Zhejiang Merchants Securities: RWA brings regulatory challenges, or temporarily leads to expansion of USD credit.

Zheshang Securities released a research report stating that the macro impact of RWA lies in building a "global capital market" on the blockchain, accelerating the replacement of traditional finance by blockchain finance, which may temporarily lead to further expansion of US dollar credit. RWAs, stablecoins, and decentralized finance mirror investment targets, fiat currencies, and financial intermediary functions in the traditional financial system on the blockchain. The three are complementing each other, forming a new financial ecosystem on the blockchain. In the long run, the mechanism of RWA on the chain poses a potential challenge to traditional financial institutions, including banks, securities firms, insurance companies, and exchanges.