In the past two years, the blockchainization of real-world assets (RWA) has become a focus in the industry. The core of this trend lies in converting stable income assets in the TradFi sector, such as government bonds, bills, and funds, into Token forms that can circulate on the blockchain.

For institutional investors, RWA provides a relatively low-risk entry into the crypto industry; while for individual investors, it offers a stable source of income in stark contrast to the highly volatile crypto market.

However, the current RWA market still faces numerous challenges. Firstly, there is insufficient standardization and compliance concerns; secondly, there is a lack of channels for large-scale capital inflow; finally, the composability of assets after being on-chain remains limited.

To address these issues, BounceBit has proposed an innovative solution to incorporate RWA into its CeDeFi architecture. Its design concept includes three levels: the custody layer holds low-risk assets through compliant institutions; the token layer issues corresponding blockchain tokens; and the application layer allows users to stake, borrow, or combine these tokens with Bitcoin yields.

The advantages of this design are obvious: it not only ensures the authenticity of the underlying assets but also provides on-chain liquidity, while complementing the financialization of Bitcoin with returns.

RWA forms a unique complementary relationship with Bitcoin. Bitcoin's returns are often significantly impacted by market volatility, while RWA provides stable returns. The combination of the two offers investors a more comprehensive portfolio choice.

This new financial paradigm not only expands the application boundaries of Blockchain technology but also bridges the gap between TradFi and the emerging crypto economy. As this field continues to develop, we have reason to expect more innovative financial products and services to emerge, providing investors with more diversified choices and more robust return prospects.