Zheshang Securities: RWA brings regulatory difficulties, or may lead to the expansion of US dollar credit in stages

According to a research report released by Zheshang Securities, the macro impact of RWA (real-world assets) is also to create "global capital markets" on the blockchain, accelerate the substitution of on-chain finance for traditional finance, and may lead to the further expansion of US dollar credit in stages. RWA, stablecoins and decentralized finance (smart contracts) mirror the functions of investment targets, fiat currencies, and financial intermediaries in the traditional financial system on the blockchain. The three cooperate with each other and are forming a new financial closed loop on the blockchain. In the long run, the RWA blockchain mechanism is a potential challenge to traditional Financial Institution Groups, including banks, brokerages, insurance, and exchanges. (Jin Ten)