One of the core advantages of RWA (Real World Assets) is digitalization and tokenization, which transfers traditional assets into the blockchain world.
Digitalization
Real-world assets, such as real estate, bonds, artworks, and commodities, usually exist in the form of paper contracts, registration documents, or traditional databases.
Digitalization is the process of converting asset information (ownership, value, income distribution, etc.) into a verifiable digital form using technology, and recording it on a blockchain or relevant database.
This allows asset data, which traditionally requires manual verification, law firms, or government endorsements, to be replaced by digital certificates—making it more transparent, traceable, and less susceptible to tampering.
Tokenization
Tokenization is a further step beyond digitalization, converting the asset’s value into tokens on the blockchain.
For example, a property worth $1,000,000 can be tokenized into 1,000,000 tokens, each representing $1 of value. Anyone can purchase a portion of the tokens to own a share of the property, without investing a large sum upfront.
Tokenization not only increases the liquidity of assets but also allows ordinary investors to participate in high-value asset investments.
Advantages
Divisibility: Tokens can be divided into small units, lowering the investment threshold.
Global circulation: Tokenized assets can be freely traded on global exchanges, breaking geographical limitations.
Transparency: Ownership and transaction records are on-chain, public, and verifiable.
Efficiency: Reduces intermediaries and accelerates transfer and settlement processes.
Example
Suppose All InX launches an RWA real estate product. Users can directly purchase tokens representing a share of the property on the platform. These tokens not only provide rental income dividends but can also be traded on the secondary market at any time, greatly enhancing investment flexibility.