Access to high-value real estate, precious metals, or private equity may remain reserved for the affluent, but RWA tokenization has made it possible for casual investors to hold fractions of these assets. RWA, or real-world asset tokenization, is the process of transforming tangible assets into tradable tokens on a blockchain. Smart contracts determine rules for tokens, making the process tamper-proof, transparent, and efficient.
In theory, any asset can be tokenized – collectibles, real estate, intellectual properties, luxury goods, etc. – but in practice, most investments are in real estate, art, and luxury vehicles. These assets are divided into multiple tokens, letting the average investor easily obtain any profit.
Real estate is the biggest asset class worldwide, with the corresponding market expected to reach a staggering $654.39 trillion in 2025. Residential properties dominate the market with a projected volume of $534.37 trillion. Most people can’t purchase an office building worth $1 billion, but if you decide to split the property into a million tokens, the average investor needs just $1,000 to obtain one. When the building eventually starts generating rental income, the token holders obtain returns in proportion to the number of tokens they own.
1. Blocksquare
Real estate investors engage only in the top markets, leaving hundreds of smaller ones with insufficient liquidity. Blocksquare’s vision is to power hundreds of platforms worldwide, connecting investors to lucrative opportunities in their region. Its real estate tokenization protocol enables entrepreneurs to digitize real estate assets at a very affordable cost, while its white-label platform offers a quick way to launch an investment marketplace. Blocksquare is considered a leading “white-label” marketplace provider because its vibrant community offers a great starting point for marketing activities from which to grow an investor base.
The Oceanpoint protocol, which bridges the gap between DeFi and the real estate sector through tokenization, is a crucial element. It operates in parallel with Blocksquare as a dynamic set of Ethereum smart contracts, collectively shaping an open-ended Decentralized Autonomous Organization or DAO, which is designed to accumulate a range of real estate assets. Governance is in the hands of the community, and everyone who takes part in the Oceanpoint DAO can be a real estate fund manager. Members participate in the market on their own terms, investing as much as they choose.
Blocksquare’s BST is the governance token that serves as the foundation of the Oceanpoint ecosystem. BST holders vote on proposals once they deposit and stake their tokens in the governance pool. Staking enables them to earn BST as the protocol grows. After the tokens are deposited, they are held by the pool smart contract until a member initiates a transaction to exit the pool, at which point they receive BST to their addresses.
Real estate tokenization starts with creating a PropToken smart contract with a maximum issuance of 100,000 tokens, which includes the property’s unique identifier. A Public Corporate Resolution is created to connect a real estate property and its income to the smart contract. This document is signed by the legal representative of the issuing company (such as the General Manager, Director, or CEO), whom the issuing entity’s shareholders have authorized. This entity is also the legal owner of the property. Token holders can lodge an appeal in court based on this corporate resolution if the entity stops paying them their share.
2. VeChain
VeChain offers robust and scalable solutions for authenticating and tracking assets. It integrates smart contracts and advanced technologies such as NFC/RFID to enhance trust, transparency, and efficiency in asset transactions. NFC/RFID tags ensure authenticity and traceability throughout the respective lifecycles of the assets. The platform announced an innovative integration with UFC in 2024, introducing fighter gloves with its NFC blockchain tech embedded.
The protocol also serves industries such as healthcare, logistics, food safety, and carbon management. Its strategic partnerships with BMW, DNV, Walmart, and other industry giants amplify its impact and credibility in the RWA space, demonstrating the tech’s practical applications.
3. Ondo Finance
Ondo Finance is a blockchain-based platform that tokenizes corporate debt, US Treasury bonds, and other real-world financial assets, offering lucrative and regulated investment opportunities. It specializes in building structured, blockchain-powered financial products that are grounded in traditional finance logic, introducing high-yield, risk-managed opportunities in a digitized package.
The focus on bridging DeFi and CeFi is notable, and the tokenized products are compatible with DeFi applications as well as institutional standards. Nexus technology enables instant minting and redemption, guaranteeing 1:1 token backing by underlying securities. Transparency is ensured via monthly third-party reserve audits.
Ondo has forged partnerships with industry titans like ABN AMRO, Aon, and Franklin Templeton. ABN AMRO is exploring real estate and bond tokenization on the network, Franklin Templeton leverages its omni-chain issuance for tokenized mutual funds, and Aon delivers risk management controls.
4. Bitbond
Bitbond focuses on fixed-income assets and tokenized debt instruments. Its digital bonds can be issued, traded, and sold without the friction inherent to TradFi. Its tools streamline bond issuance via blockchain, making it more transparent, more affordable, and faster. Bitbond is particularly popular among fintech companies and banks seeking to modernize their approach to debt securities.
5. Digital Asset Creators
Digital Asset Creators focuses on quantitative crypto trading and asset tokenization. The platform integrates AI to improve trade security and accuracy, providing clients with end-to-end asset tokenization solutions. Its services target companies seeking to digitize assets such as precious metals, intellectual property, and real estate.
It offers AI-driven tools for trading and evaluating tokenized assets and deep knowledge of data tokenization, and its blockchain products ensure faultless RWA tokenization.
DAOs, mature blockchains, and changing needs make the case for RWA tokenization
While a user theoretically holds rights over an asset through the tokens they obtain, the real-world property is legally owned by an individual, a company, or another legal entity. The framework necessary for evaluating, selling, or leasing the tokenized asset also stipulates the actions to take in the event of a legal dispute. This is where the management structure, as seen in forms such as DAOs, CAOs, or centralized governance organizations, comes into play. These organizations manage the community of token holders. The most optimal structure is the DAO, where smart contracts automate governance. Various legal forms exist to establish DAOs depending on the jurisdiction. In an RWA project, a community that exists as a DAO has a say in the lease or sale of the RWA in question.
Blockchains are faster and more mature, smart contracts are smarter, and user interfaces are simpler than just a few years ago. Appetites for diversified portfolios and alternative investments are growing. With rising market volatility and inflation, RWA tokenization marries safe investments and blockchain-enabled liquidity. There is no longer a need to wait for months or years to sell a real estate property or another valuable asset.
