In traditional financial markets, many high-quality assets are often accessible only to high-net-worth individuals or institutional investors. Examples include real estate, commodities, fine art, or early-stage equity investments, which usually require significant capital.
Through blockchain technology, the tokenization of RWA (Real World Assets) breaks these assets into smaller, tradable units, allowing everyday investors to participate with much lower entry costs.
For instance, consider a real estate property worth USD 5 million. Traditionally, only institutions or wealthy individuals could afford to purchase it directly.
With tokenization, however, the property can be divided into 5 million tokens, each representing USD 1 of ownership.
Retail investors can invest with as little as a few dozen dollars (or even less), thereby indirectly owning part of the real estate and enjoying rental income or potential appreciation.
This approach significantly lowers the investment threshold, democratizing opportunities and enabling more small and medium investors to enter markets traditionally dominated by large capital players.
At the same time, investors can flexibly allocate their portfolios based on their risk preferences and available capital, achieving more personalized asset management.
Conclusion:
The tokenization of RWA makes “investment for everyone” possible. It not only broadens the investor base but also promotes greater fairness and democratization in global financial markets.