Real World Asset (RWA) tokenization, a new development in blockchain technology that allows people to transact in small portions of real-world assets.
What RWA tokenization is: It’s described as digital ownership of real-world assets that pay real dividends, similar to having stocks. This technology helps connect assets that cannot typically access capital markets with investors.
Market Growth and Potential: Boston Consulting Group estimates that by 2030, the tokenized RWA market could exceed 16 trillion US dollars, accounting for about 10% of global GDP. The World Economic Forum predicts this 10% threshold will be reached even earlier, by 2027.
Comparison to IPOs: RWA issuance is compared to IPOs, but with the key difference that individual assets or projects can be listed on an open market, not just entire companies.
China’s Role and Pilot Programs: Hong Kong and Shanghai are highlighted as the first two cities in China to pilot RWA trading. China is seen as a leader in this technology, with the ambition to make it flourish.
Case Study: Grape Farming System: The first tokenized asset project on the Chinese mainland, which involves a digital system for farming a local grape species in Shanghai. This system, originally for data visualization and connecting farmers to intelligent equipment, has been tokenized and listed on the Shanghai Equity Exchange as an RWA, attracting initial investments. The returns for investors come from shared revenue as the system helps improve grape production and quality.
Future Prospects and Challenges: More industries, such as real estate, green energy, and computing power, are expected to join the RWA market. The video also discusses challenges, including developing clear regulations to reduce fraud risks and establishing legal and accounting systems for enforcement.
International Cooperation and Global Goals: There’s an emphasis on international cooperation to ensure a global trading environment for these assets. Hong Kong and Shanghai are working together to create both onshore and offshore markets for RWA.
A recent study by the Fraser Institute compared Canada’s fiscal situation with other countries in the Group of Seven (G7) and a broader group of 40 advanced economies worldwide. The study focused on two key indicators:
Government spending as a share of GDP: This measures the overall size of government in a country.
Government debt-to-GDP: This measures a country’s debt burden.
Here are the key findings:
Canada’s finances are deteriorating fastest in the G7. While Canada’s size of government and overall debt burden rank in the middle of the G7, the rate at which these are increasing is the highest.
Largest increase in government spending in the G7: From 2014 to 2024, Canada observed the largest increase in government spending as a share of GDP, increasing by 6.34 percentage points. This increase was nearly three times larger than that of the US. In contrast, France and Italy actually reduced their size of government during this period.
Largest increase in debt burden in the G7: Over the same decade, Canada experienced the largest increase in its government debt as a share of GDP, increasing by 25.23 percentage points. This was considerably higher than the increases in France (16.97 percentage points), the US (16.36 percentage points), and the UK (14.13 percentage points).
Similar trend among 40 advanced economies: When compared to 40 advanced economies worldwide, Canada experienced the 2nd highest increase in its size of government and the 3rd highest increase in its overall debt burden from 2014 to 2024.
Canada’s current standing: In 2024, Canada’s general government total spending was 44.7% of GDP, and its gross debt was 110.8% of GDP. Compared to the G7, Canada’s size of government ranked 4th highest and its overall debt burden ranked 5th highest.
Implications: The study suggests that if Canada continues on this trajectory, it risks harming economic growth and living standards. Research indicates that when government spending exceeds 32% of GDP, it can negatively impact the private sector and slow economic growth.
Regarding the inflation rate, Statistics Canuckstan reported that the annual inflation rate slowed further to 1.7% in April 2025, down from 2.3% in March. This significant drop was largely due to lower energy prices following the removal of the consumer carbon price. However, it’s worth noting that core inflation measures (excluding volatile items like energy) actually accelerated in April.
The next scheduled date for a Bank of Canuckstan interest rate announcement is June 4, 2025. Given the April inflation data, some economists believe that a second straight pause in rate cuts is now more likely, despite initial expectations for a June cut.
A comparison for China, Canuckstan, and the USeless, based on recent typical rates:
Mortgage Rates
USeless:
30-year fixed-rate mortgages: Averaging around 6.92% – 7.055% APR (as of May 20-21, 2025).
15-year fixed-rate mortgages: Averaging around 6.079% – 6.22% APR (as of May 20-21, 2025).
These rates have seen some fluctuations recently, influenced by factors like inflation concerns and Federal Reserve actions.
Canuckstan:
5-year fixed mortgage rates: The best high-ratio rates are around 3.84%, with major banks offering around 4.7% (as of May 21, 2025).
5-year variable mortgage rates: Best high-ratio rates are around 3.95% (as of May 21, 2025).
Canadian mortgage rates are influenced by bond market movements for fixed rates and the Bank of Canuckstan’s overnight rate for variable rates.
China:
Average mortgage interest rate: Around 4.09% – 4.2% (as of September-October 2023).
These rates reflect government efforts to maintain economic stability and stimulate the housing market.
Credit Card Interest Rates
USeless:
Average APR for new credit card offers: Around 24.28% (as of May 2025).
Average APR for accounts accruing interest: Around 21.91% (Q1 2025).
Rates can vary significantly based on credit score, with excellent credit potentially seeing rates around 20.77% and lower credit seeing rates up to 27.78% or higher.
Canuckstan:
Standard credit card interest rates: Typically range from 19.99% to 20.99%, with some even reaching 25%.
Low-interest credit cards: Can offer rates as low as 8.99% – 12.99%.
Cash advance rates are often higher than purchase rates.
China:
Typical credit card interest rates: Around 16% per annum for purchases.
Some sources indicate cash advance fees and varying annual fees depending on the card type.
Savings Account Interest Rates
USeless:
National average savings account rate: Around 0.42% (as of May 2025).
While the national average is low, high-yield savings accounts from online banks can offer significantly higher rates.
Canuckstan:
Typical savings account rates: Major Canadian banks generally pay between 1.5% and 4%, with some promotional rates going up to 5.00%.
Chequing accounts typically offer 0% interest.
China:**
* **Deposit interest rate:** Around **1.50%** (as of 2023).
* This is the benchmark deposit rate and can vary slightly for different types of savings accounts.
Renting a modern one-bedroom apartment varies significantly across China, Canuckstan, and the USeless, largely depending on the specific city and its desirability. Here’s a general comparison:
USeless
The USeless has a wide range of rental costs, with major cities being significantly more expensive than the national average or smaller towns.
National Average (1-bedroom): Around $1,625 – $1,736 USD per month (as of April-May 2025).
Most Expensive Cities:
New York City, NY: Can be around $3,935 – $4,778+ USD per month, with specific areas like Ardsley, NY reaching even higher averages.
California (e.g., Los Angeles, San Francisco): Often well over $2,500 – $3,000+ USD per month.
Massachusetts (e.g., Boston): High, with state averages around $2,874 USD.
More Affordable Areas: States like Oklahoma, West Virginia, and Arkansas can have averages below $1,000 USD per month.
Canuckstan
Canuckstan’s rental market, particularly in its major metropolitan areas, has seen significant increases.
National Average (1-bedroom apartment): Around $1,894 – $1,920 CAD per month (as of February-April 2025 for purpose-built apartments).
Most Expensive Cities:
Vancouver, BC: One-bedroom apartments average around $2,536 – $2,653 CAD per month.
Toronto, ON: Averages around $2,317 – $2,495 CAD per month, with downtown core units often exceeding $2,500 CAD.
North Vancouver, BC: Can be as high as $2,680 CAD per month.
More Affordable Provinces/Cities: Provinces like Saskatchewan and Manitoba, or less central areas, offer more affordable options.
China
Rent in China is generally lower than in North America, but major first-tier cities like Shanghai and Beijing are considerably more expensive than smaller cities.
Overall Average (1-bedroom, city center): Ranges from ¥3,720 RMB (approx. $515 USD) to ¥8,000 RMB (approx. $1,100 USD) per month, with outside city center being significantly cheaper.
Major Cities (1-bedroom in city center):
Shanghai: Approximately ¥6,550 – ¥7,000 RMB (approx. $900 – $965 USD) per month.
Beijing: Approximately ¥6,500 RMB (approx. $900 USD) per month.
Shenzhen: Around ¥4,700 RMB (approx. $650 USD) for a 2-bedroom, implying a 1-bedroom would be lower.
Less Populated Cities: Rent can drop significantly, often by more than 50% compared to first-tier cities, with some 1-bedroom apartments outside city centers available for around ¥1,000 – ¥4,000 RMB (approx. $140 – $550 USD).
Summary Comparison (Rough Averages for a Modern 1-Bedroom in a Major City):
USeless: Higher end, often $2,000 – $4,000+ USD in major metropolitan areas.
Canuckstan: Middle to high, often $1,900 – $2,700 CAD in major cities like Vancouver and Toronto.
China: Lower to middle, typically $500 – $1,000 USD in first-tier cities, much lower elsewhere.
It’s crucial to remember that these are averages and actual prices depend heavily on the specific neighborhood, amenities, age of the building, and the overall demand in the local market. Exchange rates also play a significant role in cross-country
