What are Real-World Assets (RWAs)?
Summary
Real-world assets (RWAs) are digital tokens on a blockchain that represent ownership of traditional assets such as fiat currency, US Treasuries, commodities, and real estate. Through a process called tokenization, these assets become tradable onchain, offering benefits like 24/7 trading, instant settlement, and increased fractional accessibility. Major financial institutions like BlackRock and Franklin Templeton are increasingly adopting this technology, though investors must remain aware of specific risks, including custodial mismanagement, regulatory uncertainty, and potential smart contract vulnerabilities.
(Source:The Block)