This analysis mainly targets Tier 1 market researchers and Tokenomics analysts—trying to understand what different types of investment institutions actually bring to the project.

The core question is quite straightforward: why does the entry of traditional finance become a watershed moment for the RWA track?

**What Native Crypto VCs Do**

Native crypto venture capital firms have their own playbook. Their core skills are threefold: storytelling, creating FOMO, and dumping. In simple terms, they excel at participating when bubbles inflate and fleeing before they burst. You all know the story of Three Arrows Capital—once the unlock period arrives, the dumping begins.

Why do they do this? It’s simple: their capital costs are high, and they must pursue short-term explosive returns. Doubling their investment within a year—that’s their goal. Long-term project development? They don’t care. Liquidity provision, marketing hype, pump-and-dump—that’s how they empower themselves.

What about the RWA track? They can jump on the hype, but the real problem is: they have no control over off-chain assets and cannot solve compliance issues. That’s the ceiling.

**Traditional Financial Institutions Are a Different Story**

Franklin Templeton, BlackRock, and other Wall Street old money face entirely different challenges. To be honest—they’re not short of money. What they truly lack is a pipeline to the future.

What’s their approach? Bringing capital into the ecosystem. They can directly issue managed government bonds, funds, and various financial products onto the project’s blockchain network. This isn’t hype; it’s real asset onboarding.

Why are they willing to do this? Licenses and trust. If a project is chosen for investment by an institution like BlackRock, it means the code and mechanisms can withstand SEC-level scrutiny. That itself is the strongest endorsement. Their empowerment isn’t about creating hype but providing a compliant, institutional-level trust foundation.

**Why Is This the Key to Victory**

The reason the RWA track is important is to bring real assets onto the chain. And this must rely on institutions that possess assets, hold compliant licenses, and can withstand regulatory review to push forward. The participation of traditional financial giants signifies not just capital but also the compliance and sustainability of the entire system.

Crypto VCs can hype concepts, but only the entry of TradFi can truly mature this track.