Dr LI Ming, Associate Researcher of Research Institute for Artificial Intelligence of Things (RIAIoT) and Executive Chairman of Hong Kong Web3.0 Standardisation Association, recently gave an exclusive interview to the Hong Kong Commercial Daily, in which he provided an in-depth analysis of the development trends and standardisation efforts in the Real-World Asset (RWA) sector. He pointed out that RWA tokenisation is developing rapidly, with legislation related to stablecoins also progressing at pace. RWA has now moved from the exploratory stage to practical application, with numerous projects urgently requiring standardised models and technical support to facilitate financing and ecosystem expansion.
Dr Li emphasised that stablecoins and RWA are currently the two hottest topics in the industry, but they are fundamentally different: RWA leans towards project-level financial services and requires a comprehensive business model for support, whereas stablecoins are payment tools rather than investment assets. He reminded the public not to misunderstand the purpose of stablecoins, stressing that their core value lies in payment scenarios. The industry should strengthen public education to address misconceptions.
Regarding the development of stablecoins, Dr Li proposed three main pathways: inter-institutional clearing and settlement; cross-border supply chains; and consumer-facing transfers and payments. He believes that stablecoin applications require an entirely new technological infrastructure, which traditional finance cannot achieve. Related business systems must find balance between regulatory compliance and innovation. In the future, large-scale technology integration service companies are expected to emerge, integrating resources from law firms and securities brokers to provide one-stop services including rights confirmation, valuation, issuance, and circulation.
On the regulatory front, RWA presents new opportunities. Regulators are gradually establishing transparent regulatory principles and sandbox testing mechanisms, providing a compliant path for industry innovation. Most countries are adopting transparent regulation, establishing licensing regimes and regulatory sandboxes to offer a controlled testing environment for innovative applications. Hong Kong’s sandbox mechanism has become a key driver in promoting standards. Dr Li revealed that joint formulation of technical and business standards has already commenced, with over a dozen industry proposals under discussion. The standard documents are expected to be released next year, expecting to reach a consensus on industry self-regulation before further communication with the SAR government on related implementation.
For enterprises interested in entering the RWA field, Dr Li recommends clarifying their business models and further streamlining the stablecoin industry chain. The emergence of integrated service providers will benefit the sector. The core value of Web3.0 lies in improving the efficiency of business model cycles, supporting financing and scale expansion. Building a clear, trustworthy, and transparent docking platform is crucial. Dr Li concluded by stating that stablecoin legislation, licensing, technological implementation, and business innovation all require long-term effort, and the healthy development of the industry depends on standardisation and rational understanding.
Online coverage:
Hong Kong Commercial Daily - https://polyu.me/4fIzEy2 (Chinese only)
| Research Units | Research Institute for Artificial Intelligence of Things |
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