Today, I met two small partners @saisaisai1995 and @CycleStudies offline, although they were divided into two sessions, but the core of the two sessions was similar, that is, whether RWA has space in the cryptocurrency market, and whether it can drive the cryptocurrency market, including $ETH, out of the predicament, I will talk to you about my views. First of all, for #RWA, there is an essential difference from #STO, and the most essential difference is that RWA requires a high level of compliance, which is similar to the status of the SEC in the United States, because RWA requires a large number of assets to enter, and the main reason why a large number of assets can enter is not because of any real estate on the chain, or raisins on the chain, but for compliant assets on the chain. Speaking of human words is the compliant assets issued by the compliance platform, I said before when I talked about stablecoins, the hard acceptance of stablecoins is actually the basis of RWA, for example, US bonds, even if the debt ceiling is raised, the ceiling that can be purchased is expected, but if the RWA based on US bonds is opened, you can use compliant stablecoins to invest in US bonds directly in the compliant "on-chain brokerage", which is equivalent to expanding the yield of DeFi. It is a combination of DeFi and RWA to issue #RWAFi, to give a simple example, use stablecoins to buy T-Bills (short-term US bonds), and then the on-chain protocol (third party) provides Staking (staking) based on the purchase of T-Bills. As another example, up to now, spot ETFs in the United States have held a total of more than 1.2 million $BTC stocks, but how many years has the spot of Bitcoin been able to be bought, why do you have to wait for the ETF to pass before buying, it is because of sufficient compliance, compliance can carry large assets, compliance will make the custody of BTC protected by law, if there is theft, etc., the custodian needs 100% compensation, reducing the black forest law of the currency circle. So although we see all kinds of RWA projects, the ones that can get permission can eventually come out, and the projects that are approved can carry a lot of money and provide safe services. In addition, in addition to U.S. bonds, there are also bonds of high-quality enterprises that are also the best targets of RWA, such as bonds issued by $MSTR, which are not available to ordinary investors, but BlackRock can be bought, if BlackRock buys with a return of 4%, and then sells 5% of the income on the chain (2.5% MSTR income + 2.5% expected return on issuance, just as an example, don't be more serious), you can confirm the right, I believe that someone will buy it. Today I also gave an example, if LV or Hermes is also selling their bonds on the chain through BlackRock or someone else, and at the same time providing a VIP treatment confirmation to investors who buy more than $1 million, this is equivalent to confirming the rights of RWA, of course, strict KYC and AML are required here, but the most interesting thing is that RWAFi can be noted, RWAFi institutions can use the name of the institution to complete KYC and AML and then go to retail investors to finance the purchase and become RWAFi This can turn into a very interesting business practice. In addition, there are friends who say that RWA is low liquidity, in fact, this is wrong, the liquidity of RWA depends on what the underlying asset is, if it is really US bonds on the chain, what liquidity is missing, one of the best liquidity in the world is US bonds. But if you have to engage in coconut chain, Cambodian real estate on the chain, there is indeed not enough liquidity, and the reason for no liquidity is that it is not compliant enough. PS: Please don't ask me what RWA assets I can buy, either I need to look at compliance, or I need to see that I can have enough industrial income and cash flow income, otherwise what I buy has nothing to do with real RWA. PS2: Now a lot of computing power on the chain is also a kind of RWA, although there will be some deficiencies in terms of compliance, but if there is really a real income to carry out airdrops or buybacks on rights and interests, it is not impossible to take RWA as part of the confirmation of income, this form of RWAFi should be able to eat in the market. This tweet is sponsored by @ApeXProtocolCN|Dex With ApeX