FTFT Announces the Official Establishment of RWA Division

Rhea-AI Summary

Future FinTech (NASDAQ: FTFT) has announced the establishment of its Real-World Asset Tokenization Division (RWA Division), marking its entry into Web3.0 architecture integration. The division will focus on three key areas: exploring technical paths for stablecoin issuance and asset tokenization, pursuing regulatory compliance licenses, and managing the company's digital asset initiatives.

The company has appointed Kai Xu as President and Jia Chen as Vice President of the RWA Division. The division plans to build technical infrastructure for stablecoin management and evaluate potential reserve assets including gold, Bitcoin, and U.S. Treasury bonds. Additionally, FTFT will pursue virtual asset-related licenses in Hong Kong, including a Virtual Asset Trading Platform License (VATP) and Type 9 asset management license.

Positive

• Strategic expansion into stablecoins and real-world asset tokenization markets
• Existing regulatory foundation with Hong Kong Type 1 and Type 4 licenses
• Planned diversification of reserve assets including gold, Bitcoin, and U.S. Treasury bonds
• Appointment of experienced leadership team for the new division

Negative

• Regulatory approval process could face delays or rejections
• No immediate revenue generation from the new division
• Significant regulatory compliance costs and requirements ahead
• Entering a highly competitive stablecoin market

Insights

Blockchain and Fintech Expert

FTFT's new RWA Division signals strategic expansion into tokenized assets and stablecoins, pending regulatory approvals.

Future FinTech's announcement of a dedicated Real-World Asset (RWA) Tokenization Division represents a significant strategic pivot toward blockchain-based financial products. The company is positioning itself at the intersection of traditional finance and Web3 technologies by exploring stablecoin issuance and asset tokenization - two high-growth segments within the digital asset ecosystem.

The division has a three-pronged approach: exploring technical frameworks for tokenization, pursuing necessary regulatory compliance, and establishing proper licensing. This methodical strategy acknowledges the complex regulatory landscape surrounding digital assets, particularly stablecoins, which face increasing scrutiny following market instabilities in recent years.

Management's decision to appoint Kai Xu to lead this division leverages his existing blockchain expertise within the company, while Jia Chen's focus on Hong Kong regulatory compliance indicates a multi-jurisdictional strategy. The Hong Kong angle is particularly noteworthy as the region has been developing a regulatory framework more accommodating to digital assets than many other financial centers.

The company's plans to explore various reserve assets including gold, Bitcoin, and U.S. Treasury bonds for backing stablecoins signals a hybrid collateralization model. This approach could potentially differentiate FTFT's offerings in the increasingly competitive stablecoin market, which has been dominated by a few major players.

While the initiative shows strategic foresight, investors should recognize that successful implementation faces significant hurdles. Regulatory approval for stablecoin issuance remains challenging in many jurisdictions, and the technical infrastructure required for secure tokenization is substantial. The timeline for regulatory approvals and actual product launches remains undefined, suggesting this is an early-stage initiative with considerable execution risk.

NEW YORK, Aug. 4, 2025 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT), (hereinafter referred to as "Future FinTech", "FTFT" or the "Company") a leading comprehensive financial and digital technology service provider, announced today that its Board of Directors has authorized the establishment of the Company's Real-World Asset Tokenization Division (the "RWA Division"). The RWA Division was created to (i) explore the technical paths and compliance feasibility for the Company to issue stablecoins and tokenize its core assets, (ii) initiate applications to regulatory authorities for compliance licenses and regulatory filings related to the issuance and circulation of stablecoins, and (iii) apply for all necessary compliance licenses based on the nature of RWA assets. This move marks FTFT's official entry into a new stage of its integrated development of its RWA and stablecoins businesses under Web3.0 architecture.

Mr. Kai Xu, President of the Blockchain Division, has been appointed as President of the RWA Division, fully overseeing strategic planning and daily management of the division. Currently, the division will advance communications with U.S. regulatory authorities to apply for the relevant regulatory licenses for RWA and stablecoins, explore the feasibility of tokenizing the Company's core assets or assets to be acquired, and coordinate the Company's reserve crypto assets and digital asset trading business.

Ms. Jia Chen, Vice President of FTFT Securities, has been appointed Vice President of the RWA Division. She is mainly responsible for communicating with Hong Kong regulatory authorities and coordinating legal compliance, applying for additional virtual asset-related licenses on the basis of the original Hong Kong Type 1 and Type 4 licenses, applying for a Virtual Asset Trading Platform License (VATP), and applying for a Type 9 asset management license for both traditional and virtual asset management businesses.

Mr. Hu Li, CEO of FTFT, commented, "The Company's next major initiative is to build a robust technical architecture for stablecoins issuance and management, and evaluate potential underlying assets to be acquired such as gold, Bitcoin and U.S. Treasury bonds for use as reserves backing the Company's stablecoin and RWA issuance. At the same time, the Company will explore design options for assets pegged to each reserve type."

"Our new RWA Division will lead the FTFT team to design and implement the on-chain process of real-world assets as well as establish sound asset valuation, risk management and trading mechanisms. In addition, Professor Yu Xiong, our Chief Blockchain Advisor and highly regarded industry expert, will apply his experience and knowledge of the industry to assist FTFT in its engagement with regulatory agencies and strategic partners, and support the sustainable growth of our stablecoins and RWA businesses," concluded CEO Hu.

About Future Fintech Group Inc.

Future FinTech Group Inc. (NASDAQ: FTFT) is a comprehensive financial and digital technology service provider. The Company, through its subsidiaries, conducts brokerage and investment banking services in Hong Kong, and engages in supply chain trading and finance businesses in China and efficient digital financial services. For more information, please visit www.ftft.com.

Safe Harbor Statement

Certain statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements regarding our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties, and other factors that may be beyond our control, which may cause the actual results, performance, capital, ownership, or achievements of the Company to be materially different from those implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements by our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions relating to the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, the risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2024 and our other reports and filings with the SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise, or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements are otherwise made.

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SOURCE Future FinTech Group Inc.

FAQ

What is FTFT's new RWA Division and what will it do?

FTFT's new Real-World Asset Tokenization Division will focus on issuing stablecoins, tokenizing core assets, and obtaining regulatory compliance licenses for digital asset operations under Web3.0 architecture.

Who will lead FTFT's new RWA Division?

Kai Xu has been appointed as President of the RWA Division, while Jia Chen will serve as Vice President, focusing on Hong Kong regulatory matters.

What types of assets will FTFT use as stablecoin reserves?

FTFT plans to evaluate gold, Bitcoin, and U.S. Treasury bonds as potential underlying assets for their stablecoin reserves.

What regulatory licenses is FTFT pursuing for its RWA Division?

FTFT is pursuing stablecoin compliance licenses in the U.S. and additional virtual asset-related licenses in Hong Kong, including a Virtual Asset Trading Platform License (VATP) and Type 9 asset management license.

How does the RWA Division fit into FTFT's business strategy?

The RWA Division represents FTFT's strategic entry into Web3.0 architecture integration, focusing on stablecoins and real-world asset tokenization to expand their digital financial services offering.