On April 6th, the “Unlocking RWA: Insights into Opportunities, Challenges, and Collaboration in the Blockchain Era” roundtable forum concluded during the 2024 Hong Kong Web3 Carnival. Frank Zhang, Executive Director of OKX Hong Kong, Devon Sin, General Manager of ZA Bank, Paolo Chen, Chief Strategy Officer of VDX, and Darshan Vaidya, Co-founder of Credora, and other industry experts in the field of Real World Asset On-Chain (RWA) discussed the opportunities, risk management strategies, and integration of traditional finance and decentralized finance in depth.
As one of the Executive Directors of OKX Hong Kong, Frank is responsible for overseeing the business growth and operations of the leading virtual asset platform in Hong Kong. Additionally, he leads the exchange’s business strategy, aiming to provide industry-leading virtual asset services for the Hong Kong market while complying with strict regulatory compliance standards under the Hong Kong Virtual Asset Service Providers (VASP) regime. With over ten years of experience in traditional finance, Frank has worked at renowned financial institutions such as Daiwa Capital, CITIC CLSA Securities, and Liquidnet Asia, leading the design and implementation of complex algorithmic trading strategies.
During the event, the guests discussed the development opportunities in the RWA (Real World Asset On-Chain) field. When discussing how RWA platforms can address risk factors, Frank emphasized the importance of implementing various strong measures to mitigate risks, enhance investor confidence, and ensure the long-term stable development of the RWA track. The platform should possess robust security infrastructure, smart contract auditing, self-regulation (such as Proof of Reserves), compliance with regulatory requirements, full transparency, appropriate investor communication, continuous monitoring and incident response, and insurance coverage.
Furthermore, when participating in the discussion on future application scenarios and related innovative directions of RWA, Frank pointed out three areas that may attract innovators:
1. Standardizing the protocol for asset tokenization. Standardized protocols will enable seamless integration and interoperability among different RWA platforms, facilitating efficient transfer and exchange of cross-platform assets.
2. Strengthening security and privacy measures. With advancements in blockchain technology, improved consensus mechanisms (such as Proof of Stake), privacy protection techniques (such as zero-knowledge proofs), and advanced cryptography will enhance the security and privacy of RWA platforms. This will increase investor confidence, mitigate network security risks, and address regulatory issues related to data protection, promoting the adoption of RWA in the traditional financial ecosystem.
3. Applying AI and data analytics to RWA platforms. This will enable advanced data processing, risk assessment, and predictive modeling. AI-driven algorithms can analyze large amounts of data, identify patterns, and provide valuable insights for investment decisions, risk management, and asset valuation. This integration will enhance operational efficiency, improve investment strategies, and reshape traditional financial analysis.
Regarding the development of RWA-related innovations in the Hong Kong market, Frank analyzed:
Disclaimer:
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