RWAs Tied to Traditional Finance: Zhou Chenggang Clarifies Limitations

Zhou Chenggang, CEO of China Pacific Insurance Investment Management's Hong Kong unit, recently emphasized that real-world assets (RWA) cannot break free from traditional finance. Speaking at an event on August 29, Zhou highlighted that RWA tokens are fundamentally different from blockchain-native assets like Bitcoin.

RWA tokens serve as certificates representing actual off-chain assets, rather than being standalone digital assets themselves, according to Zhou. He clarified that RWAs are not simply a means of transferring existing assets onto the blockchain, but rather require a more comprehensive approach.

Even when issued and traded on blockchain networks, RWA still relies on traditional financial systems for issues such as establishing rights, liability, and information disclosure. These concerns cannot be solely addressed through the blockchain, Zhou noted.