The concept of RWA (Real World Associated Assets) is closely related to tokenization (see first image). With tokenization, you can represent and interact with real-world assets on the blockchain (see second image).

What can be turned into tokens backed by real assets?

The answer is: anything! Whether it’s collectibles, oil, real estate, or anything tangible!

Let’s look at some real-world examples 👇

Imagine you want to invest in a luxury property in New York worth over $10 million. It may be difficult for the average person to get a share of this investment, but with tokenization, this property can be divided into small parts of ownership.

For example, if there are 1 million tokens backing this property, you can own a very small percentage like 0.0001% of this luxury property — making your contribution only $10.