Dubai Harbour shimmered under the afternoon sun as industry leaders gathered for one of the most-awaited sessions of the Future Blockchain Summit’s second day— “The RWA Investor Playbook: Where Are the Yields, What Are the Risks?” The discussion brought together deep insights, sharp opinions, and a clear sense that real-world assets (RWAs) are redefining digital finance.
Moderated by Serena Sebastiani, Senior Director and Virtual Assets Leader at PwC Middle East, the session featured Stephan Lutz, CEO of BitMEX, who brought more than a decade of crypto market experience to the table. The conversation quickly moved beyond definitions, diving into what truly drives RWA value and where investors should look for real returns.
“I have been in this space for ten years,” Lutz said, opening the discussion. “RWAs are not real-world assets, but they are risk-taking assets.” The remark drew nods from the audience and set the tone for a session that examined both the promise and the pitfalls of tokenization.
Yields Versus Profits: Understanding the Gap
Sebastiani pressed further, asking how these assets could be leveraged for future growth and where the real yields lie. Lutz drew a distinction that resonated with the crowd: “Yields are not profits. Yield means price appreciation and protection from inflation. Simply holding a token won’t get you there. RWAs act as a protection mechanism, as their yield comes from the value and structure they carry,” he said.
He explained that once tokenization enters the picture, investors can tap into multiple income streams: from crypto-native staking rewards to real-world sectors like real estate. Yet, he admitted that the RWA market still has ground to cover, predicting that it will find its true pace in the next two to three years.
The biggest challenge, Lutz said, lies in the absence of a secondary market. “That’s what BitMEX is solving,” he noted. “We’re promoting RWAs as collateral and as manageable instruments. To make this market thrive, we need a model that calculates RWA value based on existing valuations. BitMEX is pioneering ways to make non-tradable assets tradable.”
He also pointed out jurisdictional risks, noting that countries differ widely in how they regulate tokenized assets. “You must ensure your valuation is recognized across jurisdictions and that potential legal costs remain low. In this respect, the Middle East stands out, as it’s ahead of the curve, even more proactive than the US,” he said.
When Sebastiani asked about metrics for success, Lutz kept it simple: “Efficiency. The real measure is how well service providers perform.”
Throughout the session, yield was always balanced against risk. Panelists agreed that return potential hinges on structure, legal regime, transparency of oracles, and the credibility of asset custodians. RWAs offer opportunity, but only when backed by robust infrastructure and oversight.
By the end, participants left with a sharpened understanding: RWAs are no longer just a buzzword. With careful design and vigilant risk management, they offer a new frontier for profits. BitMEX, under Lutz’s leadership, has emerged not just as an advocate for RWA but as an active player, helping build the frontier.
