Additional Context
Market Signals
- Market size: Total RWA Value at $15.801b (Sep 2025, Defillama)
- Growth: 245× growth from $85M (April 2020) to $21B (April 2025) - Coinbase Report
- Asset distribution: Private credit (61%), Treasuries (30%), Commodities (7%), Institutional funds (2%)
- Deployed categories: US Treasuries, Global Bonds, Private Credits, Commodities, Institutional Funds, Stocks
Actors
Identity Provider (onchain identities for issuers, investors, authorized regulators) · Oracle (compliance checks) · Issuer (financial institutions, authorized registrar) · Investor · Regulator (policy enforcement, intervention capabilities)
Problems
Problem 1: Privacy-Preserving RWA Tokenization with Regulatory Compliance
On-chain RWA tokenization exposes ownership, valuation, and transfer history by default, conflicting with institutional privacy requirements and competitive positioning. The solution must provide ownership privacy with unlinkable transfer histories while maintaining selective disclosure and enforcement capabilities.
Requirements:
- Must hide: who owns the RWA (and amount if not NFT), history of ownership, value if NFT
- Public OK: asset existence; contract code; compliance schema; attestation framework
- Regulator access: selective disclosure of trade info such as owner id, amount/value of RWA, and pause/freeze RWA (granularity varies by jurisdiction)
- Settlement: atomic DvP
- Ops: N/A
Constraints:
- Cannot break existing regulatory frameworks
- Must support authorized identity issuance and management
- Must provide auditability and accountability for attestations and issuer solvency
Recommended Approaches
See Private Bonds and Private Payments approaches - RWA tokenization can inherit private transfer solutions with emphasis on transfer compliance checks and RWA-specific standards (ERC-3643, ERC-7943 with privacy modifications using commitments).
Open Questions
- N/A