China Pacific Insurance Executive Says RWA Still Requires Traditional Financial System
Summary
- Zhou Chenggang, CEO of China Pacific Insurance Investment Management's Hong Kong unit, said RWA is fundamentally different from blockchain-native assets such as Bitcoin.
- Zhou said RWA tokens are certificates representing real assets that exist off-chain and are not simply a way to move existing assets onto the blockchain.
- Zhou said that even if RWA is issued and traded on the blockchain, issues such as the establishment of rights, liability, and information disclosure must still be resolved through existing financial and legal systems.
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Real-world assets, or RWA, may use blockchain technology, but they still require existing financial and legal systems.
Zhou Chenggang, chief executive officer of China Pacific Insurance Investment Management's Hong Kong unit, said at an event on Aug. 29 that RWA is fundamentally different from blockchain-native assets such as Bitcoin, according to BlockBeats.
"RWA tokens are not assets in themselves," Zhou said. "They are certificates representing real assets that exist off-chain." He added that RWA is not simply about moving existing assets onto the blockchain.
Even when RWA is issued and traded on blockchain networks, it cannot be separated from the traditional financial system, Zhou said. Questions including how rights to an asset are established and exercised, who bears responsibility when losses occur, and how related information is continuously disclosed still need to be addressed through existing financial and legal frameworks.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.