What is RWAs Tokenization? Top Cryptos, Basics, Prospects

Here, we’ll review the technology that uses blockchain infrastructure to connect on-chain tokens with real-world objects, from stocks and physical goods to art pieces and computational capacities. Real-world assets (RWAs) are tokens that connect the blockchain industry with various other industries and bring its benefits to them.

What are RWAs in crypto: Highlights

Real-world assets represent the bridge between on-chain assets and real objects.

They enable people to utilize blockchain advantages beyond finance and other traditional blockchain applications. Combined with artificial intelligence (AI) and Internet of Things (IoT) technologies, tokens can be directly connected to physical objects and control who can use them. Due to the decentralized nature of blockchain, it makes assets more accessible, contributing to the equality and empowerment of communities.

What are RWAs?

There are various examples of real-world assets, and this industry is rapidly growing nowadays.

Source: RWA.xyz

Current examples include:

Stablecoins, which are tokenized fiat currencies, like USD and EUR. It is the oldest and the largest RWA field, and now it’s often considered a separate industry.

Tokenized commodities compose another major field, which includes tokens representing company stocks, government obligations, and various commodities.

Art NFTs represent secure and immutable art piece ownership, ensuring that artists and art collectors will remain satisfied.

Computation tokens enable people to sell and buy access to computational resources, be it CPU, GPU, storage, or Internet bandwidth, enhancing various industries.

Tokenized records ensure immutability and security of important records, such as healthcare or supply chain information.

This isn’t an exhaustive list, as new segments of the RWA market are under development today, while new projects and startups arise regularly. Along with decentralized physical infrastructure networks (DePINs), an adjacent and similar blockchain segment, RWAs bring the power of blockchain technology to other established industries.

How to tokenize RWAs

Real-world asset creation is a highly complex process, and its full depiction is greatly beyond the scope of this article. In fact, it can be a subject of several articles itself. Here, we’ll just provide a generalized algorithm of the RWA tokenization.

Token definition is where one should begin. Few things can be as detrimental as an RWA token without a clear structure, so it’s essential to describe clearly what the token will do, how it will be connected with the asset, which rights it will give, and all other aspects.

Valuation determines how the token will reflect the value defined in the previous step, incentivizing its holders. It should also include all relevant risk disclosures and due diligence reports.

Off-chain mechanics include how the token will be secured and protected to preserve its real-world value. It includes assets that will protect the token’s value (custody), audit rights, and legal notice.

Token model and economy are crucial elements of any on-chain asset. They include the chain, token standard, transfer rules, payment rail, minting rules, token unlock rules, and distribution rules. If one plans to develop a separate L1/L2 chain, it will require the development of the consensus mechanism, smart contract logic, and many other crucial elements of a decentralized network.

Tech integration defines how the token will be integrated with the asset it represents, and includes various technologies that can be used for that, from payment gates to the Internet of Things.

Legal compliance is essential for RWA management, as it connects with the assets under various legal frameworks, which all should be included and considered.

Token launch is the final part of the RWA token development process: an initial token offering (ICO), minting policy, and airdrop distribution.

Post-launch governance includes a variety of actions that maintain the token’s viability, such as investor and user communication, regular audits, governance, upgrades, and the redemption/liquidation plans in case of project closure.

Depending on the specific asset, the exact algorithm will be different. Stablecoins, tokenized gold assets, healthcare records, art NFTs, tokenized GPU access, and many more RWA types all require. Still, the algorithm above is a good starting point.

RWAs tokenization: Segments

Let’s now dive deeper into the RWA segmentation in different industries. The usage of blockchain in healthcare and real estate tokenization are examples of the fastest-growing markets in the world, according to various studies and market predictions.

Blockchain in healthcare market evaluation and prediction

Source: Grand View Research

Here, however, we’ll explore more established industries, which are already well-known and widely used today: tokenized commodities and real-world NFTs.

Tokenized commodities

As the blockchain was initially a payment medium, commodity tokenization was one of the first applications of blockchain technology.

Asset ownership is secured by the blockchain, which guarantees immutability and minimizes breaches.

Tokenization enables fractional ownership of assets, as anyone can buy tokens and, therefore, own a portion of it and have its benefits.

Tokenized assets can be globally accessed by everyone, without any restrictions other than Internet access.

While centralized trading platforms can restrict users according to the jurisdictions where they operate, decentralized exchanges (DEXs) cannot be restricted at all.

NFTs for real-world objects

Non-fungible tokens (NFTs) were booming in 2021, but are used on a regular basis in many fields in 2025. They are immutable identifiers that can protect anything unique, from art objects to personal identities.

Art ownership is one of the first NFT applications, and it helps artists to sell their pieces to art collectors and earn money, while collectors can prove their piece ownership.

While it’s mostly applied to art, all unique objects can be protected with an NFT, ensuring ownership as an immutable object passport.

Exclusive access to anything, be it a cinema ticket or a yacht club, is another application of NFTs in various industries.

Along with that, NFTs can be used to protect one’s identity without revealing it. A person can engage with communities, communicate, cooperate, process payments, and manage reputation while remaining effectively anonymous.

RWAs tokenization: Top cryptos to watch

Well-known programmable blockchains, such as Ethereum and Solana, are widely used for issuing RWA tokens, but specialized L1 and L2 chains are being developed actively. They provide more tools for compliance and liability management.

Here are several trending RWA chains and tokens.

Avalanche (AVAX) is one of the largest Layer-1 blockchains, and its multichain structure allows creating custom blockchains for RWA tokenization.

Chainlink (LINK), an Ethereum token, is associated with the oracle platform that brings commodity markets onchain.

Render (RENDER) is a platform built on Solana that allows users to rent and borrow GPU computing resources.

Stellar (XLM) is an L1 blockchain that uses a unique Proof-of-Agreement (PoA) consensus, which is well-suited for RWAs that require trust and compliance.

Ondo (ONDO) is another L1 blockchain, built around the Ondo Finance company and focused on institutionalized asset management and tokenization.

While blockchain started as a technology for payments and financial management, its decentralized and trustless features are valuable in almost every industry and contribute to the development and empowerment of world communities. And we are eager to expand the blockchain infrastructure for these brand new techs and applications.