Conflux Co-Founder Yuanjie Zhang Explains the Next Phase of RWA Adoption

Q1. Conflux has been positioning itself as a compliant blockchain ecosystem for real-world assets. What does “compliant RWA infrastructure” mean to you in practical terms?

We see Conflux as the infrastructure layer, not the regulated financial institution. Our role is to provide the blockchain network that enables licensed partners to bring real-world assets on-chain in accordance with applicable regulations.

Q2. Many people still see RWAs as a narrative rather than a working market. What is the biggest misconception about tokenized real-world assets right now?

One of the biggest misconceptions we see from asset owners is an assumption that putting an asset on-chain will automatically attract global capital and solve financing challenges. In reality, tokenization does not create value or liquidity on its own. Investors care about the quality of the underlying asset, not simply whether it is on-chain. Blockchain technology can meaningfully improve efficiency, transparency, and accessibility, but it cannot fix a weak asset. Tokenization is a structural improvement to capital markets infrastructure, not a substitute for investment fundamentals. Ultimately, RWA is about building a more efficient and investable capital market, not just a new way to raise money.

Q3. Conflux has been integrating gold-backed and dollar-linked liquidity through assets like Tether Gold and USDT0. Why are these assets important to your broader vision for on-chain finance?

We see USDT0 and Tether Gold not as standalone products, but as foundational building blocks for a broader on-chain financial ecosystem. USDT0 provides the liquidity infrastructure needed for payments and settlement, while Tether Gold brings a trusted and universally recognised store of value onto the blockchain. Together, they enable a much wider range of financial activities, from payments and savings through to lending and investment, which creates the conditions for a genuinely functional on-chain economy.

Equally important is the role these assets play in bridging traditional finance and blockchain. By anchoring on-chain finance in familiar, trusted assets, they lower the barrier to adoption for both retail users and institutions who might otherwise find the transition daunting. Our long-term vision is to build a comprehensive on-chain financial ecosystem powered by stablecoins, tokenised commodities, and other real-world assets, with USDT0 and Tether Gold forming the foundation on which that ecosystem is built.

Q4. You have also been advancing offshore yuan stablecoin initiatives for cross-border trade. What role do you see stablecoins playing in Asia’s trade and settlement flows?

No comments.

Q5. What makes Asia such an important region for the next phase of RWA adoption, and how does Conflux plan to bridge regulated markets with Web3 infrastructure there?

Asia represents one of the most important regions for the next phase of RWA adoption, and for good reason. The combination of real economic demand, evolving regulatory clarity, and an abundance of tokenizable assets creates conditions that few other regions can match. Across many Asian markets, there are acute practical needs in cross-border payments, trade finance, and capital access.  Precisely the areas where tokenization can deliver tangible, near-term value rather than theoretical promise.

The regulatory environment is also maturing. Clearer frameworks are emerging across the region, providing the institutional confidence needed to move from experimentation to meaningful adoption. Within this landscape, Conflux’s role is to provide the underlying blockchain infrastructure, enabling licensed partners to bring compliant RWAs on-chain, rather than operating as a financial institution itself. Hong Kong sits at the centre of this strategy, serving as a natural gateway that connects traditional finance, digital assets, and cross-border capital flows.

Q6. Conflux is working on use cases across renewable energy and trade finance. Why do these sectors stand out as strong starting points for RWA adoption?

Renewable energy and trade finance stand out as strong starting points for RWA adoption because they combine genuine economic activity with clear, demonstrable blockchain use cases. Making them ideal proving grounds for what on-chain finance can achieve in practice.

Renewable energy assets typically generate predictable cash flows but remain relatively illiquid and difficult to access for a broad range of investors. Tokenization addresses this directly by improving transparency, accessibility, and capital efficiency.  Therefore, unlocking value that is already there but poorly served by traditional structures. Trade finance presents a different but equally compelling opportunity. The sector has long relied on fragmented processes and slow settlement, and blockchain can deliver meaningful improvements in efficiency, transparency, and traceability across complex, multi-party transactions.

What unites both sectors is that they are grounded in real assets and measurable cash flows; precisely the characteristics that make them well suited for sustainable, long-term RWA adoption. At Conflux, our focus is on connecting these real-world assets with on-chain capital markets, making them more transparent, accessible, and interoperable. We believe the next phase of RWA growth will be driven by real economic activity, with renewable energy and trade finance strong early indicators of that direction.

Q7. Partnerships with projects like dForce, Dow Protocol, and Byzanlink suggest Conflux is building a wider ecosystem around RWAs. What qualities do you look for in partners?

Building the right ecosystem around RWAs requires selecting partners that solve real bottlenecks in the RWA value chain rather than simply adding another application on top of existing infrastructure. That is the standard we apply when evaluating who we work with.

Strong domain expertise is essential. Whether a partner’s strengths lie in asset issuance, DeFi, payments, custody, or settlement, we look for genuine depth in their respective field. Equally important is a long-term commitment to compliance, transparency, and sustainable growth, qualities that are non-negotiable in a space where institutional trust is still being established. We also place particular value on teams that can bridge traditional finance and blockchain, helping to connect real-world assets with on-chain liquidity in ways that are practical and accessible to both worlds.

Ultimately, our focus is on real utility and long-term adoption rather than short-term momentum. Our goal is to build an open, compliant, and interoperable RWA ecosystem. That is only achievable with partners who share that vision and are committed to building it for the long term.

Q8. From your perspective, what are the biggest technical and regulatory challenges that still need to be solved before RWAs can scale globally?

The biggest challenge standing between RWAs and global scale is the infrastructure needed to connect traditional finance and blockchain to make a connection that is reliable, compliant, and trusted at an institutional level.

On the technical side, the priority is building robust links between off-chain assets and their on-chain representations, underpinned by dependable data, custody solutions, and sound legal structures. These are not insurmountable problems, and significant progress has already been made. In many respects, technology is no longer the primary bottleneck as most assets can already be tokenized in a meaningful sense.

The harder challenge is regulatory. Fragmentation across jurisdictions remains a significant barrier, with different markets applying different rules to digital assets and securities. What the industry now needs is the development of standardised legal, compliance, and operational frameworks that institutions can trust and build upon with confidence. Global RWA adoption will ultimately depend on two things advancing in parallel: greater regulatory coordination across borders, and trusted infrastructure that enables compliant cross-border issuance, trading, and settlement. Without both, scale will remain out of reach.

Q9. How do you think on-chain collateralization, lending, and liquidity markets will evolve once more tangible assets are brought on chain?

The most significant shift that broader RWA adoption will bring to on-chain lending and liquidity markets is a fundamental diversification of the collateral base. Today, on-chain lending is largely constrained to crypto-native assets, which limits both the stability and the scale of what is possible. As more real-world assets come on-chain, such as government bonds, private credit and gold, lending markets will expand considerably. Thus, creating the conditions for more stable borrowing rates, greater capital efficiency, and a much broader range of financial products.

We are already seeing the early signs of this transition, with tokenised Treasuries and gold beginning to be integrated into on-chain finance in meaningful ways. But this is still the beginning. As the collateral base matures, RWAs will increasingly serve as a bridge between institutional capital and blockchain liquidity, bringing familiar, trusted assets on-chain in a way that makes the ecosystem accessible and credible to a far wider pool of participants.

Our view is that the future of finance is hybrid. Crypto-native assets and real-world assets will not compete but coexist, each reinforcing the other within a more mature and resilient on-chain financial ecosystem. That convergence is what we are building towards.

Q10. You’ve worked across investments, capital markets, and business operations before co-founding Conflux. How has that background shaped the way you think about blockchain infrastructure?

There is a big misconception about blockchain infrastructure. People call it Web3 but it never comes down to revolutionizing the mechanism of the Internet. People invented many narratives on Socialfi, Gamefi, Metaverse and Depin etc. However, those narratives prove to be false or a fad.  In the end, it morphes closer into innovative fintech instead of the new Internet backbone. 

As the latest fintech infrastructure, it facilitates the capital flow through stablecoins and helps USD, US treasuries and US stocks be distributed to a broader frontier that they could ever reach. I used to work in the trad-fi and I understand how capital markets are segmented by the borders of the countries. After exploring the frontier of the crypto ecosystem, I witnessed how blockchain unify the capital markets in global crypto markets in the forms of stablecoins, Defi and RWA. Finance is at its essence but the new fintech expands its outreach. 

Q11. What would success look like for Conflux over the next 12 to 24 months in the RWA space?

Success over the next 12 to 24 months is not simply a matter of bringing more assets on-chain but it is about enabling real economic activity through RWAs at a scale that moves the industry beyond isolated pilots into genuine, institutional-grade adoption.

In practical terms, that means seeing RWAs become deeply integrated with stablecoins, lending markets, and on-chain liquidity.  It also means strengthening the infrastructure that connects regulated financial markets with public blockchains, particularly across Asia, where we see the greatest near-term opportunity for meaningful adoption.

More broadly, our goal is to build a complete on-chain financial ecosystem where issuers, institutions, developers, and end users can all participate with confidence. That is the milestone we are building towards.

Q12. Finally, when you are not working on blockchain infrastructure, your interests include sci-fi, gaming, and skiing. Do those hobbies influence how you think about innovation, risk-taking, or long-term vision?

My hobbies naturally reflect my curiosity, courage and diversity of life experience. By reading books depicting the possible futures, I am more open to embrace an involving environment. By practicing extreme sports, I increase my tolerance of higher risk in exploring the activities people can endure. By trying different games, I get to know people from all over the world and learn stories of other people. 

Reading enables you to learn from history and helps you backtrack how you plan for a trajectory over the long-term. Playing games and sports give a break to think deeply and calmly so that you don’t deviate from the main road.