What is real-world asset tokenisation? Bonds, funds and property on a blockchain
By SendPay Business · · 2 min read
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.
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.
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.
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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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. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.