Real World Assets (RWA): Definition, functions and types

In the exciting world of blockchain technology, Real World Assets (RWAs) have become a hot topic. These digital assets are transforming the way we interact with real-world goods and values. In this article, we will explore what Real World Assets are, what they are for, and the different types that exist in this innovative space.

What are Real World Assets?

Real World Assets (RWAs), translated as "Real World Assets", are a category of digital assets backed by goods and securities from the physical world. In essence, they represent the tokenization of traditional assets such as real estate, stocks, bonds, commodities, and other tangible assets. Tokenization involves converting these assets into digital tokens or tokens that can be bought, sold and traded on blockchain platforms.


History of assets and the representation of money. Source: Bitcoin Market Journal.

What are Real World Assets for?

  1. Facilitate Fractional Investing: One of the main advantages of RWAs is that they allow investors to buy fractions of expensive assets. This democratizes investing and allows more people to participate in markets that were previously out of reach.
  2. Greater Liquidity: Tokenization of real assets provides them with greater liquidity as investors can easily buy and sell these tokens on exchange platforms. This contrasts with traditional assets, which are often less liquid.

  3. Transparency and Security: Blockchain technology provides an immutable and transparent record of all RWA transactions. This increases security and reduces the risk of fraud.

  4. Efficiency in Asset Management: Asset management becomes more efficient and automated through smart contracts on blockchain. This may include dividend distributions, interest payments and other financial operations.

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Total Value Locked (TVL) of the Real World Assets sector. Source: Defillama.


  1. Tokenized Real Estate Properties: This involves dividing a property into tokens that represent parts of the property. Investors can buy and sell these tokens to gain exposure to real estate without needing to purchase an entire property.
  2. Tokenized Shares: Shares of companies can be tokenized to allow investors to buy fractions of a share. This expands accessibility to stock markets.
  3. Tokenized Bonds: Traditional bonds can also be tokenized. Investors can purchase bond tokens and receive interest payments more efficiently.

  4. Tokenized Raw Materials: Assets such as gold, oil and precious metals can be represented in the form of digital tokens, making it easier to invest in these assets.

  5. Other Asset Classes: In addition to the examples mentioned, RWAs can represent a wide variety of assets, from artwork to copyrights and more.

Steps for asset tokenization in the real world. Source: Zeeve.


Real World Assets are playing a critical role in the evolution of investing and asset management in the digital age. By tokenizing real-world assets, new investment opportunities are opened and the efficiency and liquidity of financial markets are improved. As blockchain technology continues to mature, we can expect to see an increase in the adoption and diversification of RWAs in the financial world. As a last piece of advice before closing this article, you can find it on different data portals such as Coinmarketcap or Defillama sections where the metrics are included of the different cryptoassets that make up the Real World Assets sector.


Top 10 protocols in the RWA sector by market capitalization. Source: Defillama.


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