Author: Mankiw Brand Department
Opening words
Startup Web3, chat every Wednesday!
"Startup Web3.0" is an interview program for Chinese Web3.0 entrepreneurs initiated by Mankiw LLP. Every Wednesday night, we invite industry leaders, first-line institutions, and well-known entrepreneurs to be guests in the live broadcast room. Through positive voices, rational discussions, and experience sharing, we help the compliance and healthy development of China's Web3.0 industry.
June is the RWA special month of "Startup Web3.0". How does RWA inject "real" value into stablecoins and open a new chapter of Web3? In this issue, we invited Pharos RWA Asia Pacific Strategy Director Bocai to have an in-depth dialogue with Wang Lei, a lawyer at Mankiw Law Firm. From entering the circle in 2022 to accumulating content for "Research Report Sow", and then to deepening RWA and stablecoins, Bocai shared how Pharos laid out Asia-Pacific, how RWA enabled the compliance and liquidity of stablecoins, and how entrepreneurs seized the opportunities of the Age of Discovery to inject real value and long-termism into the industry!
(The audio transcription has been processed by AI and may contain omissions and errors.)
Welcome this episode’s guest, please introduce yourselves to everyone!
Wang Lei: Welcome to the "Startup Web3.0" column every Wednesday! June is our RWA special month. Today, we are particularly honored to invite Pharos RWA Asia Pacific Strategy Director Bo Bo to bring a hardcore theme: "How RWA injects 'real' value into stablecoins." We will talk about how the combination of RWA and stablecoins empowers Web3.
Spinach Spinach: Thank you, Lawyer Wang! I am honored to be invited by Mankiw Law Firm to participate in the live broadcast. You can just call me Spinach. I am currently the head of RWA Asia Pacific strategy at Pharos. Pharos was founded by core members of Ant Group, focusing on high-performance public chains, focusing on RWA and payment fields. I entered the circle in 2022, first as a content creator, and produced a lot of research reports. Since 2023, I have been deeply involved in RWA and participated in the CBDC (Central Bank Digital Currency) pilot projects of the Reserve Bank of Australia, the Monetary Authority of Singapore, and the Central Bank of Ghana, focusing on RWA and payment scenarios. Now I have joined Pharos to continue to promote the development of RWA in Asia Pacific, and share industry insights on Twitter. I am very happy to talk to you about RWA and stablecoins today. Welcome to follow Pharos and communicate at any time!
Q1: What does Singapore’s new regulation mean for Web3?
Wang Lei: Professor Bocai recently published an article analyzing Singapore’s Web3 regulation, which was very popular on WeChat Moments. Can you share the background and impact of Singapore’s new regulatory rules?
菠菜菠菜: This article was written on May 30th, and it stems from the Monetary Authority of Singapore's response to questions about the Financial Services and Markets Act 2022. From June 30th, the Digital Token Service Provider Terms will officially take effect, which has a great impact. I have worked with the Monetary Authority of Singapore before, and I feel that the previous government was friendly to Web3, but the attitude became conservative after the change of government. At the 2024 Singapore Fintech Festival, I heard that some Web3 executives were rejected for PR applications, and the regulatory direction has changed.
The core of the new regulations is that the scope of supervision is broad and vague. Even working from home may be considered illegal. The power of law enforcement interpretation lies entirely with the MAS. There is no buffer period, and the attitude is very firm. Web3 project parties, institutions, and individuals have to consider whether to continue to stay in Singapore. I have a friend whose main body in Singapore has planned to move out. This is a big topic for practitioners and may trigger a wave of "Web3 retreat". If you want to know more, you can search my article "Singapore is killing Web3? The era of regulatory arbitrage is over, and a Web3 retreat is coming."
Q2: What is Pharos’ positioning and focus in the RWA field?
Wang Lei: You are currently the head of Pharos RWA Asia Pacific strategy. Can you share your work priorities and Pharos’ layout in the RWA field?
Spinach Spinach: My job is mainly to formulate the RWA strategy for the Asia-Pacific region, analyze the regulatory attitudes and opportunities of various countries, plan key areas for Pharos, and expand institutional partners. Pharos is a high-performance public chain founded by core members of Ant Group, focusing on RWA and payment. It is currently in the test network stage and has not yet been launched on the main network. Specific projects are still in preparation.
We have several considerations when choosing partners:
Asset side: Look at the liquidity and stability of the assets. In the early stages of the RWA track, the infrastructure and compliance framework are immature, and high-value, stable assets such as government bonds and high-quality real estate are preferred.
Issuer: Look for endorsements from the traditional world, such as large institutions with issuance qualifications in Hong Kong, such as Ant Group and Fosun Group.
DeFi projects: look at the team’s understanding of the track and project experience, such as cooperating with leading projects such as MakerDAO to ensure protocol design capabilities.
RWA combines traditional assets and blockchain, with the core being resource endorsement and compliance. We hope to enable the liquidity and transparency of RWA through high-performance public chains!
Q3: How did you get involved with Pharos? What was the key point in your entry into the circle?
Wang Lei: The transition from content creator to Pharos Asia Pacific strategy leader is very interesting! Can you share your experience of becoming connected with Pharos and the key moments of your entry into the circle?
Spinach Spinach: This is a bit funny. In 2023, I was invited by Ant Group to be a panel speaker at the Singapore Fintech Festival and met their team. Later, I found out that Pharos was founded by core members of Ant Group. I thought it had great potential, so I joined.
My experience in entering the circle is:
Second half of 2022: I did an internship in traditional finance in Shanghai. I felt that the industry was saturated and there was little room for advancement. I had previous experience in blockchain investment, so I decided to go all in on Web3. I joined the largest CDAO in China, worked as a teaching assistant while learning, participated in the creation of another DAO, and interned as a Web3 researcher. I churned out research reports of 10,000 words, up to 4 per month, and got the nickname "Research Report Sow"!
2023: After graduating from college, I chose to study blockchain in Australia (the only one in Australia). I met Professor Meng Yan and was attracted by his ideas. I joined the team and participated in the CBDC pilot of the Reserve Bank of Australia. Later, I cooperated with the central banks of Singapore and Ghana.
2024: Due to the fate of Ant Group, I joined Pharos and focused on RWA strategy.
The key is to seize opportunities, such as actively seeking speeches, joining DAOs, and producing content. These have helped me build up my knowledge and connections from scratch.
Wang Lei: From internship to DAO, and then to Pharos, Mr. Bo’s all-in spirit and ability to seize opportunities are so strong.
Q4: How can young people gain a foothold in the Web3 industry?
Wang Lei: Your experience is very inspiring. You became the head of Pharos' Asia-Pacific strategy right after graduating from university. What do you think is the best way for young people to gain a foothold in Web3?
Spinach Spinach: The biggest advantage of young people is that they have no baggage and can boldly try new things. I have three suggestions:
Build a personal brand: I publish content on Twitter, have 20,000 followers, and have accumulated industry exposure and influence. When others see your research reports and opinions, it will reduce the cost of trust and bring you opportunities.
Take the initiative: In both of my jobs, I took the initiative to talk to the CEO and show the value I can bring to the project. Web3 is a blue ocean. You don’t have to wait for the official website to recruit. Contact the boss directly. There will always be opportunities!
Continuous learning: Web3 changes rapidly, so I read news and write research reports every day to stay sharp. My undergraduate major is finance, but I taught myself Solidity and studied phishing logic to broaden my knowledge.
For example, I wrote a research report on the NFT 3525 standard as a "letter of commitment" to join Meng Yan's team. Young people should prove themselves with content and actions, and naturally there will be opportunities.
Q5: What are the trends and challenges of the RWA track, and why is integration with stablecoins the focus?
菠菜菠菜: RWA is to tokenize real estate, bonds, commodities, etc. to improve liquidity, transparency and accessibility. The STO (Securities Token Offering) in 2018 was the predecessor of RWA, but due to the immature infrastructure and lack of compliance, it did not produce any successful cases. Since 2023, RWA has become popular again due to the embrace of traditional finance, and the core driving force is the Bank for International Settlements (BIS).
1. Trends:
Traditional finance enters the market: In 2022, the BIS annual report stated that encryption technology is the prototype of the future monetary system; in 2023, Citibank's research report triggered a discussion on RWA; in 2024, BIS proposed the concept of "financial Internet" and defined RWA and blockchain as the next generation of financial infrastructure. The Hong Kong Stablecoin Act and the US Crypto-friendly policies (such as the Trump team) are accelerating the implementation of RWA.
Stablecoins first: Stablecoins are the liquidity foundation of RWA. USDT and USDC account for 90% of the market, but non-US dollar stablecoins (such as Hong Kong dollars and Japanese yen) are emerging. 2025 is the year of stablecoin explosion, RWA will take off in 2027, and the market size may reach one trillion US dollars in 2030.
Asia-Pacific opportunities: Hong Kong’s policy support, Japan’s real estate assets, and Southeast Asia’s payment needs are all growth points for RWA.
2. Challenges:
Complex compliance: The issuance of RWA in Hong Kong requires dual supervision (private equity fund + token approval), which is costly and difficult to replicate for large institutions other than Ant Group.
Early stage of infrastructure: the ecosystem is immature, asset liquidity is insufficient, and stablecoins are needed to connect the on-chain and off-chain.
Lack of awareness: Many people think that RWA is just hype and ignore its potential in combining virtual and real.
Stablecoins and RWA are "twins". On-chain assets are traded in tokens, and the underlying liquidity relies on stablecoins. Hong Kong's Stablecoin Act provides a compliance channel for RWA. For example, Hong Kong dollar stablecoins can support the tokenization of local assets and may even be included in investment immigration assets in the future. Stablecoins must explode first before RWA can scale up!
Wang Lei: Driven by BIS, stablecoin takes the lead, and it will explode in 2027. The teacher’s trend analysis is very hardcore, and the "twin relationship" reveals the underlying logic of RWA.
Q6: How to obtain cutting-edge knowledge of RWA?
Wang Lei: A friend in the live broadcast room asked, how do you learn the cutting-edge knowledge of RWA? How did you write the 10,000-word research report of "Research Report Sow"?
Spinach Spinach: "Research report sow" is a product of the times! The key to writing a research report is to calm down and find the right source of information. My approach:
English materials: Chinese information is mostly processed and noisy. Google English materials, pay attention to the BIS official website, YouTube speeches, and IMF academic papers. For example, the BIS report talks about how RWA can reduce costs and increase efficiency and improve the liquidity of alternative assets. The deputy governor of the Bank of France also shared similar views.
Professional channels: BIS is a global central bank trend leader. Its official website has a large number of reports and speeches that reveal regulatory trends. IMF papers (such as the tokenization framework of a French professor) disassemble RWA from a technical and legal perspective, which is very inspiring.
In-depth research: I often spend 7-8 hours reading documents and videos to deduce requirements. For example, the communication between BIS and the Hong Kong Securities and Futures Commission foreshadows the implementation of the stablecoin bill.
It is recommended that you spend less time on self-media and read more original data from BIS and IMF. Only by calming down and understanding the underlying logic can you seize real opportunities.
Q7: What are the compliance barriers for domestic assets to issue RWAs in Hong Kong?
Wang Lei: A friend asked, what are the compliance barriers for issuing RWAs in Hong Kong for domestic assets? What are the differences in compliance requirements for different asset types?
Spinach Spinach: The Hong Kong Securities Regulatory Commission has a conservative attitude towards RWA. Domestic assets issuing RWA need to pass two levels of supervision:
Private equity fund approval: It is necessary to establish an SPV (special purpose vehicle) in the country to receive foreign funds, and then establish a private equity fund in Hong Kong.
Token approval: After the fund is established, asset tokenization still needs separate approval.
The process is complicated and the cost is high: Ant Group has entered the sandbox due to regulatory exemptions, which is difficult for ordinary institutions to replicate. Compliance requirements for different assets:
Low-risk assets (such as government bonds): high regulatory acceptance and relatively fast approval.
High-risk assets (such as real estate and artworks): require stricter KYC/AML review and higher compliance costs.
It is recommended to cooperate with a professional law firm such as Mankiw to sort out the compliance path and avoid pitfalls.
Q8: Can ordinary people participate in stablecoin and RWA opportunities?
Wang Lei: A friend in the live broadcast room asked, do ordinary people have the opportunity to participate in stablecoins and RWA? Can they make money?
Bocai Bocai: To be honest, ordinary people have limited opportunities to participate in stablecoins. Stablecoins are a new form of currency that does not create new assets and has low volatility. Individuals can only earn meager stablecoin returns, such as interest on USDT and USDC. The threshold for entrepreneurship is high. For example, JD.com, Ant, and Standard Chartered in the Hong Kong Sandbox are all endorsed by large institutions, so it is difficult for ordinary people to directly enter.
But there are still opportunities:
Stablecoin payment: In small countries such as Africa and Latin America, there is a great demand for stablecoin payment, and payment apps or related businesses can be developed.
Employment opportunities: Join large organizations (such as Pharos) or RWA projects, starting from positions such as researcher or marketer to accumulate experience.
If ordinary people want to participate, it is recommended that they pay attention to the recruitment of large organizations, find positions that match their skills, and indirectly enter the track.
Wang Lei: The high threshold of stablecoins and payment opportunities, Mr. Spinach’s suggestions are very practical! It is a good path for ordinary people to start from employment!
Q9: Where are the entrepreneurial opportunities in the RWA track?
Wang Lei: For those who want to start a business in the RWA track, what trends and opportunities do you think are worth paying attention to? How can you plan ahead?
Spinach Spinach: RWA entrepreneurial opportunities are limited but exist, and the key lies in resources and professionalism. Direct asset issuance Launchpad has a high threshold and requires strong endorsements and high-quality assets. Entrepreneurs can pay attention to:
DeFi protocol: Developing lending and derivative trading protocols on the RWA public chain, such as RWA pledge and interest rate swaps, requires strong product capabilities and industry awareness.
Stablecoin payment: The global penetration rate of stablecoins is less than 1%, and there is room for developing payment apps, especially in Africa and Latin America.
Segmented fields: Combine your own advantages and delve into segmented tracks. For example, the Japanese market prefers real estate RWA with stable cash flow, and related derivatives can be developed.
Take Japan as an example. The Japanese yen is one of the top three foreign exchange settlement currencies in the world. Real estate rental income is stable and suitable for RWA. However, it takes 2-3 years to enter the market due to high cultural barriers. It is recommended that entrepreneurs focus on niche areas, enhance product strength and cognition, avoid all-in, and lay out a steady layout for the outbreak in 2027!
Q10: Please share some insights on RWA and life!
Spinach Spinach: The Age of Exploration of RWA is coming, and we are standing at the starting point of RWA, just like the explorers 500 years ago. Every entrepreneur is a Columbus who connects the real world with the digital world. I hope everyone can find their own continent in this blue ocean!
Personal insights: Web3 is an interdisciplinary track. Only by maintaining curiosity, focusing on niche areas, and embracing uncertainty can we find certainty in change. The combination of RWA and stablecoins will reshape the financial system. 2027 will be the outbreak node, and 2030 will take off in full swing. I hope everyone will read more original materials from BIS and IMF, avoid noise, delve into their profession, and seize their own opportunities!
Wang Lei: Columbus in the Age of Discovery is so vivid. Thank you for Teacher Spinach's sincere sharing for an hour and a half! From Singapore regulation to RWA trends, from a "research report sow" to the head of Pharos strategy, Teacher Spinach brought hard-core insights from a young perspective, and pointed out the twin relationship and entrepreneurial opportunities between RWA and stablecoins! This issue ends here, see you next week!
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