AsianFin -- Chinese property developer Seazen Group announced on Friday that it is establishing an institute in Hong Kong aimed at advancing real-world asset (RWA) tokenization, a process that converts physical assets into digital tokens tradable on a blockchain.

The initiative marks a potential first for a major Chinese property developer to explore fundraising through tokenized assets. Seazen’s move comes as property companies in China continue to face severe liquidity pressures, following the sector’s debt crisis in 2021 that triggered a wave of defaults and financial strain across the industry.

By digitizing real estate and other physical assets, RWA tokenization could allow developers to raise capital more efficiently while broadening access to investors, both domestic and international. The institute in Hong Kong is expected to focus on research, regulatory compliance, and technical infrastructure for implementing tokenized offerings.

Industry observers say the move reflects a broader trend of blockchain adoption in real estate finance, as Chinese developers look for innovative solutions to overcome traditional funding bottlenecks. However, regulatory scrutiny in China and overseas could influence the speed and scale at which RWA tokenization becomes mainstream.