1/ RWAs are one of the hottest narratives in crypto. But tokenized share is still under 0.01% across major asset classes, pointing to massive RWA growth potential. Let’s explore a few below.

2/ RWAs are bridging the gap between TradFi and crypto, potentially bringing trillions of dollars onchain and democratizing access to institutional-level investment products. There are several different kinds of RWAs that either have been or could be tokenized in the future.

3/ Tangible, physical assets Real estate: Tokenized RE allows for fractional ownership of properties, from commercial buildings to residential homes, democratizing access to RE investment and enhancing liquidity in an illiquid market. Commodities: Physical goods like gold, silver, oil, and agricultural products can be tokenized, allowing for more efficient trading and ownership. Art and collectibles: High-value art pieces, trading cards, and other collectibles can be tokenized, allowing more investors to hold shares in these traditionally exclusive assets.

4/ Intangible assets Bonds and fixed income: Tokenization of government and corporate bonds makes them more accessible to a global investor base and enables more efficient issuance and trading. Equities: Company shares can be represented as tokens, streamlining settlement processes and enabling 24/7 trading. Intellectual property: Patents, copyrights, trademarks, and royalty streams can be tokenized, creating new ways to monetize and invest in creative and innovative works.

5/ Emerging RWA categories Insurance policies: Tokenized insurance contracts that can be traded and settled onchain. Revenue shares: Tokens representing rights to future revenue streams from businesses or projects. Structured products: Complex financial instruments combining multiple asset types with specific risk-return profiles.

6/ Last but not least: Stablecoins Stablecoins are already one of the biggest and most widely used categories of crypto assets, with most pegged to the U.S. dollar. Stablecoins come in several varieties. Fiat-backed stablecoins like USDT and USDC, for instance, are backed by reserves of the underlying currency held in bank accounts or invested in yield-bearing instruments like treasuries. Others, like Paxos Gold (PAXG), are backed by physical commodities such as gold.

7/ The diversity of RWAs demonstrates the flexibility of blockchains, as virtually any asset can be tokenized in order to enhance its accessibility and liquidity.

8/ Want more? Read our Guide to RWAs: