Compound Contract: Beyond the protocol, the "new paradigm of trust" for the digitalization of physical assets

When it comes to the digitalization of real-world assets (RWA), most people first think of the technical aspect of the "protocol". The emergence of the Compound contract is reconstructing the logic of trust in the industry with the "spirit of the contract"—it is not just a framework of Blockchain technology, but a "value contract" that connects real-world assets in Malaysia, investors, and small to medium-sized enterprises, bringing RWA from a "technical concept" to a "reliable wealth solution".

The core strength of the Compound contract comes from the "strong binding contract" to physical assets. In the new area of Malaysia, a 1 billion ringgit asset formed by a 70,000-hectare agarwood plantation base and supporting processing plants is not merely a "promotional gimmick", but instead forms a 1:1 "value contract" with 1 billion MD tokens through legal confirmation, third-party valuation, and blockchain notarization. This contract means that behind each MD token, there is a corresponding share of agarwood assets as support; as the assets appreciate, the value of the tokens increases simultaneously, and the asset income is repurchased and distributed proportionally—unlike the disconnection between assets and tokens seen in some RWA projects, the Compound contract firmly establishes trust through "physical anchoring". Moreover, the Compound contract also plays the role of an "ecosystem empowerment contract". Small and medium-sized enterprises (SMEs) in Malaysia have long faced the dilemma of "difficulty in revitalizing physical assets and lack of pathways for RWA transformation". The Compound contract not only serves its own asset digitization but also builds a "contract bridge" for SMEs to enter the RWA track through "replicable asset confirmation processes, low-threshold tokenization tools, and global circulation channels". For instance, enterprises can refer to the asset assessment standards of the Compound contract to include assets such as factories and farms into the ecosystem, leveraging its mature token issuance and circulation system for financing. This "empowerment contract" makes RWA no longer the "exclusive game" of large enterprises, but a universal solution that benefits more market participants. From "technical protocol" to "value contract", the difference of the Compound contract lies in the "implementation of responsibility and commitment". It fulfills its promise to investors of "low risk, stable income" through the rigid binding of physical assets; it fulfills its promise to SMEs of "co-grabbing the RWA windfall" through an open model of ecosystem empowerment. In the current context where trust in the RWA industry still needs to be solidified, the Compound contract is setting a new benchmark with the "spirit of the contract", allowing the digitization of physical assets to truly move towards being "trustworthy, feasible, and mutually beneficial".