RWAs
Real-world Assets tokenized on blockchain for fractional ownership, liquidity, and transparency, bridging traditional and decentralized finance.
What is RWAs?
Real-world Assets (RWAs) refer to physical or traditional financial assets (e.g., real estate, bonds, commodities) tokenized on blockchain for fractional ownership, liquidity, and transparency. Tokenization bridges TradFi and DeFi, enabling global access to assets via blockchain and smart contracts. RWAs use oracles for off-chain data integration, supporting use cases like lending and yield farming, though challenges include regulation and custody.
Driven by stablecoins and treasuries, its market size is over $230 billion in 2025. RWA tokenization transforms tangible and intangible assets—such as real estate, commodities, art, or intellectual property—into tokens, allowing investors to own fractions of high-value assets with reduced transaction costs and increased transparency.
For example, a $10 million property can be tokenized into 10,000 shares, tradable on decentralized platforms. Bond tokenization involves issuing fixed-income securities, like corporate or government bonds, as digital tokens, streamlining settlement, reducing intermediaries, and enabling 24/7 trading on blockchain networks like Ethereum or Solana.
Related Terms
Trustlessness
A system property allowing transactions to occur without relying on trust in any single party or intermediary.
Block Proposer in Ethereum
The validator pseudo-randomly selected to propose and broadcast a new block during a specific 12-second slot in Ethereum's proof-of-stake consensus mechanism.
Initial Margin
The upfront collateral required to open a leveraged position.
Gas (Ethereum)
A unit measuring the computational effort required to execute transactions or smart contracts on Ethereum.
Federal Funds Interest Rate
The interest rate at which depository institutions lend reserve balances to each other overnight, targeted by the Federal Reserve to influence economic activity.
Double Spend
Attempting to spend the same digital asset more than once in a blockchain network.