Report Summary 1) Report Industry Investment Rating - Not provided in the given content 2) Core Viewpoints of the Report - RWA, which digitizes real - world assets through blockchain tokenization, is a significant development at the intersection of fintech and capital markets. It enhances asset liquidity, reduces transaction costs, and promotes financial inclusiveness. It has entered a rapid expansion phase globally and is expected to become an important part of the global financial market in the next decade [1][4][16] - Despite its rapid growth, RWA's healthy development depends on the improvement of regulatory systems, risk management of underlying assets, and continuous guarantee of technical security [16] 3) Summary by Relevant Sections Introduction - RWA is a frontier direction where fintech and capital markets meet. It maps illiquid and high - barrier assets onto the blockchain, providing new investment and financing paths and showing a large - scale development trend [4] RWA's Basic Principles - RWA refers to digitizing real - world physical or financial assets and putting them on the blockchain through tokenization for decentralized ownership, transfer, and trading. Its core is asset tokenization, connecting traditional finance and decentralized finance and enhancing asset efficiency and inclusiveness [5] - RWA significantly improves asset liquidity by allowing fragmented ownership and 24/7 global trading, reducing entry barriers and stimulating secondary - market activity. It also has transparency and security advantages through distributed ledger technology and promotes financial inclusiveness, especially in emerging markets [6] RWA's Development Status - As of August 2025, the global RWA asset total (excluding stablecoins) is $26.7 billion, with over 300,000 asset holders and more than 250 asset issuers. The main underlying assets are private credit, US Treasuries, and commodities. The market has grown by over 50% compared to the same period in 2024, and is expected to expand further this year. BCG predicts it could exceed $16 trillion by 2030, about 10% of global GDP [7][9] - In terms of regulation, the US leads in practice, Europe has a unified regulatory framework with the MiCA Act, and Asian countries like Singapore, Japan, and South Korea are actively piloting. China Hong Kong has launched an RWA regulatory sandbox. However, RWA faces challenges such as regulatory compliance, asset credit risks, and technical security issues [12] Conclusion and Outlook - RWA is changing the asset - allocation landscape. It has entered a rapid expansion phase globally and is expected to be an important part of the global financial market in the next decade. In the future, it can provide a low - threshold way for Chinese residents to participate in alternative assets, and Hong Kong's pilot may gradually develop in areas such as securities, green RWA, and trade and supply - chain finance [16]

Core Viewpoint - Futu Holdings is experiencing structural growth potential beyond traditional brokerage cycles, driven by clear advancements in its cryptocurrency business and strong performance in overseas markets [1][10]. Cryptocurrency Business Progress - Morgan Stanley highlights that Futu's cryptocurrency business, although in its early stages, is showing rapid progress with key data indicating significant growth [2][4]. - The company has introduced a long-term strategy named "RACE" to guide the future development of its cryptocurrency business, emphasizing user adoption and potential fee increases as market penetration grows [4][18]. - In Q2 2025, the value of customer-held cryptocurrency assets increased by 40% quarter-over-quarter, reaching HKD 4 billion, while daily trading volume doubled from approximately USD 20 million to USD 40 million [5]. Financial Forecasts and Valuation - Barclays has raised its financial forecasts for Futu, increasing the adjusted net income predictions for FY 2025 by 22% and for FY 2026 by 36.4%, maintaining a target valuation multiple of 15x EV/nominal EBITDA [14]. - Morgan Stanley has updated its valuation model, raising the target price for Futu from USD 160 to USD 210, reflecting a potential revaluation of the company based on its growth prospects [1][11]. Overseas Market Expansion - Futu's global strategy is yielding results, with significant contributions from overseas markets, particularly in Singapore and Japan, where client assets and trading volumes have seen substantial increases [8][10]. - In Q2 2025, client assets in Singapore grew by 26% quarter-over-quarter, while trading volumes in Japan surged by 50%, driven by localized products and AI tools [10]. Revenue and Profitability Projections - The removal of a previously applied 50% discount on revenue contributions from the cryptocurrency business has led to an 8% increase in revenue forecasts and an 11% increase in net profit projections for 2027 [18]. - The new target price of USD 210 corresponds to a P/E ratio of 25x based on expected earnings for 2026, reflecting a more optimistic outlook on future cash flow growth [18].

Core Viewpoint - The rise of Real World Asset (RWA) tokenization is driven by multiple factors, including the lack of liquidity in traditional assets, the maturity of blockchain technology, and changes in market demand. The industry is transitioning from concept validation to practical application, with significant growth in total value locked (TVL) reaching $12.5 billion by June 2025, a 124% increase from 2024 [7][8]. Group 1: RWA Overview - RWA refers to the digital representation and trading of tangible and intangible assets through blockchain technology, essentially creating tradable tokens based on real-world assets [6]. - The RWA industry is currently at a critical juncture, moving towards large-scale application through cross-industry collaboration, compliance pilots, and underlying technology innovation [7]. Group 2: Market Trends and Collaborations - Major global banks like Citibank and Standard Chartered are exploring RWA applications in payment settlements, asset management, and cross-border transactions [7]. - Recent partnerships, such as the one between Hanyu Pharmaceutical and KuCoin, aim to explore RWA tokenization projects in Hong Kong, focusing on innovative drug development revenue rights [8]. Group 3: Asset Suitability and Challenges - Not all assets are suitable for RWA tokenization; successful assets must meet three criteria: value stability, clear legal rights, and verifiable off-chain data [8]. - The report identifies five main asset categories for RWA: financial assets (gold, bonds), renewable energy assets (charging stations, photovoltaics), real estate, intangible assets (carbon credits, data), and computing power assets (GPU hardware) [8]. Group 4: Regulatory and Standardization Efforts - The launch of the RWA registration platform in Hong Kong aims to standardize the tokenization process, enhancing data management and compliance [11]. - The Hong Kong Web3.0 Standardization Association is developing key standards to support the RWA lifecycle, focusing on privacy protection, identity verification, and cross-chain technology [11]. Group 5: Financing Opportunities - The RWA registration platform is expected to transform assets into financeable products, enabling companies to leverage their projects for funding through standardized data submission and token issuance [12].

Group 1 - The concept of Real World Assets (RWA) involves tokenizing tangible and intangible assets through blockchain technology, allowing for digital representation and trading of these assets [1][2] - RWA is seen as a bridge between traditional finance and decentralized finance (DeFi), with various financial institutions exploring tokenization of deposits, bonds, and other assets [2][3] - The regulatory framework in Hong Kong has been evolving to support RWA, with initiatives like the Ensemble tokenization sandbox launched by the Hong Kong Monetary Authority and the Securities and Futures Commission [3][4] Group 2 - RWA differs from previous blockchain applications like NFTs and ICOs, as it focuses on real asset value, with tokens representing actual asset rights such as real estate and bonds [5][6] - The tokenization process for RWA is based on assets that have legal recognition and measurable cash flows, contrasting with the speculative nature of NFTs and the high-risk profile of ICOs [5][6] - Current challenges in RWA include asset verification, cross-border structuring, and governance, with many projects still in early stages and facing regulatory hurdles [6][9] Group 3 - There is a growing interest in RWA projects in mainland China, particularly in sectors like renewable energy, but regulatory differences pose challenges for companies looking to issue RWA in Hong Kong [8][9] - Companies must establish special purpose vehicles (SPVs) to navigate the regulatory landscape and ensure compliance when tokenizing assets across borders [9][10] - The financial attributes of RWA align more closely with traditional capital market logic, necessitating a thorough understanding of the underlying asset's legitimacy and compliance requirements [9][10]

Group 1 - Real World Assets (RWA) are becoming a significant trend in the blockchain and cryptocurrency sectors, representing a shift towards tokenizing tangible and intangible assets for digital trading [1][2] - RWA encompasses a broader range of assets compared to previous concepts like ICOs and NFTs, including commodities, invoices, and carbon credits, thus facilitating liquidity and lowering investment barriers [2][3] - The regulatory framework in Hong Kong has been evolving to support RWA, with initiatives like the Ensemble tokenization sandbox launched by the Hong Kong Monetary Authority and the Securities and Futures Commission [3][4] Group 2 - RWA is distinguished from NFTs and ICOs by its focus on real asset value, where tokens represent actual asset rights, unlike NFTs which symbolize digital assets and ICOs which lack underlying asset support [5][6] - The current challenges in RWA include asset verification, cross-border structuring, and governance, with many projects still in early stages and facing regulatory hurdles [6][9] - For mainland Chinese enterprises, issuing RWA in Hong Kong involves navigating complex regulatory requirements and establishing special purpose vehicles to comply with local laws [8][9]

Group 1 - The core concept of Real World Assets (RWA) involves tokenizing tangible and intangible assets through blockchain technology, allowing for digital representation and trading on blockchain networks [1][3] - RWA is seen as a significant trend in the blockchain and cryptocurrency space, evolving from earlier concepts like ICOs and STOs, and is viewed as a bridge between traditional finance and decentralized finance (DeFi) [3][4] - The tokenizable assets under RWA include real estate, intellectual property, receivables, commodities, and even cultural relics, enabling fractional ownership and liquidity for traditionally illiquid assets [4][10] Group 2 - Hong Kong has established a regulatory framework to support RWA, with significant milestones including the policy declaration in October 2022 and the launch of the Ensemble tokenization sandbox in August 2024 [4][10] - RWA is believed to enhance liquidity, lower investment thresholds, and improve transparency and security, attracting various market participants and traditional financial institutions [4][10] - The differences between RWA, NFTs, and ICOs are highlighted, with RWA being anchored in real asset value, while NFTs focus on digital asset uniqueness and ICOs are based on project expectations without underlying asset support [5][6] Group 3 - Current challenges in RWA tokenization include asset rights confirmation, cross-border structural design, and on-chain governance, with many projects facing difficulties due to regulatory and operational complexities [7][11] - The participation of ordinary investors in RWA is heavily dependent on regional regulations, with clear legal frameworks in places like Hong Kong, while mainland investors face restrictions [8][11] - For mainland enterprises, issuing RWA in Hong Kong involves establishing a Special Purpose Vehicle (SPV) and ensuring compliance with both local and international regulations [10][11]

Group 1: Development of Stablecoins - The development of stablecoins has evolved from a response to the vulnerabilities of traditional financial systems during the 2008 financial crisis to a recognized regulatory framework in the U.S. with the signing of the "Genius Act" [2][3] - Stablecoins emerged to address the structural contradictions between cryptocurrencies and traditional finance, with Tether launching USDT in 2014 as the first stablecoin backed by fiat currency [4][7] - As of June 2025, the total market value of stablecoins surpassed $250 billion, accounting for 8% of the cryptocurrency market, with a trading volume exceeding $37 trillion in 2024 [7] Group 2: Strategic Significance of Stablecoins - Stablecoins are seen as potentially reshaping global payment systems, offering advantages such as lower costs and faster transaction times compared to traditional SWIFT systems [10] - The legislative competition surrounding stablecoins reflects a broader struggle for monetary sovereignty in the digital age, with the U.S. reinforcing the dollar's dominance through stablecoin regulation [11] - Stablecoins serve as a digital financial entry point for the unbanked population, providing access to financial services without the need for traditional banking infrastructure [12] Group 3: Role of Trust Companies in Stablecoin Mechanisms - Trust companies can act as custodians for stablecoin reserve assets, ensuring that these assets are independent and protected from the issuer's bankruptcy [20] - The trust mechanism can facilitate compliance with regulatory policies, allowing for flexible responses to changes in regulations and enhancing the governance of stablecoin operations [21] - Trust companies can support the development of Real World Assets (RWA) by providing legal risk isolation and ensuring compliance in the tokenization process [23]

Core Viewpoint - Coolpad Group has announced the establishment of the "Real World Asset Tokenization Division" (RWA Division) to advance the tokenization of real-world assets in response to the Web3.0 technological transformation and the Hong Kong government's digital asset development policy [1][2] Group 1 - The RWA Division will be directly led by the company's Chairman and CEO, Chen Jiajun [1] - As of December 31, 2024, the group's investment properties are valued at approximately HKD 3,151 million [1] - The board has noted that the group's market value has long been below its net asset book value, indicating that asset values are not fully reflected in the capital market [1] Group 2 - The company is conducting preliminary feasibility studies on the tokenization of real-world assets to explore innovative ways to unlock their value and promote circulation [2] - Current discussions focus on effectively converting core asset values, assessing the technical adaptability to support this goal, and establishing relevant ownership and legal compliance frameworks [2] - If pilot projects prove commercially viable, the group plans to leverage the extensive industry resources and experience of major shareholder Chen in the real estate sector to assist more corporate clients in exploring and achieving asset tokenization [2]

Group 1 - The company has established a Real World Asset Tokenization Division to advance property asset tokenization efforts [1] - As of December 31, 2024, the company's investment property value is approximately HKD 31.51 billion [1] - Initial feasibility studies are being conducted on the Coolpad Building in Nanshan, Shenzhen, and the Coolpad Technology Ecological Park in Dongguan [1] Group 2 - If the pilot projects are successful, the company plans to expand its service model to assist more enterprises in exploring asset tokenization [1] - The company aims to promote the large-scale application of RWA technology in related industries [1]

Core Viewpoint - The tokenization of carbon credits is expected to enhance market liquidity and provide low-cost, divisible carbon neutrality tools for enterprises, while potential risks should not be overlooked [1][3]. Group 1: Industry Developments - Northern Trust announced a collaboration with SWIFT to explore trading tokenized assets like carbon credits through commercial bank accounts in Australia [1]. - JPMorgan's blockchain division, Kinexys, is developing a new blockchain application aimed at tokenizing global carbon credits to address standardization and transparency issues in the voluntary carbon market (VCM) [1]. Group 2: Tokenization Projects - Flowcarbon (GNT): An open-source protocol based on Celo that promotes institutional capital into climate change mitigation through tokenization [2]. - Klima DAO (KLIMA): Encourages emission reductions by raising carbon asset prices, with each token backed by real-world carbon assets [2]. - Nori (NRT): A blockchain-based carbon offset platform that addresses issues of double counting and fraud in existing markets [2]. - JustCarbon (JCR, JCG): Connects project developers and buyers through a symbiotic token system, supporting high-quality carbon removal projects [2]. - Toucan Protocol (TC02, BCT): Converts carbon credits into tokens, enhancing market transparency and liquidity through carbon bridges and pools [2]. - Coorest ($CC02): Generates tokens equivalent to the carbon absorbed by trees, linking them to real-world forestry [2]. - Moss Earth (MC02): Simplifies the offset process through blockchain technology, focusing on protecting native forests, reforestation, and carbon sequestration [2]. Group 3: Significance of Tokenization - Carbon credit tokenization creates a new category of digital assets, attracting more investors and increasing funding and liquidity in the carbon market [2]. - The decentralized architecture of blockchain allows carbon credits, which are typically fragmented and hard to price, to become standardized tokens that can be traded freely and priced in real-time [2]. - On-chain data is immutable and fully auditable, preventing double counting and enhancing market credibility [2]. Group 4: Challenges and Risks - The complexity of technology introduces risks of financial fraud, as the tokenization process involves intricate blockchain technology and smart contracts [3]. - Global liquidity may exacerbate regional imbalances, as the tokenization of carbon credits could amplify disparities between developed and developing nations [3]. - The certification of underlying assets remains centralized, despite blockchain's improvements in transparency and traceability [3].