Eliza Wong
The Resurgence of Real-World Asset Tokenization Schemes
A new wave of financial products has emerged across Chinese social media platforms, promoting revolutionary investment opportunities through real-world asset (RWA) tokenization. Promoters are enticing investors with promises of extraordinary returns, claiming that property tokenization represents the next trillion-dollar wealth bridge. These schemes typically target struggling hotels, apartments, and resorts, converting them into digital tokens marketed as accessible investment vehicles.
Too Good to Be True Promises
Investment promoters are making bold claims about returns that defy market realities. One promoter contacted by investigators promised: Invest 3,000 yuan to become a general partner and receive 6,000 tokens with team-building privileges; invest 30,000 yuan for advanced partnership status with promised annual dividends exceeding 100,000 yuan; invest 100,000 yuan to become a co-founder partner with claims of achieving billionaire status in digital assets within three years. These offers typically include promises of listing on major exchanges like GATE and eventually Binance.
Regulatory Reality Check: China’s Stance on RWA Tokenization
The Chinese regulatory environment remains cautious toward real-world asset tokenization. In 2017, the People’s Bank of China (中国人民银行) and multiple ministries issued the “Notice on Preventing Token Issuance Financing Risks,” explicitly prohibiting any unauthorized token issuance financing activities. The notice classified such activities as illegal public fundraising, potentially involving illegal securities issuance, fundraising fraud, and pyramid schemes.
Legal Limitations of Property Tokenization
According to Bai Wenxi (柏文喜), Deputy Chairman of the China Enterprise Capital Union, property tokenization investments remain unauthorized in mainland China. “Under Chinese law, property ownership changes must be completed through real estate registration centers, and on-chain tokens cannot directly represent property rights,” Bai explains. “Current RWA tokens can only represent income rights or creditor rights, not property rights themselves.”
Global Context: Lessons from International RWA Experiments
The concept of real-world asset tokenization isn’t new globally. Approximately seven to eight years ago, cryptocurrency markets witnessed the first attempts at tokenizing office buildings, resorts, and other physical assets. Many of these early projects failed spectacularly, providing valuable lessons for current market participants.
Early Failures and Recent Successes
The St. Regis Aspen Resort in Colorado represented one of the earliest property tokenization cases. In 2018, the luxury hotel sold $18 million in tokens to qualified investors, with prices rising 32% on the first trading day. However, liquidity quickly dried up, and by 2020, trading volume had become negligible. Research indicates that over 90% of pre-2021 RWA projects failed to achieve meaningful trading volume due to lack of legal recognition, small investor bases, and inadequate liquidity infrastructure.
Recent developments show more promising trajectories. Dubai has implemented direct property tokenization models with enhanced legal recognition. The Dubai Land Department launched Prypco Mint investment platform in May 2025 with an investment threshold of only 2,000 dirhams (approximately $540), where token transfers synchronize directly with government land registrations. According to data from the Economic and Commercial Office of the People’s Republic of China Consulate General in Dubai, the second property tokenization project in Dubai attracted 149 investors from 35 countries and sold out in 1 minute 58 seconds, setting a new global record in property innovation.
Hong Kong’s Emerging RWA Framework and Mainland Participation
Hong Kong has positioned itself as Asia’s potential hub for digital asset innovation. On June 26, the Hong Kong Special Administrative Region government published its “Policy Declaration on Hong Kong’s Development of Digital Assets 2.0,” mentioning “tokenization” 35 times, demonstrating the government’s commitment to promoting RWA development. On May 21, the Hong Kong Legislative Council passed the “Stablecoin Bill,” which took effect on August 1.
Mainland Enterprises Testing Hong Kong Waters
Several mainland companies have begun exploring RWA opportunities through Hong Kong. On August 29, state-owned urban investment platform Shenzhen Futian Investment Holdings Co., Ltd. (深圳市福田投资控股有限公司) announced the successful issuance of the world’s first public offering digital bond through the Ethereum public chain in Hong Kong. The bond规模 (scale) reached 500 million yuan with a 2-year term and 2.62% coupon rate, token named FTID TOKEN 001 (福币).
Similarly, private developer Seazen Holdings’ parent company Seazen Development Holdings Limited (01030.HK) announced plans to establish a digital asset management company in Hong Kong to promote tokenization of company assets and income rights, including exploring RWA products based on Wuyue Plaza asset收益 (收益). Seazen stated that total Wuyue Plaza assets exceed 120 billion yuan, with annual merchant sales expected to reach 150 billion once all 200+ plazas open and stabilize operations.
Investment Considerations and Risk Assessment
For investors considering RWA opportunities, several critical factors require careful evaluation. Bai Wenxi emphasizes that legitimate RWA projects should provide legal opinions, regulatory filings, asset audit reports, and whitepaper disclosures. “If these documents cannot be provided, the project is likely fraudulent,” he warns.
Practical Participation Pathways
While Hong Kong offers regulated access to RWA products, mainland residents face restrictions. Although technically possible to participate through programs like the “Cross-boundary Wealth Management Connect” or offshore trusts, individual direct investment in overseas RWA projects remains subject to foreign exchange controls and must comply with mainland regulations regarding virtual assets.
Navigating the Property Tokenization Landscape
The resurgence of property tokenization schemes presents both opportunities and significant risks. While the technology holds genuine potential for democratizing access to real estate investments, current regulatory frameworks in mainland China remain restrictive. Investors should approach promises of guaranteed returns with extreme skepticism and conduct thorough due diligence before committing capital.
Legitimate property tokenization development will require clear regulatory frameworks, proper legal structures, and transparent operational models. As global markets continue experimenting with RWA applications, Chinese investors should prioritize understanding regulatory boundaries and seeking professional advice before participating in any tokenization schemes. The future of property tokenization may hold promise, but navigating the present landscape requires caution, expertise, and strict adherence to regulatory compliance.
