Real-World Assets (RWA)
Off-chain assets like Treasury bonds or real estate represented as on-chain tokens, bringing traditional finance value into DeFi.
Tokenizing a real-world asset means issuing a blockchain token that represents legal claim to something off-chain—a US Treasury bill, a loan, a building, a barrel of oil. The token trades on-chain; the asset sits with a custodian or legal entity.
Tokenized Treasuries led the 2024–2025 boom, with funds from BlackRock and Franklin Templeton pushing the category past $10 billion. The appeal is yield plus blockchain settlement.
Risk lives off-chain. A token is only worth the enforceability of the claim behind it, and that depends on the issuer staying solvent and a court honoring the paperwork.
Related terms
A token representing a regulated investment — equity, debt, or a share of profits — and subject to securities law.
StablecoinA crypto token designed to hold a steady value, almost always pegged one-to-one with the US dollar.
CollateralAn asset locked to back a loan or leveraged position, sold off automatically if its value drops too far.
DeFi (Decentralized Finance)Financial services run by code on public blockchains, letting people trade or borrow without a bank.