Justin Sun Says that the Potential of RWA Has Been Recognized by Mainstream Financial Regulators

[ChainDD report] September 22 (ChainDD) Justin Sun, founder of TRON and member of the Global Advisory Board of HTX, said in a post on the X platform, "the Federal Reserve recognizes the potential of asset tokenization & RWA. While advantages like improved liquidity are clear, it's essential to be mindful of leverage risks. That's why stUSDT remains the go-to choice for me."

The Federal Reserve has released a working paper highlighting the advantages of tokenization of assets in the financial sector and Real World Asset (RWA).

The report states that tokenization can lower barriers to investment, promote standardization, improve liquidity, add new features, and facilitate lending.

However, the report also warns that the redemption mechanism and liquidity of these assets may create higher leverage risks and affect financial stability.