How RWA tokenization changes the way we own assets

Discover how RWA tokenization is transforming asset ownership and opening new financial opportunities

The tokenization of real-world assets (RWAs) is transforming the investment landscape by harnessing blockchain technology to make ownership more accessible, transparent and efficient. With fractional ownership and 24/7 trading, it removes traditional barriers and unlocks new opportunities for both investors and institutions.

What is RWA tokenization?

Think of it as turning something valuable – like a building or a painting – into digital shares that live on the blockchain. Instead of buying an entire asset, you can own a piece of it.

Why is it making waves?

Tokenization unlocks liquidity and makes even high-value assets accessible to a wider audience.

With blockchain integration, RWAs benefit from:

• Fractional ownership: Investors can own a portion of assets without needing large capital.
• Improved liquidity: Tokens allow for quicker transactions compared to traditional methods.
• Enhanced security: Blockchain ensures all transactions are recorded, traceable and resistant to tampering.

What can you actually tokenize?

Pretty much anything valuable. Right now, the most popular areas of tokenization are:

• Real estate - from apartments to office spaces
• Precious metals and commodities
• Art collections and rare collectibles
• Infrastructure projects like renewable energy plants
• Intellectual property, like music rights

This isn't just another tech trend. RWA tokenization is fundamentally transforming investment accessibility, allowing investors to enter markets previously reserved for institutions and high-net-worth individuals. Tokenized assets also integrate seamlessly with DeFi protocols, creating new financial opportunities. The underlying blockchain infrastructure ensures both asset security and unprecedented transaction transparency.

The numbers tell the story

According to Tren Finance research, the RWA tokenization market was valued at approximately $185 bn at the start of 2024, including stablecoins. By 2030, projections suggest this market could grow to anywhere from $2 tn to $10.9 tn, with real estate, debt instruments and investment funds leading the way. Institutional adoption is also gaining momentum – the US investment company BlackRock, for instance, recently launched a tokenized municipal bond initiative. Meanwhile, traditional financial infrastructures like DTCC, Clearstream and Euroclear are rolling out tokenization pilot projects, laying the groundwork for a broader adoption of blockchain technology.

What's standing in the way?

Like any breakthrough technology, tokenization faces its share of challenges. Regulators worldwide are still working on creating clear frameworks for these new assets. Many large institutions, while interested, are taking a measured approach before diving in. And as the technology continues to evolve, we're seeing occasional growing pains as platforms and protocols mature. Yet these hurdles aren't stopping the momentum – they're just part of the journey toward wider adoption.

The future of RWA tokenization

RWA tokenization is bridging two worlds: traditional assets and blockchain technology. It's making investing more inclusive, transparent and efficient. The market is young, growing fast and full of opportunities. Whether in real estate, fine art or infrastructure, RWA tokenization is paving the way for a more decentralized and accessible future.

Stay tuned for more 1inch DeFi Academy posts covering the most exciting concepts and trends in DeFi!