Tokenization of Real-World Assets

Nov 1, 2023 • 12 Min Read


Blockchain networks initially were more like closed-loop systems, meaning the value created and traded on-chain was confined to crypto native assets. As technology has developed, blockchains and the real world are becoming more intertwined. Crypto protocols and TradFi institutions alike are looking to tokenize real-world assets and benefit from transaction efficiencies, cost savings, interoperability, composability, and transparency. Protocols have already begun bringing assets like dollars and treasuries on-chain while some of the largest financial institutions in the world have started experimenting with tokenization and in-house blockchains. The line between the two will likely continue fading as technology and adoption grows, but it’s becoming increasingly likely the future of finance will move onto blockchain rails.

What are RWAs?

Real-world assets or RWAs include all tangible and intangible assets that are not native to a crypto network, from real estate and commodities to government securities and M2 money supply. The total market value across RWAs exceeds $992 trillion[1]. These asset classes are all extremely mature and have been developed on traditional finance rails over multiple decades. For context, the total market capitalization of all cryp...

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