There exist ways for foreign investors to access Chinese supply-chain finance – if you have an institutional relationship with banks. Now, Dewu Finance in Beijing and EVIDENT in Hong Kong are tokenizing those flows to provide a yield, one that can readily circulate on global digital rails, while remaining compliant with familiar securities and funds law.

As EVIDENT's founder and CEO Florian Spiegl explains: "You need to understand that we are just at the beginning of what will be a huge trend over the next decade." That may be a way of managing expectations around deal sizes, but it's also a pointer to the future.

Who Are the Key Players?

EVIDENT 

EVIDENT is a full-stack digital market for alternative assets, operating the next-generation digital infrastructure for private markets. The company is focused on unlocking the world's largest asset class for private wealth investors.

As a fully licensed institutional partner, EVIDENT holds a defining position by leveraging asset tokenization on blockchain to digitize the entire asset lifecycle from primary issuance and administration to secondary transactions. EVIDENT operates a global, regulated marketplace serving major asset and wealth management firms, making private assets efficiently accessible and tradable.

Dewu Finance

Dewu Finance is a Beijing-based, fintech-focused venture capital firm. Its parent is Dewu, an e-commerce platform. This gives its finance business access to supply-chain data: it operates a supplier-relationship management (SRM) system that claims to process receivables for 2.4 million suppliers, plus over 1,000 large enterprise customers such as tech giants Xiaomi and consumer-electronics company Haier. Dewu says it processes more than Rmb5 trillion ($700 billion) annually.

How Does the Partnership Work?

Together they are building a vertically integrated, tokenized channel that connects global capital to Chinese high-tech and export supply chains, via the regulatory frameworks of China's QFLP and Hong Kong's SFC. EVIDENT is the licensed onchain gateway and Dewu is the originator of the supply-chain credit.

By combining real-time supply-chain data, and short-duration receivables with Hong Kong's license regime for tokenized securities, they are creating a new yield product against "the workshop of the world". Each unit of capital is matched to actual goods and orders, with repayment sourced from trade settlement cash flows.

Boran Ding, managing partner at Dewu Finance, says this allows investors to "lock in supply-chain alpha" in a world of global yield compression. It gives investors access to counter‑cyclical, low‑correlation returns while channeling capital into sectors Beijing wants to support (high‑tech exports, manufacturing upgrading, EV infrastructure).

Why This Market Opportunity Exists

China's armada of suppliers are starved for credit, and will pay a premium to access funding. Accessing this requires rapid loan approval for credits that local banks generally refuse to handle.

Their tokenized product aims to provide a yield of 8 to 9 percent, but Ding says this could rise to 12 to 18 percent over time, once the product is proven and can structure into different levels of risk. That is attractive against US Treasury yields (currently around 3.5 percent for 12 months, and 4.2 percent for 10 years).

What This Partnership Represents

The Dewu/EVIDENT partnership points to several important trends:

First, it shows that real-world asset tokenization is able to move from proofs of concept into production. This isn't just tokenizing US Treasuries to provide crypto investors with a little yield.

Second, it points to a complete rewiring of capital-markets infrastructure. Tokenization will gradually absorb more private credit, private equity, infrastructure and real estate, along with collectibles. These illiquid and quirky assets will be able to provide much more liquidity as they are digitalized, and start to trade alongside public-market securities.

Third, the value of a tokenized asset isn't just its legal wrapper (as a claim to an income stream), but provides value as a live data stream of purchasing orders, logistics milestones, and credit scores. This shows that tokenization can unlock new, previously inaccessible cash-flow pools, and not just repurpose existing products. Those data flows may also be useful to assuage foreign investors who distrust the opacity that comes with China's credit markets, enshrouded by capital controls and tight limits on data leaving the country.

Fourth, there will be demand for innovative products. Spiegl says worldwide some $12 trillion of private wealth is moving into private markets. He notes that today private investors already control 54 percent of global wealth (estimated at $300 trillion) but make up only 16 percent of private-market assets under management.

Currently, family offices access illiquids via their private banks, although some are using fintechs such as iCapital and Moonfare to do so. But those wealthtechs are merely representing private clients as omnibus investors in large-scale funds. Tokenization implies that investors can participate directly, in much smaller amounts, through a platform like EVIDENT's or other digital marketplaces.

Fifth, this product highlights Hong Kong's strengths as an emerging digital-assets hub. Whatever the merits of Dubai and Abu Dhabi, they cannot plug into the Chinese economy. Hong Kong's unique combination of a common-law legal system, internationally recognized financial regulation, and vocal backing for securities tokenization positions it as a bridge between mainland assets and global investors.

Read the complete article by Jame DiBiasio in The JDB Report, here: https://www.jdbreport.com/p/dewu