Real-World

Definition ∞ Real-world assets (RWAs) are tangible or intangible assets that exist outside the blockchain ecosystem but are tokenized and represented on-chain. Examples include real estate, commodities, stocks, and intellectual property rights. The tokenization of RWAs aims to bring traditional financial instruments and physical assets into the decentralized finance (DeFi) space, enhancing liquidity and accessibility.
Context ∞ The current discourse surrounding RWAs centers on the regulatory complexities of tokenizing diverse asset classes and the development of robust legal frameworks to govern their on-chain representation. Discussions also involve the technological challenges of accurately valuing and managing these assets in a decentralized manner. Future advancements are anticipated to bridge traditional finance and DeFi more effectively, unlocking new investment opportunities.