Report] Architectural value and benefit prospects of Pi Network due to expansion of global RWA liquidity
- Introduction: Bottleneck of quantitative expansion and mass adoption of the RWA market
Real asset tokenization (RWA), led by large institutions in the global capital market, is going beyond a simple technological experiment and is facing a paradigm shift in migrating traditional financial infrastructure to on-chain. However, in this process, a serious ‘liquidity lock-up phenomenon’ is occurring.
Despite billions of dollars of institutional money moving onto blockchain, the majority of RWA infrastructure remains siled in institutional-to-business (B2B) or closed networks. This report analyzes the structural legitimacy of the Pi Network as an alternative settlement layer connecting traditional capital and the global public at a time when such liquidity is spreading to retail finance (B2C) and the real economy.
- Status of key global institutions leading the RWA market
Currently, top players in the global capital market are expanding their ecosystem by providing tokenized liquidity in their respective areas.
• BlackRock: The world's largest asset management company, successfully on-chained US Treasury bonds and cash equivalents through 'BUIDL', an Ethereum-based RWA fund. This is a touchstone that proves that institutional-grade assets can distribute returns in real time on the blockchain.
• Franklin Templeton: Preemptively introduced a blockchain-based fund (FOBXX), establishing a benchmark for issuing and operating traditional financial products directly on public and private blockchains.
• J.P. Morgan: By linking its on-chain infrastructure platform ‘Kinexys (formerly Onyx)’ with ‘Morgan Money’, we have established an institutional-only liquidity network where large corporate customers can settle MMF assets in real time and use them as collateral.
• NASDAQ & New York Stock Exchange (NYSE): We are pursuing regulatory overhaul and technological infrastructure construction to implement instant settlement by tokenizing traditional capital market securities such as stocks and ETPs (exchange-traded products).
- Pi Network’s architectural mechanism for absorbing RWA liquidity
In order for RWA liquidity issued by traditional institutions to flow into the public ecosystem, it must pass through strict technical and institutional gateways. Pi Network meets this with three mechanisms that differentiate it from other Layer 1 networks.
① The first ‘regulatory compliant public user pool’ that meets anti-money laundering (AML) requirements
• Logical connection: Institutional funds such as BlackRock and JP Morgan face compliance risks in anonymity-based public blockchains.• Value of Pi: Pi Network has verified the identities of tens of millions of beneficial owners around the world through its unique, proprietary AI-based ‘Pi KYC’ process. It serves as a ‘KYC-compliant sandbox’ where institutions can immediately provide public liquidity without legal risk.
② Financial specialized pipeline based on Stellar Consensus Protocol (SCP)
• Logical connection: It is no coincidence that Franklin Templeton chose the Stellar network as the core layer for asset tokenization. This is because high gas fees and transaction delays are fatal to micropayments (small settlements) of financial assets.
• Value of Pi: Pi Network was designed by customizing the Stellar Consensus Protocol (SCP). Transactions are finalized within 3 to 5 seconds without the inefficiencies of proof-of-work (PoW), and have an extremely low fee structure. This is an engine optimized for breaking up an institution's RWA assets into small pieces and using them for the public's daily consumption and settlement.
③ Global mobile distributed node that prevents liquidity fragmentation
• Logical linkage: When RWA assets are concentrated in a small number of asset owners or validators in a specific region, liquidity monopoly and centralization risks arise.
• Value of Pi: Pi Network maintains security through hundreds of thousands of computer nodes distributed around the world and a mobile trust graph (Security Circle). Through a general-purpose device called a smartphone, we implement the true meaning of ‘decentralized last-mile’ by reaching institutional liquidity to end-users around the world without fragmentation.
- Comprehensive conclusion: ‘Last mile gateway’ for large capital to reach
Ultimately, the final stage of the evolution of asset tokenization (RWA) will go beyond the league of institutions, where “secure RWA assets backed by U.S. Treasury bonds or digital dollars will be used as a means of payment in the public’s real, everyday economy (P2P, P2B).”
When existing traditional blockchains are unable to convert institutional liquidity into retail finance due to limitations of complex UX/UI and identity non-verification, Pi Network fills the gap in the market through the triple combination of [verified identity infrastructure] + [financial specialized algorithm] + [ultra-large mobile user base].
Therefore, it is analyzed that the trillions of dollars of tokenized liquidity generated by large institutions will likely choose Pi Network, which is equipped with a popular solution, as the final gateway for payment and settlement.
Report] The architectural value and benefit prospects of Pi Networks due to the expansion of global RWA liquidity1. Introduction: The Bottleneck between the quantitative expansion and popularization of the RWA market
The tokenization of real assets (RWA), led by major institutions in the global capital market, is undergoing a paradigm shift that goes beyond simple technological experiments, moving traditional financial infrastructure into an on-chain system. However, a serious 'liquidity confinement phenomenon' is occurring in this process.
Despite billions of dollars in institutional funding entering the blockchain, the majority of RWA infrastructure remains isolated in B2B or closed networks. This report analyzes how the pie network has structural legitimacy as an alternative settlement layer connecting traditional capital and the global public in a phase where this liquidity is spreading to retail banking (B2C) and the real economy.
- Key global institutions leading the RWA market
Currently, top players in the global capital market are expanding their ecosystems by providing tokenized liquidity in their respective domains. BlackRock: As the world's largest asset management company, it successfully integrated U.S. Treasury bonds and cash equivalents into the chain through its Ethereum-based RWA fund, ‘BUIDL’. This is a touchstone that proves institutional-level assets can distribute profits in real-time on the blockchain.Franklin Templeton: We proactively introduced a blockchain-based fund (FOBXX) and established a benchmark for directly issuing and managing traditional financial products on public and private blockchains.
J.P. Morgan: By linking its on-chain infrastructure platform 'Kinexys' (formerly Onyex) and 'Morgan Money,' we have established a liquidity network exclusively for institutions, allowing large corporate clients to settle MMF assets in real-time and use them as collateral.
NASDAQ & NYSE: We are working on regulatory reforms and building technical infrastructure to implement real-time settlement by tokenizing traditional capital market securities such as stocks and ETPs (Exchange Traded Products).
- Architectural Mechanism of Pi-Network for RWA Liquidity Absorption
For RWA liquidity issued by traditional institutions to flow into the public ecosystem, it must pass through strict technical and institutional hurdles. Pi-network meets this with three mechanisms that differentiate it from other Layer 1.
1 The first ‘regulatory-compliant mass user pool’ to meet anti-money laundering (AML) requirements
Logical linkage: Institutional funding like BlackRock or JP Morgan faces compliance risks on anonymity-based public blockchains.The value of Pi: Pi Network has verified the identities of tens of millions of beneficial owners worldwide through its unique AI-based 'Pi KYC' process. This serves as a 'KYC-compliant Sandbox' where institutions can immediately supply public liquidity without legal risks. 2 Stellar Consensus Protocol (SCP)-based financial-specific pipeline
Logical linkage: It is no coincidence that Franklin Templeton chose the Stellar network as the core layer for asset tokenization. This is because high gas costs and transaction delays are critical for micropayments (small settlements) of financial assets.
The value of Pi: The Pi Network was designed by customizing the Stellar Consensus Protocol (SCP). It finalizes transactions within 3-5 seconds without the inefficiency of Proof-of-Work (PoW) and has an extremely low fee structure. This engine is optimized for the institution's RWA assets to be fragmented and used for everyday consumption and settlement by the public.
3 Global mobile distributed nodes that prevent liquidity fragmentation
Logical linkage: If RWA assets are concentrated in a small number of wealthy individuals or specific regional validators, liquidity monopolies and centralization risks arise.The value of Pi: The Pi Network maintains security through hundreds of thousands of computer nodes distributed worldwide and a mobile trust circle. We realize a truly 'distributed last-mile' that delivers the liquidity of institutions densely to the lowest consumer base worldwide without fragmentation, through the medium of smartphones, a general-purpose device.
- Overall Conclusion: The 'Last Mile Gateway' that massive capital can reach
Ultimately, the final stage of the evolution of asset tokenization (RWA) goes beyond just institutional leagues, with "secure RWA backed assets up by U.S. Treasury bonds or digital dollars being used as a means of payment in the public's real-life economy (P2P, P2B)."
When traditional blockchains fail to convert institutional liquidity into retail banking due to the limitations of complex UX/UI and unverified identity, Pi Network fills the market void through a triple combination of [verified identity infrastructure] + [finance-specific algorithms] + [ultra-large mobile user base].
Therefore, it is analyzed that the tokenized liquidity of trillions of dollars generated by large institutions is likely to ultimately choose the Pi Network, which is equipped with solutions for popularization, as the gateway for final payments and settlements.