How RWA Tokenization Works: A Beginner’s Guide
In the rapidly evolving world of blockchain and decentralized finance (DeFi), RWA tokenization is gaining attention as a bridge between traditional finance and digital assets. Real-World Asset (RWA) tokenization allows tangible assets like real estate, art, commodities, and private equity to be represented as digital tokens on a blockchain. But how exactly does RWA tokenization work? And why is it becoming one of the most talked-about trends in 2025? This beginner’s guide breaks it all down — from what RWA tokenization means to how you can benefit from it. What is RWA Tokenization? RWA tokenization is the process of converting ownership rights in a real-world asset into a digital token stored and managed on a blockchain. These tokens represent either partial or full ownership of an asset, enabling it to be traded, sold, or transferred like any other digital asset. For example, instead of selling an entire property, a real estate developer could tokenize it and sell fractions of ownersh...