Stablecoins are a type of cryptocurrency pegged to fiat currencies or assets (such as the US dollar or gold), designed to maintain price stability. By leveraging blockchain technology, they enable fast, low-cost cross-border payments and are widely used in international settlements and financial transactions.

So, what exactly are RWAs (Real-World Assets)?

Imagine a property deed divided into millions of digital tokens traded globally, the ownership of a barrel of oil transferred seamlessly across time zones via blockchain, or fractional shares of a masterpiece circulating in real time on an ordinary investor’s smartphone—scenarios once confined to science fiction are now becoming reality through RWA tokenization.

In simple terms, RWA (Real-World Assets) refers to the process of using blockchain, smart contracts, and other technologies to convert real-world assets—such as stocks, bonds, real estate, and commodities—into digital tokens that can be traded and settled on digital networks. It does not replace the original assets but rather provides them with a "digital twin"—much like the relationship between physical cash and digital currency. These digital tokens are strictly correlated with their real-world counterparts through legal attestation, third-party custody, and other regulatory mechanisms.

The core logic of RWA can be summarized as the "Three Transformations":

1. Digitization of Ownership: Utilizing  hash encryption and timestamping technologies to ensure tamper-proof and  unambiguous asset ownership.

2. Intelligentization of Transactions: Employing smart contracts to automate execution of settlements, dividends,  and other processes, significantly reducing intermediary involvement.

3.  Globalization of Circulation: Breaking geographical and temporal barriers, enabling fractional and micro-investment in previously high-threshold assets such as luxury real estate or private credit.

This framework preserves the value anchor of traditional assets while injecting the efficiency and inclusivity of digital economies—ultimately reshaping the rules of global asset circulation.

In July 2025, NVDAx—a tokenized version of NVIDIA Corporation (NASDAQ: NVDA) stock—was launched and promoted across multiple major platforms including Phemex, Kraken, and Gate.io. This offering provides global investors with indirect exposure to NVIDIA’s stock performance through blockchain technology, without requiring direct ownership of the underlying shares. As a form of Real World Asset (RWA) tokenization, NVDAx combines the flexibility of blockchain with the stability of traditional financial assets, allowing investors worldwide to participate in NVIDIA’s price movements via crypto trading platforms. With a minimum investment threshold as low as $1, NVDAx opens access to NVIDIA’s AI-driven growth—particularly for those without traditional brokerage accounts—enabling seamless engagement through simple crypto wallet transactions.

The tokenized RWA market is categorized into six major asset classes, which primarily include: stablecoins, private credit, government bonds (e.g., U.S. Treasuries), commodities, real estate, and equities.

According to data from RWA.xyz, the on-chain RWA market (excluding stablecoins) reached approximately $15.4 billion by the end of 2024, representing a year-on-year growth of nearly 80%. Among these, private credit and U.S. Treasuries have emerged as the dominant tokenized assets. Brilliance Technologies’ blockchain team and experts are actively researching this cutting-edge field and continuously monitoring the latest industry developments.

Currently, for domestic assets to achieve on-chainization through stablecoins and RWA, the following steps must be completed:

First, plan in compliant jurisdictions like Hong Kong with RWA policies. The selection of real-world asset (RWA) tokenization assets—such as real estate, bonds, or inventory and accounts receivable of petrochemical companies—must adhere to the regulatory frameworks of the Securities and Futures Commission (SFC) and, in some cases, the Hong Kong Monetary Authority (HKMA). The process begins with selecting tokenization assets, such as a company’s future earnings or accounts receivable, and conducting a feasibility analysis to assess liquidity, valuation, and market demand. It is necessary to confirm whether the asset qualifies as a security under the SFC’s Securities and Futures Ordinance, which may require applying for relevant licenses. A preliminary whitepaper outlining the asset type, tokenization objectives, and technical solutions should also be prepared.

Second, design and develop the technical infrastructure. Select an appropriate blockchain platform and develop smart contracts to support the logic for stablecoin minting/burning and the issuance, trading, transfer, and destruction of RWA assets. This stage is one of Brilliance’s strengths, requiring the delivery of core code and API integrations with traditional financial systems to enable interaction between on-chain assets, stablecoins, and fiat payment settlement systems, thereby breaking down barriers. This step requires support from commercial banks under compliance prerequisites.

Third, conduct testing and validation using the HKMA’s Project Ensemble sandbox to simulate scenarios such as supply chain finance or asset trading. The system must undergo load testing and validation against market volatility scenarios to ensure redemption mechanisms and whitelist functions comply with SFC standards. Feedback from pilot transactions should be collected to optimize the user experience.

Fourth, apply for licenses and launch. If dealing with security tokens, submit the relevant license applications to the SFC, accompanied by the whitepaper, technical documentation, and audit reports. If payment functionality is involved, consultation with the HKMA is required. Deploy the system to the mainnet and integrate with exchanges like OSL or DeFi platforms to enable trading, while providing user interfaces such as enterprise-grade wallets. This stage includes ongoing communication with regulators to obtain approvals. After launch, use dashboards to monitor token circulation and asset value in real time, submit monthly reports to the SFC or HKMA, and regularly upgrade the system to maintain efficiency.

Indeed, to achieve Real World Asset (RWA) tokenization, compliance is the prerequisite, application scenarios are the core, bank-enterprise collaboration is the driving force, and blockchain coupled with stablecoins serves as the enabling infrastructure. These elements are indispensable and mutually reinforcing.