Former Hong Kong Stock Exchange CEO Li Xiaojia: Tokenization cannot reduce the risks of underlying real-world assets

Deep Tide TechFlow News: On March 6, Caixin reported that Li Xiaojia, former CEO of the Hong Kong Stock Exchange, one of the founders and chairman of Digan Tong, responded to the initiation of private equity fund procedures by stating that they may follow the new regulatory rules issued by the China Securities Regulatory Commission in February this year to pioneer the tokenization of real-world assets (RWA) in the market. He clearly pointed out that Digan Tong currently has no demand for RWA tokenization and there is no need to issue RWA tokens. Tokenization cannot reduce the risks of underlying real-world assets, and on-chain funds are extremely limited. In the short term, there is no need to pursue RWA tokenization to attract on-chain funds.

Li Xiaojia also categorized virtual asset investors into five types: the first are early entrants, the second are mid-term entrants, the third are traditional financial institutions, the fourth are traditional finance professionals with decentralized principles, and the fifth are what people commonly call “retail investors” or “chives.”