Consensus Hong Kong 2026 felt less like a crypto conference and more like ground zero for the RWA war, where real-world asset tokenization took center stage. Gone were the glossy pitch decks of yesteryear; in their place, heated debates over architecture, regulation, and whether tokenization actually delivers on its promises. Stablecoins emerged as the undisputed champions of this space, blurring lines between fiat-pegged tokens and tokenized treasuries or gold.
Panelists from GSR, Paxos, and others hammered home that the RWA war isn’t about hype anymore—it’s about who controls the pipes of tokenized finance. Asia, particularly Hong Kong, positioned itself as the epicenter, with firms like Ondo and Securitize duking it out over permissioned versus permissionless models. As RWA tokens gain traction in 2026, the real fight is over speed, settlement, and who gets to settle scores first.
This shift signals a maturing market, but one riddled with friction points that no amount of on-chain magic can fully erase. From physical asset headaches to regulatory jockeying, here’s the unvarnished breakdown of what went down.
Stablecoins Claim Victory in the RWA War
The most unanimous takeaway from Consensus Hong Kong was that stablecoins aren’t just participating in the RWA war—they’re winning it outright. Speakers across main stages and side events declared USDT the most successful RWA to date, with CJ Fong of GSR pointing to its dominance as proof that tokenization’s future lies in scalable, everyday assets. This consensus marks a pivot from speculative narratives to pragmatic acknowledgment of what’s already working at scale.
Paxos Labs co-founder Chunda McCain highlighted surging demand for PAXG, their gold-backed token, as evidence of stablecoins evolving beyond dollar pegs into commodities and treasuries. With regulatory nods in Singapore, Finland, and Abu Dhabi, Paxos is betting on a multi-jurisdictional future where stablecoins and RWAs fully converge. Brian Mehler of Stable echoed this, showcasing their USDT Zero system that strips out gas fees for near-perfect transfers—send 100 USDT, receive 99.999.
The broader implication cuts through the noise: as stablecoins load up on T-bills, gold, and structured products while RWA platforms settle in USDC, the distinction between the two is dissolving into a unified tokenized finance layer. This merger challenges the very framing of RWAs as a novel sector.
Regulatory Foundations for Stablecoin Dominance
Paxos’s strategy exemplifies how regulation is fueling this takeover. Securing a conditional OCC license in December, the firm is navigating a patchwork of approvals to enable seamless cross-border operations. McCain noted that this isn’t just compliance theater—it’s a deliberate play to back expansion into high-demand markets like Asia, where tokenized gold is seeing real uptake amid volatile fiat currencies.
Mehler’s infrastructure pitch at the Stablecoin Odyssey side event drew parallels to Swift, emphasizing user invisibility to the blockchain. Businesses processing thousands of daily transactions can’t afford Ethereum’s gas volatility, as seen in recent selloffs that doubled costs. Stable’s fixed-fee model addresses this pain point head-on, making stablecoins viable for enterprise-scale RWAs. Yet, skeptics question if this efficiency comes at the cost of true decentralization.
In a market obsessed with yields, this convergence positions stablecoins as the RWA gateway drug. Investors dipping toes into tokenization via USDT or USDC find themselves collateralizing treasuries overnight, a fluidity traditional finance envies.
Challenges in Expanding Beyond Dollars
While dollar-pegged stablecoins lead, commodity-backed ones like PAXG face scaling hurdles. McCain admitted Paxos is pouring resources into vault infrastructure in London to meet demand, underscoring that tokenization doesn’t magically solve logistics. Gold bars don’t teleport on-chain; they require audited custody, which introduces friction even for a firm with Paxos’s pedigree.
This expansion tests the RWA war‘s limits. As panels noted, blending stablecoins with RWAs amplifies liquidity but risks regulatory whiplash, especially with ongoing US debates over stablecoin bills. Asia’s clearer paths are drawing pioneers, but global harmonization remains a pipe dream.
The Architecture Clash in the RWA War
Permissioned versus permissionless emerged as the sharpest fault line in the RWA war, pitting institutional compliance against DeFi’s wild freedom. At the ‘Tokenizing the Planet’ mainstage, Securitize and Ondo laid bare their opposing blueprints, revealing how architecture dictates everything from investor protection to market reach. This isn’t abstract theory—it’s billions in AUM hanging in the balance.
Graham Ferguson of Securitize pushed native issuance under permissioned rails, arguing wrappers dilute asset-investor links and erode safeguards. Ondo’s Min Lin countered with permissionless wrappers for DeFi composability, eyeing Asia’s vast untapped pools. Hybrids are already blurring lines, as Conflux demonstrated with renewable energy assets wrapped for DeFi distribution.
The debate underscores a deeper tension: does tokenization prioritize safety or speed to market? With BlackRock’s BUIDL hitting $1B, permissioned models boast proof points, but permissionless appeals to those betting on composability’s network effects.
Securitize’s Permissioned Playbook
Ferguson hammered wrappers’ weaknesses, citing distance from underlying assets as a protection gap. Securitize’s direct on-chain issuance embeds compliance from the start, a model validated by institutional heavyweights. Plans for DeFi tie-ups without abandoning rails show evolution, not dogma.
In follow-up remarks, Ferguson questioned wrapper viability for retail protection, especially amid rising hacks like the recent Swapnet exploit. Securitize prioritizes jurisdictions with clarity, mirroring Asia’s regulatory edge over the US’s chaos.
Ondo’s Permissionless Push
Lin’s vision leverages wrappers for rapid DeFi integration, stripping gatekeepers to reach Asian investors. Ondo’s expansions into Hong Kong, Singapore, and Japan capitalize on this agility. Composability means tokenized assets flow instantly into lending or yield farms—impossible off-chain.
Critics like Ferguson see risks, but Ondo views them as innovation’s price. This approach aligns with 2026 trends where RWA tokens to watch thrive on liquidity, not ledgers alone.
Hybrid Models Breaking the Binary
Conflux CSO Forgiven showcased a live hybrid: regulated renewable assets permissionlessly distributed via DeFi. This fuses oversight with accessibility, dodging pure camps’ pitfalls. It’s messy, but functional—a sign the RWA war favors pragmatists.
Settlement Speed as the RWA War’s Secret Weapon
No argument won more airtime than tokenization’s speed supremacy, positioning it as the RWA war‘s killer app over mere access or transparency. Panels hammered that instant settlement trumps T+0, with Conflux citing USDC deposits confirmed immediately and redemptions in under an hour. This isn’t hype—it’s a structural edge traditional finance can’t match.
Composability amplifies it: buy an asset, collateralize it instantly. Stable’s Mehler spotlighted gas volatility’s toll during selloffs, like those analyzed in why crypto market down today. Fixed-cost transfers make RWAs enterprise-ready.
Yet speed alone doesn’t conquer; it must pair with reliability amid quantum threats and quantum computing risks to Bitcoin.
Benchmarks and Real-World Gains
Forgiven’s Conflux example set the bar: faster than T+0, enabling daily liquidity cycles. Panels noted TradFi’s multi-day settlements stifle efficiency; on-chain fixes this natively.
Mehler’s USDT Zero eliminates variables, crucial for high-volume ops. Businesses hit by ETH spikes during downturns now have alternatives, bridging theory to practice.
Composability’s Compounding Effect
Tokenized assets as instant collateral unlocks yield loops TradFi dreams of. Multiple voices stressed this as tokenization’s moat, especially for USDC vs USDT shifts.
Physical Assets Test the RWA War’s Limits
Physical RWAs exposed tokenization’s gritty underbelly, where narrative slams into logistics. HashKey’s precious metals session dissected silver’s woes: warehouses, transport, US-China restrictions persist post-minting. Treasuries settle ledger-fast; metals demand physical proof.
PAXG proves scale possible, but McCain flagged resource strains. Asia’s gravity pulls focus, with firms like Conflux tailoring for Hong Kong.
This friction sorts winners: financial RWAs sprint ahead, physical ones crawl toward infrastructure.
Logistics of Precious Metals
Ronald Tan detailed silver’s chain: costs, geopolitics unchanged by tokens. Verification and custody remain hurdles, unlike digital-native assets.
Paxos invests heavily in London vaults, meeting demand but highlighting non-trivial ops.
Bridging Financial and Physical
Hybrids hint at paths forward, but gaps persist. As crypto thefts underscore risks, physical RWAs demand ironclad custody.
Asia’s Pivotal Role in the RWA War
Hong Kong anchored the RWA war, with Ondo, Securitize, and Paxos targeting its clarity alongside Singapore and Japan. Conflux’s real-name renewables for HK underscore China’s selective entry. US battles over Clarity Act lag, per Scaramucci.
Asia builds precedents while West deliberates, shifting gravity eastward.
Regulatory Magnetism
Paxos’s MAS license exemplifies appeal. Firms chase clarity, eyeing HK’s positioning via HashKey.
China’s Calculated Plays
Forgiven’s Conflux stands out, productizing for HK amid shadows.
What’s Next
The RWA war has evolved beyond ‘if’ to ‘how,’ splintering by asset, jurisdiction, model. Stablecoin-RWA fusion may collapse categories by 2026’s end, as K-shaped markets favor liquidity kings. Watch Asia for breakthroughs, but brace for physical frictions and architecture showdowns. Tokenization wins on speed, yet control remains contested terrain.
Investors should eye hybrids and stablecoin yields, while builders pick sides wisely. The real stakes? Who owns tokenized finance’s rails.
