After charging piles and photovoltaic infrastructure, computing power assets have entered the world of real-world asset (RWA) tokenization.
On August 8, Aurora Optoelectronics completed the first issuance of RWAs backed by artificial intelligence server assets, valued at an eight-figure RMB sum (USD 1.1–14 million). The project was supported by Ant Digital Technologies, which used its AntChain platform to record AI server operation data on-chain. The approach ensured transparency, security, and immutability, while allowing investors to verify returns.
Ant Digital has been active in RWA tokenization pilots before, assisting Longshine Technology and GCL Energy Technology last year with projects backed by charging stations and photovoltaic assets. Aurora’s latest move marks Ant Digital’s first step beyond renewable energy.
From its introduction in China’s financial market a year ago to the rollout of stablecoin regulations in the US and Hong Kong, RWA tokenization is gaining traction as a bridge between real-world assets and blockchain-based finance. But what is RWA tokenization, which asset classes are suited for it, and how does this model differ from traditional financing?
What is RWA tokenization?
RWA tokenization is the process of converting physical assets such as real estate, receivables, or carbon credits into blockchain-based tokens that can be traded, divided, and transferred.
In practice, this makes illiquid and high-value assets easier to buy in smaller portions, trade quickly, and transfer across borders as if they were cryptocurrencies. The model connects traditional assets with blockchain, offering asset holders new financing channels and giving investors access to alternative asset classes.
Domestic RWA issuances typically involve a technology partner. Ant Digital, for instance, launched its solution in October 2024, covering three processes:
- Digitization and standardization of corporate assets, turning them into tradable financial products.
- Tokenization of funds, particularly those from financial institutions.
- Transfer of assets across platforms in a trustless manner.
At the time, regulatory uncertainty around virtual assets raised compliance concerns. Since then, progress has been made.
The China Academy of Information and Communications Technology (CAICT) and over 20 enterprises jointly published technical standards for on-chain asset tokenization. These cover ownership verification, data collection, disclosure, and smart contract execution. The guidelines, described as a “5G-equivalent standard” for RWA tokenization, aims to give the field more structure.
In Hong Kong, the stablecoin ordinance took effect on August 1, establishing a licensing framework for fiat-backed stablecoins. Since stablecoins often serve as value carriers in RWA transactions, the law reduced compliance risks in token issuance and trading.
On August 7, the Institute of Web 3.0 Hong Kong, the Hong Kong Polytechnic University, and others released a report outlining three requirements for RWA assets: stable value, clear legal ownership, and verifiable off-chain data. These benchmarks are now considered critical for scaling adoption.
Which asset classes fit tokenization?
The Hong Kong report identifies five categories of assets already tested in tokenization pilots: financial assets such as gold, bonds, receivables, and funds; renewable energy infrastructure including charging piles and solar power; real estate; intangible assets such as carbon credits, data, and IP; and computing power hardware such as GPUs.
Aurora’s latest move fits neatly into the last category. The assets are held by a Shenzhen-registered subsidiary. Because data centers are inherently digital, their utilization, compute hours, and revenue flows can be monitored in real time through cloud platforms, satisfying demands for transparency and verifiability. Combined with surging global demand for AI computing, computing power aligns naturally with the RWA model.
Real estate is another promising category, as it combines tangible ownership with recurring income such as rent or appreciation. Although property is high in value and illiquid, it can be fractionalized via RWA tokens. In the US, RealT allows investors to buy shares of rental homes starting at USD 50.
Financial assets are also a natural fit. Ondo’s tokenized US treasury fund, OUSG, ranks among the world’s largest RWA platforms by total value locked.
Yet, not every asset is suitable. Ant’s blockchain head, Bian Zhuoqun, has said the company declined proposals for agricultural products, fine wines, and art, citing the lack of standardized valuation and the resulting instability.
How does RWA tokenization change costs, access, and trust?
For asset holders, RWA tokenization can unlock dormant assets. For issuers and investors, it can reduce costs, lower entry barriers, and improve trust:
- On the financing side, traditional methods rely on multiple intermediaries such as underwriters and auditors, often costing 2–5% of the financing amount and taking months. Even bank loans typically require 1–2 months for approval. Tokenized RWAs leverage blockchain technology and smart contracts to streamline the process. Ownership is verified on-chain, issuance and payouts are automated, and disclosures are instant. In April, Xunying Chuxing’s battery swapping RWA project raised funds in three days, with interest rates dropping from 15% to below 8%.
- On the investment side, conventional products often require minimum commitments starting at RMB 50,000 (USD 7,000) and going up to RMB 1 million (USD 140,000), excluding most retail investors. RWAs can split assets into tokens worth as little as RMB 10 (USD 1.4), broadening participation.
- For trust, blockchain ledgers ensure all data and transactions are tamper-proof. In the case of battery swapping stations, banks often undervalue collateral due to a lack of real-time verification. Blockchain addresses this by continuously uploading equipment data, allowing investors to track performance directly.
Yang Tao, deputy director at the National Institution for Finance and Development under the Chinese Academy of Social Sciences, noted that RWAs are generally more efficient and transparent as they enable global, round-the-clock trading while reducing fraud risk.
Opportunities and risks
Despite its advantages, RWA tokenization faces compliance hurdles across jurisdictions. Analysts warn that complex token structures could replicate the pitfalls of asset-backed securities, which contributed to the 2008 subprime crisis. Regulators must therefore design frameworks that connect asset digitization, securitization, and tokenization.
As of July, global RWA market capitalization has exceeded USD 25 billion, excluding stablecoins, according to RWA.xyz. Boston Consulting Group and ADDX project that tokenization of global illiquid assets could reach USD 16 trillion by 2030.
The challenge will be striking a balance between rapid growth and systemic safety.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Wang Hanyu for 36Kr.