Applications blending digital content with the real world are reshaping industries. From digital twins in manufacturing and environmental monitoring to 3D overlays in technical services and healthcare, to virtual try-on in retail, the scope is expansive. However, these applications impose intricate requirements on 3D content creators. Today’s applications demand that 3D assets be both re-usable and easy to integrate into complex, interactive scenes. This means creators must define not just their appearance, but physical properties that allow them to realistically affect and be affected by their environments. At the same time, these assets must be lightweight for web-based transmission, ensure real-time interaction without lag, and display consistently across various platforms and devices. In this panel, experts from the Khronos 3D Formats Working Group will address the challenges of crafting 3D content for spatial computing, focusing on innovations in interactivity and physics for standards-based 3D assets. The panel will delve into open-standard approaches to these challenges, highlighting how collaborative development efforts are paving the way for more immersive, responsive, and versatile applications.