Tokenization of RWAs serves as a driver for these two trends:

1. Digitization of Assets:

The transformation of physical assets into digital formats or the migration of digital assets onto new infrastructure.

Tokenization examples - inventory, supply chain assets, financial products

2. Financialization of Assets:

The process of turning any asset into a financial instrument.

Tokenization examples - Data, intellectual property, in-game assets.

Examples of Assets:

• Patents
• Goodwill
• Trademarks
• Copyrights
• Machinery
• Inventory
• Art
• Collectibles
• Real Estate
• Precious metals

Benefits:

Through leveraging features of blockchain technology, tokenization unlocks three key benefits:

Efficiency

Improves transparency, traceability, transaction costs, reporting, programmability of the asset. Unlocking the efficiency is the first step of putting assets on-chain. This serves as the gateway for asset holders to move from centralized databases to on-chain data.

Examples - Inventory management, trade finance, healthcare records

Liquidity

Allows assets to change ownership in a transparent and structured manner. Creating liquidity to unlock hidden value of an asset.

Examples - Venture capital, fine art, collectibles, music, carbon credits

Decentralization

Allows distribution of asset ownership in a transparent and structured way.

Examples - Decentralized Physical Infrastructure, IoT