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BNB Chain 2025 Year-End Review: Self-Traversal, Trade Everything
In recent days, with the launch effect of Binance, Meme on BSC has once again received market attention. The huge wealth effect and traffic have brought the market's focus back to this five-year-old public chain. However, peeling back the performance and taking a closer look, what we actually see is a fundamental transformation of the ecosystem.
If the initial BNB Chain in 2020 was more of a response to the high gas fees and low efficiency of ETH, resulting in initial user and transaction accumulation, then 2025 was a pivotal year for BNB Chain to proactively undergo self-transformation.
Looking back at this year, BNB Chain is no longer just a cheaper alternative but has begun to possess the foundational capability to sustain real-world financial and payment scenarios in the long term.
User, liquidity, and transaction volume have all hit record highs, with TVL growing by 40.5%. The market cap of on-chain stablecoins has grown by over 100%, reaching $14 billion, and RWA asset size exceeds $1.8 billion.
In terms of results, on-chain activity on BNB Chain is not a short-lived spike but rather demonstrates a continuous, stable growth trend.
Core scenarios such as yearly transactions, stablecoins, payments, and RWA have maintained high-frequency usage. The network must continue to operate under long-term high loads, not relying on occasional peaks to prove performance. It is in such a real production environment that BNB Chain has been tested, running smoothly without downtime throughout the year, maintaining stable operation under high-intensity transaction and asset circulation.
Underlying these data is not a single technological breakthrough but a year-long advancement of core engineering capabilities. In 2025, BNB Chain underwent deep iterations of the underlying protocol and client, with block time and throughput systematically redesigned to make the chain itself capable of high concurrency, low latency, and long-term scalability. Block time has been compressed from the previous 3-second range to sub-second levels, finality significantly accelerated, and network bandwidth expanded to over 133 million gas per second, allowing the chain to sustainably process up to 5 trillion gas in daily loads in a high-concurrency environment. Accompanied by the frictionless stablecoin payment network and the introduction of standardized RWA compliant assets, BNB Chain has made a key leap in technology, assets, and ecosystem.
Through multidimensional driving forces, BNB Chain has touched the threshold of a billion-user infrastructure. Moreover, it is no longer just serving crypto-native users but is beginning to provide a blockchain foundation that can be accepted and used by a broader audience and the traditional financial system.
The significance of 2025 for BNB Chain lies not in any extreme metric but in validating one thing: under real, continuous, high-intensity usage conditions, a public chain can operate as infrastructure, rather than remain in the theoretical performance stage. It is this experience that forms the practical basis for the 2026 technical roadmap, aiming for higher TPS, lower latency, fairer execution, and more sophisticated middleware and development tools.
2025 Daily Active Users First, Is Technology Still Important?
During the AMA session at the BNB Chain's fifth-anniversary celebration, CZ once stated that for a project to attract more Web3 users, it needs a powerful and appealing product.
This statement neatly encapsulated the strategic theme of BNB Chain's development throughout 2025.
Back in early 2025, amid significant cost reductions through modularity and a background of widespread L2 adoption, the narrative of BNB Chain was not particularly enticing, and its moat was not very wide. BNB Chain was not eager to chase hot trends but instead focused on fundamental technological reengineering, laying the groundwork for its explosive growth and daily active user peak in the latter half of the year.
Through the Lorentz and Maxwell hard forks, BNB Chain's block time was compressed from 3 seconds to 0.75 seconds, further to the upcoming Fermi at 0.45 seconds, reaching a network throughput of the order of 133 million gas/s. Transaction confirmation time entered the sub-2-second range, MEV sandwich attacks were reduced by 95%, and transaction costs were significantly lowered in high-concurrency scenarios.
For some users, these changes may seem merely like "faster" parameters. However, in practical terms, the shortened block time enabled high-frequency interactive applications to achieve usability for the first time. The increased throughput allowed the chain to handle sudden surges in traffic without throttling. The reduced confirmation time and fees directly altered the average user's psychological expectation of whether on-chain operations were worthwhile.
In other words, the work in the first half of the year addressed a core contradiction of BNB Chain: how to achieve performance comparable to centralized servers without sacrificing decentralization.
The effects were evident as high-frequency activities such as stablecoin trading, DEX interactions, on-chain transfers, etc., saw rapid growth. BNB Chain became one of the public chains with the highest number of daily active addresses in multiple time windows. The latest data from Token Terminal shows that BNB Chain's daily active users reached 4.4 million, leading the blockchain rankings. The average daily on-chain transaction volume in 2025 stabilized at the tens of millions, reaching a historical peak of 31 million transactions in a single day in October, a 150% year-on-year increase. At the same time, TVL increased by 40.5% year-on-year, stablecoin market cap on-chain doubled, peaking at $14 billion.
Image Source: Token Terminal
Entering the second half of 2025, BNB Chain rapidly shifted gears from an engineer to a product manager. Leveraging a strong foundation from the first half of the year, it successfully took on the massive stablecoin payment and RWA demand.
$147 Billion Stablecoin Supply and 4 Million Daily Active Users
If the crypto industry before 2024 was primarily driven by speculation, 2025 saw a transformation into a utility-focused stablecoin era. In this year, the stablecoin USDC issuer Circle went public, and the $1.6 trillion AUM Franklin D. Templeton launched JUSD.
Stablecoins are evolving from mere transactional mediums to channels bridging the traditional financial world and the Web3 space. Stablecoins are no longer just tools for DeFi but are starting to take on a role closer to real-world payments and fund circulation.
In this transformation, BNB Chain, with its 2-second settlement and transaction fees as low as $0.005, has become the fastest-growing platform. The latest data shows that the stablecoin value on the BNB Chain network has exceeded $147 billion, with BSC and opBNB serving over 4 million daily active users.
Image Source: Dune
The mainstream adoption of stablecoins does not just depend on the asset itself but also on its operating environment. For stablecoins to serve billions of users, the chain itself must have characteristics like low cost, speed, and seamlessness. The first-half-year upgrades of BNB Chain laid the foundation for the widespread use of stablecoins.
Through initiatives like gas-free transactions, opBNB, and other expansion solutions, the cost of stablecoin transfers has been compressed to near-zero levels, significantly reducing the barrier to using stablecoins for payments. On BSC and opBNB, stablecoin transfers are nearly instant, providing a near Web2 experience for on-chain payments, salary disbursements, and merchant settlements.
The on-chain stablecoin supply on BNB Chain has doubled to around $14 billion, making it one of the most active stablecoin networks globally. Against this backdrop, the stablecoin ecosystem itself has begun to change. United Stables chose to natively issue stablecoin U on BNB Chain. Unlike traditional stablecoins relying on a single collateral asset, U adopts a multi-stablecoin reserve model, allowing mainstream dollar-pegged stablecoins like USDT, USDC, and USD1 to be directly used as collateral to mint U.
From an ecological perspective, the introduction of U is not an isolated event but a natural outcome of the BNB Chain stablecoin system maturing. As the on-chain stablecoin scale continues to expand and address activity increases, the demand for unified liquidity and higher capital efficiency also grows. The multi-collateral model of United Stables is a response to this demand. United Stables' design reduces the efficiency loss caused by repeated splitting among different stablecoins, helps integrate on-chain liquidity, and simplifies the use of funds in trading, payments, and DeFi applications.
Image Source: BNB Chain
In 2025, a landmark event occurred when Abu Dhabi MGX invested $2 billion in Binance through the stablecoin USD1. USD1 is an anchor-to-dollar stablecoin launched by the Trump family-backed World Liberty Financial, backed by highly liquid assets, deployed on BNB Chain and other mainstream blockchains like ETH.
This investment sent a clear signal that stablecoins are no longer limited to the crypto industry but have become a tool to connect traditional capital with on-chain finance. And BNB Chain is a key infrastructure for this channel.
Furthermore, BNB Chain, in collaboration with YZi Labs, launched a Builder Fund of up to $1 billion to accelerate the development of existing and future developers on BNB Chain, especially those applications that can truly mobilize stablecoins. This fund not only provides funding but also offers technical incubation and compliance consulting.
According to the development blueprint disclosed by BNB Chain, areas such as on-chain salary systems, programmable treasuries, stablecoin-native credit cards, invoice tokenization, CBDC bridging and custody, green finance, and supply chain automation will experience explosive growth. These upcoming tracks share similar characteristics of being efficient, automated, and globally accessible, rather than focusing on cryptographic attributes. The positioning of stablecoins in these is closer to a digital economic unit, while BNB Chain aims to be the underlying operating system that supports these functions.
It is worth noting that the growth of the BNB Chain network's stablecoin ecosystem is not a single-point explosion but deeply tied to RWA.
BNB Chain and RWA Mutual Achievements
This year, we are no longer discussing the feasibility of on-chain assets. Traditional financial giants such as BlackRock, CMB International, VanEck, Franklin Templeton, and others are transferring hundreds of billions of dollars in assets to the blockchain. In this on-chain movement, BNB Chain, with its massive user base and ecosystem strategy, has become one of the key infrastructures for hosting RWA funds.
BlackRock, with the technological support of Securitize and Wormhole, has deployed its USD institutional digital liquidity fund, BUIDL Fund, to BNB Chain. Additionally, this fund can also be used as collateral on the Binance trading platform. This means that on-chain funds are no longer exotic financial products but have become a liquidity layer in the crypto market.
CMB International has brought its USD money market fund with assets under management exceeding $3.8 billion to BNB Chain. Reportedly, this fund is ranked first among similar funds in the Asia-Pacific region by Bloomberg, and investors can subscribe to shares on BNB Chain using stablecoins.
Image Source: BNB Chain
The deployment of various RWA assets on BNB Chain is not a one-way benefit but a deeper two-way promoting relationship. RWAs and BNB Chain are forming a mutually reinforcing positive feedback loop.
On-chain assetization is just the first step. If there is a lack of sufficient trading depth and turnover rate, then these tokens are just on-chain digital certificates and cannot unleash true financial value. Liquidity depletion is the biggest pain point hindering the large-scale outbreak of RWAs.
As a mature ecosystem, BNB Chain provides three key elements for RWA assets: high throughput, low fees, and a massive user base. Compared to other expensive blockchains, BNB Chain's low gas fees and high TPS make high-frequency trading and instant settlement possible, significantly reducing the threshold for user participation in RWA investments. Additionally, BNB Chain users are one of the most active Web3 communities, meaning that once RWA assets are launched, they can directly reach a massive number of potential investors.
In fact, CZ had already revealed in the AMA for BNB Chain's 5th anniversary that the key to the prosperity of RWAs on BNB Chain is, "Without users, there are no trades; without trades, there is no liquidity."
When Ondo Global Markets announced the introduction of 100+ US stocks and ETFs to BNB Chain and deep integration into the Binance Wallet, the market experienced a significant chemical reaction. Thanks to BNB Chain's large daily active user base, Ondo's tokenized stock trading volume surged from a previous single-day peak of $84 million to $170 million.
Image Source: rwa.xyz
As we stand at the beginning of 2026 and look back at the entire year of 2025, it was a milestone year for BNB Chain. BNB Chain transitioned from competing in the public chain space based on performance and cost to positioning itself based on real-world adoption, operational stability, and regulatory accessibility, aligning with the global traditional financial and internet payment systems. Over the past year, continuous high-throughput and zero-downtime operation, the growth of stablecoins and RWAs, and systemic optimization of underlying performance and cost structure have collectively demonstrated that BNB Chain has moved beyond the phase of just technical feasibility.
Looking ahead, the focus of BNB Chain's development will no longer be solely on chasing higher metrics but on further enhancing execution quality and user experience beyond its current scale. This includes faster confirmation speeds, lower usage costs, a more equitable trading environment, and middleware and tooling systems that are more friendly to complex scenarios like stablecoins, RWAs, payments, and AI.
Looking into 2026, BNB Chain aims to solidify its sub-second performance, global payment capability, and compliant asset support as default capabilities, allowing developers to build applications that offer an experience close to Web2 on top of it. This will enable ordinary users to utilize blockchain services without perceiving the underlying complexity. When blockchain is no longer seen as a new technology but naturally integrated into daily economic activities like a network or payment system, the true mass adoption of Web3 will arrive. And in 2025, BNB Chain took a decisive step towards this direction.
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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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