BlockchainIntermediate#Tokenization#DeFi#TradFi
RWA (Real World Assets)
R
Definition
The tokenization of off-chain assets — real estate, treasury bills, commodities, private credit — into on-chain tokens that can be traded, fractionalized, and used in DeFi.
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Concept Diagram
Key Takeaways
1
RWA tokenizes $300T+ of traditional assets — treasuries, real estate, credit — into tradeable on-chain tokens.
2
BlackRock's BUIDL fund and Ondo Finance are leading the tokenized treasury segment at $1.5B+ TVL.
3
Tokenization enables fractional ownership, global access, and DeFi composability for real-world assets.
4
Regulatory compliance is maintained through KYC-gated smart contracts.
Practical Example
An investor in Argentina buys $100 of tokenized US Treasury Bills via Ondo Finance, earning 5% APY in USDC — accessing a yield previously reserved for institutional players with $1M+ minimums.
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Related Terms
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TVL (Total Value Locked)The sum of all assets currently staked or invested within a DeFi protocol, reflecting its depth and adoption.
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DAO (Decentralized Autonomous Organization)An organization represented by rules encoded as a computer program that is transparent and controlled by the organization members.
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Governance TokenA cryptocurrency that allows its holders to vote on decisions that govern the development and operation of a blockchain project.
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StablecoinA cryptocurrency designed to have a stable price, typically by being pegged to a reserve asset such as the US Dollar.
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