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A Detailed Interpretation of the First Domestic RWA Project: Malu Grapes
At the end of 2024, Shanghai Zuoran Xinhui Electronic Technology Co., Ltd. launched the first agricultural industry RWA project in mainland China - "Malou Grape RWA" - and completed a 10 million yuan equity financing. As the first true shot fired in the mainland RWA sector, "Malou Grape" has shown many enterprises that are observing the possibility of RWA moving from "concept" to "implementation."
The Crypto Salad team has recently been researching the handling of RWA projects, and we have noticed that everyone is quite curious:
To gain a more comprehensive understanding of the characteristics of the "Malulu Grape RWA" project, the Crypto Salad team members decided to personally purchase and transfer the digital assets of Malulu Grape, conducting research from a consumer perspective to introduce the details and innovations of this product. If there are discrepancies between the content of this article and the actual situation of the project party, corrections are welcome.
1. From Grapes to NFT, what exactly is this project selling?
1. What exactly is this product?
The Malu Grape · The first agricultural digital asset will be officially issued by Left Bank Xinhui (Shanghai) Data Technology Co., Ltd. on November 25, 2024. Users can only buy and sell on the Digital Asset Trading Platform of the Shanghai Data Exchange.
(The above image shows the basic product information of the Malu Grape digital asset)
The project sold out shortly after its release, so currently there is only a secondary trading market. From our observations, the price of Malu Grape digital assets in the secondary trading market ranges from 500 to 5500 yuan, showing a polarized trend; however, the mainstream price range is around 1000 yuan. But when we turn our attention to the recent transaction data, we find that the recent transaction prices are concentrated around 600 yuan. Compared to the initial issuance market price of 99 yuan, the current trading price has indeed achieved a certain premium space. However, from a dynamic perspective, it can still be clearly felt that the enthusiasm for Malu Grape digital assets has gradually declined, and the frenzy of speculation has disappeared, replaced by more cautious value assessment.
(The above image shows the sales situation of Malu grapes' digital assets in the digital trading market)
During the process of trading the Malu Grape digital assets, we also noticed that the project team has set a clear limit on the trading time: after December 8, 2025, the digital assets will no longer be tradable, giving holders only one year to trade. We did not find a corresponding answer for why a countdown was set for trading. However, it is foreseeable that before the one-year deadline, there will definitely be a scenario of concentrated selling by holders, at which point the value of the digital assets will face considerable market volatility.
Additionally, once the physical rights are successfully redeemed, the digital assets will be written off by the project party and will no longer be able to circulate in the trading market. Holders can still enjoy the qualifications to use the "Malu Star Planet" interactive space. During the purchasing process, we have been trying to find clearer responsibility clauses, wanting to know how the rights of holders will be protected after the digital assets are "destroyed". We might even boldly assume that if there is a force majeure or unexpected event, such as the vineyard being burned down, resulting in no possibility of redeeming the physical rights, what compensation should the project party provide? However, we have not yet obtained a clear answer from public channels and the purchasing process.
In summary, each digital asset issued by the project party has a different price, and considering its indivisible nature and unique on-chain identification as core features, we can conclude that the digital assets issued by the project party are essentially a form of non-fungible digital collectibles (NFTs). For more analysis on this point, please refer to Chapter 3 of this article.
2. What rights do holders obtain? Where do these rights come from?
The feature of the RWA project is to anchor the value of the tokens to the underlying assets. In other words, the rights of token holders often come directly from the underlying assets, and the Malu Grape RWA project is no exception.
The underlying assets of the Malu Grape RWA project are the integration of agricultural products and agricultural production data. Among them, the agricultural products are the Malu grapes provided by the Malu Professional Grape Cooperative; the agricultural production data mainly includes various types of data from the grape production process, such as farmer information production data from the grape planting area, environmental data, collection data, regulatory data, and unstructured data during grape growth.
According to the product introduction of the Malu Grape digital asset, users who purchase digital assets can obtain a rights portfolio mapped to the underlying assets, including a basic right and a growth right.
In addition, the project team will provide a surprise benefit similar to an "airdrop" for the top 50 purchasers by trading amount within the specified time, which is a redemption card for Malu grapes.
(The above image is the equity chart of the holder of Madu Grape digital assets)
By analyzing the correspondence between underlying assets and user rights, we found that the physical asset value of the Malu Grape RWA project is relatively fixed, so its appreciation potential is also quite limited. The real value appreciation lies in this "agricultural production data package."
Through our personal experience, users can monitor the growth of grapes in the "Malou Planet" interactive space in real-time by observing the grape plantation. They can plant, harvest, and sell grapes through mini-games, and the coins earned from the transactions will automatically convert into points on the High Light Pick platform. Points can be redeemed for physical rewards provided by the project team after December 9, 2025. Crypto Salad tried to grow its own virtual grapes, and the fruits can be harvested after waiting for 24 hours to exchange for coins. However, unfortunately, we have never been able to successfully open the monitoring video. We wonder if anyone has successfully opened it and could share.
(Left: Digital Asset Trading Volume Rankings; Middle: Virtual Grape Planting; Right: Coin Rankings)
However, if we measure using the standards of financial products, there is still a significant value gap on this platform. First, the points system is not clearly linked to the intrinsic yield mechanism of digital assets; the digital assets held by users cannot appreciate in value through point redemption, and their rights are strictly confined to the category of "consumption-based rewards." Second, the operations that users can perform on the digital platform are quite limited; planting grapes in a virtual space does not mean that a grape seed has been sown in the real world. The platform's interactive functions are limited to single operations, and it seems there is no scenario for users to create mutual value with physical assets.
From this perspective, the agricultural production data collected by the project party has a relatively limited connection with the "Malu Star Planet" interactive space. According to the information publicly disclosed by the technical service provider of the project on their official website, these data will mainly be used in application scenarios such as grape traceability, bank lending, and crop insurance. So we are quite curious about:
We have not yet found reasonable explanations for these questions through public channels. Perhaps, as the project continues to develop, more materials and information will emerge to clarify our doubts.
What did the project team gain from this process?
Having talked about the rights of our holders, let's discuss what benefits this project brings to the project party. Enterprises are eager to try RWA, and everyone is essentially looking to obtain a series of benefits, including financing, through the issuance of tokens, in order to add value to the underlying assets and even the enterprise itself.
We can also summarize a clear value feedback path from the Maru Grape project:
The project party incentivizes users to purchase more digital assets through the airdrop of rights, combined with the "blind box effect" generated by randomly distributing basic and rare items, thereby obtaining this portion of financing. The project party stated that the financing obtained will be used for the construction of intelligent facilities in the Malu grape planting base and the renovation and upgrading of infrastructure.
At the same time, the project party "Left Bank Xinhui", as a company providing agricultural data collection services, can enhance its digital services as more users join the "Maluxingqiu" digital platform. Based on this, the advertising effect has also expanded the influence of the project party. The project party successfully completed a brand narrative upgrade through RWA practice, becoming the first agricultural RWA case in the country, setting a benchmark effect in the industry. This path can be described as killing three birds with one stone, as it not only secured financing but also benefited the project party and supported traditional agricultural assets.
What is the technology underpinning asset tokenization?
According to information from official press releases and media reports, we have learned that the Malu Grape digital assets have successfully been put on the blockchain, relying on a complete blockchain technology ecosystem.
The previous text mentioned that the project party, Left Bank Xinhui, is a company specialized in data collection services. Based on publicly available information online, we can summarize that the project collects physical growth data of grapes by deploying IoT technology, and then integrates the data information through Left Bank Xinhui's self-developed SwiftLink platform, utilizing "multi-chain co-track AMC" and "data asset shell DAS" technologies for structured processing, creating tradable digital asset packages.
From a technical compliance perspective, we can observe that the project party strictly adheres to the current regulatory framework: all on-chain operation data is synchronously stored and verified on the "Pujiang Data Chain" data verification platform, led by the Shanghai Data Group, to ensure the authenticity of the data.
Although the public channels currently provide limited disclosure on the details of the SwiftLink platform and core technologies such as "Multi-Chain Parallel AMC," it is undeniable that it has already achieved the on-chain storage of agricultural production data, which has also been certified at the Shanghai Data Exchange. Based on the state-owned holding background of the Shanghai Data Exchange, we believe that the existing technology is already capable of providing reliable technical support for on-chain data of RWA projects.
2. How did Malu Grapes raise 10 million in financing?
The successful financing of the Marlu Grape RWA project can be attributed primarily to their design of a comprehensive compliance pathway.
We noticed that on October 31, 2023, Shanghai Zuoyan Xinhui Electronic Technology Co., Ltd. and Shanghai Zuoyan Investment Management Co., Ltd. invested 10 million yuan in the project party Zuoyan Xinhui (Shanghai) Data Technology Co., Ltd., making it a special purpose vehicle (SPV) for the project, isolating the Malu grape data asset package from other businesses of Zuoyan Xinhui.
At the same time, the SPV company acts as the financing entity, and its financing activities are only related to the enterprise itself, with no direct connection to the sale of digital assets, thereby avoiding the risk of being classified as "securitized." In addition, 100% of the project's equity is entrusted to the Shanghai Equity Custody Registration Center for custody and is recorded on the "Guyu Chain" platform.
The "Gu Yi Chain" platform is a blockchain proof-of-existence platform independently developed by the Shanghai Data Exchange, focusing on providing digital confirmation and proof services for equity, data assets, and more. Its core goal is to use blockchain technology to transform physical assets (such as equity) in traditional financial markets into verifiable and immutable on-chain digital certificates. In simple terms, it is a platform that realizes the tokenization of equity on the blockchain.
(The above image is the equity structure diagram of the Malu Grape RWA project)
In this process, we can see that the financing obtained by the Armillaria Grape project is different from the financing after the traditional RWA token issuance.
In traditional RWA financing models, after the project party completes the initial capital raise through token issuance, they typically need to list the tokens on an exchange to achieve secondary market circulation, utilizing liquidity premiums for refinancing, forming a typical "issuance - listing - refinancing" path. In this model, the market circulation of tokens not only provides a continuous financing channel for the project party but also binds the value of underlying assets to the dynamics of the capital market.
However, the horseshoe grape has completed 10 million yuan in equity financing before the issuance of digital assets. According to the information we can currently obtain from public channels, the project party has merely entrusted the shares and completed the tokenization and proof of equity, but has not entered the public trading market. Perhaps this is why the project party does not need to disclose financing details, and we have no way of knowing more specifics about the financing, such as who the financing targets are? What is the distribution of equity? Where did the funds from users purchasing digital assets go? What did the project party do with this amount? These are all urgent questions that need to be answered.
However, the Malu Grape RWA project not only complies with regulations but also successfully secured 10 million yuan in equity financing, which undoubtedly brings positive news to many enterprises. Although the project only publicly issued 2,013 digital assets, with an initial price of 99 yuan per digital asset, the total value that the project can directly obtain from the sale of digital assets is less than 200,000 yuan. Due to the uniqueness of agricultural assets, the room for appreciation is also relatively limited. However, the equity financing obtained by the project amounts to 10 million yuan, fully proving that the benefits generated by the current RWA projects can provide positive guarantees for enterprises to secure assets and develop technology.
3. What is the difference between the Malu Grape Project and overseas RWA?
The Crypto Salad team has been deeply involved in the Web3 market in recent years. After conducting in-depth research on the relevant information of Malu Grape RWA, we can find that the Malu Grape RWA project is fundamentally different from overseas RWA projects:
1. Digital assets are not tokens.
As mentioned earlier, the digital assets issued by the project party are actually a form of non-fungible digital collectibles (NFT), which are significantly different from the RWA tokens issued abroad. The main characteristics of NFTs are that each NFT has uniqueness and indivisibility, and its value is determined by the uniqueness of specific metadata, which clearly distinguishes it from fungible virtual currencies such as Bitcoin and Ethereum. In the "Malupulu" RWA project, each digital asset is prohibited from circulation after being exchanged for physical assets, thus it does not possess the attributes of re-trading or re-circulation, nor does it have the function of an interchangeable value medium.
The Malu Grape RWA project differs in the valuation of its tokens compared to overseas RWA projects. We have previously mentioned the logic of token issuance for financing in overseas RWA projects, and here we will discuss in detail how tokens can bring benefits to holders.
In mainstream RWA practices overseas, token holders can substantively obtain fractional ownership of underlying assets or structured income distribution rights through the rights confirmation mechanism of smart contracts. The funds raised by the project party through token issuance are usually directed towards the development and operation of underlying assets or diversified investment portfolio allocation, achieving value appreciation through enhanced asset operation efficiency, market value growth, and other pathways. In this process, tokens serve as a medium for value transmission, returning the income generated by underlying assets to holders in the form of on-chain dividends, token burning deflation, and rights buybacks, according to pre-set on-chain distribution rules.
(The above image is a schematic diagram of the overseas RWA structure)
The Dama Lu Grapes RWA project is issued in the form of NFTs, where holders only obtain the right to exchange for physical goods (grape pickup cards) and eligibility to participate in the digital platform (game points redemption rewards). Its value is anchored to the consumption attributes of agricultural products and the usage rights of data services, rather than asset ownership or revenue rights. Essentially, it is a compliant design of "de-financialization."
The Shanghai digital asset trading platform has also implemented strict controls on the initiation and holding quantities of trades: users holding more than 5% of the total tradable digital assets can only sell 1 unit in a single transaction, and they must wait 5 trading days after a successful transaction before they can continue to sell, until their holdings fall below 5%. This method restricts large-scale sell-offs and prevents the "crazy speculation" of digital assets, thereby limiting the appreciation potential of digital assets from a liquidity perspective.
In summary, holders of the Malu Grape digital assets cannot directly enjoy the benefits brought by the appreciation of the underlying assets. In fact, what they own is still a physical delivery card for Malu Grape and a ticket to the digital interaction space.
We believe that the design of the Malu grape products is closely related to the legal environment in mainland China. The design of the RWA framework must be rooted in the real legal soil. According to the current regulatory framework in our country, activities related to virtual currency, such as issuing virtual currencies or conducting token financing, are still classified as illegal financial activities and are strictly prohibited. Violators face the risk of criminal liability.
Under this regulatory framework, since domestic laws do not prohibit the issuance of digital collectibles, the Malu Grape RWA project has chosen this issuance method, which also provides a reference for other companies to follow a compliant path.
This prudent product design strategy is not only an active exploration of the market's innovative space but also a necessary respect for the legal regulatory red lines.
Different nature of exchanges
The intermediary institution for the issuance of the Malu Grape RWA is the Shanghai Data Exchange. Overseas virtual asset exchanges typically operate as licensed financial institutions, while the establishment of the Shanghai Data Exchange strictly follows the regulatory requirements of the "Interim Measures for the Management of Data Trading Places in Shanghai," requiring special approval from the municipal government for its establishment. Its business scope is clearly limited to data circulation services, forming a systematic distinction from financial asset trading.
In terms of the technical architecture of exchanges, overseas virtual asset exchanges generally rely on decentralized networks to operate, while the Shanghai Data Exchange adopts a centralized governance model, where its system nodes must accept the overall management of government departments. Taking the Malu Grape RWA project as an example, the implementation path of equity tokenization must go through dual compliance guarantees: the project party must first complete the equity confirmation registration with the registration and custody agency under the Shanghai Equity Custody Trading Center, and then achieve equity on-chain through the blockchain evidence storage platform "Guyi Chain". This progressive design of "physical asset - legal registration - on-chain evidence storage" not only continues the regulatory logic of traditional financial markets but also delineates a verifiable compliance boundary for digital technology innovation.
Although the intermediary institutions of the Malu Grape RWA project differ significantly from the overseas model, its essence is still an important attempt to explore the feasibility of RWA within the existing regulatory framework, constructing a localized compliance pathway for domestic RWA projects. This practice fully demonstrates that under the current legal framework in mainland China, RWA is not "impossible", but needs to be "redefined" in a way that better fits the local regulatory logic. The significance of the Malu Grape project lies not only in paving the way for agricultural assets but also in providing a replicable "regulatory-friendly" paradigm for the development of RWA in mainland China.
IV. Introduction to the Purchasing Process: How can retail investors now purchase the Malu Grape RWA products?
If readers want to purchase the Marlu Grape RWA product now, they can refer to the following purchasing process:
! Detailed interpretation of the first RWA project in China
5. What industry effects can Malu grapes RWA bring?
In the wave of deep integration between the digital economy and the real economy, the Malu Grape RWA project has created a successful model for the transformation and upgrading of traditional industries. This attempt is not only a successful exploration for mainland enterprises to approach RWA projects, but it will also stimulate multiple positive demonstration effects within and outside the industry.
The Malu Grape RWA project can provide replicable digital templates for a large number of "silent" traditional assets. The "breaking the circle" experience of Malu Grape can also serve as a reference for traditional Chinese time-honored brands and even intangible cultural heritage. Perhaps in the near future, we will see RWA projects for regional specialty products such as Qibao lamb, Nanxiang steamed buns, and even Su embroidery. Through the RWA framework, leveraging smart contracts and cross-chain interactions, it aims to enhance brand premium while building a win-win ecosystem of cultural heritage and commercial value.
Shanghai also provides a unique ground for this type of innovation. We believe that Shanghai is the most suitable city in the country for exploring RWA projects. As a pioneer of the digital economy in China, Shanghai has taken the lead in laying out the blockchain market, proposing an implementation plan for advancing the urban blockchain digital infrastructure system project from 2023 to 2025, providing both policy and technical support for RWA projects.
After Hong Kong has successively issued licenses to virtual asset exchanges, it is about to release its second virtual asset policy declaration. With its status as an international capital hub and an open virtual asset business environment, Hong Kong is becoming a bridge connecting high-quality assets in the mainland with global investors.
Shanghai-Hong Kong linkage, two cities working in concert, not only aids local assets in "going global", but also opens up channels for international resources to "come in". Crypto Salad has been deeply engaged in cross-border and overseas business for many years, and we believe that in the near future, we will be able to see a brighter future for RWA projects more clearly. The attempt with Malu grapes is not only a reflection of traditional agriculture embracing digitalization, but also delineates a compliance red line for domestic RWA exploration. It may not be perfect, but each step it takes paves the way for future generations.
Special statement: This original article represents only the personal views of the author and does not constitute legal consultation or legal advice on specific matters. If you need to reprint, please feel free to contact Crypto Salad.