Strategies for Bypassing Small Payment Regulations in Blockchain Finance Using DAT and RWA

Blockchain finance has reached a turning point in 2025. With support from the U.S. government and recognition from Wall Street, this industry is now pioneering new pathways to bypass traditional financial investment restrictions through small-value payment policy circumvention. Joseph Chee, Chairman of Solana Company, recently compared blockchain finance to “China’s early economy after joining the WTO” during a financial system seminar, emphasizing that while this sector is still in its early growth stage, it possesses tremendous growth potential.

The Fundamental Need for Innovation in the Financial Industry

Over the past 20 years, internet technology has brought tremendous innovation to consumers, but the global financial backend systems have remained stagnant. E-commerce, social networks, and other industries have reshaped the landscape, yet the financial industry itself has lacked innovation, Chee’s core point.

Looking at traditional financial systems makes this issue clear. Some European exchanges still maintain T+6 or T+7 settlement cycles, and Hong Kong’s IPO settlements used T+5 until a few years ago. Switzerland and Hong Kong still adhere to the custom of using handwritten checks. Key financial system technologies such as payments, clearing, and back-office operations have not been updated for over 10 or even 20 years.

The reasons for this stagnation are varied. First, negotiations with financial regulators are very difficult and time-consuming. Second, a conservative attitude prevails: “If the current system works, why change it?” Third, resistance from vested interests exists. Since new technologies threaten the monopolistic positions of existing financial institutions, there is little motivation for change.

However, an ideal financial system should operate 24/7, 365 days a year, where all assets and liquidity flow freely regardless of region, industry, or product. In this vision, blockchain technology is seen not just as a speculative tool but as an essential upgrade to outdated financial infrastructure.

Development Stages and Market Maturity of Blockchain Finance

The evolution of blockchain finance has been phased. In 2008, the Bitcoin white paper was released but received little attention. Between 2011 and 2013, as its status as a technology was established, giants like Grayscale and Coinbase were founded. From 2014 to 2016, traditional finance began recognizing its potential profits, and by 2017, a speculative frenzy akin to the “Wild West” erupted.

At that time, the two largest exchanges monopolized 80% of global Bitcoin trading volume, and Switzerland’s Zug region became known as “Crypto Valley,” a hub for blockchain startups. Between 2018 and 2020, genuine entrepreneurs started building infrastructure, with institutions like Bitwise, Fidelity, and CME Group entering the scene.

From 2020 to 2021, Bitcoin and Ethereum frequently appeared in Bloomberg news, amplifying market interest, and the emergence of stablecoins (USDT, USDC) revolutionized trading methods. Due to high volatility, Bitcoin and Ethereum were initially unsuitable as payment mediums, but stablecoins solved this problem, leading to rapid growth in the field.

In 2022-2023, the Luna and FTX incidents triggered a downturn, but like all emerging industries, blockchain finance experienced cycles of prosperity and recession, evolving through these phases. Currently, the total market cap of global blockchain finance is about $3-4 trillion, with total value locked (TVL) around $120 billion.

Chee describes the current blockchain world as “similar to China in the early 2000s.” Western investors knew about China’s economic growth but lacked timely information, ultimately investing only in major state-owned enterprises like China National Petroleum, China Telecom, and China Mobile. Similarly, today Wall Street has begun investing in major projects like Bitcoin, Ethereum, and Solana, but as information gaps close, companies in more segmented fields are expected to emerge as investment targets.

DAT: A New Path for Small-Value Payment Policy Circumvention

Digital Asset Treasury (DAT) is a core mechanism for circumventing small-value payment policies. Essentially, DAT refers to a publicly listed company established to hold digital assets.

Why is the DAT model needed? The total global financial assets amount to about $900 trillion to $1 quadrillion, while blockchain finance’s $3 trillion is negligible. The most effective source of liquidity to support the development of this emerging industry is the public equity markets (around $120-150 trillion). Traditionally, investments here have been made through private equity (PE), venture capital (VC), and investment banks, but their efficiency has been low. In contrast, hedge funds and large funds in public markets can pledge hundreds of millions to billions of dollars within hours.

DAT addresses three issues. First, reducing operational risk: fund managers manage digital wallets directly, eliminating operational risks associated with large-scale inflows and outflows. Second, bypassing authority restrictions: not all funds have the right to invest in digital asset-related ETFs, but indirect investments via listed companies like DAT are possible. Third, circumventing small-value payment policies: some regions restrict direct digital currency purchases by retail investors, but indirect investments through DAT are permitted.

The business logic of DAT is simple. It raises low-cost funds (convertible bonds, options sales) to purchase digital currencies, then issues shares at high prices during market sentiment surges to increase holdings. This is why MicroStrategy achieved returns more than three times better than holding Bitcoin itself over the same period.

Unlike Bitcoin, tokens on other blockchains like Solana can generate additional income through “interest,” creating extra revenue. Currently, there are about 80 pure DAT companies, and including all listed companies holding digital assets, the number exceeds 200. Recently, these DAT companies have raised around $20 billion.

RWA: Introducing Real Assets to Blockchain

Real World Asset (RWA) refers to the digitization of traditional real-world assets to increase liquidity on the blockchain. Since blockchain finance is an emerging market, assets introduced here can achieve high risk-free returns.

Currently, RWA based on personal credit is growing fastest, but safe assets like U.S. Treasury bonds are also performing well. Increasingly, digital asset investors are willing to sacrifice some yields for diversification to reduce risk.

The key challenges for RWA are regulation and liquidity. Technologically, the infrastructure is ready, and operations are not complex, but if assets are classified as securities, compliance requirements increase. In the future, standardized and highly liquid products will be prioritized on the chain, followed by large-scale assets.

Wall Street’s Entry into Blockchain and Future Outlook

Since the support policies promoted by the Trump administration in 2025, Wall Street’s attitude has changed dramatically. Despite past critical remarks, JPMorgan Chase’s CEO Jamie Dimon has become one of the fastest adopters of blockchain technology among large banks. Former UBS Chairman Alex Weber, previously skeptical, now sees many traditional financial institutions entering the space competitively.

Major firms like BlackRock are rapidly entering, and many traditional financial companies are on-boarding assets onto the blockchain (on-chain). With the approval of the U.S. 《Digital Asset Market Structure Act》, more institutions are expected to join.

Chee emphasizes, “This field will not disappear and is still in its early growth stage.” Although AI attracts more attention and capital, the core value of blockchain remains the infrastructure of future financial markets. While concerns about regulation, taxation, fraud, and security exist, these will be gradually addressed over time.

This will lead to more efficient market operations and a more inclusive financial system capable of serving a broader population. DAT and RWA are key pathways to realizing this future financial revolution, and they will be major trends to watch beyond 2025.