Real World Assets

Today, I want to talk a bit about “Real World Assets (RWA).”

Before diving into what real world assets are, it might be helpful to set the stage a little.

The name itself, “real world assets,” kind of suggests there’s also “not real world assets”, and there’s some truth to that.

Of course, we’re not talking about assets from an imaginary world here.

Maybe we can clarify things by distinguishing between “real world assets” and “digital world assets.”

When we say real world assets, we’re talking about investment products like bonds, stocks, real estate, art, commodities, and so on, that are part of our tangible lives, but transferred into the digital world.

These days, some of these investment tools (like a stock fund or a gold fund or bond you buy through online banking) might already seem digital to you.

But what we’re talking about here is a bit different: a more transparent and secure digitization, a true tokenization process.

Thanks to the decentralized and transparent environment provided by blockchain, these investment tools can now be tokenized.

This essentially means opening up a new digital market for each of these investment tools, increasing liquidity in the existing market, and making access easier.

Take our country, for example; real estate investment is still one of the most popular and reasonably profitable long-term investment tools.

But buying a house in the current market is getting harder and harder. Rising prices and lack of liquidity are big barriers for individuals wanting to invest in real estate.

When you tokenize any real estate using blockchain technology, you no longer have to buy an entire property to invest.

You can divide a house or office into a certain number of tokens and own just a part of it.

Instead of buying one whole house, you can buy 1/10, 1/100, or even 1/1000 of a house.

🔹 Example:

Last year, a real estate project in the U.S. received investment by being tokenized on the blockchain instead of using traditional investment funds. Thanks to this system, even a 1/1000 share of a single house became purchasable. Plus, investors could track all transactions transparently through smart contracts.

So these examples aren’t just theoretical anymore; they’re happening in practice.

This situation not only brings liquidity to the market of the investment tool/real world asset in question but also allows individuals to access assets they couldn’t invest in alone before.

So how is this different from real estate funds?

Here, you can personally choose the real world asset you want to invest in and track your investment in a completely transparent and decentralized environment.

All your rights over the asset are secured by smart contracts.

There’s a lot more to write about real world assets; let’s leave it here for now.

Maybe more to come :)

We’ll look at example projects in this area or questions like “are there any disadvantages/risks?” in other articles.

Those parts can be topics for other newsletters. 😊

“If 1/1000 of a house belongs to you, does that count as an investment?

Or do we still need something we can ‘touch’?”