Real World Assets (RWAs)
Real-World Assets (RWAs) bring tangible value on-chain by tokenizing physical assets like real estate, commodities, or invoices—unlocking new liquidity and investment opportunities in the blockchain space. They bridge traditional finance with DeFi, making asset ownership more accessible and transparent.
Tokenization Process & Legal Frameworks
Tokenizing real-world assets involves creating digital tokens on a blockchain that represent ownership of physical assets. This process requires robust legal frameworks to ensure that token holders have enforceable rights and that the asset’s ownership is properly recorded and protected under the law.
Liquidity & Market Access
By turning physical assets into tradable tokens, RWAs unlock liquidity for markets that were traditionally hard to access. Fractional ownership allows more investors to participate, while blockchain technology facilitates faster, more transparent, and borderless transactions.
Risk & Valuation Challenges
Integrating real-world assets with blockchain brings challenges in valuing those assets accurately and managing risks like fraud, custody issues, and regulatory compliance. Ensuring reliable asset appraisal and secure custody solutions is crucial for maintaining investor confidence and market stability.