Don't be the cannon fodder for giants! The fast track for SMEs in agricultural RWA: from 3% market share to 50% granary.

1. Concentrated rise: Structural imbalance under rapid expansion

Over the past three years, the RWA market has achieved a rise of approximately 130%, with its scale jumping from $10 billion in 2023 to $23.39 billion in 2025. However, this rise is more concentrated in the tokenization of credit and government bonds, which together account for about 90% of the market share, while various real assets, including agriculture, total less than 5%. For example, BlackRock's BUIDL can secure an annualized return of about 5.2% relying on the credit system of U.S. government bonds; in contrast, agricultural assets, valued at approximately $2.7 trillion globally, account for less than 3% of the RWA market.

This structural imbalance means that, despite the overall potential of agricultural RWAs being significant, their on-chain process still faces obvious space constraints and competitive pressure in the current market landscape.

2. Ideal Meets Reality: The Promise of Blockchain and the Harsh Paradox of Agricultural RWA

The development of blockchain technology once made the world believe that the real-time chain upload of agricultural data would completely disrupt traditional trade, with key information such as soil moisture, crop growth, and logistics tracking being synchronized to global buyers in seconds. However, unexpectedly, the technological dawn did not dispel the darkness of physical assets—agricultural RWA has instead fallen into a deeper systemic dilemma.

Valuation black box: Non-standard assets lack credible data anchors, and price volatility tolerance plummets by 40%

Compliance strangulation: Compliance friction caused by overlapping regulations from multiple jurisdictions consumes an average of 23% of project profits.

Liquidity Gap: Insufficient efficiency in the conversion of off-chain to on-chain value, with the average daily turnover rate of tokens being less than 1/10 of traditional securities RWA.

Infrastructure deficit: The digitalization coverage of physical assets is less than 15%, which cannot support credible data on the blockchain.

Traditional interest chain backlash: The intermediary system resists on-chain transparency, leading to 71% of projects being blocked by offline channels.

This is not only a dilemma but also a systemic cleansing of SMEs in the RWA track.

3. Breaking the Impasse: Case Study on the Tokenization of Agricultural Products

When traditional agricultural trade is constrained by regulatory and liquidity challenges, a platform focused on the on-chain agricultural product market completed a $9 million financing in 2025 (led by Endeavour Ventures and Portal Ventures). Its practical path provides us with a reference case—through a combination of three technological aspects, small and medium-sized enterprises can also find a breakthrough in the high-threshold RWA market:

① Valuation Black Box → IoT + Blockchain Dual Anchoring

Deploy soil sensors in cocoa farms in Ghana to transmit real-time data such as rainfall and pest index, and generate "Yield NFT" as an on-chain proof. Buyers make payments after inspection, reducing the dispute rate of transaction prices by 52%.

② Compliance Maze → Ricardo Contract Addresses Multi-Jurisdictional Regulation

Embed 13 types of documents, including certificates of origin, into Ricardian smart contracts based on the UK "Electronic Trade Documents Act 2023:"

When goods enter the EU market, the contract automatically invokes and executes the MiCA provisions;

When the goods arrive in Southeast Asia, the ASEAN Agricultural Products Agreement is invoked, reducing compliance costs from the original 12% to 3% (for cocoa beans, this saves about $465 per ton).

③ Liquidity Deadlock → Dynamic Liquidation Engine + USD Stable Pool

The platform has established a USD stable pool and implemented a dynamic liquidation mechanism, significantly improving the trading and settlement speed of agricultural product tokens on-chain, with the daily turnover rate doubling compared to the industry average.

Data verification: Most users of the platform are small and medium-sized agricultural enterprises, proving the inclusive value of real-world assets (RWA) — without backing from giants, it can still break through relying on professional architecture.

From the practices of Company A, it can be seen that if the models of IoT anchoring, compliance penetration, and liquidity optimization are more widely adopted, the market share of agricultural RWA is expected to rise from the current level of about 3% to a higher level. Similar technologies and architectures can also drive the on-chain process of other physical asset categories such as minerals, energy, and real estate, creating new trillion-level market space for small and medium-sized enterprises.