RWA DeFi

Definition ∞ RWA DeFi stands for Real World Assets in Decentralized Finance, representing the tokenization and integration of tangible or traditional financial assets onto blockchain networks. This includes assets like real estate, commodities, or government bonds, which are converted into digital tokens. These tokens can then be used within decentralized lending, borrowing, and trading protocols.
Context ∞ RWA DeFi is a significant area of growth, aiming to bridge the gap between traditional finance and the decentralized digital asset ecosystem. News frequently covers new platforms and partnerships that facilitate the tokenization of various real world assets. The regulatory treatment and legal frameworks for RWA DeFi remain a key discussion point, influencing its broader adoption.