Minsheng Securities: Building a stablecoin - the RWA ecosystem's closed-loop related assets are expected to kick off the Web3.0 era

The Zhitong Finance App learned that Minsheng Securities released a research report saying that a strong alliance between the government and enterprises has formed an ecological closed loop of RWA, a stablecoin anchored by China's high-quality assets. The listing of related assets is expected to kick off the Web 3.0 era, starting with Ant Digital and Langxin Group (300682.SZ) and GCL (002015.SZ)'s new energy RWA assets, and then to potential computing power leasing, etc., to help China's high-quality assets become the core cornerstone of diversified assets on the chain. At the same time, referring to the development history of overseas stock token issuers such as Robinhood, domestic internet brokerage firms, fintech companies, stock or digital currency exchanges are all expected to achieve value revaluation under this wave, and the “license effect” may be the core competitiveness of domestic related manufacturers.

The main views of Minsheng Securities are as follows:

Stablecoins focus on “tokenizing fiat currencies,” while RWA focuses on “tokenizing assets.” The core role of stablecoins is similar to real-world fiat money, and focuses more on aspects such as transactions and payments. Compared to stablecoins that anchor fiat currency and do not generate revenue, RWA covers a wider range of asset types and application scenarios, can improve asset liquidity, facilitate the pricing of physical assets in the web 3.0 field, and provide investors with financial products with low risk and stable returns in the web 3.0 world. On the policy side, Hong Kong, China is a leading region in the world in promoting stablecoin legislation, and continues to catch up with the relevant US legislation.

Alliance chain → public chain layer 2 → public chain layer 1, three chains are progressive. The alliance chain has the three advantages of controlled access, efficient collaboration, and privacy protection. It is compatible with the KYC/AML compliance framework of regulators, so it became the main technical path for early RWA assets to be added to the chain. With its extremely high transaction performance, the Layer 2 public chain has achieved low threshold, real-time, and high-frequency transactions, creating conditions for RWA to actively circulate in the secondary market and building a highway for capital flows. Layer 1 (underlying public chain) forms the cornerstone of the blockchain world, undertakes the core functions of underlying consensus, data storage, and smart contract execution, and has created a Layer1 ecosystem similar to the high point of the CUDA ecosystem strategy with decentralized openness and versatility. However, public chain layer 2, as a performance extension layer, is often based on considerations of security, liquidity, and migration costs, and needs to be compatible with the Layer 1 public chain ecosystem.

It is a three-step process: infrastructure construction → liquidity activation → integrated construction of a global asset network. The first phase of RWA focuses on “building the foundation”. Different assets are linked to investors with fixed income through RWA, which is very similar to the model of Tier 1 investment and bond investment. In the second phase of RWA, the hierarchical structure of the alliance chain+layer1+layer2 activates the liquidity of secondary market transactions, showing the characteristics of standardization and fragmentation. After RWA is on the chain, a closed loop of “financing-spliting-circulation” value was realized. After RWA enters the third phase, a mature RWA ecosystem will be built around the world. Cross-chain transactions will become the norm, and exchanges and issuing groups will become the real core distribution and access platforms on the chain.

Investment advice: From the US taking the lead in legislating the stablecoin bill to the imminent implementation of stablecoin regulations in Hong Kong, China, countries around the world are testing and even embracing the arrival of web 3.0 on the policy side; leading technology companies such as Ant Math continue to help domestic high-quality assets go on the chain through RWA, directly targeting new incremental on-chain capital. Strong alliances between the government and enterprises have created an ecological closed loop of RWA, a stablecoin anchored by China's high-quality assets, and the bank believes that the listing of related assets is expected to open the Web 3.0 era, starting with Ant Digital, Langxin Group, and GCL Energy's new energy RWA assets, to potential computing power leasing, etc., to help China's high-quality assets become the core cornerstone of diversified assets on the chain. At the same time, referring to the development history of overseas stock token issuers such as Robinhood, domestic internet brokerage firms, fintech companies, stock or digital currency exchanges are all expected to achieve value revaluation under this wave, and the “license effect” may be the core competitiveness of domestic related manufacturers.

For the three stages: Phase 1 asset chain is the foundation. It is recommended to focus on the RWA asset side: Orient, Langxin Group, GCL Energy Technology, Hang Seng Electronics, Unitech, Yingfeng Environment, Hongbo Co., Ltd., Hainan Huatie, Yuncong Technology, Youfang Technology, Zhiwei Intelligence, Co-Creation Data, Universal Data, Century Internet, Baoxin Software, Data Port, Aofei Data, Yunsai Smart, Radio and Television Transportation, Hengwei Technology, Runjian Co., Ltd., Hongxin Electronics, Shenzhou Digital, Huaqin Technology, Lotus Holdings, Hongjing science and technology, etc.;

Phase 2 Liquidity activation is the core. It is recommended to focus on: 1) trading platforms and shovel-type companies: Yaocai Securities Finance, BOC Hong Kong, BOC Securities, Zhongke Financial; 2) Internet brokerage firms: Oriental Wealth, Tonghua, Dazhi, Compass, Jiufang Smart Investment Holdings; 3) Supporting industry chains: Jinzheng Shares, Zhongan Online, Lianlian Digital, China Everbright Holdings, Yuxin Technology, Tianyang Technology, BeiJing, and Multipoint Smart, etc.

The third stage of global asset network integration is a sea of stars. It is recommended to focus on: Internet giants such as JD and Alibaba.

Risk warning: The implementation of the RWA policy falls short of expectations; the development of the industry falls short of expectations.