Beijing Youth Daily: Can "digital assets" become a major asset class like houses, stocks, and funds?

Source | Beijing Youth Daily Editor | Bowen On February 5, 2025, Beijing Youth Daily prominently reported on "digital assets" on the front page and in a full A4 page. From the perspective of young people, it covered the development of the "digital assets" industry, investment stories, and the participation of social forces.

The article explores whether "digital assets" have the potential to become a major asset class like houses, stocks, funds, and gold; it also mentions that China's "digital asset" market is starting to build a circulation environment from the perspective of industry collaboration and autonomy, with the hope of forming a standardized market. Banks and large enterprises, such as Industrial and Commercial Bank of China, Ant Group, and Xiexin Group, have begun to venture into the digital asset field, releasing digital collectibles or launching RWA projects.

The various measures extensively mentioned by domestic media signify that the application of digital assets is gradually expanding, penetrating into a wider range of industries and fields; it also indicates that the "wind direction" of domestic regulation may accelerate changes, and in the near future, more noteworthy opportunities may emerge in China.

Here is the full report

As 2025 arrives, people begin to reflect on the performance of various major asset classes over the past year. Among traditional major assets, stocks and funds were once the most discussed investment objects among young people, but since 2024, a wave of "digital asset" investment has quietly emerged among the youth. "Digital assets" generally refer to artworks, collectibles, or rarities that exist in digital form, secured by blockchain technology to ensure their uniqueness, immutability, and ownership. Compared to traditional physical assets, owning "digital assets" does not require cumbersome logistics and storage processes.

Why do young people favor "digital assets"? Can "digital assets" become a major asset class like houses, stocks, funds, and gold? What highlights does the emerging "digital asset" phenomenon possess?

Young People at the Digital Art Exhibition

From the end of last year to January 10 of this year, the largest "digital asset" platform in China, Whale Explore, held a digital art exhibition in Shanghai. Entering the exhibition area, a giant whale leaping from the deep sea attracted visitors to "fish" for photo opportunities, along with a rock band of bronze figures from the Sanxingdui culture, brightly colored Dunhuang flying apsaras, and cats from the Sphinx galaxy… These digital collectibles are sought after by young collectors due to their unique blockchain codes, making each one irreplaceable and immutable.

A junior student from Fudan University, "Lavis," stated that he was originally a fan of offline trendy toys, and now his home is filled with physical collectibles, making it hard to move. Since discovering the Whale Explore "digital asset" platform, he feels like he has found a new world, where he can appreciate his collection anytime on his phone, and the trading and exchanging process is much more convenient than with physical items. "I originally planned to write my graduation thesis on Pop Mart, but now I think the topic of 'digital assets' is more challenging."

In the "Cultural" themed exhibition, the "Great Whale Museum" series created by the National Trend Art Research Institute of the China Academy of Art has modernized elements such as ancient architectural furniture, time-honored Chinese brands, and the national treasure giant panda, allowing users to create their own digital museums with their collectibles and open them for other users to visit and earn revenue.

Discussing the significance of promoting national trends, Professor Ni Bin, director of the National Trend Art Research Institute of the China Academy of Art, stated, "For young people, we mainly aim to spread positive traditional Chinese culture; for older people, they find it hard to understand elements like millet and the second dimension. By incorporating national trend elements, they suddenly like it, promoting the modernization of traditional culture and establishing national and cultural confidence for a broader audience."

The owner of the trendy toy IP "Da Vinci's Egg," Bonan, also sensed young people's love for national trends. They collaborated with another partner of Whale Explore, the Dunhuang Art Research Institute, to jointly develop the WEE Zai - Dunhuang Flying Apsara collectible, combining trendy toys with cultural heritage, activating the passion of two fan groups, and selling out 10,000 collectibles in seconds.

"Presence Evidence" Left by Digital Badges

Among the many types of "digital assets," POAP commemorative badges are the most favored by young people. They are somewhat similar to the hottest "badges" in the millet economy. POAP stands for "Proof-Of-Attendance Protocol," used to record and commemorate the occurrence of specific events. POAP can serve as an easily verifiable proof recorded on the blockchain to demonstrate that a user was present at an event or activity. Events and activities can take place in the physical or virtual world.

Some people collect tickets after watching movies or concerts to prove they are loyal fans or to show they personally participated in an event. POAP badges serve as online records proving that you attended a certain activity. Zhao Yan, a digital collector from Beijing, stated that she is a dual enthusiast of "badges" and POAP, and now places more importance on POAP, as she can showcase her POAP collection online to commemorate or flaunt unique experiences, "leaving evidence of presence in the busy urban life."

On July 22 last year, iQIYI's flagship music variety show "China's Rap Peak Showdown" teamed up with the ARCC platform to launch a limited edition digital badge POAP, which was highly sought after and loved by young people. The 12 POAP badges issued by iQIYI were minted through the ARCC digital badge platform, corresponding to the 12 episodes of "China's Rap Peak Showdown." Viewers needed to search for hidden Easter eggs while watching the show to collect fragments and synthesize the POAP badge for that episode.

For producers, POAP can encourage users to participate more actively in various activities and events by designing unique badges and tasks. At the 10th anniversary conference of the World Internet Conference in Wuzhen, citizens could earn digital badges by checking in at locations such as the Xizha Scenic Area, the Exhibition Center, and the Wuzhen World Internet Technology Museum.

POAP badges provide young people with a unique way to symbolize identity and social recognition. After participating in events such as seminars, concerts, live broadcasts, and online courses, users can receive POAP badges. The general manager of Whale Explore stated in an interview with Beijing Youth Daily that he hopes that in the future, a billion users will manage and apply their daily collectible items in digital form on Whale Explore, and that users' "big and small life events" will be preserved in the form of digital badges (POAP) on Whale Explore, allowing users to check in and receive a location-specific digital postcard wherever they travel.

The Allure of Digital Blind Boxes

Beijing Youth Daily reporters noticed that many "digital assets" are issued in the form of blind boxes, which are popular among young people. The strategies from the millet economy have also been applied to the "digital asset" field. Some "digital asset" issuers set extremely low probabilities for rare items in blind boxes, such as 0.1%, to attract users to open blind boxes in large quantities. In the second-hand trading market for "digital assets," the price difference between rare and common digital cards is significant. For example, on the Whale Explore platform, the value of a common digital card may only be a few cents, while the second-hand price of a rare UR-level card can reach thousands of yuan. Due to the extremely low probability of rare items, some users invest thousands of yuan without obtaining any rare items.

However, digital blind boxes have a strong appeal for young people. Recently, a digital card from Whale Explore's "Wuhuang Cat - Creative Museum Series" sold out 500,000 digital cards within an hour. A user in a WeChat group stated, "The probability is very low, and I know I will likely lose money, but on one hand, I like this IP, and on the other hand, I find it hard to resist the temptation of opening blind boxes. The more I open, the more I can't control myself. I spent over 5,000 yuan in one go."

Born in 2002 and from Taizhou, Zhejiang, senior student Zhou Qun (pseudonym) is an outlier among his classmates. While his classmates are keen on shopping malls and online shopping, he spends most of his pocket money from his parents on purchasing "digital assets." He first learned about this industry through social media, "Later, by chance, I came across Whale Explore and found many beautifully modeled digital collectibles authorized by museums. My university major is also related to art design and modeling, and these national treasure-level cultural relics are priced at only a few dozen yuan." Since the end of 2022, Zhou Qun has been continuously purchasing "digital assets" on Whale Explore. With the arrival of this round of "digital asset" mini bull market, the market value of the "digital assets" he holds has also risen significantly, with many collectibles' secondary market prices having multiplied.

However, Zhou Qun currently does not plan to sell these "digital assets." "I plan to hold these 'digital assets' for a period of 10 years, as I am optimistic about the industry's development." Although Zhou Qun is an outlier among his classmates, his parents are very supportive of him. "I have specifically discussed this industry with them, and they trust and support me very much. They often help me grab the first-release collectibles."

Asset Allocation Shifts to "Digital Assets"

Beijing Youth Daily reporters noticed that some investors in the traditional calligraphy and painting field have also begun to venture into the "digital asset" field. Earlier this year, "Principal Le," an internet celebrity focused on sharing experiences in traditional calligraphy and painting trading, released a short video titled "Principal Le Layouts Digital Collectibles." In the video, he candidly stated that the traditional calligraphy and painting market is very sluggish and urgently needs digital transformation, thus deciding to enter the "digital asset" field with an initial investment of 1 million yuan as trial funds.

Yu Jiwei, a collector from Shaoxing, Zhejiang, with years of experience in ancient coins, paper money, and stamps, stated that digital collectibles feel like discovering a new world to him. Based on his decades of experience in the collecting community, he believes digital collectibles have great prospects. He began paying attention to digital collectibles in early 2022, and his total holdings of personal "digital assets" have exceeded 350,000 items, with an investment exceeding 10 million yuan, and he continues to increase his holdings.

As the chairman of Zhejiang Yijin Group, Yu Jiwei has also established a "Digital Collection Operations Department" within the company to manage its multi-million yuan "digital asset" investment projects. A person in charge of a newly listed company on the New Third Board also stated that they will soon establish a "Digital Asset Operations Department" to increase their layout in the new "digital asset" field. Whale Explore's "digital assets" have also attracted the attention of some private equity fund managers, and several private equity individuals have conducted market research on Whale Explore's "digital assets." A private equity fund manager born in the 1980s in Shenzhen told Beijing Youth Daily that as more and more young people begin to accept "digital assets," he is considering establishing a private equity fund focused on "digital assets."

On September 22 last year, the "Whale Explore 50 Index" collectible, spontaneously compiled by users in the community, had a total market value of 129.85 million yuan on the over-the-counter trading platform. As of January 31, 2025, the total market value of the "Whale Explore 50 Index" collectibles approached 500 million yuan, with an increase of 280%. Some investors with millions of yuan have already regarded "digital assets" as a new type of asset allocation alongside real estate, stocks, funds, and gold.

On New Year's Eve this year, a "post-00" individual complained in a "digital asset" exchange community that after graduating from university, he began to study investment and financial management. Initially, he bought funds, then stocks, and after several years of trial and error, he found that both markets had matured, with institutions holding the pricing power. "We retail investors face quant funds armed to the teeth every day, making it very difficult to make money. Throwing tens of thousands of yuan in feels like a drop in the ocean. But 'digital assets' are an undeveloped virgin land. I often tell my friends that getting into 'digital assets' now is a bit like buying stocks in the 1990s, full of unknowns, challenges, and hopes."

Establishment of Digital Asset Trading Sections

Beijing Youth Daily reporters noted that GF Securities once stated in a research report that China's "digital asset" market is beginning to build a normative circulation environment from the perspective of industry collaboration and autonomy, forming a differentiated development path from the overseas NFT industry ecosystem. It is expected that in the future, China will form a normative circulation environment for the "digital asset" market, continuously developing innovative digital collectibles to amplify the marketing and copyright value of cultural digital content, opening up a broad blueprint for the development of China's "digital asset" industry.

Since last year, various data trading platforms have established "digital asset" trading sections. The "digital asset" section of the Shanghai Data Exchange has become a dark horse in the digital asset trading field, with its first issued "digital asset" "Dragon Glorious Light, One 'Order' Brightness," and the "Beijing CBD International Group - National First Batch of Data Asset Entry Commemorative" digital asset commemorative medals being highly sought after in the market. Recently, the Shanghai Data Exchange also issued the first RWA project in the agricultural field - the "Maluzhu Grapes RWA" project, completing 10 million yuan in equity financing. The Zhejiang Cultural Property Exchange has also launched "digital asset" trading business. The Zhejiang Cultural Property Exchange stated that it will explore the application and circulation scenarios of cultural "digital assets" empowering the real economy based on the successful transformation case of the National Version Museum in Hangzhou.

Since 2022, 13 banks, represented by the Industrial and Commercial Bank of China, have also officially announced their entry into the digital collectibles track. Users opening the ICBC App will find that its latest issued "digital asset" is "Seeing Intangible Cultural Heritage - Purple Clay Teapot," with a total issuance of 200,000 copies available for free. The issued "digital assets" mainly focus on intangible cultural heritage projects, museum cultural creations, and digital commemorative badges. Among them, ICBC has set up a digital collectibles museum in its mobile banking app, placing it alongside deposits and remittances in the main menu, indicating a clear emphasis on the digital collectibles business.

A bank representative told Beijing Youth Daily that as a frontier area of digital payments, banks' layout of related "digital asset/digital collectibles" businesses is also a technical reserve for the further development of the blockchain metaverse and the development of digital payment services. The enthusiasm of young people for "digital assets" is also an important factor in banks' layouts.

In the past year, another significant type of "digital asset" that Chinese enterprises have ventured into is RWA. RWA, or Real World Asset tokenization, refers to a form of trading physical asset ownership in digital form (Token) on the blockchain, similar to an "IPO" in the digital world. In September last year, Xiexin Group, China's largest private power company, and Ant Group completed the first RWA of physical assets in the photovoltaic field. It is understood that this was based on the new energy charging pile assets operated by Langxin Group, successfully obtaining the first cross-border financing of 200 million yuan in Hong Kong. Ant Group's CEO Zhao Wenbiao stated that the RWA model is like a mini IPO, enabling more small and medium-sized enterprises to connect with global funds through the blockchain network.

Related content can be referenced: Ant Group and Xiexin Nengke Complete Over 200 Million Yuan Photovoltaic Physical Asset RWA Issuance

Beware of Digital Scams

As a new phenomenon in the investment field, "digital assets" are still in the early stages of development, characterized by unstable market value and high volatility, making it particularly easy to incur losses through chasing highs and cutting losses. Additionally, due to the unclear nature of national policies, most "digital assets" currently lack a good trading environment. Investors looking to understand "digital assets" should first choose legitimate platforms, such as Whale Explore under Ant Group or the Shanghai Data Exchange, which have large corporate or state-owned backgrounds; secondly, they should also be wary of some criminals who take advantage of citizens' curiosity about new things, using the guise of "digital assets" to commit fraud.

The Hefei Public Security Bureau once dismantled a fraud gang that posed as issuers and traders of "digital assets," falsely claiming that the "digital assets" they issued were masterpieces by masters, while in fact, they were works from ordinary artists and images directly copied from the internet, lacking any collectible or actual value and unsuitable for any scenario.