Dual-Engine Drive: Equity Financing and Token-Based Incentives

The global crypto assets market is undergoing a transformative shift from “wild growth” to “compliance and mainstream adoption.” The limitations of the traditional “decentralized foundation” model in real-world business contexts can no longer be ignored or concealed. Against this backdrop,the “two-way engagement” between listed companies and the crypto ecosystem has become key to breaking through existing bottlenecks, while tokenization of real-world assets (RWA) serves as a settlement medium, further bridging the value link between the crypto market and traditional finance.

 

The Compliance Turn in the Crypto Industry

Early crypto projects were characterized by “decentralized collaboration,” largely relying on the “foundation model.” However, as the industry has scaled, contradictions inherent in this model have become increasingly apparent: there is an inherent conflict between the non-profit nature of foundations and the profit-seeking needs of entrepreneurial teams; the decision-making efficiency of decentralized autonomous organizations (DAOs) struggles to keep pace with the fast-moving commercial market; and tightening global regulation has made “compliance” an unavoidable imperative.

In this context, the linkage between listed companies and crypto assets (“crypto-equity linkage”) has emerged as a new direction for exploration.On one hand, traditional listed companies seek new growth curves through crypto asset allocation; on the other, crypto projects aim to achieve scalable development by leveraging the compliant status and capital channels of listed companies.The convergence of these two sectors is not an accidental commercial experiment, but an inevitable outcome of the industry’s evolution from “wild growth” toward “compliance and mainstream adoption.”

This “two-way engagement” trend has already been implemented in multiple jurisdictions, forming replicable practical pathways.

 

Two-Way Engagement: Practical Integration of Traditional Capital and the Crypto Ecosystem

(I) Traditional Listed Companies: Proactively Embracing Crypto Assets to Open New Growth Frontiers

Globally, the practice of publicly listed companies allocating crypto assets has evolved from isolated cases into a scaled paradigm. Data from July 2025 shows that at least 116 publicly listed companies worldwide have publicly disclosed holdings of bitcoin and other crypto assets; just one month later, this number rose to 142, with nearly 100 new entrants within six months. The core logic behind this trend is that over the past decade-plus, the investment returns on crypto assets such as bitcoin have outperformed 99.99% of traditional assets, making them an important option for hedging against inflation and optimizing asset allocation.

1. Strategy: A Virtuous Cycle Driven by “Bitcoin Conviction”

The strategy adopted by the U.S. publicly listed company Strategy serves as a benchmark for this trend. Its founder is known as a “steadfast bitcoin supporter,” and the company currently holds approximately 620,000 to 630,000 bitcoin, making it the publicly listed company with the largest bitcoin holdings globally. The core of its business model is a virtuous cycle of “low-cost financing—accumulating bitcoin—asset appreciation—refinancing”:

  • Raising low-cost capital by issuing low-interest bonds, convertible equity instruments, and other financing tools;
  • Making large-scale purchases of bitcoin, thereby stimulating market demand and driving up prices;
  • Following bitcoin’s appreciation, securing additional funds through secondary share offerings, pledge-based financing, and other means to further increase holdings.

Although market concerns persist regarding the “bubble risk” of this model, financial data indicate that the low-interest financing instruments issued by Strategy feature long maturities and low costs, sufficient to support the company’s stable operations for decades. Thus, the safety and sustainability of its business model remain viable at the current stage.

2. Boyaa Interactive: A Sample of Web3 Transformation Among Hong Kong-Listed Companies

Unlike Strategy, the transformation of Boyaa Interactive, a company listed on the Hong Kong Stock Exchange, exhibits stronger characteristics of integrating “traditional business + Web3.” Originally focused on overseas game publishing, Boyaa Interactive announced its strategic pivot to Web3 in 2023, with the goal of becoming a “leading Web3 project company”:

  • In terms of funding sources, it does not rely solely on external financing but instead allocates cash flow generated from its gaming business to acquire bitcoin; in 2025, it also conducted a HK$500 million secondary share offering to further expand its crypto asset reserves;
  • In terms of business layout, in addition to its Bitcoin reserves, it has invested in the industry data platform RootData and participated in crypto funds, while integrating Web3 technologies and GameFi mechanics into its core gaming business.

The transformation has yielded significant results: prior to 2023, Boyaa Interactive’s market capitalization was only approximately HK$400 million, with dismal stock trading volumes; following the transformation, trading volumes increased by 50 to 100 times, and market capitalization rose by approximately 13 times. In contrast to companies that previously purchased and then sold cryptocurrencies, Boyaa Interactive’s case demonstrates that “deep integration of traditional business with Web3” holds greater long-term value than merely allocating crypto assets.

In addition to enterprises, traditional financial institutions are also accelerating their entry into the sector. Nasdaq has applied to the U.S. Securities and Exchange Commission (SEC) for permission to list “tokenized stocks” for trading on its exchange, while simultaneously investing in cryptocurrency exchanges, marking a shift in the traditional capital markets’ recognition of the crypto sector from “passive acceptance” to “proactive strategic positioning.”

(II) The Crypto Ecosystem: Achieving Compliance Breakthroughs Through Capital Market Channels

Over the past quarter, another major trend has become increasingly clear: crypto projects are leveraging traditional capital market pathways, such as “reverse mergers,” to overcome the limitations of the “foundation model” and achieve compliant, scaled development. The core logic involves acquiring a listed company with a small market capitalization and weakened core business, injecting crypto assets (such as tokens and technical intellectual property) as capital contributions to make them the listed company’s core assets, and divesting original non-core businesses. This ultimately creates a dual identity of “crypto project plus listed company status,” which both resolves compliance issues and enhances asset liquidity.

1. Tron: A “Crypto Benchmark” for Reverse Mergers

Tron is an early representative exploring this model. By having overseas funds or investors acquire a listed company and then inject crypto assets, it not only drove a substantial rise in the listed company’s stock price but also provided “listed company asset endorsement” for tokens previously in a “gray area,” creating substantive positive momentum. There was once jest within the industry that “before February 2023, crypto traders were viewed as ‘marginal players’; after the approval of Bitcoin ETFs, they suddenly became ‘prestigious Nasdaq traders.’” This “identity shift” reflects the goal crypto projects seek to achieve through capital markets—moving from “niche” to “mainstream,” and from “high risk” to “compliance.”

2. The Sui Project: A New Attempt at Linking Private Placements with Public Listings

Sui is a Web3 project founded by core members of Meta’s (formerly Facebook) Libra team, focusing on the gaming and payment sectors. Recently, the team raised US$450 million through private placements, repurchased a large volume of its own tokens at approximately US$0.35 per token, and encouraged a listed company to increase its holdings of these tokens. Over the past two weeks, this listed company not only changed its name to highlight its Web3 attributes but also continued to increase capital and expand shares to purchase more tokens, replicating the path of “asset injection plus market capitalization growth.” This combination model of “private placement funds plus increased holdings by a listed company” reduces the risk associated with a single entity and provides crypto projects with more flexible capitalization options.

3. Conflux: Hong Kong Stock Exchange Compliance Exploration for Domestic Projects

Conflux is a representative Web3 project in China, relying on the “Shanghai Conflux Blockchain Research Institute.” Its core team originates from Tsinghua University’s “Yao Class” and has received support from local governments. Recently, Conflux plans to engage in an exclusive cooperation with a Hong Kong-listed company: injecting its tokens into the listed company to make it Conflux’s operating entity on the Hong Kong Stock Exchange. Meanwhile, core shareholders have committed to “not reducing their token holdings for the next year” to enhance investor confidence. This attempt offers a new approach for domestic Web3 projects—connecting with global capital market resources by cooperating with traditional listed companies within a compliance framework.

 

Real-World Assets (RWA): The Third Path Connecting Reality and Virtuality

Beyond “equity-token linkage,” the tokenization of real-world assets (RWA) represents another key direction connecting traditional commerce with Web3. However, there is a significant divergence in the industry’s understanding of RWA. In practice, current RWA models can be categorized into three types, which differ significantly in their applicable scenarios and compliance logic and must be distinguished accordingly.

  • Tokenization of Traditional Financial Products: The Most Substantive Path to Financial Inclusion

The core mechanism involves “encapsulating” traditional financial assets—such as stocks, funds, and bonds—into tokens via blockchain technology, enabling 24/7 trading on-chain or on compliant exchanges. For instance, tokenizing shares of Tesla or Apple, or pre-IPO equity in OpenAI, allows users subject to capital controls or facing account-opening difficulties to hold high-quality global assets through on-chain operations.

The advantages of this model include expanding the audience and sales channels for traditional financial products without altering the fundamental nature of the assets, thereby keeping compliance costs relatively low. Currently, compliant exchanges in Hong Kong have attempted to tokenize money market funds, attracting participation from on-chain users and institutions, thus validating its commercial feasibility.

  • New Energy RWA (Hong Kong Model): A Capital Strategy Leaning Toward Exploration or Public Relations

This model uses stable yield-generating assets domestically and abroad (such as charging piles and photovoltaic power stations) as the underlying assets, bundling their income rights into wealth management products (bonds or funds) for issuance to qualified investors offshore. Due to interest rate differentials between domestic and overseas markets, listed companies such as Ant Group, Longshine Technology, and Xinxin New Energy have become major participants over the past year.

However, its value should be viewed objectively: this model is more suitable for enterprises with marketing budgets that require topics for capital market engagement. For non-listed companies, attempting to resolve financing issues through this approach may entail high compliance costs and complex processes, resulting in low cost-effectiveness. It often serves more as a public relations exercise to “leverage the RWA concept to enhance brand visibility.”

  • Non-Financial RWA: A “Lightweight Entry” Option for SMEs

This type of RWA leans toward “product pre-sales” or “tokenization of membership rights,” with the core objective of raising funds from the “customer/consumer” side rather than relying on shareholder or institutional investment. For example, converting product pre-sale rights or membership points into tokens can enhance brand exposure, activate potential users, and inject cash flow into business development.

This model is particularly promising: on one hand, it does not cross financial regulatory red lines, resulting in low compliance risk; on the other hand, it directly connects “business needs” with “user value” without requiring complex capital operations, making it the safest and most pragmatic path for small and medium-sized enterprises (SMEs) to enter Web3.

 

Future Trends: Dual Drive of Tokens and Equity

With the development of “mutual convergence” and RWA, the organizational structure and value distribution methods of future companies will undergo profound changes. The “dual drive of tokens and equity” will become the mainstream choice, but it is fundamentally different from the traditional perception of “raising funds through token issuance and seeking quick riches through speculation.”

  • Traditional Equity:Addresses issues of "financing" and "long-term equity sharing," targeting shareholders and investors. Its core function is to inject capital for corporate development, enabling investors to share in long-term value growth, thereby serving as the enterprise's "capital cornerstone."
  • Tokens:Addresses issues of "ecosystem collaboration" and "user value sharing," targeting consumers and partners across the industrial chain. Forms may include digital collectibles and tokenized points (such as AMT). The core positioning is as a "benefit, airdrop, and value-sharing tool," rather than a vehicle for financing.

The case of HashKey Group in Hong Kong is highly representative: its issued ecosystem points (HSK) do not possess financing attributes and are used solely for market coordination with partners and employee rewards. More importantly, the group allocates 20% of its annual profits to repurchase HSK, allowing point holders (users, employees, and partners) to indirectly benefit from ecosystem appreciation, creating an effect similar to that of "virtual shareholders" or an "equity incentive pool."

In short, equity addresses "where the capital comes from," while tokens address "to whom value is distributed." The two complement each other, jointly constituting the value system of future companies by retaining the stability of traditional capital while possessing the flexibility of Web3 ecosystems.

 

Web3 Compliance Services: Core Support for Growing with the Industry

The compliant development of the industry relies on the support of professional service institutions. Mankun Law Firm, where Attorney Liu Honglin practices, is the only specialized law firm in China focused exclusively on the Web3.0 niche. Headquartered in Shanghai, it has established branches in Shenzhen, Hong Kong, Hangzhou, and other locations, with a team exceeding 50 members.

Our core advantage lies in our "industry DNA": most team members come from frontline Web3 institutions and are core participants in multiple Web3 projects, making us the law firm with the "highest concentration of Web3-specialized lawyers" in the Chinese-speaking world. Recently, we are conducting market research in Chengdu and plan to establish a new branch to provide more accessible compliance services to Web3 enterprises in the southwestern region.

Furthermore, since 2023, we have compiled the White Paper on Overseas Expansion of Web3.0 Projects, summarizing common legal issues and solutions encountered during overseas expansion. To obtain a copy, please follow the "Mankun Blockchain" official WeChat account and reply with "White Paper."