What is a Stablecoin
Simple explanation: Stablecoins are cryptocurrencies whose value is consistent with real-world assets (such as the U.S. dollar). Common stablecoins include USDT and USDC. Their value is usually equal to 1 U.S. dollar, so the price is relatively stable and does not fluctuate as much as Bitcoin.
Function: The function of stablecoins is to allow people to avoid the risks brought by market fluctuations when trading cryptocurrencies or tokenized assets.
The role of stablecoins in RWA
Safe trading tool: When people buy assets (such as tokens of real estate or bonds) through RWA, if stablecoin transactions are used, both parties do not need to worry about sudden changes in market prices, making transactions more stable and secure.
Increased liquidity: Stablecoins can help RWA tokens be easier to buy and sell. Because stablecoins themselves are easy to trade, investors can use stablecoins to quickly buy or sell RWA tokens, allowing funds in the market to flow.
Convenient cross-border transactions: Through stablecoins, investors can easily conduct international transactions, avoid the complicated procedures and high fees of bank transfers, and funds can arrive faster.
How Stablecoins Help the RWA Project
Keep transactions stable: When using stablecoins to purchase RWA assets, investors do not have to worry about sudden price changes, and the transaction amount can remain unchanged, making investment simpler and more reliable.
Improve investor confidence: Stablecoins make investors feel more comfortable because they know they will not lose money due to volatility in the cryptocurrency market. This also attracts investors who are sensitive to market risks to participate in the RWA project.
Hong Kong’s support for stablecoins
Hong Kong policy: The Hong Kong government is very supportive of virtual assets, especially stablecoins, which help the RWA project run smoothly. By using stablecoins, the RWA project can better comply with regulations in Hong Kong and be protected by regulators.
Testing environment: Hong Kong has a “stablecoin regulatory sandbox” where companies can test their stablecoin and RWA projects in this environment, which ensures the security of transactions.
Actual case: How RWA uses stablecoins
An example of real estate tokenization: suppose you want to invest in part of a building, the project will tokenize the building, and then you can buy a part of it with stablecoins. This saves you from having to use a large amount of money to buy the entire building, while avoiding the price fluctuations of cryptocurrencies.
Example of a charging pile project: In the tokenization project of charging piles, investors use stablecoins to purchase the income right tokens of the charging piles. The project income will be directly returned to investors through stablecoins, ensuring that the returns are not affected by market fluctuations.
RWA and the future of stablecoins
In-depth cooperation: In the future, RWA and stablecoins will be more closely integrated, and both companies and investors will use stablecoins more to trade tokenized assets, which will make transactions safer and faster.
Global development: As more countries and regions support stablecoins, RWA will be able to develop faster around the world, and investors will have more opportunities to participate in different tokenized asset projects.
summary
Stablecoins bring a more stable and secure trading method to the RWA project, helping investors reduce the risk of market fluctuations. By using stablecoins, cross-border transactions become more convenient, and global investors can more easily participate in the RWA project. In the future, stablecoins will continue to play an important role in the RWA market.
