RWA Finance

Definition ∞ RWA Finance, or Real-World Asset Finance, refers to tokenizing tangible or intangible assets from traditional finance and integrating them into decentralized finance protocols. These assets can include real estate, commodities, invoices, or intellectual property. It aims to bridge conventional financial markets with the blockchain ecosystem.
Context ∞ RWA finance is viewed as a significant growth area for DeFi, potentially bringing substantial liquidity and utility to decentralized platforms. Key discussions revolve around legal frameworks for asset ownership, valuation methodologies, and ensuring the enforceability of off-chain collateral agreements. Successful RWA integration could broaden the appeal and stability of the digital asset market.