Real-World Assets (RWA)
Real-World Assets (RWA) are physical or traditional financial assets, like real estate, commodities, bonds, or invoices, that are tokenized and represented on a blockchain.
How RWAs Work
By turning tangible assets into digital tokens, RWAs make it possible to trade, own, or invest in them more efficiently. These tokens are backed by actual assets and often include legal frameworks to ensure claims are enforceable. RWAs can be fractionalized, allowing more people to gain exposure to high-value assets like commercial property or private debt.
Why RWAs Are Gaining Attention
RWAs bridge the gap between traditional finance and blockchain by bringing real-world value into decentralized ecosystems. They improve asset liquidity, broaden investor access, and open the door for innovative DeFi products that integrate with off-chain value. As regulations evolve, RWAs are expected to play a growing role in on-chain finance.