Four Pillars, a crypto research firm, published a report that the global financial system is rapidly moving on-chain, and that real-world asset (RWA) tokenization is emerging as the new foundation of global finance.
These insights were published in the new report “On-Chain Financial Infrastructure: How RWAs and Stablecoins Are Reshaping the Financial Order,” jointly released by Four Pillars, Hashed Open Research, Shinhan Securities, and Bae Kim and Lee LLC. The report warns that if Korea delays institutional and regulatory development in the RWA sector, it risks becoming a follower - not a builder - of tomorrow’s financial system.
Global Finance Is Entering the RWA Era
The report analyzes how the tokenization of government bonds, real estate, consumer credit, and intellectual property is restructuring the global financial landscape. Core financial functions - payments, settlement, deposits, lending, derivatives, and asset management - are now increasingly being implemented on-chain.
The authors highlight that global financial institutions are driving this transition. BlackRock’s tokenized U.S. Treasury money market fund BUIDL reached $2.9 billion AUM as of October 2024, while Franklin Templeton continues to expand its on-chain Treasury fund via the BENJI token.
Major institutions including JP Morgan, PayPal, and Stripe are also accelerating their adoption of tokenized assets, stablecoins, and on-chain settlement infrastructure. “The RWA market has already moved beyond experimentation and is entering the institutional adoption phase,” the report states. “RWAs are not optional, they are becoming unavoidable infrastructure in the future of finance.”
Korea Risks Falling Behind
In contrast, the report notes that Korea remains at the starting line. Although STO (security token offering) regulation is under development, the domestic market is limited to a handful of small-scale fractional investment products, and private blockchains which stands far behind the scale of global institutional activity.
The report also warns that Korea lacks a KRW stablecoin, the critical settlement layer for future RWA markets. Without it, the country could become dependent on dollar-based settlement rails, especially as RWA usage expands. This, the authors argue, could lead to reduced won utility and heightened reliance on foreign currency settlement systems—ultimately weakening Korea’s financial sovereignty.
The authors caution that as long as RWA continues to be viewed merely as a “regulatory risk,” rather than a national growth driver, Korea will struggle to keep pace with global developments.
Policy Recommendations for Korea to Become a Global RWA Leader
To position Korea as a major player in the RWA-driven financial system, the report recommends the following priority actions:
- Introduce and regulate a KRW stablecoin as the foundational on-chain settlement asset
- Establish a regulatory and issuance framework for RWAs, including standards for distribution and market infrastructure
- Build institutional-grade infrastructure such as custody, trust, ETFs, and compliant asset-management pipelines
- Develop risk-management standards for smart contracts, collateral, market surveillance, accounting, and auditing
The report underscores that a KRW stablecoin is essential for Korean financial institutions to participate in on-chain markets without relying on foreign stablecoins.
To enable institutional participation, the report stresses the need for legal clarity in trust, custody, safekeeping, and asset-handling procedures, as well as the establishment of ETF and custody frameworks suitable for institutional investors. Clear guidelines for smart contract validation, collateral oversight, and financial reporting must also be implemented for regulated institutions to enter the market confidently.
“RWA Is Not a Product - It Is a New Financial Operating System”
Heechang Kang, Co-Founder/Strategy Lead at Four Pillars emphasized the strategic importance of coordinated national action.
“RWA is not just another financial product - it is a new operating system for global finance,” the spokesperson said. “To ensure Korea becomes a designer, not a follower, of the future financial order, the government, regulators, and industry must build a unified public and private execution framework without delay.”
The report was jointly authored by Heechang Kang (Strategy Lead, Four Pillars), Jinsol Bok (Research Lead, Four Pillars), Minsu Lim (Researcher, HOR), Attorney Hyobong Kim (Partner, Bae Kim and Lee LLC), and Shinhan Securities Senior Analysts Soohyun Jeong and Jesuk Hong.