If 2021 was the breakout year for NFTs, then 2025-2026 will be the true explosion of real-world assets (RWA). Look at the giants in asset management—Blackstone, Franklin Templeton, and other industry leaders are all exploring how to bring real assets onto the blockchain. But in this trillion-dollar new track, why do some projects stand out and become favorites among institutions?

**Compliance is the true key to RWA**

Many people think of "tokenization" when they hear RWA, but that's actually the wrong approach. The survival of RWA depends not on technology but on compliance. Just putting assets on the chain arbitrarily? That’s dancing on the legal line and could lead to legal risks at any moment. Some projects are designed from the ground up to comply with strict financial regulations like MiCA (European Crypto Asset Regulation).

For example, certain projects’ Zedger protocol is specifically built for securities issuance, automatically handling complex logic such as dividend distribution, voting, and settlement. When a company issues bonds on such a platform, the system ensures that only wallets verified through KYC can receive tokens. These underlying hard constraints greatly reduce the verification burden and risks for intermediaries.

**Privacy, the real necessity for institutions**

Think from another perspective: a multinational company making large-scale raw material purchases or bond repurchases on a public chain—competitors can track its fund movements and business strategies through on-chain transaction records in real time. How terrifying is that? Business secrets are laid bare, and competitive advantage can collapse instantly.

Therefore, privacy is not optional; it’s the baseline requirement for institutional participation in RWA. Projects that truly attract large-scale institutional involvement must find a balance between openness and privacy—that’s the key to differentiation in this track.