Crypto glossary
RWA tokenization (real-world assets)
RWA tokenization is the process of representing real-world assets, such as government bonds, funds, real estate or credit, as tokens on a blockchain.
An issuer holds the underlying asset through a legal structure, such as a fund or special purpose vehicle, and mints tokens that represent ownership of it or a claim on it. The tokens can then be transferred, settled and used in smart contracts around the clock, often with built-in transfer restrictions that limit holders to investors who have passed KYC checks.
Tokenized US Treasury and money market funds are among the largest categories, with products such as BlackRock's BUIDL and Franklin Templeton's BENJI. Private credit, gold and equities are also being tokenized, and fiat-backed stablecoins are sometimes counted as the biggest real-world asset use case of all.
A token is only as good as the legal claim and the custodian behind it. Investors depend on the issuer, on accurate off-chain reporting and on courts recognizing token ownership, and many products are open only to qualified investors.
Example
A DAO with idle stablecoins buys tokens of a tokenized Treasury fund, earning yield from short-term US government bonds while keeping the position on-chain and redeemable.
Related terms
Latest articles on RWA tokenization
- What Is Real-World Asset Tokenization? How Stocks, Bonds and Funds Move Onchain
- XRP Ledger Dominates 2026 Commodities Tokenization Race With $2.2 Billion in Assets
- Solana Eyes Hong Kong as Its Next Major Tokenization Frontier
- Boeing, ServiceNow and Nebius Join Growing Backlash Against OKX Stock Tokenization Plan
- Amundi Expands Tokenization into European Equity Index Investing
