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What is real-world asset tokenisation? Bonds, funds and property on a blockchain

By SendPay Business · · 2 min read

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Real-world asset tokenisation, often shortened to RWA, means representing ownership of a traditional asset, such as a government bond, a fund, property or gold, as a token on a blockchain. The token is a digital record of a claim on the real asset.

How it works

  • A firm holds the real asset, often through a legal structure set up for the purpose.
  • It issues tokens on a blockchain that represent shares in that asset.
  • Investors buy, hold and transfer the tokens like other crypto assets.
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Possible benefits

Supporters say tokenisation can make settlement faster, allow smaller minimum investments, let assets trade outside normal market hours, and make ownership records easier to track. Several large asset managers have launched tokenised money-market funds.

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The risks

A token is only as good as the legal claim behind it and the firm holding the asset. Rules differ by country, many tokenised products are only open to professional investors, and smart contract or custody failures can cause losses.

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Where SendPay fits

SendPay does not offer tokenised assets or investments. A SendPay Crypto Exchange platform lets your customers buy, sell and hold crypto in your own branded app, with assets held with regulated partners.

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Questions people ask

What is a stablecoin?

The most common tokenised asset today.

Stablecoins →
What is a crypto custodian?

Who holds assets on investors' behalf.

Crypto custodians →
What is MiCA?

The EU's crypto rulebook.

MiCA →

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Spotted a mistake or something out of date? and we'll fix it. How our guides are made

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.