No small token: Chinese firms convert prized trees, tea into digital assets

Core Viewpoint - The tokenization of Huanghuali trees into tradeable digital assets could revolutionize the forestry industry and provide much-needed capital to address cash flow issues in this sector [2]. Group 1: Tokenization of Assets - Geely Technology Group plans to raise HK$100 million (approximately $13 million) through the launch of tokens in Hong Kong, with each Huanghuali tree assigned a value based on its size and quality [2]. - The initiative represents a potential first in the world for the tokenization of biological real-world assets, expanding beyond just trees to include various Chinese goods like fine tea and baijiu liquor [3]. Group 2: Market Dynamics - The global real-world asset (RWA) market has seen a significant increase of 115% over the past year, reaching a total value of $35.7 billion, primarily backed by traditional financial assets [7]. - Despite enthusiasm from Chinese companies for this new funding avenue, the blockchain-based RWA tokenization remains in its early stages, with concerns about the balance between asset supply and investor demand [5]. Group 3: Broader Interest in Tokenization - There is growing interest in tokenizing a variety of assets, including artifacts, collectibles, data assets, commodities, and real estate, indicating a broader trend in the market [4].