Pioneering digital finance: Interview with DigiFT's Founder & CEO, Henry Zhang

In light of the growing interest in tokenized RWA, Henry Zhang, Founder & CEO of DigiFT, is at the forefront of transforming asset tokenization and blockchain technology. Rakkar recently announced its partnership with DigiFT,  the first regulated on-chain exchange dedicated to RWA, licensed by the Monetary Authority of Singapore (MAS) with a Capital Markets Services (CMS) license.

DigiFT paves the way for regulated tokenized real-world assets with Henry Zhang at the helm. In this exclusive interview, Henry Zhang unveils his transformative journey with digital assets and his ambitious vision for DigiFT in the rapidly evolving world of finance. Discover his insights on industry trends, overcoming challenges, and invaluable advice for aspiring innovators in digital finance and blockchain technology.

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1. Please tell us more about your journey with digital assets and how DigiFT came about.

Henry: Having spent over two decades in traditional financial institutions, I noticed that there was an increasing desire from investors to invest in a different way — one that allows them to enjoy greater investment options, liquidity, transparency and ownership. I strongly believed that blockchain technology would be able to address pain points in the current financial system and that led to the genesis of DigiFT.

As the first and only exchange for on-chain RWA to be approved as a Recognized Market Operator with a Capital Markets Services License from the Monetary Authority of Singapore, DigiFT has launched multiple industry-first traditional investment products since its inception. This includes the first-ever U.S. Treasury Bill depository receipt tokens and the first fully regulatory-compliant  automatic market making (AMM) trading mechanism on a public blockchain. Today, we’re seeing growing interest from our clients for more regulatory-compliant products and we’re committed to building and launching more of such offerings for our investors.

My journey with digital assets also extends beyond DigiFT. Earlier this year, I, alongside other industry leaders co-founded the Digital Assets Association (DAA). The DAA is a transnational organization that aims to connect the world of TradFi and the ever-evolving digital assets space. ‍

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2. How do you see DigiFT aligning with the current trends in the digital finance industry, particularly in tokenization of RWA in the next 5 years?

Henry: According to a recent report by McKinsey, the tokenized market capitalization across asset classes could reach about US$2 trillion by 2030, excluding crypto and stablecoins. This bullish outlook from both institutional and retail investors signals the maturing  of tokenization as a technology. The convergence of mainstream finance and DeFi is now a matter of when and how, not if.

In the next five years, we anticipate significantly increased retail access to tokenized RWAs. Interoperability and scalability will improve as financial institutions and fintechs enhance infrastructure to meet growing demand.

At DigiFT, we firmly believe in staying ahead of the curve by anticipating investors' interest, allowing us to balance innovation with prudent risk management and compliance. We see our role as not just a platform provider, but as a key player in shaping the tokenization ecosystem.

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3. As the first MAS-regulated RWA exchange, what triumphs and challenges do you face?

Henry: As the first MAS-regulated and licensed on-chain exchange for RWA, we are definitely proud to be the first on-chain exchange to have been approved by the city state. The licenses were a testament to our commitment in building regulatory-compliant products.

Personally, I believe that there’s still an educational gap that we need to fill as an industry, and with the licenses awarded to DigiFT, we have taken it upon ourselves to educate potential investors about the importance of regulatory-compliant financial products on-chain as the momentum of tokenized RWAs grows.

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4. What are your thoughts on digital asset custody and how it waves into your world of RWA?

Henry: In the world of DeFi, custody solutions are a critical component of the digital asset ecosystem and are essential for ensuring the security, compliance and operational efficiency of tokenized assets. Our decision to implement self-custodian wallets is intentional as it gives investors complete autonomy — allowing them to enjoy control of their assets by themselves or  by choosing trusted third party custody service provider like Rakkar.

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5. What advice would you give to others looking to innovate in the space of digital finance and blockchain technology?

Henry: Innovating in digital finance, or any field, is not an easy feat. In the realm of digital assets, the path to mainstream adoption will not be a short one.

Drawing from experience in my early banking days as one of the few people who believed in the potential of internet-based online payment systems, I learned that patience and persistence are crucial. Just as it took time for online payments to become ubiquitous, we must understand that blockchain adoption will follow a similar trajectory. The key is to remain steadfast in your vision while being flexible — only then will you be able to innovate products and offerings that are of value for all stakeholders in the ecosystem.

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For more information about the partnership and the services offered, please visit Rakkar’s official website and DigiFT’s official website.