What Are RWAs?

Real-world assets (RWAs), when converted into tokens, become digital assets functioning within blockchain technology, representing tangible and traditional financial items such as currency, commodities, stocks, bonds, credit, artwork, and intellectual property. This shift towards tokenization marks a significant change in how these assets are accessed, traded, and overseen, unlocking numerous opportunities for both blockchain-driven financial services and various non-financial applications supported by cryptographic and decentralized consensus mechanisms.

Asset tokenization is acknowledged as one of the most promising applications of blockchain technology, with its potential market scope encompassing nearly all facets of human economic activity. The future of finance is poised to primarily operate on-chain, with numerous blockchain networks supporting trillions of dollars in tokenized RWAs. These networks will be interconnected through a universal interoperability standard, establishing a shared foundation built upon blockchain and distributed ledger technology.