In collaboration with Arbitrum, Fireblocks and StraitsX
By 2030, Boston Consulting Group estimates that $16 trillion in assets could be tokenized—yet most institutions still can’t integrate a single on-chain asset into their 411.0workflows. This gap between what’s possible and what’s practiced is widening fast. Stablecoins may be the bridge, and regulated tokenized RWAs the cargo they carry across it.
That was the central tension explored in DigiFT Academy’s latest webinar, where our Hong Kong CEO Kevin Loo convened a panel from Arbitrum, Fireblocks, StraitsX, and DigiFT. We cut through hype to answer one question: How do we move from stablecoins as a “peg” to stablecoins as programmable, yield-bearing building blocks of the new financial internet?
From Books to Blockchains: Why RWAs Start Simple
Henry Zhang, Founder & Group CEO of DigiFT, likens today’s RWA market to the early days of e-commerce. Just as Amazon began with a simple, standard product—books—tokenization is starting with simple, standard assets like U.S. Treasuries and money market funds. These are trusted, easy to understand, and compatible with current infrastructure.
Over time, the market will evolve toward more complex assets—private credit, equities, commodities—with billions in AUM already tokenized. The beauty of tokenization, Henry argues, is that it can represent “anything of value”, creating an “open architecture” where both Web2 institutions and Web3 builders can transact with the same primitives.
Why Stablecoins Are Becoming DeFi’s Base Layer
In both retail and institutional markets, stablecoins are moving from passive stores of value to active engines of liquidity. They’re enabling:
- Instant settlement without correspondent banking delays
- Cross-border transfers at lower cost than SWIFT
- Integration into yield-bearing DeFi strategies
In Hong Kong, the Monetary Authority’s proposed stablecoin licensing regime is set to give regulated issuers a clear compliance edge. Globally, players like PayPal (PYUSD) and Circle are making strategic pushes into merchant settlement and cross-border B2B payments, expanding real-world usage.
Layer 2s, Compliance, and the Dual-Track Playbook
Arbitrum has grown its RWA TVL from $10M to $350M in under a year—spanning Treasuries, private credit, and even tokenized gold. The secret? Combining public-chain liquidity with permissioned environments that meet institutional compliance needs.
Ryan De Souza, Head of APAC Partnerships at Offchain Labs, cites Robinhood’s tokenized equities rollout as a case study:
- Start on Arbitrum’s public chain to access liquidity
- Move to a self-hosted “Robinhood Chain” for full compliance control and economics
- Maintain connectivity to DeFi protocols for rehypothecation and secondary liquidity
This dual-track model mirrors J.P. Morgan’s Onyx and Avalanche Evergreen Subnets—mixing open-network reach with institution-specific rule sets.
Custody and Trust: The Non-Negotiables
As RWAs and stablecoins move into institutional portfolios, secure custody becomes mission-critical. Fireblocks, originally built for high-frequency crypto traders, now supports retail fintechs, banks, and corporates integrating stablecoins into treasury operations.
Regulators sharpened scrutiny after Prime Trust’s 2023 receivership, underscoring the importance of segregation of client assets and robust custodial frameworks. The Bank for International Settlements likewise warns that without strong settlement infrastructure and asset segregation, tokenization’s promise could be undermined before it scales.
The Web2.5 Opportunity
The real unlock, as Kevin Loo framed it, is dual fluency:
- Web2 institutions: Add yield and new products within compliant frameworks—without ripping out existing rails.
- Web3 builders: Plug institutional-grade RWAs into DeFi for stable collateral and new strategy design space.
Instead of being limited to merely powering payment rails, stablecoins are set to become the go-to reserve asset for strategies that blend crypto-native innovation with institutional-grade safety. Key takeaways:
- RWAs will follow the Amazon path — Start simple, scale as infrastructure matures.
- Stablecoins are becoming DeFi’s base layer — Growing regulated use in payments and B2B flows (PayPal, Circle).
- Layer 2 + compliance = scale — Public liquidity + permissioned control (J.P. Morgan Onyx, Avalanche Evergreen).
- Custody and trust remain non-negotiable — Regulatory actions (Prime Trust) and BIS guidance.
- Winners are bilingual — Fluent in Web2 compliance and Web3 composability.
If you found this article helpful, watch the full DigiFT Academy episode on YouTube or listen to the podcast.
Disclosure: This article incorporates insights from the DigiFT Academy webinar, The Future of Stablecoin Utility: From Payments to Yield, featuring Kevin Loo (DigiFT), Henry Zhang (DigiFT), Ryan de Souza (Offchain Labs / Arbitrum), Amy Zhang (Fireblocks), and Tianwei Liu (StraitsX). Quotes have been edited for clarity and length. External market data and case studies are linked to original sources.
Disclaimer: DigiFT and/or its affiliates endeavor to ensure the accuracy and reliability of the information provided, but do not guarantee its accuracy and reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracy or omission or from any decision, action or non-action based on or in reliance upon information contained on this article. This is not an advertisement making an offer or calling attention to an offer or intended offer. Before making any investment decision, please seek independent legal and financial advice. The information and materials presented are intended solely for Accredited Investors and Institutional Investors within the meaning of the Securities and Futures Act 2001 of Singapore. They are not intended for, and should not be relied upon by, persons who are not such investors. DigiFT accepts no legal responsibility for any reliance placed by other investors for whom this content is not intended.
