“Discover BG Trade’s Innovative Approach to Bridge Traditional Finance and Cryptocurrencies, Unleashing the Potential of RWATokenization in Hong Kong’s Market”
DUBAI, DUBAI, UAE, August 7, 2023/EINPresswire.com/ — Guest: Nauman Ali
Before the new policy in Hong Kong, BG Trade chose base Dubai to debut RWA business in the Dubai market; at the time of the new policy in Hong Kong, BG Trade brought RWAs to try to link the traditional financial and web3 markets and resources in the Hong Kong market. 7 July (Hong Kong time), BG Trade hosted a forum titled “Exploring Unleashed: Web3 and RWAs” will be held in Hong Kong. On July 7 (Hong Kong time), BG Trade will host a forum titled “Exploring Unleashed: Web3 and RWAs” in Hong Kong. Terry Chan (Lap-Chi Chan) from Invest Hong Kong, Nauman Ali, CEO of BG Trade, and friends from OKX, Hashkey Capital, Flow Traders, South East England, Clearpool, and more than a dozen other organizations/projects focusing on the RWA market will take part in the keynote discussion.
This is typical for our observation of the Hong Kong RWA market in the system “Decoding RWA: The Most Valuable Wealth Code in the Compliance Context”.BG Trade aims to integrate multi-dimensional asset investments on the same platform, providing connectivity opportunities for heterogeneous assets such as equities, bonds, commodities and cryptocurrencies, as well as providing users with RWA (Real World Assets) asset allocation solutions. In BG Trade’s plan, it will act as a bridge between the traditional stock market and the cryptocurrency world. How they judge the regulatory conditions and market opportunities in Dubai and Hong Kong, and how the RWA track, which can link traditional finance and the crypto economy, relates to this crypto market bull and bear cycle.
With these questions in mind, we spoke with Nauman Ali, CEO of BG Trade, who will be appearing at the “Exploring Unleashed: Web3 and RWAs” keynote forum:
Why did you choose base Dubai to debut the Dubai RWA market?
I have always believed that to progress in life or business, you must be in an environment that nurtures progress and success. Dubai welcomes technologies that will change the future. Our vision is to utilize Web3 technology to integrate multi-dimensional asset investments on the same platform, providing efficient connectivity opportunities for heterogeneous assets such as stocks, bonds, commodities and cryptocurrencies, as well as providing users with RWA (Real World Assets) asset allocation solutions.
In our plan, BG Trade will act as a bridge between the traditional stock market and the cryptocurrency world. In the future, we are committed to creating a cryptocurrency-stock ecosystem that anchors tokens 1:1 to traditional stocks and breaks down the barriers between the cryptocurrency community and the stock market. For cryptocurrency holders, they can purchase tokens to acquire stocks of corresponding listed companies; for listed companies, they can tokenize their stocks, so that even users who do not belong to the region of their own listed exchanges can conveniently purchase asset allocations, realizing cross-region, cross-domain, and a freer and more efficient asset allocation channel.
2. Why favor the Hong Kong market?
There is a lack of clarity in other jurisdictions, but Hong Kong is an exciting hub for us to serve not only Asia, but also the Middle East and parts of Africa.
BG Trade is a pioneer and model for us in creating this ecosystem. The first tokenized asset for cryptocurrency stocks was created through tokens anchored by Hong Kong listed companies. Through the BGT project, the process of tokenizing shares of listed companies will be standardized. In the future, it will also help more listed companies to realize the currency-share interconnection and build a new and unique currency-share new ecosystem.
The BGT ecosystem consists of three modules: stock tokenization, currency-share trading and stock appreciation:
1. Stock Tokenization is the way for stocks to enter the Web3.0 world;
2. currency-stock trading addresses the circulation and liquidity of stocks in the Web3.0 world;
3. stock tokenization aims to enhance the value-added capacity of stocks into the Web3.0 world.
3. the last cycle of RWA did not do much, why?
What are the challenges facing this track?
In the midst of market uncertainty, people are increasingly looking for ways to diversify their investments, and this is where RWAs become quite attractive. In the last cycle, the legal and regulatory environment for RWAs remained uncertain and ever-changing, which created uncertainty for investors and issuers, among others, and in addition, liquidity for RWAs is a major challenge, with the DeFi market lacking the depth and breadth of liquidity needed to support large-scale transactions, which can limit RWA adoption, especially for high-value assets. Furthermore, the technical infrastructure for RWAs needs to be further developed, including in terms of security, scalability and interoperability.
For now, it appears that the main challenge for RWAs will continue to be legal boundaries, depending on the type of asset being tokenized, such as the difference between stocks and real estate. For example, BGT is a stock token that is based on NFTs issued by anchoring the outstanding shares of a publicly traded company, and each BGT is backed by a corresponding outstanding share of stock. Through the theory of coin-holding and mining, coin-holding users can receive annual dividends from public companies and equity awards from equity private placements by pledging a single coin. If the pledged amount of BGT exceeds 70%, the corresponding tradable shares will be locked again to issue new NFTs to increase the liquidity of BGTs; at the same time, if the pledged amount of BGTs is less than 30%, the shares that were locked at the time of NFT issuance will be released to redeem the BGTs and be destroyed.
4、How does the RWA track connect with Defi?
Decentralized Finance (DEFI) allows real-world assets to be tokenized by leveraging blockchain technology. Tokenized assets make it easier to access the market in a transparent way, in a safe and secure manner, and with more trading flexibility.
The slump in the DeFi market over the past period of time has caused the crypto industry to turn its attention to RWA’s. As market uncertainty increases, DeFi investors are increasingly in need of a diversified portfolio of real-world assets for stable returns independent of cryptocurrencies. And at this point, RWAs present a whole new opportunity for DeFi investors. Through blockchain technology, DeFi investors seeking higher returns can access traditional off-chain debt markets, making it easier to participate in global financial markets.
5、May I ask how you judge the next bull market cycle?
The last bull market focused on the utility of web3. The next bull market will place more emphasis on real-world utility as the technology matures and is understood in the institutional space. I believe that web3 infrastructure, RWAs and tokenized assets, and KYC improvements will offer tremendous growth potential. We are already seeing a divergence between cryptocurrencies and tech stocks, which is a good sign.
6. What kind of advantages does BG Trade have in the RWA circuit?
BG Trade, as a bridge between the traditional stock market and the cryptocurrency world, plans to build an ecosystem that anchors tokens and traditional stocks 1:1, breaking down the barriers between the cryptocurrency world and the stock market. For coin-holding users, they can purchase tokens to obtain shares of the corresponding listed company; and for listed companies, they can Tokenize their shares to allow users who do not belong to the region of their own listed exchanges to conveniently allocate their assets. This will realize freer and more efficient asset allocation across regions and fields.
BG Trade is the pioneer and demonstration of building this ecosystem, becoming the first Tokenized asset of cryptocurrency stocks through Token anchored by Hong Kong listed companies. Through the BG Trade project, it will standardize the process of Tokenization of listed company stocks, and help more listed companies to achieve coin-stock connectivity and build a new coin-stock ecosystem.