Core Viewpoint - The article discusses the emergence of a financing revolution led by the tokenization of Real World Assets (RAW), which offers asset holders a more efficient and autonomous financing channel compared to traditional methods [1][3]. Group 1: Advantages of RAW Tokenization - RAW tokenization transforms illiquid assets into liquid capital, allowing asset holders to directly convert assets like real estate, equipment, and intellectual property into blockchain tokens for global fundraising [3]. - The financing process is simplified and more efficient, eliminating the need for lengthy bank credit approvals and complex securities issuance procedures, significantly shortening the financing cycle [3]. - It reduces reliance on traditional financial intermediaries, granting issuers greater autonomy in pricing and flexibility in financing structure design [3]. - Tokenization revitalizes non-standard assets that are difficult to price and circulate in traditional markets, providing liquidity and funding for new projects [3]. Group 2: Challenges in Financing - Establishing investor trust is a primary challenge in a decentralized environment lacking traditional financial intermediaries, necessitating continuous, transparent information disclosure and the involvement of authoritative third-party custodians and auditors [4]. - Legal compliance poses a significant risk, as navigating China's regulatory framework is crucial for the success of RAW tokenization [5]. Group 3: Legal Risks and Mitigation Strategies - The risk of illegal fundraising is highlighted, as any public solicitation of funds promising returns without proper regulatory approval could be classified as illegal fundraising under Chinese law [6]. - Issuers are advised to limit fundraising to legally recognized "specific objects" and avoid public promotion through social media [6]. - The potential classification of tokens as securities necessitates careful self-assessment to avoid unauthorized public offerings, with recommendations to seek professional legal advice for compliance [7]. - Cross-border financing poses foreign exchange control risks, particularly if tokens are issued from overseas to Chinese residents, which could lead to administrative penalties [8]. - Issuers must conduct strict Know Your Customer (KYC) checks to prevent participation from Chinese residents and clearly state the legal limitations in project documentation [9]. Group 4: Conclusion - RAW asset tokenization presents a promising future for corporate financing, characterized by efficiency and flexibility, but must operate within the confines of current regulatory environments [10]. - Asset holders in China are urged to prioritize compliance over speed and efficiency, recognizing the severity of legal risks and leveraging professional legal expertise for top-level design [10].