What tokenization means
Tokenization represents a traditional asset with a blockchain token that can be transferred under defined rules.
The token does not erase the underlying legal, custody or valuation requirements; it changes how ownership and settlement are recorded.
Major RWA classes
Stablecoins, Treasuries, private credit, equities, commodities and real estate can all be represented onchain.
The most scalable categories tend to be assets with clear legal ownership, reliable pricing and straightforward custody.
The issuance chain
An issuer or asset manager acquires the underlying asset, a custodian safeguards it and a platform creates the token.
Investors need to understand the legal claim, redemption process, smart-contract permissions and the parties responsible for each layer.
Benefits and risks
Tokenization can support fractional ownership, faster settlement, continuous markets and broader access.
It also introduces smart-contract, custody, liquidity, legal and counterparty risks that remain even when the interface feels simple.