4.1 Core Business Logic and Asset Selection Criteria of RAC
RealAsset Chain (RAC) centers its business logic on the principles of on-chain ownership verification, intelligent trading, and compliant operations. By leveraging blockchain technology, RAC drives the digital issuance and efficient circulation of Real World Assets (RWAs). The platform connects traditional asset providers with global digital investors, offering a transparent, trustworthy, and highly liquid environment for on-chain RWA management and trading.
To ensure the integrity and quality of on-chain assets, RAC has established a rigorous three-tier asset screening system that evaluates each asset based on compliance, security, yield stability, and liquidity:
Legal and Regulatory Compliance: Assets must have legally traceable ownership documentation and comply with the regulations of both the issuance and investor jurisdictions. Asset providers are required to submit legal opinions, audit reports, and credit ratings, which are reviewed by RAC’s internal legal team in collaboration with external law firms.
Risk and Return Assessment: RAC employs multi-dimensional models to quantify asset performance and risk. Key indicators include cash flow stability, historical volatility, market correlation, and default probability. Only assets rated “RWA Risk Grade A” or higher are eligible for tokenization.
Liquidity and Tradability: Priority is given to assets with established valuation mechanisms and predictable liquidity, such as rental properties, verified debt instruments, and accounts receivable. Each asset must include exit mechanisms (e.g., buyback terms, legal guarantees) or on-chain tradability features (e.g., NFT wrapping, token staking).
RAC also continuously monitors asset performance through a dynamic on-chain credit model, evaluating utilization rates, liquidity velocity, and illiquidity risk. This model informs asset visibility rankings and reward distribution across the platform.
This strict selection framework not only protects investor capital and asset integrity but also creates a scalable, replicable, and regulatory-compliant path for asset onboarding—positioning RAC as a professional leader in the RWA sector.
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