Investment Rating - The industry investment rating is "Overweight" [3] Core Insights and Investment Recommendations - RWA (Real World Assets) refers to the tokenization of traditional physical assets through blockchain technology, enabling real-time trading and circulation of these assets in a digital network, addressing liquidity issues, trust deficits, and high transaction costs in traditional finance, thus presenting new opportunities for global economic and financial digital innovation [4][8] - The potential market for tokenized digital securities is projected to reach $4-5 trillion by 2030, with trade finance based on distributed ledger technology (DLT) expected to reach $1 trillion [4][8] - The report emphasizes the importance of focusing on three growth themes: blockchain + fintech, renewable energy + RWA, and cross-border payments, highlighting specific companies to watch in each category [4] Summary by Sections RWA Overview - RWA involves the conversion of traditional assets into digital tokens, facilitating online trading and addressing challenges posed by globalization [4][8] - The report outlines the diverse asset classes that can be tokenized, including real estate, private credit, government bonds, commodities, and equities [39] Business Development and Regulation - The process of RWA issuance requires compliance with regulatory frameworks, ensuring asset value, ownership, and legal status are clearly defined [4][30] - The report discusses the regulatory landscape in regions like Hong Kong and the U.S., highlighting the establishment of frameworks for virtual assets and stablecoins [47][49] Technology, Market, and Ecosystem - RWA technology is structured in three layers: core architecture, middleware, and application layer, facilitating the conversion of physical assets into tradable digital tokens [52] - The ecosystem involves various participants, including asset issuers, technology service providers, liquidity providers, compliance entities, and investors, creating a collaborative environment for RWA [9][63] - The report predicts that the global RWA market could exceed $16 trillion by 2030, driven by the increasing adoption of stablecoins and regulatory advancements [54][58]

Core Viewpoints - Stablecoins originated in the "wild" world of Web3.0, initially serving as a fiat currency pricing tool for trading cryptocurrencies. As the cryptocurrency market has grown, stablecoins have become essential tools for exchanges, DeFi, and RWA ecosystems. A key to the success of stablecoins is their ability to gain market trust, which involves their credit transmission mechanism [1] - The integration of RWA (Real World Asset tokenization) and stablecoins is seen as the next major narrative in Web3, with RWA being one of the fastest-growing sectors in the cryptocurrency market. The RWA market has surpassed $22 billion, while the stablecoin market exceeds $247 billion, positioning both as dual engines driving the cryptocurrency market [4][5] RWA and Stablecoins as Catalysts - The rapid development of RWA and stablecoins is prompting regulatory advancements. Recent legislative actions in the U.S. and Hong Kong indicate a growing regulatory framework for stablecoins, driven by the swift growth of the stablecoin and RWA markets [6] - The focus on stablecoin payments and international payments is significant, as RWA and stablecoins have established a substantial commercial ecosystem. Payment giant Stripe's acquisition of stablecoin trading company Bridge for $1.1 billion and its subsequent global payment capabilities highlight the potential for stablecoins in the payment sector [7] Investment Analysis - Continuous catalysts are present in the financial technology transformation, with upcoming events such as Circle's IPO and Hong Kong's licensing process being key points of interest [8]

Group 1 - The core point of the news is the passage of the GENIUS Act, which establishes a federal regulatory framework for stablecoins in the U.S., potentially reshaping the crypto asset market and impacting global financial systems [1][2]. - Stablecoins are defined as cryptocurrencies that are pegged to stable assets or currencies, providing a bridge between the crypto market and traditional finance, with applications in asset trading, cross-border payments, and decentralized finance (DeFi) [1][2]. - The GENIUS Act aims to enhance anti-money laundering and consumer protection measures, ensuring financial stability and the legality of transactions, thereby reinforcing the dominance of the U.S. dollar in the global financial landscape [1][2]. Group 2 - The U.S. government's proactive approach to stablecoins is driven by the need to alleviate debt burdens and manage rising long-term treasury yields, which indicate higher demands for returns and increased borrowing costs [2]. - The GENIUS Act positions stablecoins as automatic vending machines for U.S. treasuries, creating a significant demand for U.S. debt, which could help manage the country's debt burden and borrowing costs [2]. - The emergence of stablecoins is expected to revolutionize financial asset trading, pricing, transaction modes, and time constraints, posing substantial impacts on financial markets and institutions, as well as introducing new regulatory challenges [3].