At Finternet 2025 – Asia Digital Finance Summit in Hong Kong, Lily Z. King, Chief Operating Officer of Cobo, joined a packed panel to discuss one of the industry’s most talked-about topics: real-world asset (RWA) tokenization and how to move it from hype to real adoption.

Moderated by Benjamin Zhai (CEO, Robo AI), the session gathered voices from across the ecosystem: Rocky Mui (Clifford Chance), Henry Zhang (DigiFT), Robert Lui (Deloitte China), Sheng Chen Qian (Polygon Labs), and Lily Z. King (Cobo). Together, they explored how institutions can bring real-world value on-chain without losing the structure and security that traditional finance depends on.

Building the Plumbing for Tokenization

When the discussion turned to infrastructure, Lily explained what it really takes to be ready for institutional-scale tokenization.

“There are three core layers institutions need to understand before entering this space,” she said. “At the bottom is your blockchain environment. You decide whether to build on a private or public chain, EVM, Solana, Layer 2, or cross-chain. In the middle is the tokenization layer, the heavy lifting part. That’s where custody, smart contract deployment, and lifecycle management happen. And the top layer connects everything to the real world through compliant legal and ownership structures.”

At Cobo, this architecture is already in practice. Our tokenization platform supports EVM-compatible and Solana chains, and can handle cross-chain issuance and swapping.

But technology alone is not enough.

“Most RWA issuers come from a traditional finance background. They’re not used to managing wallets or private keys,” she said. “Meanwhile, many crypto-native infrastructures are too technical. We need wallet UIs to feel like online banking — simple, intuitive, with role-based permissions and dual approvals. And one mindset shift we remind every issuer of: no private key means no ownership.”

It was a moment that resonated across the room. For all the progress in tokenization, usability and security still determine whether institutions truly adopt it.

When Regulators Get It Right

If there was one topic that united the panel, it was regulation and how to innovate responsibly within it.

Polygon Labs’ Sheng Chen Qian praised projects such as Project Ensemble and Project Guardian for creating a safe space where regulators and industry can experiment together. Regulators in Hong Kong and Singapore, he said, have shown that collaboration can go hand in hand with innovation.

Lily agreed, but with a pragmatic note.

“It’s never the regulator’s job to push innovation,” she said. “But regulators here are smart. They’re starting from institution-to-institution innovation, not retail. That’s a smart move for both governments.”

It reflects Cobo’s own philosophy: build within the rules, not around them.

From Pilot Projects to Real Production

When asked about lessons from early RWA pilots, Lily shared both enthusiasm and caution.

“The response has been not only positive, but extremely positive,” she said. “The market is hungry for new narratives. RWA is becoming the bridge between the old and new economy, but rushing in without structure is risky.”

She outlined what separates a proof-of-concept from a real, scalable product:

1. Clear rules – “If the rules of the game are fuzzy, no institution wants to play.”

2. Smooth on and off ramps – “People need to move in and out easily. That’s what makes markets.”

3. Programmable custody – “Security and flexibility should coexist.”

4. Partnerships – “Technology alone won’t bring users. You need the right go-to-market strategy.”

Her closing line summed it up:

“It’s time to move from demo day to IPO day.”

Liquidity, Access, and Interoperability

Other panelists built on Lily’s points.Henry Zhang from DigiFT noted that tokenization does not change the risk or return of an asset — “a 4% T-bill is still a 4% T-bill” — but it does make assets more accessible and liquid.

Rocky Mui and Robert Lui stressed the need for legal clarity and credible valuations. Without those, even the most advanced tokenization technology cannot gain institutional trust.

Sheng from Polygon highlighted interoperability and common standards as the next step for enabling tokenized assets to move freely across platforms instead of staying in isolated silos.

Together, these views painted a picture of an industry that is ready to scale but still refining its foundations.

No Shortcuts in Web3

As the panel wrapped up, Lily offered a closing thought that captured both her outlook and Cobo’s ethos:

“Every new Web3 player has to find their own market-product fit. That’s the key to Web3. There’s no shortcut.”

For Cobo, that means focusing on what institutions actually need: security, compliance, interoperability, and a user experience that feels as simple as banking but runs on Web3.

The bridge between the old and new economy is already being built. Cobo is making sure it stands on solid ground.