Which of the following statements about Real-World Assets (RWA) Tokenisation are correct?
- RWA tokenisation is the process of turning real-world assets into digital tokens on blockchain.
- Tokenisation of real-world assets allows fractional ownership.
- Tokenisation provides investment opportunities for individuals.
Select the answer using the code given below:
- 1, 2 and 3
- 2 and 3 only
- 1 and 2 only
- 1 and 3 only
Explanation
Statement 1 is correct
- RWA (Real-World Asset) tokenisation is the process of converting the rights to physical or traditional financial assets (such as real estate, gold, commodities, or bonds) into digital tokens on a blockchain.
Statement 2 is correct
- Because tokenised assets exist on blockchain networks, they can be bought, sold, and traded 24/7 without the restrictions of traditional market hours. Additionally, by dividing assets into smaller digital shares, it promotes “fractional inclusion,” allowing smaller investors to participate in markets that were previously out of reach.
Statement 3 is correct
- By enabling fractional ownership and lowering the minimum investment threshold, tokenisation democratises access to high-value, high-growth assets (like commercial real estate, infrastructure projects, or fine art) for individual retail investors in India and globally.
