[Perspective] Cryptocurrencies and RWAs: What If Stablecoins Could Be Used to Invest in Stocks?

Cryptocurrency and RWA: Can Stablecoins Be Used to Invest in Stocks?

The rise of cryptocurrency has been seen as a challenge to traditional finance; however, with the emergence of tokenized Real World Assets (RWA), we may be witnessing a deeper integration—not a disruption, but an upgrade. The true value of RWA lies in its ability to transform cryptocurrency from a purely speculative tool into a bridge connecting the real economy and the digital world. Conversely, could we also use existing legal frameworks (such as corporations) combined with blockchain technology to open up more participatory rights, enabling people worldwide to easily invest in early-stage startups in Taiwan? This is not merely a technical issue, but rather a vision for the future.

The Potential of RWA: From Crypto to Reality

Take Bitfinex Securities as an example; this platform, regulated in Kazakhstan and El Salvador, offers trading in tokenized stocks, bonds, and even funds. Products like USTBL allow tokenization of U.S. short-term government bonds in ETF form, enabling you to invest directly using USDT, starting at just $1. This means that cryptocurrency is no longer just speculation but can directly reach traditional financial assets. Another example is the Alternative series tokens, which finance small and medium-sized enterprises in emerging markets like Italy and Romania, with an 11-month maturity and annualized returns of 9%-12.5%, requiring a minimum investment of 125,000 USDT. This model grants global users access to capital markets, breaking geographical and wealth barriers.

The inspiration of RWA lies in its ability to provide cryptocurrency with an “anchor”—a real-world value support. Bitcoin may represent the dream of liberalism, but tokenized securities represent a pragmatic evolution. It raises the question: if Taiwan’s startups could be tokenized in this way, could individual investors worldwide become early investors? This not only expands the capital pool but could also accelerate innovation.

Upgrading Traditional Frameworks: Global Corporations

We do not need to completely abandon existing legal frameworks. The concept of a corporation is already mature; the issue lies in the restrictions on participatory rights—only a few individuals can become angel investors or venture capitalists, while most retail investors are excluded. Blockchain technology provides a solution: through tokenized stocks, Taiwanese startups can issue shares globally from inception. Imagine an AI healthcare startup established in Taipei issuing tokens through a platform similar to Bitfinex Securities, allowing people worldwide to invest starting at $10. This is not only a democratization of capital but also a globalization of creativity.

The advantages of Bitfinex Securities—round-the-clock trading, real-time settlement, and low-cost issuance—are the cornerstone of this model. They claim to “break free from the shackles of global finance,” which may be a bit exaggerated, but the direction is correct. Traditional IPOs are costly and slow, posing a burden for early startups; tokenization streamlines everything while also attracting enthusiastic participation from the crypto community. Of course, challenges are evident: regulatory compliance (KYC/AML), lack of liquidity, and gaps in investor education.

Collision of Both Worlds: Possibilities and Reflections

RWA provides cryptocurrencies with more possibilities, but conversely, the upgrade of traditional frameworks can make RWA more grounded. If Taiwan can combine both—regulating the tokenization of startups through company law while leveraging the transparency and global liquidity of blockchain—it may pave the way for a new model of capital markets. Platforms like Bitfinex Securities, though still in the experimental phase, have already demonstrated potential. Their model allows small and medium enterprises to raise funds at low costs and enables investors to participate in traditional assets using cryptocurrency, which is a prototype for the future.

The Latest Developments from the U.S. SEC

According to recent online information, the new chair of the U.S. Securities and Exchange Commission (SEC), Paul S. Atkins, has proposed a significant initiative: allowing registered institutions to simultaneously custody and trade securities (stocks, bonds, ETFs) and non-securities assets (BTC, ETH, USDC, NFTs) on the same platform. This means that in the future, you might be able to buy Tesla stocks with USDC on one app while holding Bitcoin, without needing to move funds. This is not just a technological upgrade but a transformation of financial paradigms, potentially creating a U.S. version of a “super app.”

More importantly, the liquidity of RWA will therefore be significantly enhanced; for example, on-chain treasury bonds, mortgage debts, and other assets can be traded seamlessly in both directions. It is expected that public consultations will take place in Q3 2025, with final rules to be passed by the end of 2026, and mainstream brokerages may fully launch the “crypto-stock platform” by 2028.

What implications does this hold for Taiwan? The U.S. regulatory framework may become the global standard. If Taiwan wishes to lead in the RWA arena, it must accelerate the formulation of similar rules, allowing startups to legally issue tokenized equity and attract global capital. However, there are numerous challenges: jurisdictional conflicts between the SEC and CFTC, standards for crypto custody technology, and bankruptcy isolation design are all hurdles that cannot be overlooked.