-chain issuance of RWA has led to liquidity dispersion and increased assets Management complexity. Although the cross-chain bridging mechanism provides solutions, it also introduces new security risks, such as double-spending attacks and protocol vulnerabilities.

Institutional regulation and compliance issues are the biggest non-technical barriers to RWA's on-chain. Many regulated financial institutions are unable to trade on public blockchains, mainly原因包括匿名性、缺乏合规框架以及全球监管标准的差异。 Compliance requirements such as KYC and anti-money laundering further increase the complexity of RWA on-chain, which to some extent limits capital inflows.

The liquidity and institutional participation restrictions on the market side also restrict the development of RWA. At present, the overall market value of RWA is mainly concentrated in low-risk assets (such as treasury bonds and funds), while stocks The progress of major assets such as real estate is slow to go up. The liquidity of RWA still relies on crypto-native protocols, and the overall market is still in its early stages of development.

The conflict between DeFi and the traditional financial trust mechanism is also a problem that RWA must solve. DeFi relies on code and cryptography to build trust, while traditional finance relies on law Contracts and centralized institutions. This difference in trust mechanisms has led traditional financial institutions to be cautious about blockchain technology, especially in key links such as custody and risk control.

Although blockchain technology provides the possibility for RWA to be chained, it still faces many challenges in practical applications. However, from data consistency, network security, compatibility, liquidity, compliance to the matching of technology and economic models, and the conflict between trust mechanisms, these problems need to be gradually resolved in the process of development to promote RWA in DeFi Widely used.

IV. If RWA is successful, Ondo Chain may become the redistribution of powers of the old and new financial systems of the "Wall Street Games"

图源：Occupy Wall Street

此章节在分析Ondo Chain 背后涉及的核心华尔街利益时，个人认为需要跳出区块链与现实资产代币化现象，按金融运作逻辑和利益争夺背后的驱动因素。 As mentioned above, the most core difficulty of RWA at the non-technical level is how to achieve compliance, and the recognition of a strong centralized rights organization is required.

BlackRock, the world's largest asset management company, participated in the investment and construction of RWA after completing the promotion of Bitcoin ETFs, which is essentially the first to strive for traditional finance. The redistribution of power between the system and emerging decentralized technologies that rely on blockchain. This struggle is not only a competition for technological changes or financial innovation, but also a global financial rule-making power, capital control and future wealth distribution mechanisms. Fight.

Although blockchain technology brings hope of decentralization, Wall Street is trying to make this happen in the face of the reality of high concentration of capital and power.场技术革命纳入自己的掌控范围内，通过新形式的市场操控与资产证券化，延续其在全球金融体系中的主导地位。

4.1 Rebalancing of power in the global financial system

Wall Street has always dominated the global financial system, controlling key nodes in capital flows, asset management and financial services. Traditional financial institutions achieve control over global capital by monopolizing financial infrastructure (banks, stock exchanges, clearing systems, etc.). However, the rise of blockchain technology has broken this situation: Decentralized Finance (DeFi) weakens traditional finance that has long controlled by Wall Street through de-mediation Infrastructure. DeFi allows key functions such as capital flow and asset management to run on a decentralized platform. For example, users can directly perform asset management, lending, trading and other operations on the blockchain without intermediaries such as banks and investment banks. But this means a huge threat to Wall Street, and this transfer of power means that Wall Street may lose dominance over the global financial system.

4.2 Asset Tokenization: Who can control the new financial infrastructure?

RWA tokenization promoted by platforms such as Ondo Chain, although aimed at enhancing asset liquidity , but behind it is the battle for control of the new financial infrastructure. Blockchain networks are candidate platforms for the new generation of global financial infrastructure. Whoever can dominate this infrastructure will be able to dominate the future blockchain links real-world assets.

The interests of Wall Street are reflected in the intention to control these decentralized networks. They may not directly deny blockchain, but instead control these emerging blockchain platforms through investment, mergers and acquisitions or cooperation to allow the reappearance of capital centralization. Although blockchain is intended to be decentralized, a large amount of capital and liquidity are still easily concentrated in the hands of a few large financial institutions or hedge funds. In the end, the key resources (liquidity, protocol governance rights, etc.) on the blockchain platform will still return to the hands of a few players, resulting in the decentralized asset market completely requiring the driving force of centralized huge forces.

4.3 Regulatory arbitrage and extrajudicial power

JP Morgan's latest electronic trading survey on institutional traders showed that 29% of institutional trading cryptocurrency trading is about to be conducted this year, up 7 percentage points from last year.

Arbitrage has always been a trading strategy that Wall Street elites are good at using. Faced with the uncertain regulatory environment of blockchain decentralization, Wall Street institutions in the futureIt is possible to take advantage of regulatory differences between different and regional levels to circumvent stricter regulation by setting up operating entities in jurisdictions with more relaxed supervision. For example:

In projects such as Ondo Chain, tokenization of certain RWAs may bypass traditional securities regulations or financial market regulations. Manipulate asset flows and capital structure in different regulatory environments to further strengthen control over emerging markets. It is not ruled out that this "gray zone" operation is one of the means by which Wall Street obtains higher returns on profits through blockchain.

4.4 Market liquidity and price manipulation: the battle for implicit dominance

Liquidity is the core of market manipulation, in a seemingly "decentralized" market Achieve implicit price manipulation. Ondo Chain provides new investment opportunities for global investors through the tokenization of RWA, but its liquidity and trading depth are still highly dependent on the injection of big capital, and liquidity control will continue to become the core weapon for Wall Street players. Even in a blockchain decentralized environment, institutions with more capital, transaction technology and market insights can still dominate the market trends.

4.5 RWA Hedge Fund: Reconstructing the Asset Securitization Game

Wall Street has historically achieved huge returns through asset securitization (such as subprime mortgage securitization). RWA tokenization on blockchain just provides opportunities for a new generation of asset securitization. For example, Wall Street can issue new financial products through a combination of tokenized assets to attract global investors.这些产品可以基于 RWA 生成，例如房地产信托基金代币、企业债券代币，为市场提供更多选择。

同时衍生品市场也可能通过区块链得到扩展。 Wall Street can package and sell risks to global investors again by designing complex financial derivatives (such as options, futures, swaps). The game of risk transfer and profit acquisition will continue to be played in the era of RWA tokenization.

5. The road to advancement in the crypto world, the development of the industry was forced to press the acceleration key

Our ETF transactions of crypto assets led by Bitcoin, special As an example, Trump-related events and future RWA are analysing the development of the industry to varying degrees, and the direct impact of this is to increase the difficulty of industry profitability. These factors affect the crypto industry through complex market dynamics, regulatory pressures and the gradual penetration of traditional financial ecology.

5.1 The market maturity brought about by the introduction of ETFs

The launch of ETFs marks the crypto industry's gradual developmentStep by step is accepted by mainstream financial institutions and investors, but it is not necessarily beneficial to the overall growth of the crypto industry. For example, gold has brought a long increase after passing ETFs:

The decline in market liquidity and volatility

The introduction of ETFs means that crypto assets enter the traditional financial market, and the investment styles of the institutions attracted more conservative. The added more financial derivatives at the same time also lead to reduced volatility in crypto assets. This means that traders relying on high volatility (such as retail investors and crypto hedge funds) will reduce the opportunity for arbitrage and high-frequency trading, which in turn will reduce profit margins.

Concentrated capital flow

ETF makes the capital flow in the crypto market more concentrated, mainly focusing on Several large assets such as Bitcoin. This could lead to the risk of liquidity exhaustion and price declines in small and medium-sized crypto assets, affecting the development opportunities of more small projects. The result is that more emerging projects have fewer profit opportunities and the overall profit difficulty of the industry has increased.

Competitive pressure on traditional finance

The launch of ETFs means that crypto assets are being employed by traditional financial products , bringing higher market transparency and competition. This also means that the crypto industry will compete more fiercely with traditional financial tools such as stocks, bonds and commodities, diverting funds and investors' attention.

5.2 Market uncertainty brought about by the Trump effect

The actions of figures such as Trump may affect the crypto market through their regulatory attitudes and international relations, increasing Uncertainty and complexity in the industry:

Increased uncertainty

Trump The position and governing style are often full of uncertainty, especially when it comes to economic and financial regulation. During his tenure, the regulation that may be implemented (such as suppression of digital currencies or relaxation of regulation) will directly affect market sentiment and increase the instability of the crypto market. This uncertainty will put the crypto industry at greater risks and affect the stability of long-term profits.

Anti-money laundering and KYC requirements are strengthened

Because politicians such as Trump may be in the future Implement stricter anti-money laundering and KYC regulations, transactionsThe crypto projects will face higher compliance costs. This will significantly increase operating costs and reduce profit margins, especially for crypto companies that lack compliance experience.

The presidential concept coin "TRUMP" has caused the market to experience a "siphon effect"

High volatility The speculative capital "TRUMP" has a natural marketing effect and can attract a large amount of funds to gather in this single asset. Limited liquidity and capital in the market are easily "siphoned" by Meme coins in the short term, forming a "capital concentration effect", but liquidity is difficult to disperse as prices fall later.

5.3 The development of RWA will bring about traditional financial penetration

RWA's development in the field of encryption represents the trend of the crypto market gradually integrating with traditional financial assets, but this integration It also brings about increased profit difficulty:

The cost structure and competition introduction of traditional finance

When the RWA project is put on the chain on a large scale, traditional financial assets such as bonds, stocks, real estate, etc. will compete in the same ecosystem as crypto assets. The maturity, cost efficiency and low-risk nature of traditional financial products will attract a large number of institutional investors, which means that crypto assets need to compete with these mature financial products.

The contradiction between decentralization and compliance

RWA's linkage involves complexity regulatory requirements, especially in compliance and legal liability. Compared with the current decentralized crypto assets, the introduction of RWA may force more crypto projects to become compliant, resulting in more projects exiting the market because they cannot meet regulatory requirements, thereby reducing profit opportunities.

Funds are prone to flow to low-risk assets

Real world assets are on the chain, such as treasury bonds Low-risk assets such as corporate bonds will attract a large number of conservative investors to enter the on-chain market. As more funds flow into low-risk RWA, high-risk, high-reward projects in the crypto market, such as the DeFi protocol or emerging token, may lose some of their financial support. This phenomenon of transferring funds to low-risk assets will further compress the profit margins of the crypto market.

6. Conclusion: Is RWA a narrative bubble or a market change?

To summarize the above personal views, ETF,The Trump effect and the rise of RWA in the future will increase the profitability of the crypto industry in different ways and intensity. The market maturity and institutionalization brought by ETFs reduce market volatility and high profit opportunities; Trump's possibility increases market uncertainty and brings risks to the industry; and the introduction of RWA means that the crypto market will be in line with tradition Competition in the financial market. In this ever-complex evolution process, the more "regular" crypto assets become, the more "bottleneck" the market becomes, and the future crypto market will bring more severe new challenges.

So whether RWA is a "narrative bubble" or a "market change" depends on its technical foundation, market demand and maturity of its implementation path. If we only look at the progress and challenges in the early stages, RWA has a certain "narrative bubble" component, but relying on the participation of well-known institutions, RWA is expected to become a new catalyst for changes in the crypto market.