Ant Chain Powers HKMA's RWA Implementation, Driving Digitalization of Real-World Assets

Ant Chain Powers HKMA's RWA Implementation, Driving Digitalization of Real-World AssetsOn August 29th, according to the official WeChat account of Ant Chain, the Hong Kong Monetary Authority (HKMA) announced two RWA implementation cases involving Ant Chain. This marks a significant advancement in Ant Chain's efforts to drive the digitalization of real-world assets

Ant Chain Powers HKMA's RWA Implementation, Driving Digitalization of Real-World Assets

On August 29th, according to the official WeChat account of Ant Chain, the Hong Kong Monetary Authority (HKMA) announced two RWA implementation cases involving Ant Chain. This marks a significant advancement in Ant Chain's efforts to drive the digitalization of real-world assets.

RWA, or Real World Assets, represents a new model that enhances liquidity for physical assets by dividing them into multiple digital assets and leveraging the interoperability of blockchain networks. Unlike traditional asset securitization, RWA tokenization acts as a bridge between real assets and the crypto finance world. It aims to bring assets from the real world into DeFi, leveraging the global accessibility of decentralized finance to improve liquidity for these assets. The underlying assets of RWA are extensive, including but not limited to stocks, bonds, real estate, cash, artwork, precious metals, receivables, insurance, investment funds, and other tangible or intangible assets.

The first phase of the HKMA's Ensemble Project (Sandbox) unveiled four key tokenized asset case studies. Ant Group assisted the HKMA in building a tokenized asset platform within the sandbox. This platform provides asset tokenization services and facilitates Delivery versus Payment (DvP) transactions for traditional assets and tokenized deposits. Ant Chain played a crucial role in two of these cases: "Green and Sustainable Finance" and "Trade and Supply Chain Finance."

"Green and Sustainable Finance" Case:

Ant Chain leverages blockchain and AIoT (Artificial Intelligence + Internet of Things) technologies to record the operational status of physical assets in real-time and securely upload data to the blockchain. This technology not only enhances asset valuation for companies but also enables stakeholders to assess asset value and manage risks collaboratively. Ultimately, it improves financing efficiency and accessibility for businesses.

With the support of Ant Group and the HKMA's Ensemble Project, New Power Road, a subsidiary of the listed Chinese renewable energy company Langxin Technology, successfully secured the first cross-border RWA (Real World Assets - tokenization) financing in Hong Kong. New Power Road, an operator and service provider for a digitalized renewable energy platform, used a portion of the charging stations it operates as the underlying RWA asset. This funding will be used to support energy storage and charging station projects in the renewable energy sector.

"Trade and Supply Chain Finance" Case:

Through the tokenized asset platform built by Ant Group, the Global Shipping Business Network (GSBN) issued an electronic Bill of Lading (eBL). In this process, HSBC, Hang Seng Bank, and Bank of China (Hong Kong) facilitated the use of tokenized deposits to settle the transfer of the eBL.

Zhao Wenbiao, CEO of Ant Group, attended the HKMA's announcement and stated, "Ant Group is honored to be among the first participants in the Ensemble Project and to provide technology and solutions. With the support of the HKMA, Ant Group can engage in various innovative projects and apply the digital technology we've accumulated over the years. In the future, we will collaborate with more partners to launch diverse RWA projects, providing technological support for high-quality projects in China and globally, particularly in the field of renewable energy. We welcome any interested parties to join us in exploring how new technologies can support the real economy."

Ant Chain, as a leading global blockchain platform, has actively explored and implemented RWA, achieving significant milestones. As RWA technology continues to develop and be applied, it will create new growth opportunities for more real-world sectors, driving deep integration between the digital economy and the real economy.