Conflux co-founder Zhang Yuanjie interprets the next stage of RWA adoption

Q1. Conflux has positioned itself as a compliant blockchain ecosystem for real-world assets. What does "compliant real-world asset infrastructure" mean to you in practice?

We treat Conflux as an infrastructure layer rather than a regulated financial institution. Our role is to provide a blockchain network that enables licensed partners to chain real-world assets in accordance with applicable regulations.

Q2. Many people still view real-world assets as a narrative rather than a functioning market. What are the biggest misunderstandings about tokenizing real-world assets?

One of the biggest misunderstandings we observe from asset owners is that they think that putting assets on the chain will automatically attract global capital and solve financing problems. In fact, tokenization itself does not create value or liquidity. Investors are concerned about the quality of the underlying asset, not just whether it is on the chain. Blockchain technology can significantly improve efficiency, transparency and accessibility, but it cannot repair a shoddy asset. Tokenization is a structural improvement to capital market infrastructure rather than a substitute for investment fundamentals. In the final analysis, real-world assets are about building a more efficient and investable capital market, not just a new way of financing.

Q3. Conflux introduced gold-anchored and dollar-pegged liquidity by integrating assets such as Tether Gold and USDT0. Why are these assets important to your broader vision of building on-chain finance?

We view USDT0 and Tether Gold as cornerstones of the broader on-chain financial ecosystem, rather than as stand-alone products. USDT0 provides the liquidity infrastructure needed for payments and settlements, while Tether Gold introduces a trusted and widely recognized store of value into the blockchain. The combination of the two can support a wider range of financial activities, from payments and savings to lending and investment, creating the conditions for a truly functional on-chain economy. Equally important is the role these assets play in connecting traditional finance and blockchain. By anchoring on-chain finance on familiar and trustworthy assets, they lower the threshold for retail and institutional users who might otherwise be deterred from transformation. Our long-term vision is to build a comprehensive on-chain financial ecosystem driven by stablecoins, tokenized commodities and other real-world assets, and USDT0 and Tether Gold are the foundation of this ecosystem.

Q4. You are also advancing the offshore RMB stablecoin program for cross-border trade. What role do you think stablecoins will play in Asia's trade and settlement processes?

No comment.

Q5. Why is Asia an important area for the next phase of real-world asset applications? How does Conflux plan to connect regulated markets with Web3 infrastructure there?

Asia is one of the most important regions for the next phase of real-world asset applications, for good reason. The combination of real economic needs, evolving regulatory clarity and a wealth of tokenizable assets is unmatched in other regions. In many Asian markets, there is an urgent practical need for cross-border payments, trade finance and capital access, which is an area where tokenization can deliver tangible, short-term value rather than theoretical promise. The regulatory environment is also maturing. A clearer framework is emerging in the region, providing institutional confidence to move from the experimental stage to meaningful applications. In this landscape, Conflux's role is to provide the underlying blockchain infrastructure that allows licensed partners to upload compliant real-world assets instead of operating themselves as a financial institution. Hong Kong is at the heart of this strategy, serving as a natural gateway connecting traditional finance, digital assets and cross-border capital flows.

Q6. Conflux is promoting application cases in renewable energy and trade finance. Why are these industries a great starting point for real-world asset applications?

Renewable energy and trade finance can be an excellent starting point for real-world asset applications because they combine real economic activity with clear and verifiable blockchain application scenarios, making it an ideal test ground for verifying the actual effectiveness of on-chain finance. Renewable energy assets usually generate predictable cash flows, but are relatively illiquid and difficult to obtain for investors. Tokenization directly solves this problem by improving transparency, accessibility, and capital efficiency, thereby releasing value that already exists but is inefficiently served by traditional structures. Trade finance offers a different but equally convincing opportunity. The industry has long relied on fragmented processes and slow settlements, and blockchain can significantly improve efficiency, transparency and traceability in complex multi-party transactions. What these two industries have in common is that they are both based on real assets and measurable cash flow, characteristics that make them ideal for sustainable, long-term real-world asset applications. At Conflux, our focus is on connecting these real-world assets with on-chain capital markets to make them more transparent, accessible and interoperable. We believe that the next phase of real-world asset growth will be driven by real economic activity, and renewable energy and trade finance are early and powerful indicators in this direction.

Q7. Collaboration with projects such as dForce, Dow Protocol and Byzanlink shows that Conflux is building a broader ecosystem around real-world assets. What qualities do you value in your partners?

Building the right ecosystem around real-world assets requires choosing partners who can solve actual bottlenecks in the real-world asset value chain, rather than just adding another application to existing infrastructure. This is the standard we adhere to when evaluating partners. Deep field expertise is crucial. Whether a partner's strength lies in asset issuance, DeFi, payment, custody or settlement, we value the true depth of its field. Equally important is a long-term commitment to compliance, transparency and sustainable growth, qualities that are uncompromising in an area where institutional trust is still being built. We also attach special importance to teams that can connect traditional finance and blockchain to connect real-world assets with on-chain liquidity in a way that is practical and acceptable to both parties. In the final analysis, our focus is on practical utility and long-term adoption, rather than short-term popularity. Our goal is to build an open, compliant and interoperable real-world asset ecosystem. This can only be achieved with partners who share this vision and are committed to long-term construction.

Q8. From your perspective, what are the biggest technical and regulatory challenges that need to be addressed before real-world assets can be scaled globally?

The biggest challenge between real-world assets and global scale is the infrastructure needed to connect traditional finance to blockchain, which must be reliable, compliant and trustworthy at the institutional level. On the technical side, the priority is to establish a solid connection between off-chain assets and their on-chain representatives, backed by reliable data, hosting solutions, and a sound legal structure. These problems are not insurmountable, and significant progress has been made. In many ways, technology is no longer the main bottleneck because most assets can already be tokenized in a meaningful sense. The more difficult challenge is regulation. Fragmentation between different jurisdictions remains a significant obstacle, with different markets applying different rules to digital assets and securities. What the industry needs now is a standardized legal, compliance and operational framework that allows organizations to trust and build confidently on it. The application of real-world assets around the world will ultimately depend on the parallel advancement of two things: greater coordination of cross-border regulation, and a trusted infrastructure that enables compliant cross-border issuance, trading and settlement. Both are indispensable, otherwise scale will still be out of reach.

Q9. How do you think the on-chain mortgage, lending and liquidity markets will evolve once more tangible assets are introduced into the chain?

The most significant change brought to on-chain lending and liquidity markets by the broader use of real-world assets is the diversification of the collateral base. Currently, on-chain lending is mainly limited to crypto-native assets, which limits its stability and scale. As more real-world assets such as government bonds, private credit, and gold are introduced, the lending market will expand significantly, creating the conditions for more stable borrowing rates, greater capital efficiency, and a wider range of financial products. We have seen early signs of this shift, as tokenized treasury bonds and gold are beginning to integrate into on-chain finance in meaningful ways. But this is only the beginning. As the collateral base matures, real-world assets will increasingly serve as a bridge between institutional capital and blockchain liquidity, bringing familiar and trustworthy assets onto the chain and making the ecosystem accessible and trustworthy to a wider range of participants. Our view is that the future of finance is mixed. Cryptographic native assets and real-world assets do not compete with each other, but coexist and reinforce each other in a more mature and resilient on-chain financial ecosystem. This is exactly what we are trying to achieve.

Q10. Before co-founding Conflux, you worked in investment, capital markets and business operations. How has this experience shaped your view of blockchain infrastructure?

There is a big misunderstanding about blockchain infrastructure. People call it Web3, but it was never meant to completely change the way the Internet works. Many narratives were invented about Socialfi, Gamefi, Metaverse and Depin, but these narratives ultimately turned out to be false or short-lived. In the end, it is closer to innovative financial technology than to the new Internet backbone. As the latest fintech infrastructure, it promotes capital flows through stablecoins, helping spread the U.S. dollar, U.S. Treasury bonds and U.S. stocks to a broader frontier with unprecedented breadth. I have worked in traditional finance and understand how capital markets are divided by national borders. After exploring the frontiers of the crypto ecosystem, I saw firsthand how blockchain unifies capital markets in the global cryptocurrency market in the form of stablecoins, DeFi and real-world assets. The nature of finance remains unchanged, but new financial technology has expanded its reach.

Q11. What will Conflux's success look like in real-world assets over the next 12 to 24 months?

Success over the next 12 to 24 months will not just be about getting more assets online, but about real-world economic activity through real-world assets, on a scale that is large enough to move the industry from isolated pilots to true institutional-level adoption. In practice, this means seeing real-world assets deeply integrated with stablecoins, lending markets, and on-chain liquidity. It also means strengthening the infrastructure that connects regulated financial markets with public blockchains, especially in Asia, where we see the greatest opportunity for meaningful applications in the short term. More broadly, our goal is to build a complete on-chain financial ecosystem that allows issuers, institutions, developers and end users to participate with confidence. That is what we are trying to achieve.

Q12. Finally, when you're not working on blockchain infrastructure, your interests include sci-fi, gaming, and skiing. Do these hobbies influence your perception of innovation, risk-taking, or long-term vision? [TAG

My hobbies naturally reflect my curiosity about the world, courage and diverse life experiences. By reading books that depict a possible future, I am more open to embracing the changing environment. By engaging in extreme sports, I have increased my tolerance for the higher risks of exploring activities that humans can withstand. By trying different games, I met people from all over the world and learned their stories. Reading allows you to learn from history and helps you backtrack how to plan a long-term trajectory. Playing games and sports allows you to pause for a while and think deeply and calmly so that you don't stray from the main path.