RWA tokens

What are Real-World Asset (RWA) Tokens?

Real-World Asset (RWA) tokens are blockchain-based digital receipts that represent ownership in physical or traditional financial assets—such as real estate, Treasury bills, commodities, invoices, or art.
By tokenising these assets, issuers split them into smaller, cheaper, tradeable units, unlock 24/7 markets, and remove layers of intermediaries.

How It Works

1. Asset selection – issuer chooses a real-world asset (property, T-bill, gold bar, invoice).
2. Legal wrapper – asset is placed in a special-purpose vehicle (SPV) or trust.
3. Token mint – ERC-20 (or equivalent) tokens are minted 1:1 against the wrapper.
4. On-chain trading – tokens trade 24/7 on CEXs/DEXs; holders receive dividends, rent, or yield.
5. Redemption – token can be burned to claim the underlying asset or cash equivalent.

Benefits

• Fractional ownership – buy $50 of a $5 M building.
• 24/7 liquidity – trade on crypto exchanges outside market hours.
• Transparent ledger – blockchain shows real-time ownership, cutting fraud.
• Lower costs – fewer intermediaries, legal fees, and settlement delays.
• Yield access – earn real-world yields (rent, bond coupons) in DeFi.

Challenges

• Regulatory maze – every jurisdiction treats tokenised assets differently.
• Custody risk – issuer must actually hold the asset and insure it.
• Oracle reliance – off-chain data (rent, NAV) must be accurate and timely.
• Thin liquidity – many RWA pools < $5 M; large trades cause slippage.
• KYC/AML gates – most issuers require identity checks for primary mint/burn.

Notable RWA-Focused Tokens

Token	Project	Role
XLM	Stellar	Issuance rails for tokenised T-bills, property, carbon credits.
ALGO	Algorand	Regulated on-chain T-bill funds (USYC, USDY).
LINK	Chainlink	Oracle feeds for asset NAV, rent, interest rates.
MKR	MakerDAO	Vaults that accept tokenised T-bills as collateral.
ONDO	Ondo Finance	Tokenised US Treasuries (OUSG) and instant-settlement stablecoins.
POLYX	Polymesh	Compliance chain for security tokens (equity, funds, real estate).

Final Thoughts

RWA tokens bridge crypto volatility with real-world cash-flows, offering DeFi users access to bond-like yields and traditional investors a faster, cheaper way to trade physical assets.
Regulatory clarity and deeper liquidity are still needed, but every major chain is now racing to tokenise everything from invoices to skyscrapers.

Useful Links

• Coinranking RWA Token List
• Stellar Asset Issuance Guide
• Algorand Real-World Assets
• Chainlink Proof-of-Reserve
• Ondo Finance Docs