Trust, Not Technology, Is the Real Challenge in Tokenizing Real-World Assets: Insights from Kong Jianping
Tokenizing real-world assets (RWA) appears as a big change in finance. It promises to shift old markets by using blockchain. This change is not driven by code alone. Kong Jianping, founder of Nano Labs, points out that trust matters most.
On social media, Kong shared his view. Bijie Network reported his claim. Kong says the main hurdle in joining RWAs with decentralized finance is trust. Banks and old institutions need more than simple "on-chain" fixes. They want safe access to DeFi funds. They also need to keep data private, stick to rules, and secure each deal. These strict demands stop banks from using public blockchains.
Why Trust Matters More Than Technology
Blockchain can keep records safe and unchangeable. Still, it does not fix banks’ deep worries. Banks work under strict rules and risk plans. Public blockchains show all details. They help with checks but may expose sensitive data. Meeting customer checks and money rules adds more trouble on open networks.
Kong says trust must grow from strong privacy and careful rule care. This trust builds a real RWA system. The right mix must join open data with firm control. That mix meets old finance needs.
A Hybrid Approach: Private Chains Meeting Public Blockchains
Kong offers a clear step-by-step plan. He asks banks to build private blockchains first. These chains hold assets with care. Later, banks can make chosen links with public blockchains. They can use math checks like zero-knowledge proofs and homomorphic encryption. These checks let validators confirm deals without showing secret data. They help bind private and public parts while keeping trust.
The RWA Liquidity Surge: Capital-Driven but Early Days
Kong points to strong liquidity in some RWA projects. He cites River as an example. Market work jumped by 2300%. This jump shows new money and bets, not a full market shift. Kong sees this as a "liquidity game" and not a deep change. He believes the race to build a trustable RWA system has just begun. The market now moves past early hype and faces tests of trust and rules.
Implications for Real Estate and Traditional Asset Digitization
Tokenizing RWAs—such as real estate, goods, and old securities—can boost market flow and cut delays. Still, Kong says tech alone is not enough. To win bank trust, platforms must prove safe data care and rule checks. Future RWA systems may start in closed modes that slowly join with open systems. This blend may let old and new money work side by side. The mix can add flow without giving up old checks.
In Summary
- Banks face trust issues, not just technical tasks.
- Old institutions need data safety, rule care, and sure deals. That stops them from using fully public blockchains.
- A mix of private chains and chosen public connections (using ZKP and homomorphic encryption) is a sound plan.
- Recent jumps in liquidity show money flows but not a full market shift.
- The race to build a trustable RWA system has just started, with strong tests ahead.
As finance changes, banks and blockchain experts must work side by side. They must fix trust challenges and rule checks. This work can bring a fair, open, and secure money future.
Disclaimer: The views expressed in this article are those of the quoted individual and do not represent the position of Bitget or affiliated platforms. This content is for informational purposes only and does not constitute investment advice.
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