The Integration of TradFi and Web3: Taiping Hong Kong Explores the Path of RWA Asset Tokenization

At a recent Web3-themed event, a dialogue on the integration of financial institutions and Web3 garnered widespread attention. This dialogue invited Mr. Zhou Chenggang, the founder and CEO of China Taiping Investment Management (Hong Kong), to engage in an in-depth discussion on blockchain technology, digital assets, and the future trends of RWA.

The Motives and Challenges of Traditional Financial Institutions Entering Web3

Zhou Chenggang stated that Taibao Hong Kong's entry into the RWA and asset tokenization fields is a natural progression. As managers of traditional assets, they hope to provide asset products with substantial support for the Web3 ecosystem by tokenizing real-world assets and placing them on the chain. This not only fills a market gap but also helps to change some of the biases and misunderstandings the traditional finance sector has regarding the Web3 world.

However, this transformation process is not smooth sailing. Zhou Chenggang pointed out that the current Web3 infrastructure is far from mature, especially in areas such as asset custody, banking interfaces, and fund administration services, which are still in the exploratory stage. Nevertheless, Taikang Hong Kong is still working hard to elevate its asset management standards to levels close to those of traditional funds, laying the foundation for the deep integration of TradFi and Web3 in the future.

The Practical Path of Asset Tokenization

When choosing suitable asset types for tokenization, Taibao Hong Kong is currently focusing on financial assets rather than physical assets. Zhou Chenggang explained that this is mainly due to considerations regarding the verification of asset authenticity and legal framework. Financial assets, especially standardized fund shares, are more easily bound to the underlying assets at a legal level, making them more convenient for regulation and custody.

Zhou Chenggang emphasized that the core value of asset tokenization lies in lowering the investment threshold, expanding the investor base, and enhancing trading efficiency while reducing costs. He believes that only tokenization that brings real value is worth promoting, and it should not be done just for the sake of being "on-chain."

Suggestions for TradFi Institutions

For traditional financial institutions considering entering the Web3 space, Zhou Chenggang provided the following advice:

1. Recognize that RWA is a highly certain trending track.
2. Establish a dedicated innovation team or Web3 business unit in the organizational structure.
3. Reserve composite talents who understand both finance and on-chain mechanisms.
4. From a technical perspective, choose a trustworthy, secure, and compliant cooperation platform.

Zhou Chenggang stated that he looks forward to more traditional institutions joining to jointly promote the establishment and maturity of the RWA ecosystem.

Conclusion

Traditional financial institutions entering the Web3 space need to find feasible paths within the existing regulatory framework, seeking a balance between innovation and stability. The practices of Taiping Hong Kong demonstrate the possibilities of integrating traditional finance with Web3, maintaining a compliance-oriented mindset while embodying the courage to innovate. In the future, we can expect to see more Chinese financial institutions emerge in the on-chain finance sector, driving the industry from exploration to maturity.