Understanding Real-World Assets (RWAs) and Tokenization in Crypto
Understanding Real-World Assets (RWAs) and Tokenization in Crypto
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This article defines Real-World Assets (RWAs) as crypto tokens backed by traditional assets such as gold, fiat currency, stocks, or bonds. It explains the process of tokenization, where an existing asset is represented on a blockchain, allowing investors to hold digital ownership.
Real-world assets (RWAs) are crypto tokens backed by traditional assets. Issuers of RWAs take an existing asset — such as gold, fiat currency, stocks or bonds — and create a token representing it on the blockchain. This is a process called “tokenization.” The token now represents ownership in the underlying asset, allowing investors to buy […]