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Building the BNBFi Ecosystem: How Lista DAO Became a BNB Holder Yield Trap
Every year-end, various year-end summaries begin to occupy people's field of vision. 2024 was destined to be an extraordinary year for cryptocurrency, with the year starting off with the Bitcoin ETF approval coinciding with the halving year, and ending with the crazy combination of Trump and Musk going online. In between were various events of all sizes, such as the Ethereum ETF approval, Solana reaching new heights, VC coins "diminishing," and meme coins taking the stage. Every detail reminds us that in 2024, the blockchain industry underwent a dual transformation in technology and the market.
In 2024, the crypto industry finally began to take cash flow seriously, with actual earnings being more important than the fancy numbers on a PowerPoint. PMF became the new first principle, with Bitcoin, stablecoins, DeFi, and meme coins being seen as the four most PMF-rich tracks in the crypto world. Needless to say about Bitcoin, the stablecoin track still has old and new players engaging in fierce competition, meme coins and Solana mutually achieving success, and in the DeFi track, different ecosystems showing different development trends, each with its own strengths.
The DeFi ecosystem saw a resurgence after Trump's reelection, from Binance launching the DEX Thena to investing in the multi-asset liquidity hub Astherus. In the BNB Chain ecosystem, blue-chip DeFi projects continue to emerge in the staking, liquidity, and asset management fields, and the overall liquidity of the ecosystem seems poised for action. This article aims to leverage the project development of Lista DAO, a rising star in the BNB Chain ecosystem, to outline its focus and innovation in staking and liquidity management, exploring why Lista DAO can establish a solid position in the BNB Chain ecosystem.
Lista DAO in 2024
2024 was a year of transformation and breakthrough for Lista DAO, from brand upgrading to ecosystem expansion, and then to product innovation. Every important milestone witnessed Lista DAO's deep cultivation and evolution in the DeFi field. As the staking and liquidity center of the BNB Chain ecosystem, Lista DAO has effectively improved users' capital efficiency and income potential through innovative products, technological upgrades, and governance optimization. At the same time, Lista DAO actively embraced the outbreak wave of the BNB Chain ecosystem, becoming a model of CeFi and DeFi integration. By capturing industry trends and providing core support for ecosystem development, Lista DAO's TVL recently approached $1 billion, reaching a new high, which is the best proof of its success.
Let's first briefly review the key events that have taken place for Lista DAO this year in chronological order.
On February 5th, Helio Protocol officially rebranded to Lista DAO, with the former HAY and SnBNB renamed to lisUSD and slisBNB, respectively. Additionally, Lista DAO introduced airdrop point system - Cosmic Adventure Challenge (CAC).
In March, Lista DAO adjusted its strategy, gradually phasing out its native staking service to focus on the development of its liquidity staking product (BNB/slisBNB) and further deepen its presence in the LSDfi field.
In May, Lista DAO completed several product updates. Firstly, the multi-node delegation upgrade for slisBNB, allocating all deposited BNB to multiple validation nodes, converting existing BNBx, AnkrBNB, and stkBNB to slisBNB, enhancing the security, yield, and withdrawal efficiency of slisBNB, while streamlining the liquidity staking process.
To better meet users' demands for liquidity and new assets, Lista DAO also launched the Innovation Zone this month, introducing weETH, ezETH, and STONE as collateral assets for lisUSD. Concurrently, it formed partnerships with various DeFi projects from different ecosystems, including launching Listpie, and collaborating with Ether.fi, Renzo Protocol, Lynx Finance, Stakestone, and other projects to introduce various collateral assets, providing users with more options.
In June, users participating in the Lista DAO ecosystem reaped the rewards as Lista DAO announced its TGE and commenced an airdrop, with Binance listing Lista on the 20th for trading.
In July, Lista DAO utilized LayerZero's bridging technology to bring slisBNB to Ethereum and introduced the veLISTA and veToken governance models, further promoting DAO governance upgrades.
August marked another significant milestone for Lista DAO and its users. Firstly, the launch of the AMO module optimized the supply-demand balance of lisUSD, significantly enhancing its price stability and market efficiency. Subsequently, it was announced that slisBNB could participate in Binance Launchpool, allowing users to increase potential yields while maintaining liquidity, becoming a model of CeFi+DeFi integration.
In September, Lista DAO successfully lowered the borrowing interest rate of lisUSD through LIP-002 proposal.
In October, Lista DAO introduced a new product, clisBNB, providing more flexibility and functionality for the deposited BNB collateral asset.
In November, Lista DAO released several major updates, including the launch of the lisUSD Anchor Stable Module (PSM), the minting conversion from slisBNB to clisBNB, lisUSD meme fundraising, and other features, maximizing user asset liquidity and yield.
In December, Lista DAO launched the Bribery Market, which not only brings additional income and higher voting participation to veLISTA voters, but also serves as a means of traffic diversion and governance empowerment for projects, thereby strengthening Lista DAO's community governance, transparency, and liquidity overall.
From the initial stablecoin lending business to the current BNBFi ecosystem centered around slisBNB and clisBNB, Lista DAO's development path can be divided into three stages: Phase 1.0 focused on stablecoin business, Phase 2.0 expanded to liquidity staking services, and now Phase 3.0, where Lista DAO is committed to integrating its two core businesses, driven by slisBNB and clisBNB, to build the BNBFi ecosystem.
Lista DAO 1.0: Steadily Advancing CDP Business to Become a Blue Chip in the BNB Ecosystem
Since the election market started, a group of blue-chip decentralized DeFi projects led by AAVE and UNI have embarked on a bullish trend, with the market generally expecting Trump's imminent presidency to be a catalyst for DeFi's next golden age. Against this backdrop, the importance of the three core components of DeFi — stablecoins, AMMs, and lending protocols — has become even more pronounced.
The ability to borrow against specific tokens is one of the most sought-after features in the crypto industry and is often a key criterion for determining whether a project is a "blue-chip" asset. This model is known as a Collateral Debt Position (CDP), where users can borrow leveraged funds at low cost while also allowing asset-rich but illiquid teams to obtain liquidity by collateralizing their treasury and holdings, thus supporting operational funds and earning interest on the collateral in the process.
In the BNB Chain ecosystem, Lista DAO has built the stablecoin lisUSD using a CDP system, where users can use assets such as BNB, ETH, slisBNB, wBETH, BTCB, etc., as collateral to obtain lisUSD.
On May 17, Lista DAO launched the Innovation Zone, which for the first time included eligible LST and LRT in the collateral scope, introduced new collateral assets such as weETH, ezETH, and STONE, unlocking greater liquidity and capital efficiency possibilities for users. This not only met users' demand for diversified asset management but also further enhanced the platform's competitiveness in the lending market.
Currently, Lista DAO supports more than a dozen collateral assets, with the total value of assets in the CDP system surpassing $550 million, covering both mainstream and innovative assets. The total lisUSD borrowed amounts to as much as $57 million, with a collateralization ratio of 1046.11%.
On August 9, Lista DAO launched the AMO module (Dynamic Interest Rate System), which employs advanced algorithms to automatically adjust rates in response to market fluctuations. This dynamic approach manages market supply and demand, enhances platform liquidity and transaction efficiency, and maintains price stability of lisUSD.
Lista DAO 2.0: Anchoring on Liquidity Pools to Forge a New De-CeFi Model
From liquidity pooling to rehypothecation, maximizing capital efficiency has always been a continually evolving pursuit in the crypto space. In the new market cycle, the development path of DeFi is experiencing a transition from the traditional decentralized core concept to a new model that combines decentralization with centralization. The market has seen a series of innovative applications emerge, including institutional custody, government bond yields, and CeFi equities.
Backed by the Binance platform, Lista DAO, as a native DeFi protocol in the BNB Chain ecosystem, has built a core liquidity pooling business following the CDP system. Users can pledge BNB in Lista DAO to receive slisBNB, and with increasing pledge time and accumulated rewards, the value of slisBNB dynamically grows. Currently, approximately 1 slisBNB is exchangeable for 1.0234 BNB.
As a native collateral product in the BNB ecosystem, slisBNB also possesses multiple practical values. Within the Lista DAO ecosystem, users can use slisBNB as collateral to borrow lisUSD. Additionally, slisBNB supports cross-platform circulation and is currently available on BNB Chain and the Ethereum mainnet, with plans for expansion to more public chains in the future.
slisBNB is also integrated with multiple DeFi protocols, allowing users to not only continue earning staking rewards but also to gain additional returns through platforms like PancakeSwap, Thena Finance, among others. For example, users can utilize slisBNB to participate in lending, liquidity provision, and mining activities on other DeFi platforms. Through integration with the rehypothecation layer Karak, slisBNB further supports rehypothecation, maximizing user's staking rewards.
In July of this year, Binance announced that the DeFi BNB assets in the Binance Web3 Wallet could be included in the Launchpool reward calculation. The first officially announced asset was the liquidity staking token slisBNB launched by Lista DAO. As a result, the multi-yield of slisBNB helps attract more capital into the DeFi market.
As of now, the total BNB staking value of Lista DAO has exceeded $3.89 billion. Combined with Launchpool, liquidity staking, and DeFi activities, the comprehensive annualized staking APY of BNB has surpassed 32.83%, and users can also earn Lista DAO points. It is the liquidity staking protocol with the highest amount of staked BNB in the BNB ecosystem.
Lista DAO 3.0: From slisBNB to clisBNB, the Unique BNBFi Ecosystem
Through the stablecoin lisUSD and the liquidity staking token slisBNB as its two core products, Lista DAO has undoubtedly become the liquidity hub of the BNB Chain ecosystem. However, to further unleash the earning potential of BNB, Lista DAO has introduced clisBNB, allowing users to participate in on-chain token minting while enjoying lending rewards.
clisBNB (Collateralized Lista BNB) is a voucher token directly linked to the collateralized asset. When a user collateralizes BNB in Lista DAO's CDP system, they receive clisBNB at a 1:1 ratio. clisBNB is non-transferable and will be automatically burned when the collateralized asset is redeemed.
One of the key features of clisBNB is its ability to participate in Binance Launchpool activities. Previously, if a user held BNB and wanted to simultaneously earn on-chain and token minting rewards, they could only stake BNB to receive slisBNB and then participate in Launchpool. Now, users can choose to collateralize BNB, earn lisUSD rewards, and participate in Launchpool using clisBNB.
Lista DAO has also introduced a minting feature from slisBNB to clisBNB, supporting the minting of slisBNB into clisBNB at a ratio of 1:0.9709. This allows users to stake BNB while still participating in Binance Launchpool using clisBNB. This innovation not only diversifies the asset's revenue streams for users but also further unleashes the vitality of the BNB ecosystem.
clisBNB is the product of Lista DAO's solid layout in the stablecoin field during Phase 1 and breakthrough in liquidity mining and capital efficiency during Phase 2. In Phase 3, Lista DAO further expanded the user participation dimensions, allowing users to choose based on their actual situations and income levels. This not only unlocked the liquidity of collateral assets in lending but also provided more usability and flexibility to on-chain BNB holders, maximizing BNB's asset efficiency in a way that other native tokens of public chains have never attempted in ecosystem development.
Conclusion
In the current trend of DeFi projects such as Pendle, Ethena, Usual, DeFi is evolving from its initial decentralized concept to a hybrid model combining decentralization and centralization, with DeCeFi becoming the new direction of innovation. In this process, leveraging its position in the BNB Chain ecosystem, ListaDAO, starting from the stablecoin business, successfully maximized BNB asset efficiency through the introduction of slisBNB and clisBNB, utilizing Binance Launchpool, while enhancing platform security and liquidity.
Since the fourth quarter, Lista DAO has successively released product upgrades in these three major areas to further enhance the BNBFi ecosystem.
On November 21, Lista DAO adjusted the AMO module used to maintain lisUSD stability from a fixed parameter (R0) to a dynamic mode, enhancing the platform's adaptability to market changes. At the same time, the lisUSD borrowing limit collateralized by BNB was increased to 50 million, with the total minting limit raised to 60 million, further meeting user liquidity demands.
Over the past year, the stablecoin market competition has become increasingly fierce, and how to enhance user stickiness while maintaining price stability has become the core issue faced by every project. Lista addressed this challenge in a way that is more in line with user needs by introducing the Pegged Stability Module (PSM) and Liquidity Savings Rate (LSR). The launch of PSM allows users to seamlessly convert between USDT and lisUSD, providing strong support for lisUSD's price stability. LSR, by offering stable returns on user deposits, has attracted more long-term participants, further strengthening the ecosystem's capital lock-up.
In terms of mechanism design, Lista DAO has adjusted the platform's Minimum Collateralization Ratio (MCR) and Loan-to-Value ratio (LTV). By lowering the MCR, users can participate in lending with lower asset thresholds, and the increase in LTV allows users to borrow more funds with the same collateral assets. These series of adjustments have significantly enhanced users' capital utilization efficiency, attracted more users to join the lending platform ecosystem, and expanded the market size.
The approach of Lista DAO has been highly profitable. By the end of December, its TVL hit an all-time high, reaching $983,813,645 at the time of writing, making it one of the few projects approaching a $1 billion TVL in the BNB Chain ecosystem.
In addition to the financial aspect, Lista DAO is also continuously exploring governance. The auto-compounding feature launched in October provided users with a more convenient staking management method. Users' rewards can automatically be locked into veLISTA without manual intervention, enabling the automated accumulation of rewards. In December, the bribery market was introduced, bringing additional rewards and higher voting participation to veLISTA voters, while also attracting flow and empowering governance for project teams, thereby strengthening Lista DAO's community governance, transparency, and liquidity overall.
Behind the technological innovation, Lista DAO has not overlooked the importance of community. While introducing new features, Lista has also used meme-based fundraising and a redesigned user interface to bring closer to users, making complex financial tools easier to understand and use, in line with its original intention and mission of "Making DeFi Easier."
By 2025, Lista DAO's goals are clearer. On one hand, it will consolidate its core position in the BNB Chain ecosystem, while also exploring more possibilities of RWA assets and the combination of CeFi and DeFi. From stablecoins to cross-platform liquidity, from yield innovation to user experience upgrades, Lista DAO is redefining the boundaries of DeFi in its unique way, where Lista 3.0 is not only a new starting point but also the core driving force for future growth.
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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