Definition ∞ RWA Growth refers to the expansion in the volume and adoption of Real World Assets tokenized on blockchain networks. This trend involves converting tangible and intangible assets, such as real estate, commodities, or intellectual property, into digital tokens. These tokens can then be managed and traded on distributed ledgers.
Context ∞ RWA Growth signifies a crucial step in bridging traditional financial markets with decentralized finance (DeFi), potentially unlocking vast liquidity and accessibility for a wider range of assets. This development is attracting significant institutional interest, as it offers new avenues for investment, fractional ownership, and more efficient asset management. Regulatory clarity and standardized tokenization frameworks are critical for sustaining this expansion and ensuring market integrity.