Blue Hat Teams Up with Axis Capital Group to Pioneer Innovation in Gold RWA

Rhea-AI Summary

Blue Hat (NASDAQ: BHAT) and Axis Capital Group have signed a strategic cooperation agreement in Hong Kong to develop the world's first gold RWA tokenization project. This initiative aims to digitize gold assets through blockchain technology, enabling fractional ownership and easier trading.

The partnership leverages BHAT's gold industry expertise and Axis Capital's financial services experience (SFC Code: AGB 171). The project focuses on three key areas: deep technological integration ensuring tokens are backed by real gold, optimized liquidity solutions through global exchange partnerships, and strict regulatory compliance.

Industry data shows over $13 billion worth of real assets were tokenized globally by end-2024, with Paxos Gold (PAXG) experiencing 20% market growth that year. The initiative promises enhanced liquidity, lower investment thresholds, improved transparency through blockchain, and automated asset management via smart contracts.

Positive

• Strategic partnership with licensed financial firm Axis Capital Group (SFC Code: AGB 171)
• Entry into growing RWA tokenization market ($13B+ global market size)
• Potential for new revenue stream through gold asset tokenization
• Access to broader investor base through fractional ownership model

Negative

• Early-stage project with no immediate revenue impact
• Regulatory uncertainties in digital asset space
• Competitive market with established players like Paxos Gold

HONG KONG, March 14, 2025 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT) and Axis Capital Group officially signed a strategic cooperation agreement in Hong Kong to jointly develop the world’s first gold RWA (Real World Assets) tokenization project. This collaboration marks another milestone in the deep integration of the traditional gold industry and blockchain technology, signaling a transformative shift in the liquidity, transparency, and accessibility of gold investments.

RWA Tokenization: Reshaping the Landscape of Gold Investment

RWA tokenization refers to the process of digitizing real-world assets (such as real estate, gold, and bonds) through blockchain technology, enabling them to be freely traded on-chain. These tokens not only represent asset ownership but also carry the associated income rights. By enhancing liquidity and significantly reducing transaction costs, RWA tokenization attracts a more diverse group of investors.

In recent years, RWA tokenization has emerged as a significant trend in global financial markets. Industry data shows that by the end of 2024, more than $13 billion worth of real assets had been tokenized worldwide, spanning real estate, gold, and bonds. Particularly in the gold sector, demand for tokenized gold continues to rise. Notably, Paxos Gold (PAXG) saw over 20% market growth in 2024, reflecting the increasing adoption of tokenized gold products.

Multiple Advantages of Gold RWA Tokenization

1. Enhanced Liquidity: Traditional gold assets have relatively limited liquidity, but tokenization enables more efficient global trading. Investors can buy and sell gold tokens at any time without reliance on traditional financial institutions.
2. Inclusive Finance: Gold RWA tokenization fractionalizes high-value gold assets into smaller token units, significantly lowering investment thresholds and allowing more small and medium investors to participate, truly promoting financial inclusivity.
3. Transparency and Trust: The transparency and immutability of blockchain technology ensure the authenticity and reliability of gold asset information, while transaction records remain fully traceable. Investors can access real-time data on tokenized assets and their returns.
4. Smart Asset Management: By leveraging smart contracts, gold RWA tokenization enables automated distribution of returns, reducing human intervention and operational costs while significantly improving asset management efficiency.

A Strong Alliance Between BHAT and Axis Capital Group

As a Nasdaq-listed company, BHAT is deeply engaged in the gold industry. Axis Capital Group, headquartered in Hong Kong, is a licensed financial services firm recognized by the Hong Kong Securities and Futures Commission (SFC Code: AGB 171). With over 20 years of experience in fund management, investment advisory, and financial consulting, Axis Capital has exceptional expertise, particularly in private wealth management and asset inheritance for high-net-worth clients.

Through this collaboration, both parties will leverage their strengths to drive the successful implementation of the gold RWA tokenization project:

1. Deep Technological Integration: The two companies will utilize blockchain technology to digitize gold assets, ensuring that each token is backed by real, fully reserved gold assets.
2. Optimized Liquidity Solutions: Axis Capital Group will leverage its extensive financial market resources and collaborate with leading global exchanges to ensure the liquidity of gold tokens, attracting more investors.
3. Rigorous Compliance: Both parties will strictly adhere to regulatory requirements across jurisdictions, ensuring the project’s legality and security, providing investors with a reliable investment environment.
   

Looking Ahead

Blue Hat CEO, Mr. Chen Xiaodong, stated:

"Gold RWA tokenization is an innovative attempt to merge traditional gold businesses with blockchain technology. We believe that this project will inject new vitality into the gold market while offering global investors a more flexible and efficient investment approach."

The head of Axis Capital Group added:

"RWA tokenization is not only the result of technological advancement but also a crucial step in integrating traditional finance with the blockchain ecosystem. Through our partnership with BHAT, we aim to set an industry benchmark for the digital transformation of gold assets."

As RWA tokenization technology matures and gains broader market acceptance, the gold RWA tokenization project is poised to become a breakthrough in global financial markets. This initiative will not only create more value for investors but also reshape the future of the gold industry in profound ways.

About Blue Hat

Blue Hat was formerly a provider of communication services, as well as a producer, developer, and operator of AR interactive entertainment games, toys, and educational materials in China. Leveraging years of technological accumulation and unique patented technology, Blue Hat is expanding its business to commodity trading, aiming to become a leading intelligent commodity trader worldwide. For more information, please visit the Company’s investor relations website at http://ir.bluehatgroup.com. The Company routinely provides important information on its website.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements.

Legal Disclaimer

The tokenized gold assets described in this release have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities.

The development of blockchain-based tokens is subject to significant regulatory uncertainty across various jurisdictions. Before implementation, Blue Hat will seek appropriate regulatory guidance and ensure compliance with all applicable securities laws and regulations, including potential registration requirements with the SEC and/or FINRA.

Contacts:

Blue Hat Interactive Entertainment Technology

Phone: +86 (592) 228-0010

Email: ir@bluehatgroup.net

FAQ

What is the purpose of BHAT's gold RWA tokenization project with Axis Capital?

The project aims to digitize gold assets through blockchain technology, enabling fractional ownership, improved liquidity, and easier trading of gold investments.

How much was the total value of tokenized real assets globally by end-2024?

Over $13 billion worth of real assets were tokenized worldwide by the end of 2024, including real estate, gold, and bonds.

What growth did Paxos Gold (PAXG) achieve in 2024?

Paxos Gold experienced over 20% market growth in 2024, indicating increasing adoption of tokenized gold products.

What are the key benefits of BHAT's gold RWA tokenization project?

The project offers enhanced liquidity, lower investment thresholds, improved transparency through blockchain, and automated asset management via smart contracts.

How will BHAT and Axis Capital ensure the security of tokenized gold assets?

They will implement full gold asset backing, strict regulatory compliance, and blockchain technology for transparency and traceability.