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Enhanced Asset Liquidity

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Written by All InX
Updated over 3 months ago

Traditional physical assets—such as real estate, artworks, bonds, and gold—often face high transaction thresholds and low liquidity. For example, an office building cannot be easily subdivided for sale, making it difficult for small investors to participate; bonds or private equity investments are often restricted by high capital requirements and long lock-up periods.

Through the tokenization of RWA (Real World Assets), these limitations can be effectively addressed:


Divisibility of Assets

Once tokenized, assets that previously required large capital can be split into smaller units.

For example, a $100 million office building could be divided into 100 million tokens, each representing partial ownership. Investors can participate with just a few hundred or even tens of dollars.


Global Market Circulation

Once on-chain, tokens can be freely traded, transferred, or used as collateral in global crypto markets, overcoming geographic and regulatory barriers.

This allows investors to access global liquidity without being restricted by the financial system of any single country.


Instant Trading and Liquidation

Unlike traditional assets that require complex legal procedures, RWA tokens can be traded at any time on exchanges or DeFi platforms.

Investors can sell their tokens when needed to quickly access liquidity, without waiting months or years as with traditional assets.


Collateral and Portfolio Investment

RWA tokens can not only be traded directly but also used as collateral for loans, derivatives, or liquidity mining.

This allows investors to manage funds more flexibly and improve asset utilization.


Attracting More Investors

Low entry barriers and high liquidity enable more retail investors to participate in markets previously accessible only to institutions or high-net-worth individuals, expanding market depth and breadth and further enhancing overall asset liquidity.


Summary

The enhanced liquidity of RWA breaks the traditional limitations of “high-threshold, low-liquidity” assets, allowing assets to be traded, subdivided, and utilized like cryptocurrencies, injecting new vitality into the financial market.

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