Real-world assets

What are real-world asset tokens?

Real-world asset tokenization connects a blockchain token to something outside the blockchain, such as a commodity, a fund holding or a credit agreement. The token may represent ownership, a contractual claim or only price exposure. These are materially different arrangements. The link between the token and the underlying asset depends on an issuer, legal documents, custody and processes for enforcing the claim.

How it works

A blockchain can make records and transfers easier to inspect, but it cannot independently prove that off-chain assets exist or that a claim will be honored. Transfers may require identity checks or be restricted to eligible investors. Redemptions can depend on business hours, minimum amounts and intermediaries. Oracle data helps applications use external information, but an oracle is not a substitute for ownership rights. Read the product structure before comparing its quoted yield with another token.