RWA (real-world asset token)
Reserves & backingA token representing an off-chain asset — T-bill funds, gold, credit or equities. Unlike a stablecoin it is not pegged to $1 and its price moves with the underlying.
Tokenised treasury funds accrue yield to holders and are typically restricted to eligible investors, with transfer allowlists. Tokenised gold tracks a metal price with a storage and custody cost. Tokenised equities track a share, sometimes synthetically.
The critical questions are legal, not technical: what claim does the token confer, against which entity, under which jurisdiction, and how do you redeem it.
Why it matters
RWAs are increasingly used as the reserve behind stablecoins and as a yield alternative to holding them.
See it in action
Related terms
What the issuer actually holds against outstanding tokens: T-bills, overnight repo, bank deposits, commercial paper, crypto collateral, or a mix.
Which regime the issuer operates under — for example EU MiCA e-money tokens, a NYDFS trust charter, or a Singapore/UAE licence — and the reserve, reporting and redemption duties that come with it.
The right to exchange a token for one unit of the underlying with the issuer, and the conditions attached: eligibility, minimum size, fees and settlement time.