RWA, for Real-World Assets, refers to the tokenization of real-world assets on a blockchain. This includes physical or financial assets such as:

• Real estate,

• Corporate stocks,

• Bonds,

• Commodities (gold, oil, etc.),

• Invoices, credits, artworks, etc.

The principle of RWA is to create tokens representing these assets, in order to make them tradable, fractional, and accessible via the blockchain.

Benefits of RWA:

• Increased liquidity for traditionally illiquid assets,

• Global accessibility, 24/7, without traditional intermediaries,

• Transparency and traceability via the blockchain,

• Fractionalization: the possibility to buy a share of real estate or a bond, for example.

Examples of RWA projects:

• Centrifuge: tokenization of invoices to obtain financing,

• Ondo Finance: offers tokenized bonds on the blockchain,

• RealT: tokenized real estate in the United States.

RWAs are seen as a bridge between traditional finance and DeFi, and one of the pillars of institutional adoption of blockchain.