Tokenizing RWAs
Tokenizing real-world assets entails converting ownership rights of assets into on-chain tokens. This process involves creating a digital representation of the underlying asset, facilitating on-chain management of ownership rights and bridging the gap between physical and digital assets.
Tokenized assets offer several advantages over traditional assets, including improved liquidity, broader access, transparent on-chain management, and reduced transactional friction. Specifically in the realm of financial assets, tokenization of RWAs streamlines various processes such as distribution, trading, clearing, settlement, and safekeeping, consolidating them into a singular layer. This consolidation fosters a more efficient on-chain financial system with decreased counterparty risk, enabling capital to be mobilized more effectively.
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